When you sell your home, the sale price isn't the number that lands in your bank account. Between commissions, escrow, title, taxes, and prep work, California sellers commonly spend somewhere around 6% to 10% of the sale price to close, depending on how much you negotiate and how much prep your home needs.
Knowing these costs up front helps you price smart, negotiate with confidence, and plan your next move. Here's a breakdown of what sellers in San Diego and Riverside County should expect.
1. Real Estate Commissions
Commissions are usually the largest selling cost. Since the 2024 NAR settlement, commissions are fully negotiable and are no longer advertised on the MLS. Sellers decide what they pay their listing agent, and whether to offer compensation toward the buyer's agent.
Why many sellers still offer buyer-agent compensation: it can widen your buyer pool, since many buyers can't easily pay their own agent out of pocket. Your listing agent can walk you through the pros and cons for your home and price point.
2. Escrow and Title Fees
Escrow companies hold funds and paperwork until closing. Title companies confirm the property has a clean title and issue title insurance.
In many Southern California transactions, the seller pays for the buyer's owner's title insurance policy, and escrow fees are often split. These are local customs, not laws, so they can be negotiated in your purchase contract.
3. Documentary Transfer Tax
California counties charge a documentary transfer tax when property changes hands. The county rate is $1.10 per $1,000 of the sale price. On a $700,000 home, that's $770. Some cities add their own transfer tax on top, so check the rate for your city with your escrow officer. In Southern California, the seller usually pays it.
4. Paying Off Your Mortgage
Your remaining loan balance, plus any interest owed through the payoff date, is paid from your sale proceeds at closing. Ask your lender for a payoff statement so there are no surprises.
5. Prep, Repairs, and Staging
Most homes need some work before they hit the market. Common seller costs include:
- Paint, landscaping, and minor repairs
- Deep cleaning and decluttering
- Professional photos and video (often included by your listing team)
- Staging, virtual or in person
- Repair credits negotiated after the buyer's inspection
Small investments here often pay off. Fresh paint and curb appeal can help your home sell faster and for more.
6. Other Costs to Plan For
- Natural hazard disclosure report. Required in California and usually paid by the seller.
- HOA fees. Prorated dues, document fees, and transfer fees if your home is in an HOA.
- Mello-Roos. If your home is in a Mello-Roos district, special taxes are disclosed and prorated at closing. Learn more in our guide to Mello-Roos & HOA Fees in Riverside County.
- Property tax proration. You pay your share of property taxes up to the closing date.
- Home warranty. Optional, but some sellers offer one to make buyers more comfortable.
- Capital gains tax. Many owners can exclude up to $250,000 of gain ($500,000 for married couples filing jointly) on a primary residence. Talk to a tax professional about your situation.
Seller Costs at a Glance
| Cost | How It's Figured | Who Usually Pays (SoCal) |
|---|---|---|
| Listing agent commission | Negotiated % of sale price | Seller |
| Buyer agent compensation | Optional, negotiated | Negotiable |
| Escrow fee | Based on sale price; ask for a quote | Often split |
| Owner's title insurance | Based on sale price; ask for a quote | Seller |
| County transfer tax | $1.10 per $1,000 (plus any city tax) | Seller |
| Natural hazard disclosure | Flat report fee | Seller |
| Prep, repairs, staging | Depends on your home | Seller |
How to Lower Your Selling Costs
- Price it right from day one. Overpriced homes sit, and long market times often lead to price cuts.
- List at the right time. Read Best Time to List Your Home in Riverside County to catch peak buyer demand.
- Handle small repairs before listing. Fixing issues early can prevent bigger repair credits after inspection.
- Ask for a seller net sheet. A good agent will show you your estimated take-home before you sign anything.
Frequently Asked Questions
What closing costs does a seller pay in California?
Sellers typically pay commissions, the county documentary transfer tax, owner's title insurance, part of the escrow fees, and any prorated property taxes or HOA dues.
Is real estate commission negotiable in California?
Yes. Commissions are always negotiable, and since 2024 sellers decide whether to offer compensation to the buyer's agent.
Who pays transfer tax in San Diego and Riverside County?
By local custom, the seller usually pays the county documentary transfer tax, though it can be negotiated.
How can I find out how much I'll walk away with?
Ask your listing agent for a seller net sheet. It estimates your costs and your net proceeds based on your price and loan balance.
Know Your Numbers Before You List
Homebase Real Estate helps sellers across San Diego and Riverside counties price, prepare, and market their homes. Reach out for a free home value estimate and a clear seller net sheet, so you know exactly what to expect before you list.
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