How Much Selling Your California Home Will Cost

by Corrie & Anderson Real Estate 02/05/2019

When you sell your home, you may be solely thinking about the cash that will come out on the other side of the sale. In reality, selling your home in California can actually cost you a bit of capital up front. Below, we’ll discuss some of the fees that you should expect when you move forward with the sale of your home. 

Commission For The Listing Agent And Buyer's Agent

If you use a listing agent to help you sell your home, you should plan on paying anywhere between 2.5 and 5 percent of the purchase price of the home as a commission for each agent. The buyer’s agent fee is technically optional by law, but you’d be a bit ill-informed to pass on this. While it could be a slight inconvenience, most agents will frown upon you skipping the buyer’s agent commission.  

Mortgage Payoff

If you owe anything on your home, the cost of repaying your home loan is deducted from the sale price of the property. Your lender may also impose what’s called a “loan payoff fee.” This cost can vary by the type of lender. 

Closing Costs

In many home sales, buyers tend to ask the seller to cover their closing costs. If you really want to sell your home fast, you might agree to this contingency. Closing costs can range anywhere from 3 percent to 8 percent of the purchase price of the home.    

Selling Your Home Without And Agent

If you plan on selling your home without an agent, you’ll need to pay “for sale by owner” or FSBO fees. This is the cost of listing your home in the MLS including MLS- powered real estate websites. The fee can vary from anywhere between $299 up to 2 percent of the purchase price of the home. 

Other Fees

Other fees can add up during the sale of a home. These can include anything that was affiliated or associated with the property that needs to be cleared before the home can be sold. These could include:

  • Termite inspection fees
  • Natural hazard disclosure reports
  • Lien release document fees

Remember that everything in the transaction of a home is a legal document. Fees to satisfy these requirements may include:

  • Lawyer’s fees
  • Notary fees
  • Escrow fees
  • Title search fees
  • Home warranties
  • City or county transfer fees
  • Home owner’s association (HOA) transfer fees

In California, it may seem like a no-brainer to sell your home and take the cash. Be sure to plan out all of the necessary financial figures before you sell your home. Whether you’re moving around the corner or out of state, working with the numbers can help you to make an informed decision.

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Corrie & Anderson Real Estate

Hi, We're Corrie & Anderson Real Estate and we'd love to assist you. Whether you're in the research phase at the beginning of your real estate search or you know exactly what you're looking for, you'll benefit from having real estate professionals by your side. We'd be honored to put our real estate experience to work for you.