One of the first questions sellers ask us is how much of the sale price they’ll actually keep. The honest answer depends on your mortgage, your contract and your property, but the main costs of selling in Pinellas County are predictable. Here is what to expect, so there are no surprises on the settlement statement.
Brokerage commission
The commission is agreed between you and your listing brokerage in the listing agreement, and it’s negotiable. Ask exactly what is included: photography, marketing, showings, negotiation and help through closing. Any offer of compensation to a buyer’s agent is a separate decision you make with your agent.
Documentary stamp tax on the deed
Florida charges documentary stamp tax when a deed transfers real property. Outside Miami-Dade County the rate is 70 cents for each $100 of the price, or portion of $100, according to the Florida Department of Revenue. On a $600,000 sale that works out to $4,200. In Pinellas the seller customarily pays this tax, but the contract decides who pays.
Title insurance and settlement fees
Florida sets title insurance premiums by rule (section 627.782 of the Florida Statutes covers how rates are adopted), so the premium for a given price is the same whichever title company you use. In much of Florida, including Pinellas, the seller customarily pays for the owner’s title policy, but this is negotiable too. Expect settlement or closing fees, a lien search, and courier or recording charges as well.
Property taxes, settled at closing
Florida property taxes are paid in arrears, so the year’s taxes are usually split between buyer and seller at closing, based on the closing date. The Pinellas County Tax Collector sends bills in the fall and offers discounts for paying early: 4% in November, 3% in December, 2% in January and 1% in February. If you have already paid the current bill, the proration works in your favour.
Mortgage payoff and association items
- Payoff. Your lender will provide a payoff figure good through the closing date, including interest to that day.
- Estoppel certificate. For a condo or a home in an association, the title company orders an estoppel certificate showing what’s owed to the association. Florida law (section 718.116 for condominiums) limits what associations can charge for it.
- Association dues and assessments. Dues are prorated, and any special assessments are handled according to your contract, so read that section with your agent.
Repairs, credits and inspections
After the buyer’s inspection, you may agree to make repairs or give a credit. Having a recent wind mitigation report, permits for past work, and roof and air conditioning details ready can make this stage smoother, because buyers’ insurers often ask for them.
Disclosures are not a cost, but they matter
Florida sellers must disclose known facts that materially affect the value of the property and are not readily observable to the buyer (the Florida Supreme Court set this out in Johnson v. Davis in 1985). Florida law also requires a flood disclosure for residential sales under section 689.302 of the Florida Statutes, given at or before the time the contract is signed. Being open from the start avoids problems later.
A simple worked example
To show how the pieces fit together, take a hypothetical $600,000 condo sale. The deed stamps at 70 cents per $100 come to $4,200. Add the commission agreed in your listing agreement, the owner’s title policy at the state’s promulgated rate if you’re paying it, the title company’s settlement and lien search fees, and the estoppel certificate. Then the closing statement will credit or charge you for the year’s property taxes and association dues up to the closing date, and pay off your mortgage. What remains is your net proceeds. Our closing cost calculator runs these numbers for your own price.
Ways to keep more of your price
- Get your paperwork together before listing, so inspection issues don’t turn into last-minute credits.
- Fix small, visible problems before photos. A small repair done in advance is usually simpler than negotiating it later.
- Ask your title company for a quote early, and read the settlement statement line by line before closing.
- Check with your lender about the payoff date, because interest runs to the day the payoff arrives.
Capital gains and other tax questions
Whether you owe tax on your profit depends on how long you owned the home, whether it was your primary residence, and your wider tax situation. That conversation belongs with your accountant or tax adviser, ideally before you list.
Please note: Laws, tax rules and insurance terms change, so check the details for your situation with a licensed professional, such as a Florida real estate attorney, insurance agent or tax adviser, before you act.
Want a working number? Our closing cost calculator estimates the main costs, and our seller’s guide walks through the process. For a price opinion on your home, start with our home value estimator or contact us.
Sources
- Florida Department of Revenue, documentary stamp tax (section 201.02, Florida Statutes).
- Florida Statutes, section 627.782, adoption of title insurance rates.
- Pinellas County Tax Collector, important dates, property tax discount schedule.
- Florida Statutes, section 718.116, condominium estoppel certificates.
- Florida Statutes, section 689.302, flood disclosure. Johnson v. Davis, 480 So. 2d 625 (Fla. 1985), seller disclosure duty.