Net Proceeds After Selling St George Island Beachfront Income Property in 2026

What will my actual net proceeds be after selling my beachfront income property on St George Island in 2026 once I account for agent commission, prorated taxes, insurance escrow, and outstanding HOA fees?

On a $1,200,000 St George Island beachfront sale, you can expect roughly $1,100,000 to $1,115,000 after commission, prorated taxes, HOA fees, and insurance adjustments, but your true net depends on additional closing costs that most sellers overlook.

Why This Matters Right Now on St George Island

If you own a beachfront income property on St George Island and you’re thinking about selling in 2026, you’re in a position most sellers would envy. As of October 2026, the median list price on the island sits at $1,199,500 with an average price per square foot of $633.94, per MLS data via Hitchcock Properties. The island tracked at just 4.1 months of supply during the week of May 25 to 31, 2026, according to Port Realty Group weekly reports. That is a seller’s market by any definition.

But here is what I’ve learned after 13 years and over 300 closed transactions on this coast: a strong sale price does not automatically mean strong proceeds. I have watched sellers focus on the top-line number while getting caught off guard at the closing table by deductions they did not anticipate. Selling a beachfront rental on St George Island involves a specific stack of costs that you need to understand before you list. Let me walk you through every one of them.

Agent Commission on St George Island Real Estate Sales

Your largest single deduction will be the real estate commission. Following the NAR settlement, the commission landscape has shifted, but here is how it typically plays out on St George Island homes for sale.

The listing agent’s commission generally runs 2.5% to 3%. Buyer’s agent compensation is now negotiated separately, though most sellers on the island still offer 2.5% to 3% to attract the widest buyer pool. On a barrier island where your buyer base includes investors from Atlanta, Birmingham, and across the Southeast, limiting access to your property is not a strategy I recommend.

So what does that look like in dollars? Here is how commission scales at different price points:

• $1,000,000 sale at 5% total commission: $50,000
• $1,000,000 sale at 6% total commission: $60,000
• $1,200,000 sale at 5.5% total commission: $66,000
• $1,500,000 sale at 5% total commission: $75,000
• $2,000,000 sale at 6% total commission: $120,000

On a $1,200,000 beachfront income property, a blended 5.5% commission (2.5% listing side plus 3% buyer side) would cost you $66,000, per the research data. That is the number you need to plan around, though your specific arrangement may differ depending on the services and marketing strategy your agent provides.

Prorated Property Taxes for St George Island Investment Properties

Here is where things get specific to your situation as an income property owner. Your beachfront rental is almost certainly not homesteaded, which means you do not receive the $50,000 homestead exemption that primary residents enjoy. You are taxed on the full assessed value.

Franklin County’s approximate combined millage rate is about 12.0 mills, according to Atlantic Title Firm, 2026 data. That translates to an effective property tax rate of roughly 0.63%, per U.S. Census Bureau ACS data, which is actually 32% lower than the national average of 0.92%.

Florida property taxes are paid in arrears, and Franklin County property taxes are due March 31, 2027. At closing, you as the seller will be debited for your share of the current year’s taxes from January 1 through the closing date. Here is what that looks like:

• $1,000,000 assessed value: Roughly $12,000 annual tax, approximately $32.88 per day. Closing July 1 means you owe approximately $5,984
• $1,200,000 assessed value: Roughly $14,400 annual tax, approximately $39.45 per day. July 1 closing proration of approximately $7,180
• $1,500,000 assessed value: Roughly $18,000 annual tax, approximately $49.32 per day. July 1 closing proration of approximately $8,976

Keep in mind that the combined rate stacks the county, school board, water management district, and any special assessment or community development districts covering your parcel. Two homes of the same price can carry different bills depending on their exact location on the island.

Insurance Escrow and Refund Adjustments on St George Island

This is the one that confuses people most, and honestly, it is the one where I spend the most time explaining the mechanics to my clients. Beachfront properties on St George Island require both windstorm/hurricane coverage and flood insurance, since most of the island falls within FEMA Zone VE or AE. Annual premiums for beachfront homes commonly range from $8,000 to $25,000 or more, depending on your home’s value, construction type, elevation, and coverage limits.

Here is the good news: if you own your investment property free and clear (no mortgage), you likely pay insurance directly. After closing, you can cancel the policy and receive a prorated refund from the insurer for the unused portion of your premium. That refund comes directly from the insurance company, not through the closing statement.

If you still carry a mortgage, your lender’s escrow account holds prepaid insurance premiums. After the mortgage is paid off at closing, the servicer will refund any escrow surplus to you, typically within 20 to 30 business days. This is not a deduction from your proceeds; it is money coming back to you, though there can be a delay.

What does change your net proceeds is if your insurance is in arrears or if you owe a balance. Make sure your policy is current before listing.

Outstanding HOA Fees and Transfer Costs on St George Island

Not every property on St George Island sits within an HOA, but if yours does, the outstanding dues will be settled at closing. The title company will obtain an estoppel letter from the association confirming the exact amount owed.

Here is what you should know about the major communities:

• The Plantation carries HOA fees that typically run $2,000 to $4,000 or more per year, depending on the specific village within the gated community. Some Plantation properties also carry an HOA buy-in fee of 0.5% of the purchase price, which is paid by the buyer, but sellers should verify which party bears this cost per their association’s governing documents.
• Sunset Beach, Pelican Beach Village, Turtle Beach Village, and Bay Palm Village each have their own association dues that vary. Learn more about HOA rules and rental restrictions on St George Island.

If you have unpaid dues, special assessments, or pending community projects with assessments attached, those will be deducted from your proceeds. What I tell my clients is to call your HOA at least 60 days before listing to get a clear picture of what you owe and whether any assessments are on the horizon.

The Costs Most St George Island Sellers Forget

Beyond commission, taxes, insurance, and HOA fees, there are additional closing costs that eat into your net. Florida sellers are typically responsible for:

• Documentary stamp tax: $0.70 per $100 of the sale price, per Florida Statute. On a $1,200,000 sale, that is $8,400.
• Title insurance (owner’s policy): Approximately $5.75 per $1,000 of sale price at the Florida promulgated rate. On a $1,200,000 sale, that is roughly $6,900.
• Title search and closing fees: Generally $500 to $1,500.
• Capital gains tax (federal): 15% to 20% on your net gain, plus the 3.8% Net Investment Income Tax for high earners. If you have been depreciating the property as a rental, you will also face depreciation recapture at 25% on accumulated depreciation under Section 1250.
• Florida state income tax: Zero. Florida has no state income tax, which is one of the advantages of selling here.
• 1031 Exchange option: If you plan to reinvest in another income property, a properly structured 1031 exchange can defer the capital gains entirely.

What Your Net Proceeds Actually Look Like on a St George Island Beachfront Sale

Let me put this all together so you can see the full picture. Using a $1,200,000 sale price with a mid-year closing date:

• Sale price: $1,200,000
• Agent commission at 5.5%: Minus $66,000
• Documentary stamp tax: Minus $8,400
• Title insurance: Minus approximately $6,900
• Title and closing fees: Minus approximately $1,200
• Prorated property taxes (July 1 close): Minus approximately $7,200
• Outstanding HOA fees (estimated annual dues): Minus approximately $2,000

Estimated pre-tax proceeds before mortgage payoff: Approximately $1,108,300

That does not include your mortgage payoff balance, capital gains taxes, or depreciation recapture, all of which are unique to your situation. It also does not factor in any insurance escrow refund that may come back to you after closing.

Having closed over 300 transactions on this coast, I can tell you that the gap between what sellers expect and what they actually net is almost always in the $80,000 to $120,000 range on a property at this price point. The number is not small, and it is not something you want to discover for the first time at the closing table.

Frequently Asked Questions About Selling St George Island Income Property

How long will it take to sell my beachfront property on St George Island in 2026?

As of mid-to-late 2026, homes on St George Island average 134 to 159 days on market, per multiple MLS sources. That is significantly longer than the national average of 58 days. A properly priced beachfront income property will attract serious interest, but plan for a timeline measured in months, not weeks. Pricing accurately from the start is everything on a small island with limited comparable sales.

Do I pay capital gains tax when selling my St George Island rental property?

Yes. The federal capital gains rate is 15% to 20% on your net profit, plus a potential 3.8% Net Investment Income Tax if your income exceeds certain thresholds. If you depreciated the property, you will also owe 25% depreciation recapture on the accumulated depreciation. Florida charges no state income tax, which helps. A 1031 exchange can defer these taxes entirely if you reinvest in like-kind property.

What is the documentary stamp tax on a Florida home sale?

Florida’s documentary stamp tax is $0.70 per $100 of the sale price, per Florida Statute. On a $1,200,000 sale, the seller’s documentary stamp tax would be $8,400. This is a seller-paid cost in Florida and will be deducted from your proceeds at closing.

How are property taxes prorated at closing on St George Island?

Franklin County property taxes are paid in arrears and are due March 31 of the following year. At closing, the seller is debited for taxes owed from January 1 through the closing date based on the current year’s tax estimate. Franklin County’s approximate combined millage rate is about 12.0 mills, according to Atlantic Title Firm, resulting in an effective rate of approximately 0.63% per U.S. Census Bureau ACS data.

What are the HOA fees in the Plantation on St George Island?

HOA fees in the Plantation typically run $2,000 to $4,000 or more per year, depending on the specific village within the community. Some Plantation properties also carry an HOA buy-in fee of 0.5% of the purchase price. Other island communities such as Sunset Beach and Pelican Beach Village have their own association dues at varying rates.

Will I get my insurance escrow back when I sell my St George Island home?

If your investment property has a mortgage with an escrow account, the mortgage servicer will refund any escrow surplus after the loan is paid off at closing. If you pay insurance directly (common for free-and-clear investment properties), you can cancel the policy after closing and receive a prorated refund from the insurer. This refund comes separately from the closing proceeds.

What is the current median home value on St George Island?

As of mid-July 2026, the median home value on St George Island was $1,034,105, per Foreclosure.com. The median list price as of October 2026 was $1,199,500, per MLS data via Hitchcock Properties. Home values showed a change of negative 2.76% year over year as of July 2026.

Can I do a 1031 exchange when selling my St George Island income property?

Yes. As long as your property has been used for investment or business purposes (not personal use), you can defer capital gains taxes by reinvesting the proceeds into a like-kind property through a properly structured 1031 exchange. You must identify replacement properties within 45 days of closing and complete the purchase within 180 days. Work with a qualified intermediary before listing.

How much does title insurance cost on a St George Island sale?

Florida uses a promulgated rate for title insurance of approximately $5.75 per $1,000 of the sale price. On a $1,200,000 beachfront property, the owner’s title insurance policy would cost approximately $6,900. In Florida, the seller customarily pays for the owner’s title insurance policy.

Is St George Island a seller’s market in 2026?

During the week of May 25 to 31, 2026, the island tracked at just 4.1 months of supply with 125 active listings and 7 closings, per Port Realty Group. That qualifies as a seller’s market. However, homes are spending an average of 134 to 159 days on market as of late 2026, so while demand is solid, buyers are taking their time and negotiating carefully.

The Bottom Line

Selling a beachfront income property on St George Island is not the same as selling a house in the suburbs. The stakes are higher, the costs are layered, and the tax implications for rental properties add complexity that most sellers are not fully prepared for. With 13 years on this coast, over 300 closed transactions, and a 5 out of 5 star rating across 33 client reviews, I have guided property owners through exactly this process more times than I can count. My father was a Realtor on this coast before me, and I grew up understanding that these transactions are personal. If you are thinking about selling your St George Island income property and want to know exactly where you will land after every deduction, contact me at 850-653-7893 or stop by my office at 140 W 1st Street on the island. I would rather have an honest conversation about your numbers than watch you get surprised at closing.