Breaking Down Seller Closing Costs in California: What You Need to Know When Selling Your Home

Breaking Down Seller Closing Costs in California: What You Need to Know When Selling Your Home

Congratulations! You’ve crossed the finish line. Closing on your home is a thrill for homeowners who want to sell a house fast in California. But closing costs can add stress to the excitement. If you’re eager to know how much those seller closing costs are in California, you’re in the right place!

What Are Closing Costs?

Closing costs in California refer to the last expenses necessary to finalize a real estate deal, also called “settlement costs.” These costs are additional and distinct from the property’s sale price. Both the seller and the buyer are responsible for specific closing costs. It’s important to note that closing costs can differ between municipalities and states due to various fees and statutory regulations.

What Are the Standard Closing Costs for California House Sellers?

Closing costs for sellers in California typically range from 8% to 10% of the home’s agreed-upon value. Consider the average home value in California, which is $765,495. If you’re putting your house on the market in the Golden State, be prepared to allocate approximately $61,240 to $76,550 for closing costs. It’s worth noting that these costs cover the commissions for both the listing and buyer’s agents.

Most of these expenses will be taken directly from the proceeds you receive from selling the property. So, having enough equity in your home becomes crucial to cover some of these costs without digging into your own pocket.

These closing costs are divided into six main categories:

  • Real estate commissions
  • Escrow fees
  • Title insurance
  • County transfer taxes
  • City transfer taxes
  • Miscellaneous items

The specific amount for each category may vary depending on the county and city in which the property is located. If the value of your California home exceeds your outstanding mortgage, all closing costs are typically covered by the net proceeds, eliminating the need for any out-of-pocket expenses.

Ways to Minimize Seller Closing Costs in California:

  • Conduct thorough research and comparisons.
  • Inquire about rolling your closing costs into your loan.
  • Negotiate with your realtor regarding their fees.
  • Request the buyer to cover some or all of the seller’s closing costs.
  • Consider a discount broker or a realtor with a flat fee.
  • Explore the “For Sale by Owner” (FSBO) option.

Are You Looking to Avoid Closing Costs Altogether? 

If you want to avoid paying closing costs, consider working with USA Cash Offer, your trusted cash home buyer in California! When you choose cash home buyers, you can kiss those closing costs worries goodbye because we will cover them all. You won’t have to pay a penny to seal the deal. There are no commissions or hidden fees. It’s a straightforward sale where you get fair cash for your house.

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