The hidden costs of downsizing a home in Tampa, line by line

The real cost of downsizing: every line in one table

This table lists the costs a seller who is also a buyer can face. The right-hand column says who sets the number, which is the quickest way to tell which lines you can negotiate.

Sources: Florida Department of Revenue, documentary stamp tax; the closing-cost lines match our Costs and Money page and the net proceeds guide.

Closing costs when downsizing in Florida: the selling side

The selling-side costs are covered line by line in estimating your net proceeds, so we only summarize them here.

• Commissions. Not set by law. Since August 17, 2024, offers of compensation to buyer's agents can no longer appear on the MLS, and buyers sign a written agreement with their own agent. Sellers may still agree to offer buyer-agent compensation as part of a deal.
• Documentary stamp tax. The Department of Revenue states the deed rate as 70 cents on each $100, or portion thereof, of the total consideration. On a $400,000 sale that is $2,800.
• Owner's title insurance. The premium is set by state rule. Who pays is local custom and can be negotiated. If you kept your policy from when you bought, give a copy to the title company and ask whether a reissue rate applies.
• Estoppel certificate. In an association, the title company orders a certificate confirming dues and balances. The fee is capped by statute and adjusted for inflation, so confirm the current amount.
• Property taxes. They are paid in arrears, so you credit the buyer for the days you owned the home.
• Repairs. Credits and fixes negotiated after inspection come out of your proceeds. See preparing an older Tampa home to sell and Florida seller disclosures.

The buying side: cash versus a mortgage

If you buy with cash, your costs are the purchase price, your own inspection, any title policy you decide to buy, and recording and closing fees from your title company. If you finance, state documentary stamp tax applies to the mortgage. The Department of Revenue gives the rate on a mortgage as 35 cents per $100, or portion thereof, of the amount secured, and the same rate on a promissory note, with the note tax capped at $2,450. There are also lender fees, an appraisal and often a prepaid escrow account for taxes and insurance. Ask the lender for a Loan Estimate, which lists them.

We have not published a closing-cost percentage for buyers because the amount depends on the lender, the title company and the contract. Ask both for written estimates. If you are weighing a small mortgage against cash, see downsizing with a mortgage.

Source: Florida Department of Revenue, documentary stamp tax.

Overlap, moving and storage: the costs that follow your timeline

This group is the one most often forgotten, and it depends on your choices more than on any rate.

• Overlap. If you buy first, you carry the old home's mortgage or taxes, insurance, utilities and lawn or pool care on top of the new one. If you sell first and rent in between, you pay rent and a second move. See buy first or sell first for how each order shifts the cost.
• Moving. Some movers charge by the hour and some give a flat estimate, and the two are not the same thing. Ask which you are getting and whether the quote is binding.
• Storage. A unit can bridge two closings. Set an end date for it, because a unit with no deadline tends to grow into a permanent bill.
• Selling what you do not keep. An estate sale company, consignment shop or hauling service may charge a commission or a fee. See estate sale, consignment or donation.
• Replacing things. A smaller home may need new furniture, window coverings or storage furniture. See what to keep when downsizing before you buy anything.

Condo and HOA costs that start at purchase

If you move into an association, ask for its fee schedule before you make an offer. Associations may charge an application or screening fee and, in some communities, a one-time capital contribution at purchase. We cannot state amounts, because they are set by each association's documents. Ask also about any approved or pending special assessment, since a buyer inherits it, and what the monthly dues cover. The guide on condo fees in Florida lists the documents to request, and downsizing to a condo in Tampa explains the Florida rules on resale documents and the buyer's right to cancel.

Dues do not end. Unlike a mortgage, they continue after you pay off the home, and they can rise. Put the current dues and the history of increases next to the property tax and insurance estimate when comparing homes.

The property tax reset, and what portability does

Your current bill may be low because of the Save Our Homes cap. After you sell, the new home is assessed at market value on the next January 1, and the Save Our Homes cap starts again once you have a homestead there. The exemption itself requires you to own and live in the home on January 1 and apply by March 1. Our homestead requirements guide covers the filing.

Up to $500,000 of your old Save Our Homes benefit can transfer to a new Florida homestead if you set it up within three years of January 1 of the year you gave up the old one and file Form DR-501T. When the new home costs less than the old one, the benefit is prorated by the ratio of the values. The portability guide works through it, and the calculator lets you try your own numbers. If you hold a senior exemption today, check whether it will move with you; see Florida property tax exemptions for seniors.

Taxes on the gain are a separate issue. Florida has no state income tax, and the federal exclusion is $250,000 or $500,000 on a joint return, if you meet the ownership and use tests. See capital gains on a home sale in Florida.

A hypothetical: what the move might leave you

This example is hypothetical. Every number is a made-up round figure chosen to show the method, except the two statutory lines, which are calculated from the Department of Revenue rate. It is not a forecast for any home. It reuses the $500,000 sale from estimating your net proceeds.

In this example about $13,000 of costs sit outside the closing table, which is on top of the closing costs already in the net sheet. Stretch the overlap from two months to six and the figure drops by another $6,000. Notice that the table has no line for the buyer's closing costs on the new home. We have no source for a typical figure, so ask your title company or lender to price that line for your actual contract.

Is it cheaper to downsize? How to tell

The honest answer is that it depends on three comparisons.

1. Monthly running costs today versus after. Add taxes, insurance, utilities, dues, upkeep and any mortgage payment for each home. Use a quote for insurance and an estimate for the reassessed tax, not the seller's bill.
2. The one-time cost of the move. Add every line above that applies to you.
3. The break-even. Divide the one-time cost by the monthly saving. If the answer is a few years, the move pays for itself. If it is decades, other reasons, such as stairs, upkeep or being near family, may be what justify it.

That last case is not a mistake. Many people downsize for reasons other than money. The guide is downsizing worth it sets out the decision, and downsizing mistakes to avoid lists the errors that make the numbers worse. When you are ready for the paperwork, the downsizing checklist for seniors puts it in time order, and the Costs and Money page covers the programs behind these numbers.

If you want a net sheet for your own address, you can request an introduction. Introductions go to agents on the operating team at eXp Realty, so this is not a search of the whole market, and the agent, not this site, handles the sale.