Simone Spotlight | What it costs to Sell a Home in the East Bay

What it costs to Sell a Home in the East Bay

SEPTEMBER 18th

In today’s blog, we provide an outline of the seller closing costs in California.

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.

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).

However real estate commissions are negotiable, you may decide to pay a lower real estate commission by hiring a:

• Discount brokerage

• Flat fee company

• Selling without a Realtor

• Negotiating lower real estate commissions

Note that when paying a lower commission you may sacrifice one or more of these from your agent:

• Service

• Experience

• Marketing

• Negotiating

• Looking out for your best interests

As a seller it is in your best interest to hire a great agent, that should be a priority and not who will work for the lowest commission. Ultimately, you get what you pay for.

Escrow fees In California

Depending on which county you’re in, you may or may not have to pay this. Each county has a preset “standard” for determining if the buyer or seller pays for this. In Alameda the Buyer pays this cost, not the Seller.

What is title insurance?

Title insurance is an insurance policy that protects the buyer from a financial loss due to defects on the title. An example of this is someone claiming ownership of the property after it is sold.

Unlike escrow fees, there isn’t a set calculation to determine the cost of 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.

You can use this free calculator.

The Buyer not Seller pays for this cost.

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”.

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.

In Alameda, the Seller pays the Transfer Tax, not the Buyer.

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

These aren’t necessarily costs, but they are itemized with your closing costs on your final settlement statement. 

To Recap: 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

If you have any questions feel free to reach out to the Simone Koga Group.