Home Selling Costs
Closing costs comprise the various expenses buyers and sellers normally incur in the transfer of ownership of real property over and above the cost of the property. Below is a summary of some of the common charges a seller incurs when selling a home. The estimates below are based on a $600,000 sales price.
| Home Selling Closing Costs | |
| Charge | Estimate |
|---|---|
| Broker Compensation | |
| Broker Commission (charged by seller’s agent to list a property for sale; usually 5%-6% of sales price; split between seller’s and buyer’s agents) | Varies |
| Title Charges | |
| Owner’s Title Insurance Policy (protects buyer against problems with the title to the property that occurred before the date of the policy | $1,400 |
| Reconveyance Fee (charged by title company for removing your current lender's lien from your property title) | $65 |
| Sub Escrow Fee (for receiving loan proceeds from buyer's lender and paying off existing liens and encumbrances against the property) | $65 | Escrow Charges |
| Escrow Fee (fee charged by escrow company for escrow services; sales price times 2 plus $200 per side) | $1,400 |
| Property Tax | |
| Property Tax Prorations (amount varies based on date transaction closes) | Varies |
| Recording Charges | |
| County Transfer Fee (0.10% of sales price) | $600 |
| Additional Settlement Fees | |
| Home Warranty (premium for a one-year warranty of home) | $450 |
| Home Owner Association Transfer Fee (if there is a homeowner association; amount varies) | Varies |
| Home Owner Association Dues (if there is a homeowner association; amount varies) | Varies |
| Natural Hazard Disclosure Report (discloses to the buyer any potential natural hazards to which property may be subjected) | $120 |
| Wood Destroying Pest Inspection Report (discloses to the buyer whether property has evidence of termites) | $75 |
| Termite Related Repairs (cost to repair damage to the property due to termites) | Varies |
| Document Processing Fee | $250 |
| Courier/Express Mail Fee (fee that the title company charges for a courier or overnight delivery service) | $50 |
| Water Retrofit Certification (fee imposed by San Diego requiring the seller and buyer to certify that property meets government water use standards) | $10 |
The above fees are estimates. Particular transactions may have more or fewer charges than shown above. Actual fees will vary.
Settlement Statement
A settlement statement or closing statement is a document prepared by the escrow officer at the completion of a real estate transaction which itemizes the charges and credits of your account. The items shown on the statement include the purchase price, the funds deposited or credited to your account, payoffs on existing encumbrances and/or liens, the costs for all services, and a determination of the funds you are entitled to at the close of the escrow.
If anything on the settlement statement does not make sense to you, you should ask your escrow officer for an explanation. The settlement statement and all other escrow documents should be safely stored for income tax purposes and future reference.
