Selling your Delray Beach home and wondering what you’ll actually take home at closing? You’re not alone. Between commissions, state taxes, title charges, and HOA items, the final settlement can feel complex. This guide walks you through the typical seller closing costs in Delray Beach, what local custom says about who pays what, and smart ways to plan your net. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, and adjustments needed to transfer your property to the buyer. In South Florida, the biggest seller expense is usually the real estate commission. You’ll also see state transfer tax on the deed, title costs, prorations for property taxes and HOA dues, and any mortgage or lien payoffs.
Exact figures depend on your sale price, contract terms, and timing. Many items are negotiable, and local custom in Delray Beach can differ from other parts of Florida, so it’s important to confirm with your listing agent and title company.
Who typically pays in Delray Beach
Seller customary costs
- Real estate commission, which is negotiable and commonly totals 5% to 6% in South Florida.
- Florida documentary stamp tax on the deed, commonly calculated as $0.70 per $100 of consideration, about 0.70% of the sale price. Verify the current rate with the Florida Department of Revenue.
- Owner’s title insurance policy, which sellers commonly pay in South Florida, including Palm Beach County.
- Certain closing, recording, and courier fees, depending on your title company’s schedule and local practice.
- HOA or condo estoppel fees in many transactions.
Buyer customary costs
- Documentary stamps on the buyer’s mortgage note, if the buyer is financing.
- Lender-related title costs and many buyer-side closing fees.
What is negotiable
Most items can be negotiated. In Delray Beach, sellers often pay the owner’s title policy and deed tax by custom, yet contracts can allocate differently. Your agent can help you weigh tradeoffs when you negotiate offers.
Line-by-line seller costs
Commission
Commission is the largest line item for many sellers and is customarily split between the listing and buyer’s broker. In South Florida, the total often falls in the 5% to 6% range of the sale price, though it is always negotiable.
Documentary stamp tax on the deed
Florida assesses a documentary stamp tax on deeds. It is commonly expressed as $0.70 per $100 of consideration, about 0.70% of the sale price. In South Florida, sellers typically pay this tax, though parties can negotiate. Confirm the current rate and any county nuances with your title company or the Florida Department of Revenue.
Owner’s title insurance
The owner’s policy protects the buyer against covered title defects. In Palm Beach County and much of South Florida, sellers commonly pay for this policy. Premiums follow a regulated rate schedule in Florida based on the sale price, with additional charges possible for endorsements. Your title company can quote the exact premium for your price point.
Settlement and closing fees
Title companies charge settlement or escrow fees to coordinate closing, prepare documents, and disburse funds. In Palm Beach County, these may be split or assigned based on local practice and your contract. Ask your title company for a written estimate of all seller-side fees early in the process.
Recording and release fees
County recording fees to record the deed and any lien releases are typically modest. Buyers usually cover documentary stamps on a new mortgage note, while the seller pays to record releases of the seller’s liens.
Mortgage and lien payoffs
Any existing mortgages, home equity lines, judgments, or other liens must be paid off at closing. The title company obtains payoff statements and disburses funds. These payoffs are not closing costs in the fee sense, yet they reduce your net proceeds.
Prorated property taxes and utilities
Property taxes are prorated to the closing date. You are responsible for your share up to the day of closing, based on Palm Beach County’s tax calendar. Final utility bills and similar items can also be handled at closing.
HOA and condo items
Most associations require an estoppel letter to confirm dues status and any violations or assessments. Associations charge a fee for this, and sellers often pay it in Palm Beach County. Associations may also charge transfer or processing fees, which you and the buyer can negotiate. Unpaid special assessments are usually paid off or prorated according to your contract and the association’s status.
Repairs, credits, and concessions
Inspection findings can lead to seller-paid repairs or closing credits. These are negotiated and can affect your bottom line. Proactive repair work before listing can reduce the risk of big concessions later.
Miscellaneous charges
Expect smaller items such as courier, wire, notary, document prep, and payoff demand fees. Title companies should itemize these in your preliminary and final settlement statements. Always verify wire instructions by phone with the title company to avoid fraud.
How much to expect, in real terms
The most predictable costs are commission and the state deed tax, which together can represent a sizable portion of your sale price.
Here is an illustrative example to show scale. This is not a quote, just a sample based on local custom:
- Sale price: $600,000
- Commission at 6%: $36,000
- Documentary stamp on deed at about 0.70%: $4,200
- Owner’s title insurance, closing, recording, courier, and wire: roughly $1,500 to $4,000, depending on price and endorsements
- Prorations for taxes, HOA dues, and final utilities: can range from $0 to a few thousand dollars depending on the closing date and what is outstanding
In this example, commission and deed tax alone could approach or exceed about 6.7% of the sale price. Your actual net depends on your exact commission agreement, tax date, HOA obligations, title fees, and any negotiated credits, plus mortgage or lien payoffs. Ask your agent or title company for a seller net sheet tailored to your property.
Smart ways to save and plan
- Negotiate commission. It is often the largest expense, and terms vary.
- Compare title companies for settlement fees. Owner’s title premiums follow a state rate schedule, though some closing fees can differ.
- Handle repairs before listing. Fixing known items can reduce later credits or price renegotiations.
- Consider credits over price cuts. Credits can be cleaner for timing and may support buyer financing and appraisal outcomes.
- Mind your timing. Closing date affects property tax and HOA prorations. Your agent can help you model dates on the Palm Beach County calendar.
- Plan tax strategy early. If you are selling an investment property or have questions about capital gains, consult a CPA or tax attorney before closing.
Your pre-closing checklist
- Request a custom seller net sheet from your agent or title company.
- Obtain payoff statements for all mortgages and liens.
- Order the required HOA or condo estoppel letter and confirm who pays.
- Confirm who pays the owner’s title policy and documentary stamp tax, based on local custom and your contract.
- Review the preliminary and final settlement statements as early as possible.
- Verify lender payoff figures and release instructions with the title company.
- Call the title company to confirm wire instructions before sending or receiving any funds. Never rely on email alone.
- Bring government-issued ID to closing and provide a forwarding address for tax and HOA mail.
Common pitfalls to avoid
- Assuming statewide norms apply. South Florida custom often has the seller paying the owner’s title policy and deed tax, which is different from some other regions.
- Skipping verification of the deed tax rate. Small percentage differences can add up at higher price points.
- Waiting on HOA estoppels. Delays can push closing or add rush fees.
- Overlooking special assessments. Clarify whether assessments are pending, levied, or recorded, then negotiate responsibility in the contract.
- Ignoring wire fraud risk. Always confirm wire instructions by phone using a known, trusted number.
How to verify your numbers
For precise figures, rely on local, authoritative sources. Your title company can quote the Florida owner’s title premium and provide a full fee estimate. The Florida Department of Revenue sets the documentary stamp tax rules and rates. Palm Beach County offices provide property tax calendars, assessed values, and recording fees. Your listing agent should help you align these details with your contract so your net sheet reflects local custom and the timing of your sale.
Ready to see your numbers in black and white and map a clean path to closing? Reach out for a custom seller net sheet and a step-by-step plan tailored to your Delray Beach property. Contact Michelle Nelson to get started.
FAQs
What are typical seller closing costs in Delray Beach?
- The largest item is usually commission, commonly 5% to 6% of the sale price, followed by Florida’s deed tax of about 0.70%, plus title, HOA, prorations, and payoffs.
Who pays for owner’s title insurance in Palm Beach County?
- In South Florida, including Palm Beach County, sellers commonly pay for the owner’s title policy, though this can be negotiated in your contract.
How are property taxes prorated at closing in Palm Beach County?
- Taxes are prorated to the closing date, so you pay your share up to the day of closing based on the county’s tax schedule.
What should foreign sellers know about FIRPTA in Delray Beach?
- If you are a non-U.S. person, the buyer may be required to withhold a percentage at closing under FIRPTA unless an exemption or certificate applies.
What is an HOA or condo estoppel letter, and who pays?
- It confirms your dues status and any violations or assessments; associations charge a fee, and sellers often pay this in Palm Beach County.
Can repairs be handled as a closing credit instead of doing the work?
- Yes, you and the buyer can negotiate a credit at closing instead of repairs, subject to loan and appraisal considerations.
How can I avoid wire fraud when selling my home?
- Only use wire instructions provided by your title company and verify them by calling a known phone number before sending or receiving funds.
