How Much Are Seller Closing Costs?

As many seasoned home sellers know, there are costs associated with the sale of a home (seller closing costs). For most sellers, these costs are simply deducted out of your net proceeds by your Escrow company, and the check you receive already has these amounts deducted. A Realtor can provide you a very accurate “net sheet” to show how much you would net at various sales prices.

1. Realtor Commissions

In California, it is standard for the seller to pay the Realtor commissions for their own agent as well as the buyer’s agent. Commission is one of the largest the cost of selling your san diego houseexpenses associated with the sale of a home. Currently, 5-6% of the sales price is the most common amount brokers charge. Find out about my 4% discount commission listing plan!

2. HOA Fees

If you live in an HOA community, sellers normally pay the HOA transfer fee and the HOA document fee. These fees vary, but I’d budget $300-$600 total.

3. Recording Charges

This fee is about .01% of the sales price. It is the cost associated with transferring the title at the county recorder’s office from your name to the new buyers’ name.

4. Escrow/Title Charges

The seller must pay for a portion of the Escrow charges (normally they are split 50/50 with the buyer). For example, a $500,000 house would be around $1,200 for each side. They must also pay for owner’s title insurance, to help protect the buyer from any possible clouds on the title of the property they are purchasing. These charges normally total somewhere between 1/2 to 1% of the total sales price. 

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5. Property Taxes

Depending on the time of year of the sale, there may be unpaid property taxes, which are pro-rated until close of escrow.  If property taxes have already been paid in advance, the buyer will credit the seller a pro-rated amount from the date of sale.

6. Home Warranty

If a buyer requests a home warranty policy and the seller agrees, you must pay this expense through Escrow. In San Diego, the policies usually range from $400-$600. They cover appliances/systems in the house, and if the buyer has a maintenance issue arise, they can call their home warranty company, which will send a licensed professional out to take a look at it and potentially remedy the problem.

7. Additional Charges

The Residential Purchase Agreement (the buyer’s offer) outlines the terms of the sale.  Terms can include a seller credit towards buyer closing costs, or a buyer credit towards seller closing costs. Buyers often request a natural hazard disclosure report ($100), and a termite inspection ($85). Buyers may also request that the seller complete repairs, such as fixing a plumbing leak, replacing a roof, or clearing a termite infestation and repairing termite damage. Repair requests are negotiated between the buyer and seller after inspections are completed.


A Closing Cost Example Document

Here is an example of the final Closing Settlement Statement (formally the HUD-1) you will get from escrow. This home sold for $650,000 with a HOA:

Escrow Closing Disclosure Statement.pdf


As a seller, you’ll pay your real estate commission percentage, plus 1-2% of the sales price in closing costs. Since you are selling, you do not have lender fees associated with the transaction like the buyer does. A Realtor can work with their Escrow company rep to give you a very accurate breakdown (called a “Net Sheet”) of how much you will pocket from the sale of your home!

Ryan Blanco-Realtor-San Diego Real Estate Blog

About Me: I am a full time agent and I dedicate 100% of myself and my time to my valued clients in addition to the San Diego communities that I serve. It is imperative that I continuously evolve with local and national trends in addition to always looking ahead of the industry. It is a must to always provide the best service to my clients, their families and friends.




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One Response to “How Much Are Seller Closing Costs?”

  1. Avatar Anna says:

    This sounds like a smart choice for many home sellers in the San Diego area. In many places, realtors haven’t been quick enough to offer discount commissions. And so now the industry is threatened by wholesale disruption through flat fee real estate companies that are getting closer and closer to offering comparable full-service realty.

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