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How to Buy a House in Florida: Complete 2025-2026 Guide
How to buy a house in Florida 2025-2026: (1) Save Our Homes cap: 3% max annual increase in assessed value after homestead. (2) Portability: transfer up to $500,000 of SOH savings to new FL home. (3) $50,000 homestead exemption from taxable value. (4) Documentary stamp tax: $0.35 per $100 of purchase price ($1,225 on $350K). (5) Title company closings: no attorney required. (6) Insurance crisis: verify availability and cost BEFORE going under contract. Own Luxury Homes® FL BK3626873. 12-Point Agent Integrity Audit™.
How to Buy a House in Florida: The Complete 2025–2026 Guide
Florida is the third most populous state in the country and one of the most active real estate markets in the U.S. It is also, uniquely, our home market — Ryan Brown, FL BK3626873, has operated in Florida for over 20 years across luxury, residential, and investment transactions. Florida buying has several features that matter enormously for buyers: the Save Our Homes assessment cap that rewards long-term ownership, a documentary stamp tax that differs from most states, a property insurance crisis that is now a material part of every buying decision, and a condo market reshaped by post-Surfside legislation. This guide covers every Florida-specific element of buying a home.
| Florida Feature | What It Means for Buyers | Why It Matters |
|---|---|---|
| Save Our Homes 3% assessment cap | Once homestead filed, assessed value cannot increase more than 3%/yr | Long-term residents pay far less in property taxes than market value suggests |
| Portability of SOH savings | Homestead SOH savings can transfer to a new Florida home | Move-up buyers: keep up to $500K of prior SOH protection when buying new home |
| $50K homestead exemption | $25K from all taxing authorities + $25K from non-school taxes | Reduces taxable value; annual savings $500-$1,200+ depending on county |
| Insurance crisis | Property insurance difficult to find and expensive in many FL markets | Must verify insurance availability and cost before going under contract |
| No attorney required at closing | Title companies handle all closing functions | Lower closing cost vs attorney-close states; but get a real estate attorney for complex deals |
| Post-Surfside condo reform (HB 1021) | FL condo associations now must maintain structural reserves | Condo buyers must verify SIRS, reserve funding, lender eligibility |
The Two Most Important Florida-Specific Concepts for Buyers
1. Save Our Homes (SOH) cap and Portability: Once you file a homestead exemption on a Florida primary residence, the state caps annual increases in your assessed value at 3% (or CPI, whichever is lower). This means a home you bought for $350,000 that is now worth $600,000 might still be assessed at $420,000 for tax purposes if you've owned it 10+ years. When you sell and buy a new Florida home, you can PORT this accumulated savings (the difference between assessed and market value, up to $500,000) to the new property. This is an enormous benefit for existing Florida homeowners and a strategic consideration in any move-up purchase. 2. The insurance crisis: Florida's property insurance market has experienced multiple major insurers exiting the state since 2020. Many homeowners are now with Citizens Property Insurance (state-run insurer of last resort). Premiums have increased 100–300% in many markets. Before going under contract on any Florida property, verify that homeowners insurance is available and at what cost. A $500,000 coastal home that costs $12,000/year to insure has fundamentally different ownership economics than the same home at $4,000/year. Insurance is now due diligence, not an afterthought.
“I've been licensed in Florida since 2003. The market I work in today is materially different from five years ago in one specific way: the insurance question changed everything. Before, we reviewed the inspection report and the flood zone map. Now we do that AND verify insurance availability, cost, and carrier status before a buyer falls in love with a specific property. A beachfront condo that can't get adequate insurance, or a coastal home priced at $600,000 where Citizens coverage is the only option at $14,000/year, are material realities that buyers must understand before they're under contract.”
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes®
What makes buying a house in Florida different from other states?
Six Florida-specific features: (1) Save Our Homes cap: once homestead is filed, assessed value can only increase 3%/yr; long-term owners pay taxes based on historic (lower) assessments. (2) Portability: SOH savings can transfer to a new Florida home (up to $500,000). (3) $50,000 homestead exemption. (4) Documentary stamp tax: $0.35 per $100 of purchase price. (5) Title company closings: no attorney required. (6) Insurance crisis: property insurance availability and cost must be verified before committing to any purchase. Florida is also NOT an attorney-close state; closings are handled by title companies.
Own Luxury Homes® — Florida real estate experts. FL BK3626873. 12-Point Agent Integrity Audit™. Talk to a specialist ›
"The introduction Own Luxury Homes® makes is to a specialist with documented closing history in your specific market — not the county, not the metro, the submarket you're actually selling or buying in. That's the standard we verify before your name goes anywhere."
— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)