What Are Closing Costs for Sellers in Florida?

The Biggest Cost: Real Estate Commission

The real estate commission is by far the largest closing cost for sellers. In Florida, the total commission typically ranges from 5% to 6% of the sale price. This fee is split between the listing agent (your agent) and the buyer's agent. The commission is paid at closing from the sale proceeds before you receive your net proceeds.

Learn more about average realtor commissions in Florida and what full-service marketing includes.

Documentary Stamp Taxes

Florida charges a documentary stamp tax on the deed when a property is sold. As the seller, you pay this tax at a rate of $0.70 per $100 of the sale price. On a $500,000 sale, that is approximately $3,500. If you are selling a property with a mortgage, there may also be a tax on the new mortgage note, though that is typically paid by the buyer.

Some counties in Florida also charge a surtax. In Palm Beach County, for example, there is an additional $0.45 per $100 on the first $5,000 and $0.55 per $100 on amounts above $5,000. Always check with your title company for your specific county's rates.

Title Insurance and Title Fees

In Florida, it is customary for the seller to pay for the owner's title insurance policy. This protects the buyer against any title defects or claims against the property. The cost is based on the sale price and is regulated by the state. For a $500,000 home, owner's title insurance typically costs around $2,000 to $2,500.

You may also pay title search fees, settlement fees, and recording fees, which combined usually add several hundred to a thousand dollars to your closing costs.

Prorated Property Taxes

Property taxes in Florida are paid in arrears. At closing, you will credit the buyer for the portion of the tax year you occupied the home. For example, if you sell halfway through the year, you would owe taxes for the months you lived in the home, and the buyer would pay the remainder. Your title company or closing agent will calculate this proration based on the latest available tax assessment.

HOA and Condo Fees

If your home is in a community with a homeowners association or condominium association, you will need to pay any outstanding HOA fees and provide estoppel letters (documentation showing the current status of your account). The association typically charges a fee for this documentation, usually $100 to $300. You will also prorate any prepaid HOA fees with the buyer.

Other Potential Costs

Depending on your specific situation, you may also encounter:

• Attorney fees: While not required in Florida, some sellers choose to hire an attorney for review.
• Home warranty: Many sellers offer a home warranty to buyers as a negotiation tool, typically $400 to $700.
• Repairs and credits: After the home inspection, you may negotiate repairs or credits with the buyer.
• Mortgage payoff fees: If you have a mortgage, there may be a small fee to process the payoff.

Sample Closing Cost Breakdown

Here is a realistic example for a $500,000 home sale in Palm Beach County:

• Real estate commission (6%): $30,000
• Documentary stamp tax: $3,500
• Owner's title insurance: $2,300
• Title search and settlement fees: $800
• Prorated property taxes: $2,500 (varies)
• Recording fees and estoppel: $300
• Total estimated costs: approximately $39,400

Net proceeds: $500,000 minus $39,400 minus your remaining mortgage balance = your net profit.

How to Get an Accurate Net Sheet

Your real estate agent should provide a detailed net sheet before you list your home. This document estimates all costs and shows your projected net proceeds. Ryan Parker provides every seller client a personalized net sheet during the initial consultation so there are no surprises.

Learn more about pricing and seller costs or call or text Ryan at 561-915-8590 to get your personalized net sheet.