What’s the Florida Home Buying Process Step-by-Step?

The 10 Steps to Buying a Home in Florida

Florida’s real estate process has specific rules and costs that differ from other states. Here is exactly what to expect, in order.

#	Step	What Happens
1	Get Pre-Approved	Lender reviews income, assets, and credit. You receive a pre-approval letter stating the loan amount you qualify for.
2	Shop Lenders	Compare at least 3 lenders on rate, fees, and loan type. With 2026 rates at 6.5–7%, a 0.25% difference on a $525K loan saves roughly $85/month.
3	Hire a Buyer‘s Agent	Under 2024 NAR settlement rules now in effect, buyers sign a buyer representation agreement before touring homes. The agent’s compensation is negotiated upfront.
4	Make an Offer / FAR/BAR Contract	Florida uses the FAR/BAR As-Is or standard residential contract. Your agent drafts the offer; key terms include price, closing date, and financing contingency.
5	Earnest Money Deposit	Typically 1–3% of the purchase price (about $5,250–$15,750 on a $525K home). Held in escrow by the title company or brokerage.
6	Inspection Period	Standard FAR/BAR As-Is contracts allow 10–15 days for inspections. Buyers may cancel for any reason and receive their deposit back within this window.
7	Appraisal	Required by lenders. If the home appraises below the contract price, you can renegotiate, pay the gap in cash, or exit if you have an appraisal contingency.
8	Title Search & Insurance	A title company searches for liens, encumbrances, or ownership disputes. Owner’s title insurance is a common seller-paid cost in Sarasota County; Manatee County custom flips it to the buyer.
9	Homeowners Insurance	Lenders require a policy in force at closing. In Sarasota and Manatee, annual premiums on a $525K home typically run $4,000–$8,000 depending on flood zone and construction type.
10	Closing Day	You sign loan documents, pay closing costs, and receive the keys. Doc stamps, title fees, and pre-paid items are settled here.

Step 1–3 in Detail: Pre-Approval, Lender Shopping, and Finding Your Agent

Pre-Approval vs. Pre-Qualification

Pre-qualification is an informal estimate. Pre-approval is a verified commitment — lenders pull your credit, verify W-2s or tax returns, and review bank statements. In a market where Sarasota median prices hover around $525,000, sellers expect a pre-approval letter with any offer. Expect the full pre-approval process to take 1–3 business days with an organized lender.

Shopping Lenders in 2026

Florida mortgage rates currently sit between 6.5% and 7% for a 30-year fixed loan. On a $420,000 loan (20% down on a $525K home), the difference between 6.5% and 7% is roughly $185 per month — or over $66,000 over the life of the loan. Compare conventional, FHA, and VA loan options. FHA loans allow down payments as low as 3.5% but require mortgage insurance. VA loans offer zero down for eligible veterans with no PMI.

Hiring a Buyer’s Agent

Your buyer’s agent represents your interests, not the seller‘s. Under the buyer representation agreements now standard in Florida, you negotiate compensation terms before touring. Choose an agent with demonstrated experience in Sarasota or Manatee County — local knowledge of neighborhoods like Palmer Ranch, Lakewood Ranch, or West of the Trail directly affects offer strategy and price negotiation.

Steps 4–6: The FAR/BAR Contract, Earnest Money, and Inspections

Understanding the FAR/BAR Contract

Florida uses the FAR/BAR residential contract — the standard form developed by the Florida Association of Realtors and the Florida Bar. The As-Is version is the most common in Sarasota and Manatee. Under the As-Is contract, the seller doesn’t agree to make repairs, but the buyer gets an inspection period during which they can walk away for any reason and get their deposit back. The standard version requires the seller to repair items up to a negotiated dollar cap.

Key contract dates to track: effective date (when all parties sign), inspection period end date, loan approval deadline, and closing date. Missing any of these deadlines can put your earnest money at risk.

Earnest Money

Earnest money in Florida is typically 1–3% of the purchase price, deposited within 3 business days of the effective date. On a $525,000 home, expect to write a check for $5,250–$15,750. The funds go into escrow — held by the title company or a licensed brokerage. If you cancel within the inspection period, you get it back. If you cancel after the inspection period without a valid contingency, the seller may claim it.

The Inspection Period

Standard FAR/BAR As-Is contracts include a 10–15 day inspection period (negotiated per deal). Use it. Hire a licensed Florida home inspector for a general inspection, and consider separate specialists for roof, HVAC, pool, mold, Chinese drywall, and 4-point inspections for older homes. Insurance companies in Florida increasingly require a 4-point inspection (roof, HVAC, electrical, plumbing) on homes over 25 years old before issuing a new policy.

Steps 7–10: Appraisal, Title, Insurance, and Closing Costs

Appraisal and Loan Approval

Your lender orders the appraisal after the inspection period. If the property appraises at or above the contract price, the loan moves forward. If it comes in low, you have three options: renegotiate the price with the seller, pay the difference out of pocket, or exit if your contract includes an appraisal contingency. In competitive Sarasota submarkets, some buyers waive the appraisal contingency — understand the risk before doing so.

Title Search and Owner’s Title Insurance

The title company searches county records for unpaid liens, code violations, HOA arrears, or competing ownership claims. Owner’s title insurance protects you against any claims that surface after closing. In Sarasota County, it is customary for the seller to pay for owner’s title insurance; in Manatee County, the buyer typically pays. Always confirm in the contract which party covers which costs — Florida allows this to be negotiated.

Homeowners Insurance in Sarasota and Manatee

Florida’s insurance market has tightened significantly. Expect to pay $4,000–$8,000 per year for homeowners insurance on a $525,000 property in Sarasota or Manatee counties, depending on proximity to the coast, roof age, and construction materials. Flood insurance is separate and required if the property is in a FEMA Special Flood Hazard Area. Flood policies through the National Flood Insurance Program (NFIP) average around $1,000–$3,000 annually in this region but can be higher for properties in AE or VE zones.

Closing Costs and Doc Stamps

Florida closing costs typically run 2–5% of the purchase price. On a $525,000 home, that is $10,500–$26,250. Here is where the money goes:

• Doc stamps on the deed: Florida charges $0.70 per $100 of the purchase price (about $3,675 on a $525K sale). This is a seller cost by custom but can be negotiated.
• Doc stamps on the mortgage note: $0.35 per $100 of the loan amount — a buyer cost.
• Title insurance and closing fees: Varies by title company, typically $1,500–$3,500.
• Lender fees: Origination, underwriting, and appraisal — budget $2,000–$4,000.
• Pre-paids: Homeowners insurance (12 months upfront) and escrow reserves for property taxes and insurance.

Homestead Exemption — Apply After Closing

If the home will be your primary Florida residence, apply for the homestead exemption with the county property appraiser by March 1 of the year following your purchase. The standard exemption removes $25,000 from assessed value (with a possible additional $25,000 for non-school taxes), saving most Sarasota-area homeowners $500–$1,200 per year on property taxes. Homestead status also triggers Save Our Homes protection, which caps annual assessment increases at 3% or the CPI, whichever is lower. This cap compounds significantly over time in an appreciating market.

What Clients Say About Team Renick

I have been working with Mike over a year now. When we started Mike understood that I was in the very early stages of the buying process and he was ok with that. Over the past year, Mike has stayed in touch via email and personal phone calls. Never, did he pressure me to “hurry up and buy” something. He was very patient and always there to answer my questions. Now, after about 14 months, I’m in town and cannot wait to get started. He has set up a plan to show me homes this week. I really feel comfortable and like his approach; No Pressure, No Sales Talk, No BS. He is a straight shooter and directly answers my questions. I could not be happier with his focus on customer service. Mary

— maryhartzman, via Zillow

I had been looking for a local condo for over a year and was very unhappy with the service. I had worked with three agents from three different national chains. None of the three seemed to know the market very well, took the time to understand what I’m looking for, and most importantly rarely followed up when they told me they would. I have never experience such a lazy approach to working with a buyer. Things changed when I met Mike and part of his team at their St. Armands office. The first thing Mike did was apologize for the poor service…even though it wasn’t his fault. I already knew that I found someone who help himself accountable. What a breath of fresh air! After spending about 30 minutes with me understanding what I was looking for, Mike introduced me to Eric. Between the two of them, they found five condos for me to look at. Each of the five, met my criteria. They actually did listen. I’m excited because we plan to submit an offer later today. The market analysis they prepared was thorough and easy for me to understand. I cannot recommend more highly any other realtors to work with. Thank you Mike and Eric! JS

— schroder4, via Zillow

To learn more about Michael and Team Renick
To search for local properties: search.teamrenick.com
To read more insights: blog.teamrenick.com