Thinking about planting roots in Orlando can feel like stepping into a sunny new chapter. Year-round warmth, a diverse job market in healthcare, hospitality, tech, and aviation, plus neighborhoods that range from lively urban cores to calm lakefront corners all make Central Florida an appealing choice.
But, before you sign anything, it pays to zero in on the region’s unique rules, taxes, insurance requirements, and closing practices. That is why we prepared a detailed, practical guide packed with specifics you can act on right now. Let’s get into it.
Inventory in July hovered a little above five months of supply with a median home price just under 390,000 dollars across all property types. August single-family sales hit a median of about 415,000 dollars.
This means buyers today have more breathing room than in 2021–2022 but can’t assume a slow market everywhere.
How to use the numbers:
Expect properly priced homes to move in a couple of months rather than days.
Base your offers on very recent comparables from the same school zone and similar build years.
Pay special attention to insurance-sensitive items like roof age and construction quality when comparing properties.
Knowing Florida’s Closing Costs
Florida closing costs carry a few state-level taxes that often surprise out-of-state buyers. The three big ones are:
Tax/Item
Rate
Example on $400,000 Purchase (20% Down)
Deed documentary stamp tax
0.70 per 100 dollars of consideration
$2,800
Note documentary stamp tax
0.35 per 100 dollars of loan amount
$1,120
Nonrecurring intangible tax on the mortgage
0.2% of loan amount
$640
Other costs include title insurance, lender fees, appraisal, survey, recording, and prepaid items. Who pays for the owner’s title policy varies by county and can be negotiated.
Rates for deed and note taxes come from the Florida Department of Revenue, not your lender.
Tip: Ask your title company for a written closing disclosure preview that lists the three Florida taxes separately. If you’re coming from a state without these, the totals can feel higher than expected.
Taking Advantage of Florida Property Tax Rules
Florida offers significant long-term property tax benefits if you file correctly.
Homestead Exemption: Up to 50,000 dollars off your assessed value. According to Florida Revenue, the first 25,000 applies to all taxes including schools; the additional 25,000 applies to non-school taxes on value between 50,000 and 75,000 dollars. File by March 1 with your county property appraiser.
Save Our Homes Cap: After you homestead, future assessment increases are capped at 3 percent or the change in CPI, whichever is lower. You can also port up to 500,000 dollars of benefit to a new Florida homestead if you move.
Tip for move-up buyers inside Florida: Plan your closing so your portability transfer is filed on time. You typically have up to three tax years after leaving your previous homestead to port the benefit, but missing the window can be costly.
Insurance in Central Florida
Insurance costs in Orlando are not an afterthought. In 2025, several reforms have begun stabilizing the market, but individual rates still depend heavily on the home’s features and risk factors.
Citizens Property Insurance: Meant as a last resort. A private carrier offering coverage within 20 percent of Citizens’ rate may render you ineligible for Citizens. Primary residences have a statutory cap on rate increases, but non-primary can see larger jumps.
Wind Mitigation Discounts: A licensed inspector can complete the Uniform Mitigation Verification Inspection Form (1802) to document your roof deck attachment, roof-to-wall connections, geometry, and opening protections. The form can cut premiums and stays valid for up to five years if no major changes occur.
My Safe Florida Home Program: Offers free or subsidized inspections and sometimes grants for hardening against storms. Always check current eligibility before budgeting.
Sinkhole Coverage: By law, policies include catastrophic ground cover collapse. Broader sinkhole loss coverage is optional and may require inspection.
Practical move: Ask your insurance agent for quotes with and without wind mitigation credits based on an 1802 report, and keep important documents or even small promotional items organized on a ring of customized key chains so nothing goes missing before closing.
If the roof is older, price a re-roof or a secondary water barrier sooner rather than after renewal shock.
Flood Risk
Orlando’s inland location does not eliminate flood risk. Intense rain events and rapid development can cause local flooding.
Check FEMA Flood Maps: The FEMA Flood Map Service Center shows official zones used by lenders to determine mandatory flood insurance.
Risk Rating 2.0: The National Flood Insurance Program now prices premiums based on factors like distance to water and cost to rebuild. Increases phase in annually, so do not assume historical rates.
Tip: According to TIME, even if your future home is outside a high-risk zone, consider a Preferred Risk Policy. FEMA data shows many claims occur outside the 100-year floodplain.
Short-Term Rental Rules (A Must-Know for Investors)
Buying near theme parks does not automatically grant short-term rental rights.
City of Orlando: Short-term stays allowed only as home sharing in your primary residence with the owner present, one booking at a time, plus registration. Entire home vacation rentals are prohibited in standard residential zones.
Unincorporated Orange County: Short-term vacation rentals are generally not allowed in most residential areas.
Neighboring Counties: Osceola and Polk have designated communities and overlays that permit vacation rentals, but always verify zoning and HOA rules in writing.
Inspections That Protect Your Wallet
Florida contracts often use the Florida Realtors/Florida Bar “As Is” form, which gives buyers a defined inspection period to cancel for any reason. Use that time wisely.
@blakeatlasA quick review of Section 2 of the Florida As-Is FAR/BAR Sales contract
Four-Point Inspection: Required by many carriers for older homes to check roof, plumbing, electrical, and HVAC.
WDO Termite Inspection: Florida regulates pest control through the Department of Agriculture and Consumer Services.
Tip: Combine general, 4-point, and wind mitigation appointments on the same day to stay within your contract timelines and get realistic insurance quotes.
Researching Permits, Liens, and HOA Obligations
Take advantage of Orlando’s public portals before you’re under contract.
Permit History: Use the city’s permitting portal to confirm major work was permitted and closed.
Condo resale buyers get a three-business-day right to cancel after receiving required documents.
New condos grant fifteen days.
Florida law caps HOA estoppel fees for payoff and status letters, with a small extra allowed for rush requests.
CDD Fees in New-Build Communities
Many master-planned areas in Central Florida use Community Development Districts (CDDs) to finance infrastructure. The annual CDD assessment appears on your property tax bill and is separate from your HOA dues.
Tip: Ask for the most recent CDD schedule in dollars per year, the duration of the bond, and any planned refinancing. Add the CDD to your monthly cost calculation along with your HOA dues.
Schools, Commutes, and Future Plans
Even without school-age children, zoning affects resale value.
Use Orange County Public Schools “Find Your School” tool (and equivalents in Seminole and Osceola counties) to confirm zoning by address. Do not rely solely on MLS listings.
Consider your commute. SunRail runs north–south through Seminole, Orange, and Osceola. Brightline connects Orlando International Airport with South Florida. Living on the east side near Lake Nona shortens airport drives.
Wetlands, Setbacks, and Lot Restrictions
Central Florida’s wetlands and conservation tracts can limit what you do with your backyard.
Insurance quotes may hinge on roof age and electrical panels.
Inspectors should photograph all labels and roof details for your insurance agent.
Contract and Timing Tips
Write your offer with enough inspection days to complete all required reports.
Include time for rental research if that’s part of your plan.
Set reminders to file for homestead and portability after closing.
Preparing for the Final Walk-Through
Bring or verify:
Proof that open permits are closed or transferred.
HOA estoppel letter and paid dues receipt.
Wind mitigation and 4-point reports to confirm your insurance quote.
Survey with any easements highlighted.
Reinspection list from your general inspector.
Step-by-Step Checklist
Get preapproved and ask your lender for a Florida-specific estimate with deed stamps, note stamps, and intangible tax separately listed.
Shop neighborhoods with school and commute tools open to confirm zoning and daily travel times.
Write the offer with a realistic inspection window and insurance contingency strategy.
Order general, wind mitigation, 4-point, and WDO inspections up front.
Pull permit history and check the Comptroller’s records for liens and HOA documents.
If planning any rentals, confirm city or county rules in writing before your inspection period ends.
File for homestead and portability on time after closing.
Bottom Line
Buying a house in Orlando can feel smooth when you handle the Florida-specific pieces early.
Price the state taxes into your closing, use homestead and Save Our Homes to protect yourself long term, take wind mitigation seriously to control insurance costs, and get crystal clear about short-term rental rules in each jurisdiction.
With those items locked in, you’ll head to the closing table confident, not guessing.
I’m Carlos Alvarez, an Orlando native and father of three. I write about family life, local events, and the community here in Orlando. My goal is to share practical insights that help residents and visitors get the most out of this city. I work with the Southwest Orlando Bulletin to bring local stories to life and keep readers informed about what’s happening in their neighborhoods.
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