SELLERS

What Sellers Should Expect in Closing Costs in the Temecula Valley

While buyers have their share of expenses, home sellers in California also pay closing costs,

typically ranging from 5% to 7% of the home’s sale price once commissions and fees are included.

The good news? Most of those costs are deducted directly from your proceeds at closing, so you won’t

be writing multiple checks throughout escrow.

Typical Seller Closing Costs in California

Here’s what most Temecula-area home sellers can expect:

• Real Estate Agent Commissions:

This is the largest expense for most sellers and usually ranges from 5% to 6% of the sales price, split between the listing and buyer’s agents.

• Escrow Fees:

Escrow companies charge for managing the transaction and funds transfer. These fees are often split 50/50 between buyer and seller, though this can vary by region.

• Owner’s Title Insurance Policy:

In Southern California, sellers typically pay for the owner’s policy, which protects the buyer against any future title disputes.

• County Transfer Tax:

Riverside County’s transfer tax is $1.10 per $1,000 of the sales price. .

• Outstanding Liens or HOA Dues:

Any remaining mortgage balance, liens, or unpaid HOA dues will be deducted from your sale proceeds.

• Repairs or Credits to Buyer:

If repairs were negotiated after inspections, or if you agreed to provide a credit toward closing costs, those amounts will appear here.

• Natural Hazard Disclosure (NHD) Report:

California law requires sellers to provide this report, which outlines local hazards like fire or flood zones (around $100–$150).

• Home Warranty (Optional):

Some sellers offer a one-year home warranty to the buyer as a gesture of goodwill or negotiation tool.

• Termite Clearance or Section 1 Repairs:

If required by the lender or negotiated in escrow, sellers may need to provide termite clearance or repair work before closing.

Are Seller Closing Costs Negotiable?

Yes! In a shifting market, buyers sometimes request seller credits to help offset their loan or closing costs, but that’s always negotiable.

On the flip side, in a strong seller’s market, you might not need to offer any concessions at all.

Net Proceeds — What You Actually Walk Away With

Your net proceeds are what you receive after paying off your mortgage, closing costs, and any negotiated credits.

A good real estate agent (like US!) will prepare a net sheet before you even list your home, so you can clearly see what your bottom line will look like at various price points.

Final Takeaway

Understanding both buyer and seller closing costs helps everyone make informed decisions and

prevents last-minute surprises during escrow. If you are curious what the breakdown is for Buyer's

Closing Costs, please refer to our prior Blog: “How Much Are Closing Costs for Buyers in

California?”

At The Cutka Team, we make sure our clients know exactly what to expect long before closing day.

Whether you’re selling your Temecula home, downsizing to a single level home, or relocating out of

state, we’ll help you plan your next move with confidence and clarity.

How Much Are Closing Costs for Buyers in California?

Real Estate Closing Costs in California, What Buyers Should Expect

Buying a home in California comes with a few surprises and one of the biggest is the cost to close the

deal. Whether you’re purchasing your first home in Temecula, upsizing in Murrieta, or relocating to

Southern California from another state, understanding closing costs upfront can help you budget wisely

and avoid last-minute stress.

What Are Closing Costs?

Closing costs are the fees and expenses (beyond the down payment) that buyers and sellers pay to

finalize a real estate transaction. For buyers in California, these typically range from 2% to 3% of the

purchase price, though the exact amount can vary depending on your loan type, lender, and local

county requirements.

Typical Buyer Closing Costs in California

Here’s what most California buyers can expect to see on their closing statement:

• Loan Origination Fees: Charged by your lender for processing your mortgage

• Appraisal Fee: A third-party professional’s opinion of the home’s market value (typically

$500–$750).

• Credit Report Fee: A small fee ($30–$50) for checking your credit.

• Title Insurance & Escrow Fees: Covers the cost of verifying ownership and managing the

transaction

• Recording Fees: Paid to the county to record the new deed in your name.

• Homeowner’s Insurance Premium: Lenders require the first year of insurance to be paid at

closing.

• Property Taxes & HOA Dues (if applicable): You’ll often pay prorated property taxes or a

few months of HOA dues in advance.

• Prepaid Interest: Covers the interest from the day you close until your first mortgage payment.

• Inspection Costs: General home inspection, termite, or roof inspections are paid out-of-pocket

before closing.

Who Pays for What in California?

In Southern California, buyers typically pay for title insurance (lender’s policy) and escrow fees are

usually split between buyer and seller. However, this can vary by county or even city, so it’s best to

confirm with your agent.

In the Temecula Valley, it’s common for buyers and sellers to negotiate some of these fees, especially

if you’re buying new construction or during a slower market.Can You Negotiate Closing Costs?

Absolutely! Some lenders offer credit options toward closing costs, and sellers may agree to pay part

of your closing costs (especially if the home has been on the market for a while).

You can also ask about lender credits, builder incentives, or rate buydowns, which can help reduce

upfront expenses.

What About Cash Buyers?

If you’re paying cash, you’ll skip loan-related fees, but you’ll still have escrow, title, recording, and

transfer costs.

Final Thoughts

Understanding your closing costs ahead of time can make the home-buying process smoother and less

stressful. Every situation is a little different and that’s why it helps to work with a local real estate team

who’s seen every type of transaction.

At The Cutka Team, we help our buyers in Temecula, Murrieta, Menifee, and surrounding

communities understand every dollar that goes into their purchase. From your first offer to the final

signature, we’ll walk you through what to expect with no surprises, just clarity.

Getting ready to sell your home?

Don’t overlook these 10 items that can instantly turn buyers away, from unfinished projects to pet stains and personal items left out.

Watch our latest video to learn how to prep your home the right way before hitting the market!

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Great central location, close to everything San Diego has to offer!

Selling a Home During the Holidays: Smart Move or Stressful Mistake?

Selling Your Home During the Holidays: The Pros and Cons

The holiday season may not seem like the ideal time to sell a home, but depending on your situation, it

might actually work in your favor. In the Temecula Valley and throughout Southern California, homes

don’t hibernate when the holidays hit. Here’s what to consider if you’re thinking about listing between

October and January.

✅ Advantages of Selling During the Holidays

1. Serious Buyers Are Still Looking

While there may be fewer buyers, the ones shopping now are motivated, whether they’re relocating for

work, using year-end bonuses, or taking advantage of time off to house hunt. You’re not dealing with

casual browsers.

2. Less Competition

Many homeowners wait until spring to list, so your home stands out more during the holiday season.

With fewer homes on the market, your property can get more attention and potentially stronger offers.

3. Holiday Warmth Helps You Sell the Lifestyle

Decorations, cozy lighting, and the scent of fresh pine can make your home feel especially inviting.

Buyers can easily picture celebrating holidays and creating memories there, which can be a powerful

emotional connection.

4. Year-End Job Transfers

The end of the year is a busy relocation period for many companies. Buyers needing to move quickly

are often ready to make strong, fast offers.

5. Lower Interest Rates or Incentives

If rates have recently dropped or builder incentives are active, motivated buyers might act before the

year ends, giving sellers extra leverage.

⚠ Disadvantages of Selling During the Holidays

1. Fewer Showings

Let’s be honest.....most people are busy with shopping, travel, and family gatherings. Expect fewer

showings than you’d see in the spring or summer.

2. Holiday Décor Can Distract

While tasteful décor adds warmth, too much can make spaces look smaller or cluttered. Keep it simple

and elegant. Our advice is....think cozy, not crowded.

3. Timing Can Be Tricky

Appraisers, lenders, and inspectors may have limited availability due to holiday schedules. It’s

important to plan ahead to keep your closing timeline on track.

4. Curb Appeal Challenges

If your landscaping isn’t as green or vibrant in winter, you’ll need to rely on clean, well-lit curb-appeal ,fresh mulch, twinkle lights, and tidy entryways go a long way.

Bottom Line

Selling during the holidays isn’t for everyone, but for motivated sellers, it can be a great opportunity.

With fewer competing listings and more serious buyers, your home could shine brighter than ever.

If you’re wondering whether now is the right time to sell your Temecula Valley home, we’d be happy

to provide a custom market analysis and discuss your best timing strategy.

Downsizing Without Debt: How More Homeowners Are Buying Their Next House in Cash

If you’ve been thinking about downsizing to lower your expenses, be closer to family, or just make life

easier, here's a trend worth paying attention to:

More homeowners are buying their next house outright, without taking on a new mortgage. 

And, if you’ve owned your home for a while, you may be able to do the same. No mortgage. No monthly

housing payments.

A Record Share of Homeowners Are Mortgage-Free

According to Census data, 40% of U.S. owner-occupied homes are mortgage-free. 10 homeowners own their homes free and clear.

That means 4 in One big reason for this trend? Demographics. As Baby Boomers age and stay in their homes longer,

many have had the time to fully pay off their mortgages. You might be in that group too and not even

realize just how much buying power you now have. It’s time to change that.

As a homeowner, your equity is your biggest advantage in today’s market. If you’re mortgage-free

(or close to it), it could give you the power to buy your next home in cash. 

That means you’d still have no mortgage payment in retirement, plus:

• Less financial stress as you age

• More cash flow, if you purchase a less expensive home

• And it would likely be a faster, simpler transaction

Here's how it works. You’d sell your current house and use the proceeds to buy your next house in

cash. And while that may sound like something you thought would never be possible for you, it's more

realistic than you may think.

Buying in cash gives you more control over your next chapter. You could buy a smaller, less expensive

home and have lower costs, less upkeep, and more flexibility to enjoy what matters most. All while

staying debt and stress free.

Because downsizing isn't about downgrading your home. It’s about upgrading your quality of life. And

that’s something worth exploring.

Bottom Line

You’ve worked hard for your home. Now it might be time for it to work hard for you.

Let’s talk about what your house is worth, and what it could unlock for you today. 

What would your ideal home look like if you were to downsize right now?

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Walking distance to top schools & close to all Paseo Del Sol amenities; pools, trails, tennis, parks & more. And with NO Mello Roos, you’ll love the low taxes!

Ready to Move, But Stuck in Your Stuff? Here’s Help

When a House Full of Memories Holds You Back from Moving.

One of the biggest reasons people put off moving, whether it’s downsizing, relocating,

or transitioning into a new lifestyle isn’t the market or even the logistics, It’s the stuff.

Years (sometimes decades) of memories, collections, boxes, furniture, and “I might need

this someday” items can make the thought of moving feel overwhelming.

But here’s the good news: you don’t have to tackle it all alone. There are professionals

and services designed to help make the process easier, faster, and less stressful.

1. Estate Sale Companies

If you’ve accumulated valuable items, furniture, or collectibles that no longer serve you,

an estate sale company can be a huge help. They’ll organize, price, and host a sale for

you, handling everything from advertising to clean-up. This not only lightens your load

but can also put extra money in your pocket. We know of several you can choose from!

2. Junk Removal Services

For items that simply need to go; old furniture, broken appliances, or things too big to

haul yourself, junk removal companies provide a quick and efficient solution. They

handle the heavy lifting, and many even donate or recycle items whenever possible, so

you can feel good about the process. We know of several you can choose from!

3. Online Marketplaces & Apps

Not everything belongs in the “sell as a lot” or “junk” category. Platforms like Facebook

Marketplace, OfferUp, and Craigslist make it easy to sell individual items locally. From

dining tables to gently used exercise equipment, you can find new homes for the things

you no longer need while making some extra cash. It is good to start doing this right

away, so you have time to get the most $$ out of each item.

4. Donation Centers

If you prefer to give back, local charities and thrift stores often welcome gently used

household goods, furniture, and clothing. It’s a great way to simplify your move whilehelping families in need. We know several you can choose from!

5. Local Help You Can Trust

We know that letting go of “years of stuff” is often the hardest part of a move. That’s

why we maintain a trusted list of local referrals, from estate sale experts and junk

removal services to moving companies and donation centers. We’ve worked with these

professionals personally and can connect you with the right solution for your needs.

Final Thoughts

Moving doesn’t have to feel impossible just because of the things you’ve collected over

the years. With the right help, you can lighten your load, simplify the process, and move

forward with confidence.

Thinking about making a move but don’t know where to start? Contact us today! We’ll

connect you with the right local resources and guide you every step of the way.