Cost to buy a house in Florida
If you’re considering making Florida your permanent home, you’re not alone. The Sunshine State saw a significant influx of new residents in 2022, welcoming over 1,200 newcomers every day, according to the U.S. Census Bureau. However, while Florida offers beautiful beaches and a vibrant lifestyle, the homebuying process can be a competitive and sometimes complex endeavor. In this guide, we’ll break down everything you need to know about the costs of buying a house in Florida.
The Median Home Prices:
As of September 2023, the median sale price for a single-family home in Florida stands at $409,243, according to Florida Realtors. If you’re open to smaller spaces, condos or townhouses come with a median price tag of $324,990. However, it’s important to note that prices vary significantly depending on the location within the state. Here are some median prices in key areas:
- Miami-Fort Lauderdale-West Palm Beach: $600,000
- Jacksonville: $385,000
- Orlando-Kissimmee-Sanford: $435,000
- Tallahassee: $326,213
- Tampa-St. Petersburg-Clearwater: $415,000
- North Port-Sarasota-Bradenton: $499,945
Down Payment and Financing Options:
Contrary to popular belief, you don’t necessarily need to put down a full 20 percent of the purchase price. Popular mortgage programs have varying down payment requirements:
- Conventional loans: 3 percent
- FHA loans: 3.5 percent (credit score of 580 or higher), 10 percent (credit score between 500 and 579)
- VA loans: No down payment if you qualify
- USDA loans: No down payment if you qualify
If saving up for a down payment seems challenging, there are first-time homebuyer programs available for eligible borrowers, along with other down payment assistance options.
Closing Costs:
The average closing costs in Florida, according to Core Logic’s ClosingCorp, add up to 2.3 percent of the purchase price. On a median-priced $409,243 home, this amounts to approximately $9,412.59. It’s important to note that these costs are typically shared between the buyer and the seller. Common expenses include home appraisal and inspection fees.
Costs of Moving:
If you’re moving locally within Florida, the average cost is around $1,702, as reported by HomeAdvisor. However, for those relocating from another state, be prepared for a higher expense. The national average for a cross-country move is $4,617.
Ongoing Homeownership Costs:
Owning a home in Florida comes with additional expenses beyond the purchase price. These include:
- HOA fees (if applicable)
- Annual maintenance costs (recommended between 1 and 4 percent of the home’s value)
- Property taxes (average of $4,085 in 2022)
- Homeowners insurance (around $6,000 per year, due to the state’s susceptibility to hurricanes)
Note on Florida Homeowners Insurance:
It’s crucial to be aware that the Florida homeowners insurance market is undergoing significant challenges. Factors such as fraudulent claims and hurricane-related issues have led to higher premiums. Before purchasing a Florida home, consult closely with a real estate agent and possibly a local attorney to ensure the property can be insured at a cost you can afford.
Tips for Reducing Homebuying Costs:
- Negotiate for seller concessions
- Consider a smaller home in a more affordable location
- Monitor mortgage rates and consider waiting for a more favorable rate
Conclusion:
Navigating the Florida housing market requires careful consideration of various costs and factors. With the right information and assistance from an experienced local real estate agent, you can find a home that fits your budget and lifestyle. Remember, patience and thorough research can lead to a successful and satisfying homebuying experience in the Sunshine State.