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.
| Sales price | $1,000,000 | |
| 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. |
| Escrow Fees | 600 | |
| HOA document preparation fee | 300 | If applicable |
| Prorated HOA dues | 550 | If applicable |
| Document Prep Fee | 125 | |
| Courier Fees | 60 | |
| Wire Fee | 25 | |
| Notary Fees | 60 | |
| 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. | ||
| Optional Costs | $Amount | Notes |
| 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. | ||
