The sale
Most seller costs are figured on this number, including commission and doc stamps.
Used for the property tax proration. You pay through the day before closing.
Deed doc stamps are 70 cents per $100 of price. Miami-Dade is 60 cents, plus a 45 cent surtax unless the deed transfers only a single-family home.
Custom depends on the county, and your contract decides. Check paragraph 9(c) of your contract.
What gets paid off
Use a payoff statement, not the balance on your monthly statement. The payoff is figured to a specific date and can include interest and fees.
Any other lien that has to be cleared to close.
From your tax bill or TRIM notice. Proration usually allows for the 4% early-pay discount, and the tool does that for you.
Property taxes here are billed in November and paid in arrears, so a seller usually credits the buyer for the days the seller owned the home.
Costs of the sale
The rate in your listing agreement.
Only if you agreed to it in writing. Enter 0 if not.
Money you give toward the buyer's closing costs or a rate buydown.
Anything you agreed to after the inspection.
Your side's closing services, title search, municipal lien search, and recording to clear title. Ask your title company.
Estoppel certificate fees, dues owed through closing, and any assessment you agreed to pay.
Home warranty or attorney fees, for example.
Not part of the closing math. Your servicer refunds it after the loan is paid off.
Price cut or seller credit?
A price drop you're weighing, or a credit a buyer asked for.
Your servicer refunds it after the loan is paid off. New to escrow? Our escrow account guide covers how the account works.
The price cut leaves you about $620 more than the credit, because commission, doc stamps, and the title premium are figured on the price. For the buyer they aren't the same either: a credit helps with cash at closing and has to fit the loan program's limit, while a lower price lowers the loan amount.
Tip: Check each line against your title company's estimate before you sign. Ask for a payoff statement good through your closing date.
Estimate only. Your title company's settlement statement is the number that counts.
How the estimate works
- Commission. Sale price × (listing rate + any buyer's agent compensation you agreed to pay).
- Doc stamps on the deed. 70 cents for each $100 of the price, or part of $100. In Miami-Dade it's 60 cents, plus a 45 cent surtax unless the deed transfers only a single-family home.
- Owner's title policy. The state sets the base premium: $5.75 per $1,000 for the first $100,000 and $5.00 per $1,000 from $100,000 to $1 million (lower rates above that), with a $100 minimum. Counted only if you pay it. Endorsements or a reissue credit can change it.
- Tax proration. This year's bill less the 4% discount, ÷ days in the year, × the days you owned the home this year (January 1 through the day before closing). If the bill isn't paid, that's a cost to you. If it's paid, the buyer credits you for the rest of the year.
- Net proceeds. Sale price minus loan payoffs, minus every cost of the sale, minus (or plus) the tax proration.
- Price cut vs credit. A credit comes straight off your net. A price cut also trims the costs figured on the price, like commission and doc stamps.
Who usually pays what
Paragraph 9 of the standard "AS IS" Residential Contract (the Florida Realtors and Florida Bar form) lists these. Your signed contract controls.
| Usually the seller | Usually the buyer |
|---|---|
| Doc stamps and surtax on the deed | Taxes and recording fees on the new mortgage |
| Owner's title policy and charges, if the contract says the seller pays | Lender's title policy and endorsements |
| HOA or condo estoppel fees | HOA or condo application and transfer fees |
| Recording and other fees needed to clear title | Recording the deed, survey, appraisal, inspections |
| Seller's closing services and attorney fees | Buyer's closing services and loan costs |
Who pays the owner's title policy is local custom, and it varies. In a poll of Attorneys' Title Insurance Fund members, 44 counties were reported as seller-pay, 22 as buyer-pay, and Monroe was split.
Before you sign, ask for these
- A payoff statement for every loan, good through your closing date. Servicers must send one within seven business days of a written request.
- Your title company's estimate of seller fees, including lien searches and any HOA estoppel fee.
- The tax amount they'll use for proration, and whether the bill is already paid.
- Your escrow balance. After payoff, your servicer has to refund what's left within 20 business days. New to escrow? Our escrow account guide covers how the account works.
- A tax check on the gain. Taxes on your profit aren't in this estimate. Many owners selling a main home can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) if they meet the IRS ownership and use tests. See IRS Topic 701 or ask a tax professional.
Buying your next home?
Your net proceeds can become the down payment. The Cash-to-Close Estimator shows what that purchase may take at closing. Staying in Florida? Your Save Our Homes benefit may move with you. File for homestead on the new home, along with Form DR-501T, with your county property appraiser by March 1.
Questions sellers ask
What is a seller net sheet?
An estimate of what you keep after the loan payoffs and the costs of the sale. Agents and title companies make one for each offer. The settlement statement from your title company at closing is the final number.
Why does a price cut cost me less than a seller credit of the same size?
Commission, doc stamps, and the owner's title premium are figured on the price. Lower the price and those shrink a little. A credit comes straight off your net. With the example numbers above, a $10,000 cut leaves about $620 more than a $10,000 credit.
Then why do buyers ask for a credit?
A credit helps the buyer with cash at closing or pays for a rate buydown. A lower price lowers their loan amount and payment a little. Which one helps more depends on the buyer, and the loan program caps how big a credit can be.
Why do I owe the buyer for property taxes?
The tax bill comes out in November and covers the whole year, so the months you owned the home usually haven't been paid when you close. The contract gives the buyer a credit for your share.
Does this include tax on my profit?
No. Many owners selling a main home can exclude part or all of the gain. See IRS Topic 701 or ask a tax professional.
Educational estimate only. This tool is not a Loan Estimate, Closing Disclosure, settlement statement, title quote, appraisal, or tax or legal advice. Your title company's settlement statement and your payoff statements control the actual numbers. Commissions are negotiable, and title costs, HOA fees, taxes, and local customs vary by county and contract. Confirm every number with your agent, title company or closing attorney, lender or servicer, and tax professional.
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