Closing Costs for Sellers Explained

What Are Closing Costs?

Closing costs are the fees and expenses paid when the sale of your home is finalized. As a seller, you'll have several costs deducted from your proceeds.

Common Seller Closing Costs

Real Estate Commission

The largest expense for most sellers. This is split between the listing agent and the buyer's agent.

Title Insurance

In California, it's customary for the seller to pay for the buyer's title insurance policy. This protects the buyer against title defects.

Escrow Fees

The escrow company handles the closing process. Fees are typically split between buyer and seller.

Transfer Tax

California counties charge a transfer tax when real estate changes hands. In Kings County, this is $1.10 per $1,000 of sale price.

Prorated Property Taxes

You'll pay property taxes through the date of closing. If you've prepaid for the year, you may receive a credit.

HOA Fees and Transfer Fees

If your property is in an HOA, you may owe prorated dues and a transfer fee.

Payoff of Existing Loans

Your mortgage balance, plus any prepayment penalties or payoff fees, will be paid from proceeds.

Other Potential Costs

• Home warranty (if offered to buyer)
• Repair credits negotiated with buyer
• Unpaid liens or judgments
• Recording fees

Estimating Your Net Proceeds

Before listing, I'll provide you with a net sheet - an estimate of what you'll walk away with after all costs. This helps you make informed decisions about pricing and offers.

Questions?

Reach out and we can go through a detailed estimate for your specific situation.