Most Orlando sellers pay for six things at closing: agent commission, Florida doc stamps, title costs, prorated taxes, HOA fees, and any repairs or credits. Subtract those and your mortgage payoff from the sale price, and what’s left is your net.
Your sale price is not what you take home. Your net is. Here is what comes out between the two.
The costs, line by line
Agent commission. This is negotiable and set by your listing agreement, not by law. Ask what is included and get it in writing.
Florida doc stamps. The state charges 70 cents per $100 of the sale price on the deed. On a $400,000 sale, that is $2,800.
Title costs. Title search, closing fees, and in most Central Florida counties the seller customarily pays for the owner’s title policy. Customs differ by county, so confirm with your title company.
Prorated property taxes. You owe taxes for the days you owned the home this year. Florida bills in November, so a sale earlier in the year usually shows up as a credit to the buyer.
HOA costs. The estoppel letter, any transfer or capital contribution fees, and unpaid dues.
Repairs and credits. Inspection results often lead to repair requests or a price credit.
Work out your net
Sale price, minus your mortgage payoff, minus commission, doc stamps, title costs, prorations, HOA costs, and repairs or credits. What is left is your net.
Use your lender’s payoff statement, not the balance on your monthly statement. The payoff includes interest through the closing date, so it is higher.
Where sellers get surprised
Forgetting doc stamps. They are a real line item on every deed.
Using the mortgage balance instead of the payoff.
HOA fees and unpaid assessments. These are paid out of your proceeds.
Taxes. A federal exclusion can cover $250,000 of gain for a single owner and $500,000 for married couples filing jointly, if you meet the applicable ownership, use and look-back tests and other IRS requirements. For the joint exclusion, both spouses generally must meet the use and look-back tests, and at least one must meet the ownership test. Florida has no state income tax. Talk to a CPA about your numbers.
What to do this week
Pull your payoff statement and your HOA contact. Then send me the address, and I will build a net sheet so you can see the real number before you decide to list.
General education, not legal, tax or investment advice. Discuss your circumstances with a licensed Florida attorney or tax professional. Yoganand Ganeshram PA, licensed Florida real estate agent with eXp Realty. Equal Housing Opportunity.
Sources: Florida documentary stamp tax and IRS home-sale exclusion rules. Deed tax in counties other than Miami-Dade is generally $0.70 for each $100 or fraction of taxable consideration. Contract terms determine which party pays.
Originally published on Equity Edge Orlando. Reviewed for this Substack edition.