What are closing costs?
Before committing to buy or sell a home in the Bay Area, it’s helpful to know what costs you might encounter along the way. Below is a breakdown of real estate closing and sale costs to help you better estimate how much it will cost to buy or sell a home.
But before looking at the breakdown below, it’s worth noting that there are two types of closing costs: Nonrecurring and Recurring.
Nonrecurring closing costs include the one-time fees that buyers pay only at the time of purchase. These can include:
- Escrow fees
- Title Insurance fee
- Appraisal fee
- Underwriting fee
- Notary fee
- Recording fee
- Transfer taxes
- Credit report acquisition fees
- Mortgage origination fees
- Processing fees
- Home inspection fee
- Recurring closing costs include any fees that will recur after the purchase of your home closes. These can include:
- Prepaid interest
- Property taxes
- Hazard insurance
- HOA dues
- Mortgage insurance
Bay Area Closing Cost Examples
These numbers assume a $1,000,000 sale and are a typical representation of costs, but do not take into account all situations, such as all-cash closings. Transfer taxes in San Francisco, Alameda, Marin, etc. will also vary from these numbers.
Contact TREND anytime to get a better estimate of closing costs for your Bay Area purchase or sale.
|Typical Selling Costs||$ Amount*||Notes|
|Commission – listing agency||30,000||2.5 – 3% of the purchase price|
|Commission – selling agency||30,000||2.5 – 3% of the purchase price|
|County Transfer Tax||1,100||In Santa Clara County, it is customary for sellers to pay for this.|
|1/2 of City Transfer Tax||1,650||In Santa Clara County, it is customary for buyers and sellers to split this cost. Only applies in Mountain View, Palo Alto, and San Jose.|
|Owner’s Title Insurance||2,500||In Santa Clara County, it is customary for sellers to purchase an owner’s title policy for the buyer.|
|HOA document preparation fee||300||If applicable|
|Prorated HOA dues||550||If applicable|
|Document Prep Fee||125|
|Natural Hazard Disclosure Report||150|
|Optional Selling Costs|
|These costs are discretionary, but usually highly recommended. A little money spent up front will be repaid, with profit, in the form of a higher purchase price. Your real estate agent can guide you on which repair and staging investments will yield the best pay off.|
|Inspections||$500 – $1500||Depends on the number of systems to be inspected.|
|Repairs, painting, etc.||$5,000 – $15,000+||This is the most highly variable expense, and depends on the condition of the property.|
|Staging||$2,000 – $10,000+||Depends on size of home, how many room are staged, and how many months staging is installed.|
|*IMPORTANT NOTE: These amounts vary according to variables such as purchase price, brokerage, title company, HOA, county, city, and contract.|