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Edited by Ashley Simon
Written by Jon Stubbs
Edited by Ashley Simon
Realtor fees | Closing costs | How to save on closing costs | Home staging and preparation | Capital gains tax | Cost to sell calculator | Why trust us | FAQ
In California, it typically costs 9.73% of a home’s sale price to sell a home.
For context, if you sell a home that costs $500,000, you’d likely pay around $48,637 in closing costs; $97,275 for a $1,000,000 home; or $121,593 for a $1,250,000 home.
Keep in mind that these costs are just estimates. Your specific costs will depend upon your home’s condition, your location, and which money-saving strategies you choose to use.
Here are the main expenses you face when selling your home:
| Type | Your estimated cost |
|---|---|
| Realtor fees | 4.99% of your home’s sale price |
| Closing costs | 2.71% of your home’s sale price |
| Home staging and preparation | $2,802 |
| Moving costs | Up to $5,749 |
| Mortgage payoff | Varies |
Realtor commissions are the most expensive costs for most sellers. Thankfully, you can save thousands on your home sale by working with an agent who charges reduced realtor fees. Find top-rated agents near you who charge a 1.5% listing fee (instead of the average 2.54% California listing fee)!
Realtor fees in California
| Average fee | Cost for a $773,000 home | |
|---|---|---|
| Total realtor fees | 4.99% | $39,000 |
| Listing agent commission | 2.54% | $20,000 |
| Seller concession (optional, but recommended) | 2.45% | $19,000 |
In California, the average real estate commission is 4.99%. Half of that fee will go to the listing agent, and the other half can be used to offer a seller concession to pay the buyer’s agent.
While you don’t have to offer a seller concession, it will make your home more attractive to potential buyers. Without it, a buyer will have to pay their agent out-of-pocket, bringing thousands more in cash to the closing table.
Your actual cost depends on your home’s value, as it costs much less to sell a $300,000 home compared to a $1 million home, for example. Get a free CMA from an agent to learn what your home might sell for in today’s market.
How to save on California realtor fees
- Use a discount broker. A discount real estate broker offers sellers a reduced commission fee, such as a 1% listing fee instead of the typical 2.5–3% rate.
- List your home without a realtor. You can avoid paying a listing fee entirely by selling your California home for sale by owner. But selling FSBO is hard, time-consuming, and risky. We highly recommend consulting with a local attorney, realtor, or broker for more guidance before making a decision.
- Negotiate a lower rate. Negotiating realtor fees is more likely to work on a high-value property, since the agent will still earn a substantial commission on the home sale, despite the lower rate.
Closing costs in California
| Average rate | Cost for a $773,000 home | |
|---|---|---|
| Total closing costs | 2.71% | $21,000 |
Closing costs are all of the other expenses you’ll pay at closing besides realtor fees. In California, the typical seller will spend about 2.71% of their home’s final sale price on closing costs.
| Closing cost | Average rate | Average cost |
|---|---|---|
| Title insurance | 0.25% | $1,958 |
| State transfer taxes | 0.11% | $851 |
| Recording fees | 0.03% | $244 |
| Title search or service fee | 0.32% | $2,471 |
| Attorney fees (optional) | $301 per hour | Varies depending upon legal work required. |
| Prorated property taxes | 0.74% | Varies depending upon the date of sale. |
Here’s a breakdown of the closing costs you’re likely to pay.
Title insurance: Protects you against any legal claims made against your home or possible mistakes on your deed. It also usually covers the cost of legal fees when defending a claim.
State Transfer Taxes: State transfer taxes are charged by the government to transfer your home’s title documents from your name to the buyer’s name at closing.
Recording fees: Your county charges recording fees to register the property’s transfer of ownership. The fee amount varies by county.
Title search or service fee: The attorneys handling your closing may charge you this fee to examine the public records and transfer title ownership to the buyer.
California realtor Jose Roberto Samano recommends buyers or sellers purchase owner’s title insurance. “Transfer of deed without title insurance is risky,” says Samano. “Whenever you insure the transfer of ownership, you’re ensuring it’s legit and not out of place.”
Attorney fees: In California, a real estate attorney is optional. However, if you think the transaction will be complicated, it could be helpful to have an attorney review the details.
Prorated property taxes: Home sellers are required to pay property taxes on the days they’ve owned their home in the calendar year. Taxes are prorated and split between the seller and buyer. Actual costs depend on your annual taxes, and how many days you’ve lived in your home that year.
How to save on California closing costs
Unlike real estate commissions, most closing costs aren’t negotiable. For example, the state transfer tax is written into California law. But here are some ways you can save:
- Shop around for good rates. Your lender, agent, or attorney may have suggestions for title insurance companies. But you can always shop for the most affordable title insurance rates.
- Negotiate with the buyer. In most cases, the seller is expected to cover everything listed here. But if you’re in a seller’s market, it’s possible to negotiate for the buyer to cover some or all of the closing costs. An experienced real estate agent can help you see your negotiation options more clearly.
Home staging and preparation
| Average cost | |
|---|---|
| Home staging and preparation | $2,802 |
The cost to prepare your home for sale could add thousands more to your total upfront costs.
Home staging costs $2,802 on average nationwide, according to HomeAdvisor. However, actual costs depend mainly on your market, the size of your home, the number of rooms furnished, and how much furniture is needed.
If your home needs to be deep cleaned by a professional, expect to spend at least $300 for a complete cleaning.
Finally, pre-listing home repairs and improvements could add hundreds, if not thousands more to your budget, depending on how much work your home needs.
Moving expenses
| Average cost | |
|---|---|
| Moving costs | Up to $5,749 |
Your cost of moving depends on the size of your home and how far you have to move. Hiring professional movers could cost thousands of dollars. Even if you do the move entirely on your own, you’ll still need to budget for renting a truck and buying moving supplies like boxes and bubble wrap.
A short, local move for a smaller home in California might cost as little as $735. But a long-distance move of 1,000 miles or more could cost as much as $5,749.
Mortgage payoff
| Average cost | |
|---|---|
| Mortgage payoff | $371,981 |
Before you can sell your home to another owner, you’ll need to pay off your existing mortgage. If the proceeds from the sale of the home are less than what you owe, you’ll have to pay out of pocket.
Obviously, this cost will vary from one seller to another. If you have mortgage debt, you’re not alone: the typical homeowner in California has a mortgage balance of $371,981.
Don’t forget that prepayment penalties and accrued interest could mean your mortgage payoff amount is slightly higher than the actual balance. Contact your lender for an accurate payoff quote.
Capital gains tax
Capital gains are profits made when selling an asset, such as a home. If you make money when selling your property, the profit is taxed as income at the federal level and at the state level in most states. However, most home sellers in California will not make enough profit to owe federal or state capital gains taxes.
Federal capital gains
If you have lived in your house for at least two out of the last five years, you can exclude up to $250,000 in profits, or up to $500,000 if filing jointly with your spouse.1
State capital gains
In most states, capital gains are taxed as income at the state level, as well.
California generally follows the same exclusion rules as the IRS, allowing $250,000 of gain on home sales ($500,000 for married joint filers), if they owned and used the home as their principal residence for two out of the five years before the sale. In California, any capital gains not subject to exclusions are taxed as ordinary income up to 13.3%.» LEARN: How to avoid capital gains on a home sale
Cost to sell calculator
While every home sale is different, this calculator can help you get a rough estimate of your selling costs in California.
Here are the typical costs to sell in California:
- Listing commission: 4.99%
- Repairs, staging and prep: $2,802
- Seller concessions: 2.45%
- Relocation expenses: up to $5,749
- Closing costs: 2.71%
- Real estate attorney: $301 per hour
Why trust us
Real Estate Witch researchers gathered data for property taxes, transfer taxes, and recording fees using publicly available information from government websites. We found average costs for attorney fees, title insurance, and other services by requesting quotes from local providers.
We gathered our commission rate data from a survey of 630 of our partner agents. Additionally, we utilized the following data:
- Home values, list prices, and sale prices: Based on Zillow data as of August 2024.
- Transfer taxes and mortgage taxes: Based on public data as of February 2024.
FAQ about cost to sell a California home
» How much are closing costs in California?
California closing costs average 2.71% of a home’s final sale price. That figure includes common closing costs, such as title insurance and transfer taxes, but it does not include realtor fees, which add another 4.99%, on average, in expenses.
» Who pays closing costs in California?
Buyers and sellers have separate closing costs in California. Sellers are usually responsible for paying for their share of pro-rated property taxes, as well as recording fees, state transfer taxes, and owner’s title insurance. View our breakdown of closing costs in California.
» What taxes do you pay when selling a California house?
California sellers may have to pay federal capital gains tax. Thankfully, the IRS offers a tax break on home sale gains on the sale of your primary residence. Learn more about capital gains taxes in California.
Related links
How Much Does it Cost to Sell a House? Our guide breaks down all of the costs of selling a home, including realtor commission, seller closing costs, and optional pre-sale expenses.
How to Sell Without a Realtor in California: Selling your home without a real estate agent isn’t worth it for most homeowners in California. Read on to learn more about the process and the risks involved. Average Real Estate Commission in California: We break down the average realtor fees you can expect to pay when selling a house in California.Sources
- Internal Revenue Service, Topic no. 409, Capital gains and losses, August 2024. https://www.irs.gov/taxtopics/tc409 ↩︎
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