Sellers usually ask about commission first, but it’s rarely the only cost. Here’s what actually shows up on a California seller’s closing statement.
Agent Commission
Commission is negotiated between you and your agent, not set by law or by any board. Total commission (covering both the listing agent and the buyer’s agent) has traditionally run in the 5-6% range, though since the 2024 NAR settlement, buyer-agent compensation is negotiated separately and isn’t automatically baked into every listing the way it used to be. Ask your agent to walk through exactly what you’re paying for and how it’s split before you sign a listing agreement.
Escrow and Title Fees
Escrow and title fees typically run around 1% of the sale price combined, though the exact amount depends on the title company, the sale price, and which party customarily pays which fee in your county (this varies across California). Your escrow officer can give you an exact quote once you’re in contract.
Transfer Tax
California counties charge a documentary transfer tax, typically calculated per $1,000 of the sale price. Some cities layer an additional city transfer tax on top of the county rate, and a few cities (Los Angeles among them) charge notably more at higher price points. This is one of the easiest costs to get wrong by guessing, so confirm the exact rate for your specific city and price point with your escrow officer or agent rather than assuming a flat statewide number. If you’re selling inside LA city limits above $5.4 million, factor in Measure ULA as well, since it’s a separate, larger tax on top of the standard transfer tax.
Prep Costs
These are the most variable line item, because they’re optional and scale with how much work a home needs: staging, minor repairs, a pre-listing inspection, cleaning, and photography. A well-priced, well-presented home often sells faster and closer to asking, which is usually the better trade than skipping prep to save a few thousand dollars up front and then sitting on the market.
Net Proceeds
The number that actually matters is what’s left after commission, escrow and title fees, transfer tax, any loan payoff, and prorated property taxes or HOA dues. Ask for a net sheet, a simple estimate of your proceeds at a given sale price, before you list. It’s a normal request and any agent should be able to produce one quickly. A net sheet also doesn’t account for federal taxes, so it’s worth understanding how the capital gains exclusion applies to your specific situation before you count on a final number.
If you want a real net-proceeds estimate for your specific property, reach out and Efrat can put one together.
