In California, a seller’s total transaction costs typically range from 7% to 10% of the home’s sale price. Sellers generally bear most of the closing costs, with real estate commissions being the largest expense.
- Real Estate Agent Commissions: This is the largest cost, averaging about 5%–6% of the sale price in California (customarily split between the listing agent and the buyer’s agent).
- Transfer
Taxes: California county transfer tax is typically $1.10 per $1,000
of the sale price (0.11%). Some cities also impose additional city
transfer taxes.
- Owner’s Title Insurance: In California, it is customary for the seller to pay for the owner’s title insurance, which protects the buyer against future title disputes or liens.
- Escrow Fees: These fees are usually split between the buyer and the seller.
- Prorated Property Taxes: The seller is responsible for property taxes accrued up to the closing date.
- HOA Fees and Document Transfer Fees: Sellers typically pay for the preparation and transfer of homeowners association (HOA) documents to the buyer.
- Lender Payoff: Payment of the remaining mortgage balance and any related loan payoff fees.
Different cities may impose different taxes or fees, so selling costs can vary slightly by location. For example, the City of Los Angeles charges a 0.45% city transfer tax, and properties over $5.15 million are subject to the ULA (Mansion) Tax, starting at 4%.
Estimated Selling Costs – Alhambra, CA ($800,000)
(Excludes existing loan payoff and prorated property taxes)
|
Item |
Calculation |
Estimated Amount |
|
Real Estate Commissions |
5%–6% |
$40,000 – $48,000 |
|
County Transfer Tax |
$1.10 per $1,000 |
$880 |
|
Owner’s Title Insurance |
Estimated |
$1,800 – $2,500 |
|
Escrow Fees |
Estimated |
$2,000 – $2,500 |
|
HOA Fees |
Flat |
$300 – $600 |
|
Miscellaneous |
Flat |
$200 – $500 |
Estimated Selling Costs – Los Angeles, CA ($800,000)
(Excludes existing loan payoff and prorated property taxes)
|
Item |
Calculation |
Estimated Amount |
|
Real Estate Commissions |
5%–6% |
$40,000 – $48,000 |
|
County Transfer Tax |
$1.10 per $1,000 |
$880 |
|
City Transfer Tax |
0.45% |
$3,600 |
|
ULA Mansion Tax |
Not applicable |
$0 |
|
Title Insurance |
Seller paid |
$2,000 – $2,500 |
|
Escrow Fees |
Split |
$1,500 – $2,000 |
|
Compliance Retrofitting |
Required |
$300 – $600 |
|
Miscellaneous |
Administrative |
$400 – $600 |
Key Factors Affecting Seller Transaction Costs
1. City Transfer Taxes：Cities in the Greater Los Angeles area may impose additional transfer taxes, including Los Angeles, Santa Monica, Culver City, Pasadena, Pomona, and Redondo Beach. Rates range from 0.22% to over 5% for high-value properties.
|
City |
Tax Name |
Rate / Calculation |
Notes |
|
City of Los Angeles |
City Transfer Tax (Base) |
0.45% ($4.50 per $1,000) |
In addition to county tax of 0.11% |
|
City of Los Angeles |
ULA Tax (Mansion Tax) |
4% – 5.5% |
4% over $5.3M; 5.5% over $10.6M (new thresholds starting July 2025) |
|
Santa Monica |
City Transfer Tax (Tier 1) |
0.3% ($3.00 per $1,000) |
Applies to properties under $5M |
|
Santa Monica |
City Transfer Tax (Tier 2) |
0.6% ($6.00 per $1,000) |
Applies to $5M–$8M properties |
|
Santa Monica |
City Transfer Tax (Tier 3 – GS) |
5.6% ($56 per $1,000) |
Applies to properties $8M+ (Measure GS) |
|
Culver City |
Tiered Transfer Tax (Measure RE) |
0.45% – 4.0% |
0.45% under $1.5M; up to 4% on portion over $10M |
|
Pasadena |
City Transfer Tax |
0.22% ($2.20 per $1,000) |
About half of LA City’s rate |
|
Pomona |
City Transfer Tax |
0.22% ($2.20 per $1,000) |
— |
|
Redondo Beach |
City Transfer Tax |
0.22% ($2.20 per $1,000) |
— |
2. Repair Costs
If buyers request repairs or credits after the home inspection, these costs directly reduce the seller’s net proceeds.
3.
Market Conditions
In a seller’s market, sellers may negotiate for buyers to cover some costs
traditionally paid by sellers (such as title insurance or escrow fees).
About Me
My name is Helen Xiong, and I am a Realtor® with Coldwell Banker George Realty in Los Angeles. I am dedicated to helping people achieve homeownership and build a better life. As the saying goes, everything begins with land. I am here to help you with your real estate needs, whether you are buying, selling, or simply learning about the housing market.
Learn more about me at: cmyhousesolutions.com
Want to tour a home you’re interested in? Reach out to me on Realtor.com.
Book an insight consultation with me at: calendly.com/min_xiong
Add comment
Comments