What are the typical closing costs for sellers in California?

The average closing costs for sellers in California are roughly 5.35% of the home’s final selling price.

These costs can be broken down into six categories:

Real estate commissions

Escrow fees

Title insurance

County transfer taxes

City transfer taxes

Miscellaneous items

Some of these closing costs are based on the county and city you live in.

Assuming you don’t owe more than what your home in California is worth, all of your closing costs are paid out of your net proceeds, meaning you don’t pay anything out of pocket.

You’ll see these costs toward the end of your estimated closing date on a settlement statement. 

California real estate commission

When you sell your home, you’ll pay a commission to your agent and the buyer’s agent. These will be a chunk of your closing costs.

The average total commission most home sellers pay in California is five to six percent of the final selling price (sometimes less for higher-priced homes). But remember, real estate commissions are negotiable.

Escrow fees In California

Escrow fees will be another part of your closing costs.

A rough calculation of the cost is $2.00 for every $1,000 of the sales price, plus $250.

So if your home sells for $1,000,000, and you live in a county that requires the seller to pay, you’ll pay an escrow fee of roughly $2,250. Most escrow companies charge around the same amount.

Title Insurance

We’ve found that title companies in California usually charge around the same price. To get an idea of what this is, take the sale price and multiply it by .00225.

For example, if your final selling price is $1,100,000, then the cost for title insurance might be $2,475. The cost can vary depending on your final selling price.

California Transfer Tax

Part of the closing costs for a seller in California is city and county transfer taxes. These are also referred to as “documentary transfer taxes”.

What exactly is a documentary transfer tax?

Think of it this way. Every time a property changes ownership, the local governments want a piece of the pie.

County transfer taxes

Every county in California has a transfer tax.

The cost of the county transfer tax in California is $1.10 for every $1,000 of the sale price, except for San Francisco County.

So if your house sells for $1,000,000 and your property is not located in San Francisco County, then the county transfer tax would be $1,100.

The cost of city transfer tax can vary for each city.

Who pays for these documentary transfer taxes?

Similar to the escrow and title fees, city transfer fees can vary by area. In almost every scenario, the seller will either pay both or these costs will be split fifty-fifty between the buyer and seller.

Miscellaneous Fees

You might see several miscellaneous fees itemized on your settlement statement.

Some of these include the following:

Recording fee

Notary fee

HOA fee (if the property has an HOA)

Any reports and/or inspections (including home inspection fees) that are not paid upfront

How much are seller closing costs in California?

Real estate commissions = 5% (can be higher or lower)

Escrow fees = $2.00 for every $1,000 of the final sale price + $250

Title insurance = sale price x .00225%

County transfer tax = $1.10 for every $1,000 of the final sale price

City transfer tax = the costs depend on the city you live in

Miscellaneous items = varies for each transaction

Selling a home in California is a big financial transaction. Knowing what to look for in the agent you select can help you reduce your costs by maximizing your proceeds.