What Closing Costs Should Buyers and Sellers Each Expect in a California Home Sale?

Buyers in California typically pay around 2% of the purchase price in closing costs, while sellers pay significantly more — often 6% to 8% of the sale price once real estate commissions are included. On a $913,000 Los Angeles County home, that works out to roughly $18,000–$19,000 for the buyer and $55,000–$73,000 for the seller, though the exact numbers shift with loan type, title company, and negotiated credits.

What Closing Costs Do Buyers Pay in a California Home Sale?

Buyer closing costs in California average about 2.1% of the sale price, or roughly $17,600 on a typical transaction, slightly above the national average. These costs usually include the loan origination fee, appraisal (around $388 on average), credit report fee, homeowner's insurance premium paid in advance, prepaid property taxes, title insurance for the lender's policy, escrow fees split with the seller, and recording fees (around $244). Buyers using certain loan programs may also pay upfront mortgage insurance.

What Closing Costs Do Sellers Pay When They Sell in California?

Sellers carry the larger share of closing costs, mainly because real estate commissions come out of their proceeds. Total commission averages 5.08% of the sale price — about 2.57% to the listing agent and 2.51% to the buyer's agent — which alone can run close to $39,000 on a $773,000 sale. Beyond commission, sellers typically pay 2.71% of the sale price in additional closing costs: the county transfer tax (about 0.11%, or roughly $840 on that same sale), owner's title insurance (about 0.17%, or around $1,338), escrow and title service fees (about 0.32%, or around $2,471), and any agreed-upon repair credits or home warranty for the buyer.

How Much Does Title and Escrow Actually Cost?

Title and escrow fees in California are typically split between buyer and seller, though who pays what is negotiable and varies by county custom. Owner's title insurance, which protects the buyer's ownership interest, usually falls to the seller in Southern California. Escrow fees, which cover the neutral third party handling funds and documents through closing, are commonly split 50/50. Together these services usually add up to a few thousand dollars on a median-priced home, and your escrow officer can itemize the exact figures once you're in contract.

Can Closing Costs Be Negotiated or Reduced?

Yes. Buyers can ask sellers for a closing cost credit as part of their offer, which is common when a home has sat on the market or when buyers are stretching to make the down payment. Sellers can negotiate commission rates with their listing agent or, less commonly, split some closing costs with the buyer to keep a deal together. Shopping title and escrow companies, since fees aren't always fixed, can also save a few hundred dollars on either side.

What's a Realistic Closing Cost Estimate for a Los Angeles County Home?

On a $913,000 Los Angeles County home, a buyer using a conventional loan should budget roughly $18,000 to $20,000 for closing costs, separate from the down payment. A seller should expect to net out roughly 7% to 8% of the sale price between commission and closing costs, or somewhere around $64,000 to $73,000 total. Your lender and your agent can both provide a line-item estimate specific to your transaction once you're under contract.

Frequently Asked Questions

Do buyers and sellers pay the same closing costs? No. Buyers mainly pay loan-related and prepaid items, while sellers pay the bulk of the commission plus transfer tax and title costs, which is why seller closing costs run several times higher as a percentage of price.

Can closing costs be rolled into the loan? Some loan programs allow certain costs to be financed or covered through a lender credit in exchange for a slightly higher interest rate, but this varies by loan type and lender.

Who chooses the title and escrow company? In California, this is typically negotiable and often specified in the purchase contract; buyers and sellers can agree on a company or each use their own representation where customary.

Are closing costs due at the same time as the down payment? Yes, both are typically due at closing, usually paid via wire transfer or cashier's check to escrow a day or two before the transaction is finalized.

Updated for October 2026.