Seller Closing Costs in California: What to Expect

Selling a house costs more than the sale price suggests, and nearly all of it comes out of your proceeds at closing. This guide walks through what a California seller usually pays, which costs the buyer customarily covers in Alameda County and how to estimate what you’ll walk away with before you sign anything.

How closing costs get paid

You don’t write a check for most of these costs. The escrow or title company collects the buyer’s money and pays off your loan and the other bills, then sends you what’s left. Before closing, escrow gives you an estimated settlement statement that lists every charge and credit, so read it line by line and ask about anything you don’t recognize.

Who pays which cost is up to the buyer and seller, and the purchase contract spells it out. Most contracts follow the county’s custom. Title companies report that in Alameda County, the buyer customarily pays the escrow fee and the owner’s title insurance policy. The seller pays the county transfer tax, and the two split any city transfer tax. Customs differ around the state: in Santa Clara County, for example, the seller customarily pays for escrow and title.

Agent commissions

For most sellers who list with an agent, the commission is the largest cost. Commissions aren’t set by law; they’re negotiated, and since August 2024 the buyer’s agent’s pay is set in a separate agreement with the buyer. A seller may still agree to cover some or all of it.

For a sense of typical rates, Anywhere Real Estate, whose brands include Coldwell Banker and Century 21, reported average commissions of about 2.4% per side of a sale during 2025. A seller who pays both a listing agent and a buyer’s agent at that rate would pay roughly 4.7%–4.8% of the price, or about $48,000 on a $1 million home. Our guide to agent commissions in California explains the 2024 rule changes and how to negotiate.

Transfer taxes

Alameda County charges a transfer tax of $1.10 per $1,000 of the price on every sale, and the seller customarily pays it. Eight cities add their own tax, from $8.50 per $1,000 in Hayward up to $25 per $1,000 at the top price tiers in Berkeley, Emeryville and Oakland. By custom, the buyer and seller split the city tax 50/50.

On a $1 million sale in Oakland, for example, the city tax is $15,000 and the county tax is $1,100, so the seller’s customary share is $8,600. In Fremont, Pleasanton and the other cities without an added tax, it’s $1,100. Our Alameda County transfer tax guide lists every city’s rate and tiers.

Escrow fees and title insurance

The escrow company holds the money and documents and handles the closing. The owner’s title insurance policy protects the buyer against problems with the title that weren’t caught before the sale. In Alameda County, the buyer customarily pays for both, so many sellers here pay little or nothing for them.

That can change in negotiation. If you agree to pay some of these costs, or you’re selling in a county where sellers customarily pay, ask the title company for a quote early. Both fees depend on the price.

Your mortgage payoff and liens

Escrow asks your lender for a payoff demand statement, which shows the exact amount needed to pay off the loan, including interest through the payoff date. Under California law, the lender must send it within 21 days of a written request and can charge no more than $30 for it, although that cap doesn’t apply to FHA or VA loans.

The payoff isn’t a fee, but it’s usually the biggest deduction from your proceeds. Escrow also pays off any second loan, home equity line, tax lien or judgment recorded against the house, plus the lender’s charges to release its lien. If your loan carries a prepayment penalty, it’s added to the payoff, so check your loan documents.

Prorated property taxes

California property taxes are paid in two installments. The first is due November 1 and becomes late after December 10; the second is due February 1 and becomes late after April 10. Escrow divides the year’s tax by date: you pay for the time you owned the house, and if you’ve already paid an installment that covers time after closing, you get a credit for it.

After the sale, the county reassesses the home at its new value. The supplemental tax bill that results covers the time after the change in ownership, so it’s the buyer’s, not yours.

HOA fees

If the home is in a homeowners association, California law requires the seller to give the buyer the association’s governing documents, its budget and other disclosures. The association can charge the seller a reasonable fee based on its actual cost to provide them, and it must give a written estimate of that fee on request. Apart from those document fees, it can’t charge more than its actual cost to change its records when a home sells.

Any dues or assessments you owe are paid from your proceeds, and escrow settles your dues up to the closing date.

Natural hazard disclosure report

California sellers must tell buyers, on a state form, whether the home is in certain mapped hazard areas: a federal flood zone, a dam inundation area, a high or very high fire hazard severity zone, a state wildland fire area, an earthquake fault zone or a seismic hazard zone. The law allows a third-party consultant to prepare the information, and sellers commonly pay a disclosure company for a report that checks the maps.

Recording and other small charges

Escrow also passes along smaller items, such as county recording fees, notary or signing fees and wire or courier charges. Repairs or credits you agree to after the buyer’s inspections count as costs too, and a home warranty, if you offer one, adds to the total.

Estimate your bottom line

Here’s a simple example. Say you’re selling a house in Hayward for $1,000,000 and owe $400,000 on your mortgage.

Commissions at 4.8%: $48,000
Your customary share of transfer tax: $1,100 county plus half of the $8,500 city tax, or $5,350
Mortgage payoff: about $400,000, plus interest to the payoff date

That leaves about $546,650 before prorated taxes, HOA charges, the hazard report, small fees and any repair credits. Your real numbers will differ, so ask your escrow officer for an estimate once you have a price.

Selling without most of these costs

When you sell to EZ Home Offer, you pay no commissions or fees, and we cover typical closing costs, so the main deductions are your loan payoff and any liens. The trade-off is price: a cash offer is usually below what the house might bring on the open market after repairs and showings. Compare what you’d net both ways, and see how a sale with us works if you want a firm number to compare.

Sources

General information about California rules as of October 3, 2026, not legal, tax or financial advice. Laws change and every situation is different, so check the details with an attorney, CPA or other professional.