Florida home buyers encounter unique challenges that are less of a concern in other parts of the country. Because of this, they need specific guidelines to help them succeed.
This guide explains the basic steps for buying a home in Florida, including state-specific issues like flood zones, insurance challenges, and real estate market quirks.
Key sections in this home buying guide:
- What you need to know about the market
- Why buying a home in Florida is unique
- How to buy a home in Florida, step by step
- How to keep up with market conditions
What to Know About the Market in 2025
Do you plan to buy a home in Florida during the latter half of 2025? If so, there are five important points you should know about the housing market.
- Home prices are falling: The statewide median price dropped nearly 5% over the past year, for several reasons. We expect prices to stabilize in the latter part of 2026.
- Buyer-friendly conditions: In many cities across Florida, the real estate market now favors buyers over sellers. This is largely due to the key point #3 below.
- Major inventory growth: Florida currently has about a 6-month supply of homes for sale according to Redfin, one of the highest levels among U.S. states.
- Slower pace for buyers: The typical home stays on the market for more than five weeks, indicating a slower overall pace within the housing market.
- Price cuts more common: In 2025, Florida has one of the highest percentages of real estate price reductions. Many sellers are cutting their prices to attract offers.
What This All Means for Buyers in 2025
For those buying a home in Florida, current market conditions put you in the driver’s seat.
A surge in the number of homes for sale has erased the frantic bidding wars of the past, giving buyers more choices and breathing room.
With sellers increasingly cutting prices and properties staying on the market longer, buyers have more leverage than in the past. They’re able to take more time, negotiate on price and terms, and secure a more favorable deal.
However, if you find a home that meets your needs and falls within budget, it might be best to make a strong offer! Some sellers don’t feel rushed to sell and will balk at a low-ball offer.
Why Buying a House in Florida Is Unique
Florida is unique among U.S. states, and so is the home buying process. In some ways, buying a home in Florida works the same as in other states. In other ways, it can be very different:
Here are some special considerations for buyers in the Sunshine State:
- Insurance is a major factor: Homeowner’s insurance coverage (particularly for hurricanes and floods) can be very expensive.
- Location and flood zones: Flood risk is a big concern. Buyers should find out if a home is in a designated flood zone and how that affects insurance costs.
- Hurricanes affect construction: Homes built with concrete block or hurricane-resistant features may be more durable and can lower insurance premiums.
- Unique legal protections: Florida’s homestead laws offer special protection for a primary residence against certain creditors and provide tax benefits.
- High humidity: The state’s hot, humid climate can contribute to issues like mold, rot, and pest infestations, major concerns for homeowners.
- HOAs are common: Many Florida communities are governed by a Homeowners Association (HOA), which can have specific rules, regulations, and fees.
- Seasonal market: The housing market can shift dramatically between the high and low tourist seasons, with more out-of-state buyers in the winter months.
How to Buy a Home in the Sunshine State
The home buying process can vary from one person to the next. Despite these differences, most people who are buying a home in Florida can benefit from the following 10-step approach.
Step 1: Decide If You’re Ready and Set a Realistic Budget
When buying a home in Florida, you need to look beyond the mortgage payment and consider other costs as well. Plan for higher insurance costs, hurricane deductibles, possible flood insurance, HOA or CDD fees, and property taxes.
What to estimate up front:
- Monthly housing payment: mortgage principal + interest + property tax + homeowners insurance + flood insurance (if needed) + HOA/CDD fees + utilities.
- Upfront cash: earnest money, inspection fees, appraisal fee (if applicable), closing costs, immediate repairs, and a contingency reserve.
- Ongoing reserves: emergency fund for roof or hurricane damage, and extra funds to cover other unexpected issues that life can bring.
Unique considerations for Florida:
- Insurance costs can be materially higher in coastal and high-risk areas. Wind/hurricane deductibles are often a percentage of dwelling coverage (e.g., 1%–5%) rather than a flat dollar amount.
- CDDs (community development districts) and special assessments add recurring charges that can change over time. Check the community’s history for past assessments.
Key steps to take at this stage:
- Add up a target monthly housing figure that includes mortgage principal + interest, property taxes, homeowners insurance, possible flood insurance, HOA/CDD fees, and utilities.
- Estimate upfront cash needs: typical earnest money, home inspection fees, appraisal fee (if required), closing costs. For planning, many buyers set aside 2–3% of the purchase price in addition to earnest money, but adjust this for your local market.
- Build a short-term reserve for emergencies. Roof repairs or hurricane-related damage can come with large out-of-pocket expenses even if you have insurance.
The takeaway: In addition to the mortgage payment, you need to know the total monthly cost and how much you need at closing. This knowledge will set you up for success.
Step 2: Get Pre-Approved for a Mortgage
A formal pre-approval gives you a maximum mortgage amount to work with and shows sellers you’ve had your finances reviewed. Both of these things will make the house-hunting process a lot easier.
In Florida, mortgage lenders also consider whether a property is insurable. They’ll want to see that a home can be covered by homeowners insurance and, if needed, flood insurance.
Key steps to take at this stage:
- Apply for a written pre-approval from a mortgage lender. This should verify your income, assets, and credit and give you a loan amount range (subject to conditions like appraisal and title).
- Gather documentation lenders commonly request: recent pay stubs, W-2s, two years of tax returns for self-employed buyers, bank statements, and identification.
- Ask lenders how they handle insurance for high-premium properties. Some lenders require escrow accounts for large annual insurance bills in higher-risk areas.
- Compare at least two lenders for rates, fees, and familiarity with Florida properties (flood zones, wind mitigation credits, seasonal comps, etc.).
The takeaway: A pre-approval shows what you can afford and supports your offer. It helps you shop for homes within a realistic price range, rather than wasting time on out-of-reach properties.
Step 3: Evaluate Neighborhoods and Long-Term Value
Choosing a neighborhood or community in Florida goes beyond schools and commute time.
Home buyers also need to consider, flood elevation, past storm impacts, local mitigation efforts, and community fees (CDDs and special assessments). These factors can affect long-term cost and resale implications.
Key steps to take at this stage:
- Check FEMA flood maps for the exact property or neighborhood and ask whether an elevation certificate exists. Elevation can affect flood insurance costs.
- Look into hurricane and wind history for the area, not just the property. Ask sellers or agents about prior storm damage and repairs.
- Learn whether a neighborhood has a CDD, special assessments, or history of new assessments. These may increase your monthly costs.
- For condos, review the association’s financial health and reserve funds. Some condo communities have had special assessments that hit owners unexpectedly.
- Consider seasonality: some Florida markets have strong seasonal swings in inventory and pricing because of snowbirds and short-term rental demand.
The takeaway: When buying a house, you’re also buying into the surrounding community. Research your chosen area carefully to make an informed decision. Identify pros and cons.
Step 4: Assemble Your Real Estate Team
Home buyers can benefit by working with professionals who understand local issues like flood maps, wind mitigation, and market nuances. For a typical buyer, the team consists of a real estate agent, loan officer, home inspector, and insurance provider.
Key steps to take at this stage:
- Hire a buyer’s agent who is familiar with your target neighborhoods and experienced with Florida-specific issues (flood zones, CDDs, condo litigation history).
- Confirm that your lender has handled Florida properties and understands insurance, flood requirements, and local appraisal challenges.
- Choose a home inspector who offers wind mitigation and four-point inspections (these reports can affect insurance). Find a roofer who will inspect roof condition and provide an assessment.
- Contact an insurance agent early to get preliminary quotes and to learn about wind and flood coverage options.
- Decide whether you need a real estate attorney. For complex deals, condos, or out-of-state buyers, legal review can be helpful.
The takeaway: With trusted local professionals on your side, you can house-hunt more efficiently and evaluate properties with a clearer sense of the cost and condition.
Step 5: Search Smart Using These Tools
Now that you’ve been pre-approved for a mortgage and found an agent to work with, you’re ready to start looking for a home. Use a variety of search methods to increase your chance for success.
Key steps to take at this stage:
- Set search alerts for your target neighborhoods and monitor inventory at different times of year. In some Florida cities, more listings appear in certain seasons.
- For each property, request history of insurance claims, prior storm repairs, and major renovations. Repeated water or roof claims are red flags.
- For coastal or low-lying homes, get the property’s elevation and request any elevation certificate if available. Elevation can affect your insurance costs.
- If considering new construction, ask about builder warranties, storm-repair policies, and potential completion delays caused by storms.
The takeaway: Using a variety of search methods (including a real estate agent) can help you find a suitable home within your budget, sooner rather than later.
Step 6: Make a Smart Offer Based on Comps
When you make an offer in Florida, be clear about who holds the earnest money, which contingencies you need, and how the contract terms handle inspections and closing timelines.
Key steps to take at this stage:
- Review comparable sales with your agent. Look at what similar homes in the same neighborhood have sold for recently. Factor in a premium or discount for unique features, condition, etc.
- Write a strong purchase offer. It should clearly state the offer price, your financing method and pre-approval status, and your preferred closing timeline.
- Include necessary contingencies. They give you a way to back out of the deal without losing your earnest money, based on the home inspection, financing, or other issues.
- Specify who holds the earnest money deposit. In Florida, the deposit is usually held by a third party, such as a title company or real estate brokerage.
- Set a reasonable closing date. The typical closing period is 30 to 45 days from the offer, but this can vary. Being flexible can increase your chance for success.
- Address Florida-specific issues. You might want to include a contingency for a satisfactory wind mitigation report or a review of a Community Development District (CDD) agreement.
The takeaway: Making an offer requires more than just naming a price. A strategic offer that includes thoughtful terms and contingencies can help protect you from unexpected risks.
Step 7: Home Inspections and Due Diligence
Inspections in Florida should include standard structural and systems checks plus specific inspections that affect insurance and long-term risk: wind mitigation, four-point, termite, and moisture checks. Elevation and HOA documents are equally important parts of due diligence.
Key steps to take at this stage:
- Schedule a full home inspection after your offer is accepted. Add wind mitigation and four-point inspections if the property is older or insurance requires them.
- Order a termite/WDO inspection if applicable. Florida’s climate makes termite issues common and potentially costly if untreated.
- If the property is in or near a flood zone, obtain an elevation certificate or ask whether one exists. Consider hiring a surveyor if the certificate is unavailable. This affects flood insurance costs.
- Review HOA or condo documents: budgets, reserve studies, meeting minutes, pending litigation, insurance coverage limits, and rental or occupancy restrictions.
- For condos, understand what the master policy covers and what owners must carry personally.
- Ensure title searches are performed promptly so that any liens, easements, or special tax liabilities can be identified early and prior to closing.
The takeaway: Due diligence uncovers risks you can fix, negotiate, or walk away from. Skipping these steps could lead to buyer’s remorse or unexpected costs down the road.
Step 8: Explore Your Home Insurance Options
In Florida, homeowners insurance can determine whether a home is affordable or even financeable. Wind/hurricane deductibles, flood requirements, and limited private-market availability in some areas make it critical to get quotes early.
Key steps to take at this stage:
- Get quotes for homeowners insurance and flood insurance as soon as the property is under contract. Don’t wait until closing.
- Ask about wind-mitigation discounts on insurance. A wind mitigation inspection can document features like roof straps or opening protections that might reduce premiums.
- If the property is in a Special Flood Hazard Area (SFHA), know that lenders will require flood insurance. Compare NFIP options with private flood policies where available.
- If a property is hard to insure privately, ask about state or assigned-risk options and how those policies differ in coverage and cost.
- For condos, confirm what the association’s policy covers and if there’s an “assessment gap” that you must insure privately. Find out if the association has had recent large claims or litigation.
The takeaway: Confirming insurance early prevents last-minute surprises. Florida home buyers often have to take additional steps that buyers in other states do not.
Step 9: Finalize Financing and Prepare for Closing
In the final loan stage, you’ll need to satisfy any underwriting conditions, prepare your closing funds, and stay in close contact with your mortgage lender and escrow company.
Key steps to take at this stage:
- Provide whatever final documents your lender requests (updated bank statements, proof of paid bills, documentation for gifts, etc.). Reply to requests promptly to avoid delays.
- Lock your interest rate once you are comfortable with market conditions and the lock terms. Ask about lock-expiration timeframes and any float-down options.
- Review the “Closing Disclosure” carefully. This document shows the loan terms, itemized closing costs, and other important information.
- Coordinate with the title or escrow company early on to avoid surprises. Confirm acceptable forms of funds for closing (wire vs cashier’s check).
- Schedule the final walkthrough 24–48 hours before closing to follow up on agreed-upon repairs and to double-check the home’s condition.
The takeaway: Communication is key leading up to the closing. Make sure your lender and escrow agent have everything they need, a few days ahead of time if possible.
Step 10: Closing Day and Post-Closing Actions
Closing represents the final stage in your Florida home buying journey. It’s when you finalize all documents, pay your closing costs, and take ownership of the home.
Key steps to take at this stage:
- Bring required ID and closing funds as instructed by your title company. At closing you’ll sign the deed, mortgage documents, and settlement statement. The title company will record the deed.
- File for Homestead Exemption with the county appraiser if you qualify and live in the property as your permanent residence. Filing deadlines vary by county, so check local rules.
- Save copies of the recorded deed, title insurance policy, and the closing statement in a secure place.
- If your lender escrows insurance into your mortgage payments, find out when your policy renews each year and how much of your monthly payment goes toward insurance.
- If the property is in a hurricane-prone area, set up immediate mitigation plans. Make a list of contractors for storm repairs, secure outdoor items.
The takeaway: Closing concludes the home buying process. But your work as a homeowner begins immediately afterward. Check out: “9 Things to Do After Closing.”
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