What hidden costs should I expect when buying a home in Central Florida?

There are many hidden costs that people just don't think about when they buy a home. The price tag on the listing isn’t the full story. You'll have closing costs, a down payment (that gets applied at closing) and other lender fees as well, and that's just at closing. But for this article, I've tried to cover all the other costs, the things people don't think about. First-time home buyers are usually prone to not knowing what else they may have to pay for when buying a home, but really this is a good refresher for anyone looking to purchase a home. Here’s what catches buyers off guard every year.

1. Property insurance:
Florida insurance premiums have shot through the roof (pun intended), climbing sharply since 2022, averaging anywhere from $1,500 to $5,000 annually in 2026. Rates vary by roof age, location, and coverage type, but typically here in Central Florida it's lower than on the coast.

2. Property taxes:
Hopefully for homesteaders, this will start reducing, pending a state law that needs voted on. Right now, expect about 1.1–1.3% of the assessed value. Clermont’s average $4750K home will see roughly $5,000 a year before exemptions. At closing, part of your closing costs will be paying a prorated rate on the current year's property taxes. Filing for homestead exemption the first January after closing—it can save you hundreds. Also be aware of any CDD fee. These are sometimes added into the taxes if you are buying in a planned community.

3. HOA fees:
This is something a lot of people tend to forget, but depending on the cost, it's very important to know. HOA fees range from $75 to $600/month depending on amenities. Some HOAs have a Master HOA fee and a Subdivision fee, so make sure your agent knows. Always read community budgets and know if you need to pay HOA fees monthly, quarterly, or yearly before closing.

4. Maintenance and utilities:
The age of the home you are buying can determine this cost. Budget at least 1% of the home’s value annually for general upkeep. Central Florida’s humidity and storms make regular AC, roof, and gutter maintenance essential. However, if you are buying an older home or one labeled "as-is", know these essentials. Roofs should last 25 years, but insurance companies may tell you a replacement is necessary after 15 years. HVAC systems and water heaters generally last 10-12 years. If you are thinking of purchasing a home that's 20 years old, and everything is original, plan on paying for replacements within the next couple years.

Future tip:
Insurance reform has been a topic of discussion for a few years now. It may ease costs slightly, but don’t plan your budget around wishful thinking. Politicians would need to make those reforms happen, and we all know the trustworthiness of politicians.

Also, try to keep emotional decisions out of the way. Getting emotionally attached to a home could cost you way more in the end.

Bottom line:
If you buy smart and plan ahead, none of these costs are dealbreakers. They’re just the real numbers behind the dream. The bottom line is to know what you are getting into and plan ahead. But by making good decisions during the buying process, you could also be helping your wallet a few years down the road.

Want a personalized cost breakdown for homes in your target area? I’ll create one based on price, HOA, and tax data before you make an offer. You can start shopping for homes at ericstalnaker.nexthomelott.com