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You are here: Home / Southern California Real Estate Tips / Southern California Seller Closing Costs

Southern California Seller Closing Costs

When you sell a home or condo in Southern California, there are closing costs associated with the sale. There are several parties involved in each transaction. Below is an explanation of who is involved in the sale of your property, the expenses and an easy way to figure out your costs on our website:

Southern California Home Values Reports
Southern California Seller’s Closing Costs

When you sell a home or condo in Southern California, there are closing costs associated with the sale. There are several parties involved in each transaction. Learn about who is involved in the sale of your property, the expenses and an easy way to figure out your costs for a real estate sale.

 

Who is Involved When it Comes to Seller Closing Costs

  • The Seller’s real estate agent, when representing you, is the listing agent. Their goal is to get you the highest and best price for your home in the shortest amount of time on the market.

  • The Buyer’s real estate agent, represents the buyer and seeks to assist the buyer to get the lowest price for the home

  • Escrow Company and Escrow Officer—a independent, neutral third party company who carries out the agreements that the buyer and seller made during the offer for real estate. They are a licensed, bonded and insured escrow/settlement agent.  To learn more, go to “What is an Escrow Company”…

  • Lender/Bank—if a loan is involved

  • Title Insurance Company —A company which issues insurance regarding the title of real property.

 

 

List of Home Selling Expenses

  • Southern California Seller Closing CostsDocumentation Preparation Fee for transferring the deed

  • Escrow Fees – your escrow officer is the key to a smooth transaction. Since you are the seller, your listing agent should know several reliable escrow companies in your area to assist with the closing of the sale.

  • Notary Fees – usually runs about $10 to $25 or more depending on the document that needs to be notarized

  • Loan Fees – possible fees required by the buyer’s lender if the buyer buys with a FHA or VA loan. This amount can vary.

  • Buyer may ask the seller to pay for their closing costs in the purchase contract. Usually the buyer asks up to 3% of the purchase price for closing costs to be paid by the seller. You as the seller can negotiate this item.

 

  • Demand Fee – your bank that has your loan now may charge a fee for documents so your loan can be paid off through the sale in escrow.

  • Real Estate Commissions – a good agent can help you get the highest price that the market will bear for your home. The typical real estate commission is about 6% of the sales price. The commission is split between the buyer and seller’s real estate companies. The fee is negotiable.

 

  • Termite Work – in Southern California, there are two sections to the Termite Report; Section 1 covers infestation of termites and Section 2 covers future items that may happen. The best thing to do is get a termite inspection report of your home when you first get it listed for sale so you know what your costs will be.
  • Natural Hazard Disclosure Report discloses to the buyer if your home is in an earthquake zone, fire hazard, etc. You as the seller need to disclosure this to the buyer. You can fill out the form yourself or have a third party company take the liability of it and create a report for the buyer. Cost is about $99 to $139.

  • Environmental Disclosure Report discloses if your property has an oil well on it or had one in the past…along with other issues.

  • Title Insurance — provides coverage for certain losses in the title prior to your ownership. It protects against claims resulting from various defects such as prior fraud or forgery that might go undetected until after closing.

  • Tax Prorations – if any for unpaid taxes including any bonds or special assessments

  • Any unpaid Homeowner’s Association (HOA) Dues (if a condo, town home or your property is in a planned unit development).

  • Home Warranty plans – after you have moved out, the home warranty company’s policy will covered service problems – offering you additional after-sale liability protection. They range from $255 to $400 or depending on what they cover

  • Any City Transfer or County Tax

  • Document Transfer Tax

  • At the end of the sale, you receive a closing statement that itemizes all of the expenses.

  • Typically, figure about 8% of the sales price for your closing costs with Realtor® commissions factored in when your are selling. Review more helpful Home Selling Tips

  • Expect a 45 day escrow period because of some new lender changes

 

 

Find Out How Much You Would Receive at Closing When You Sell Your Home

Simply fill out the information about your property and we will send you an estimate of what your closing costs would be in California along with the current market value of your home:

Southern California Seller Closing Costs
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