Closing Cost Basics in California: What Buyers and Sellers Pay
By Karla I. Vasquez, REALTOR® · Keller Williams Realty Danville · Reviewed October 2026
Quick answer
Closing costs are the fees paid to finish a sale, on top of the price and down payment. Buyers in California often pay roughly 2% to 5% of the price, mostly tied to the loan. Sellers usually pay more in total because of agent compensation and transfer taxes. Who pays each fee is set by your purchase contract and local custom, and most of it is negotiable.
What buyers usually pay
- Loan costs: lender origination fees, any points you buy, credit report and appraisal.
- Lender's title insurance and your share of the escrow fee.
- Prepaids: homeowners insurance, a few months of property tax for your escrow account, and prepaid interest.
- Inspections: home, sewer, roof or foundation inspections you choose to order.
- HOA fees for transfer and documents, if the home is in an association.
- Recording fees for your deed and loan documents.
What sellers usually pay
- Agent compensation: negotiable and set in written agreements.
- Transfer taxes: the county documentary transfer tax ($1.10 per $1,000 of price in Contra Costa), plus a city transfer tax in some cities. San Francisco has its own tiered rate.
- Owner's title insurance and the seller's share of escrow, depending on the contract and local custom.
- Reports: natural hazard disclosure and, often, a termite (wood-destroying pest) report.
- Payoffs and credits: your remaining loan, any repair credits you agree to, and prorated property taxes.
- Tax withholding: California may require a portion of the price to be withheld for state income tax unless an exemption applies, such as many sales of a primary residence. Escrow handles the form; ask your tax professional what applies to you.
Karla's tips to lower your costs
- Compare Loan Estimates from at least two lenders. Fees vary more than people expect.
- Ask about seller credits toward your closing costs. In the right market, it's a strong negotiating tool.
- Check first-time buyer and down payment assistance programs before you shop.
- Get a real repair estimate before you write the offer. With my construction team, you'll know the numbers up front.
En español: lo básico
Los costos de cierre son los gastos para completar la compraventa. El comprador suele pagar los costos del préstamo, seguros e impuestos por adelantado; el vendedor suele pagar los impuestos de transferencia y la compensación de los agentes. Casi todo se puede negociar. Llámeme y se lo explico paso a paso en español.
This guide is general information only, not legal, tax or financial advice. Fees and customs vary by city, lender and contract. Your Loan Estimate and escrow statement show your actual costs.