Know Your Costs
Complete breakdown of every closing cost Florida sellers pay. Doc stamps, title insurance, prorated taxes, and how to eliminate them.
With agent: 8-10% of sale price ($28K-$35K on $350K). Without agent: 2-4% ($7K-$14K). With cash buyer: typically $0 - the buyer pays everything. The biggest cost by far is agent commissions at 5-6%.
Agent commissions: 5-6% ($17,500-$21,000 on $350K). Documentary stamp tax: $0.70 per $100 in all counties except Miami-Dade ($0.60). On $350K: $2,450. State tax, non-negotiable. Title insurance: ~$1,750-$2,100 on $350K (seller pays in most FL counties, buyer pays in Miami-Dade, Broward, Sarasota, Collier). Prorated property taxes: You pay through closing date. HOA fees: Prorated plus estoppel letter ($100-$500). Title search/closing fee: $500-$1,100 combined. Recording: $10-$50.
Negotiate agent commissions (4-5% is achievable). Sell FSBO to eliminate listing agent commission (saves 2.5-3%). Sell to a cash buyer for $0 total closing costs. Shop title companies for competitive fees. Avoid agreeing to pay buyer closing costs.
On a $350K sale: Agent total: $22,200-$26,650. FSBO: $4,700-$16,150. Cash sale: $0. With cash, the offer amount is your net proceeds minus existing mortgages and liens paid off at closing.
At closing - deducted from sale proceeds before you receive funds. No out-of-pocket payment needed as a seller. The Closing Disclosure itemizes every cost at least 3 business days before closing.
Florida taxes deeds at 70 cents per $100 of consideration under section 201.02, Florida Statutes, rounded up to the next $100, and by custom the seller usually pays it, although the contract can assign it either way. Miami-Dade County uses a different rate structure, so check with the title company there. The tax is shown as a line item on the settlement statement.
Taxes are normally prorated to the closing date, so the seller pays for the days owned. The Save Our Homes cap on a homestead's assessed value does not transfer to the buyer: the home is reassessed at just value as of January 1 after the change of ownership (section 193.155, Florida Statutes). That is why Florida sale contracts must include the property tax disclosure in section 689.261, Florida Statutes.
Two are set by statute: the radon gas notice in section 404.056(5), Florida Statutes and the property tax disclosure summary in section 689.261, Florida Statutes. Homes built before 1978 also require the federal lead-based paint disclosure rule, including the EPA pamphlet. Florida case law (Johnson v. Davis, 1985) adds a duty to disclose known facts that materially affect value and are not readily observable to the buyer.
General information about Florida law, not legal or tax advice. Confirm your situation with a Florida attorney or tax professional.
Both pay different costs. Sellers pay commissions, doc stamps, title insurance (most counties). Buyers pay loan costs. Cash buyers often pay all costs.
Some reduce capital gains (commissions, transfer taxes). No FL state income tax. Consult CPA.
Commissions: always. Title fees: shop around. Doc stamps: state-set, non-negotiable.