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.