What Are Closing Costs in California? Full Breakdown
Closing costs in California typically range from 1 to 3 percent of the sale price for sellers, or $5,000 to $25,000 on a median-priced home. These are fees paid at the close of escrow in addition to agent commissions. Here is every line item you can expect to pay and how to avoid them entirely.
Cost Breakdown
| Item | Traditional | With Acquily |
|---|
| Escrow Fees | $1,500 – $3,000 | $0 |
| Title Insurance (Owner's Policy) | $1,500 – $3,500 | $0 |
| County Transfer Tax | $825 | $0 |
| City Transfer Tax (if applicable) | $0 – $3,375 | $0 |
| Recording Fees | $50 – $250 | $0 |
| HOA Transfer Fee | $0 – $500 | $0 |
| Natural Hazard Disclosure | $100 – $200 | $0 |
| Home Warranty (optional) | $300 – $600 | $0 |
| Notary Fees | $150 – $300 | $0 |
| Prorated Property Taxes | Varies | $0 |
Who Pays Closing Costs in California?
In California, closing costs are split between the buyer and seller, but the split varies by region. In Southern California, the seller traditionally pays for the owner's title insurance policy. In Northern California, the buyer typically pays for title insurance. Escrow fees are usually split evenly.
The seller is almost always responsible for the transfer tax, their share of prorated property taxes, any HOA transfer fees, and the natural hazard disclosure report. These costs are deducted from the seller's proceeds at closing.
California Cities with Additional Transfer Taxes
Several California cities charge their own transfer tax on top of the county rate. Los Angeles charges $4.50 per $1,000 (plus a mansion tax on sales over $5 million). San Francisco charges $3.40 to $6.00 per $1,000 depending on the sale price. Oakland charges $10 to $25 per $1,000. These city taxes can add thousands of dollars to your closing costs.
Most Central Valley cities like Bakersfield, Fresno, Modesto, and Stockton do not have a city transfer tax, making closing costs somewhat lower in these areas.
How to Avoid Closing Costs Entirely
The only way to avoid closing costs as a seller in California is to sell directly to a cash buyer like Acquily who covers all closing costs. In a traditional sale, closing costs are unavoidable because they cover mandatory services like title searches, escrow administration, and government-required transfers.
Frequently Asked Questions
How much are closing costs in California?
Seller closing costs in California typically range from 1 to 3 percent of the sale price. On a $750,000 home, that is $7,500 to $22,500. This does not include agent commissions, which are separate.
Are closing costs negotiable in California?
Some closing costs are negotiable, including escrow fees and who pays for title insurance. However, transfer taxes and recording fees are set by the government and are not negotiable. Acquily eliminates all closing costs for sellers.
What is the biggest closing cost for sellers in California?
For most California sellers, the biggest closing cost is the owner's title insurance policy, which runs $1,500 to $3,500. In cities with high transfer taxes like LA, San Francisco, and Oakland, the city transfer tax can be the largest cost.
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