Sean Aujla & Associates - Your Trusted Real Esate Partner

California Selling Costs:

Real Estate Commission

Title Service Fees

Owner's Title Insurance

Transfer Tax

Recording Fees

Miscellaneous Fees

1. Real Estate Commission:  Depending on the property, the fee is typically a minimum of 5%, split between the Listing Realtor & Buyer's Agent if represented. 

2. Title Service Fees: When you sell a home, you must transfer the title to the new owner, which requires a streamlined process through an Escrow provider, to verify ownership and ensure there are no outstanding issues or liens etc.  In most cases, the Buyer selects the facilitator & the cost is either split, or negotiated.  For a $1 million property, the total escrow fee could be around $2k each, this is only an approximate figure. 

3. Owner's Title Insurance: Protects you if there are any mixups and someone else has a claim to the home's title. Although uncommon, errors in ownership transfer and the chain to title do occur and can be expensive to solve. So the owner will be responsible for taking out their own title insurance policy, which is usually somewhere around $500 to $1,000, however, will depend on value. 

4. Transfer Tax: California charges a tax to transfer your home to a new owner. The current tax rate is $1.1 per every $1,000 in assessed value or about 0.11%. So if the home is worth $1 million, the tax would be around $1100.

5. Recording Fees: California also charges a fee to record your deed and mortgage information with the local authority. The fee varies depending on the location but may range from $300 - $1000. 

6. Miscellaneous Fees: Additional fees are always required at closing that are unique to the transaction. For example if the Seller has any outstanding homeowners association fees, mortgage prepayment fees, or outstanding property taxes etc, they will likely be deducted, or due at closing.

7. Capital Gains Tax - Unless exempt, there could be tax implications on your gain/increase of value associated with your main home.  Typically though, if you experience a gain, you may qualify to exclude up to $250,000 from your income, or up to $500,000 if you file jointly with your spouse.

Costs are approximate & all info provided is subject to change.  Please confirm with a professional of your choice, prior to acting upon.