How to Buy a House in Florida
Updated 2026-03-02 | Data from Zillow, HUD, Tax Foundation
Avg Home Price
$405,280
Closing Costs
$19,842
4.9% of price
Property Tax Rate
0.74%
$2,338/yr median
Days on Market
45
Median
FHA Loan Limit
$472,030
Attorney Required
Yes
Foreclosure Type
Judicial
Transfer Tax
0.7%
$0.70 per $100
Florida is the top destination state for domestic migration, and its housing market reflects that demand with strong appreciation and fierce competition in desirable areas. The state offers powerful financial incentives for homeowners: no state income tax, a generous homestead exemption that caps annual assessment increases at 3%, and a Save Our Homes portability provision that lets you transfer accumulated tax savings to a new home within the state. However, buyers must carefully evaluate insurance costs — homeowners insurance in Florida has become the most expensive in the nation, with average annual premiums exceeding $4,000 and some coastal properties facing $10,000+ premiums or difficulty obtaining coverage at all. Florida's real estate market is also uniquely influenced by cash buyers (both domestic and international), who account for a much higher percentage of transactions than the national average.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Zillow, HUD, Tax Foundation
Key Facts About Buying in Florida
- ✓No state income tax
- ✓One of the strongest homestead exemptions in the US (unlimited value)
- ✓Judicial foreclosure state
- ✓Active hurricane zone - flood insurance often required
The Home Buying Process in Florida
Buying a home in Florida follows a 10-step process. As an attorney state, you'll need legal representation at closing.
Check Your Credit Score & Finances
Get Pre-Approved for a Mortgage
Find a Real Estate Agent
Search for Homes & Make an Offer
Get a Home Inspection
Secure Your Financing
First-Time Buyer Programs in Florida
Florida Assist Second Mortgage
Deferred second mortgage for down payment
Florida Hometown Heroes
For community workers (teachers, nurses, first responders)
Cost of Buying a Home in Florida
| Down Payment (3.5% FHA) | $14,185 |
| Down Payment (20% Conventional) | $81,056 |
| Average Closing Costs | $19,842 |
| Transfer Tax | $2,837 |
| Annual Property Tax (est.) | $2,999/yr |
Legal & Regulatory Details in Florida
Homestead Exemption
Available
Unlimited value, up to 1/2 acre in city
Licensing Authority
Florida Department of Business and Professional Regulation
Florida Real Estate Law Overview
| Conveyance Document | Warranty deed |
| Security Instrument | Mortgage |
| Foreclosure Process | Judicial |
| Attorney Required at Closing | Yes |
| Deficiency Judgment | Yes |
| Redemption After Sale | Yes |
| Reinstatement Available | No |
| Seller Disclosures | Sellers must disclose non-obvious issues that materially affect value-radon hazards, coastal erosion rules, homeowners'-association matters, property-tax changes, environmental hazards, boundary disputes, pest infestations, sinkholes and structural problems. |
