What Are Closing Costs in California — and Who Pays Them?

What are closing costs in a California real estate transaction?

Closing costs are the fees and expenses paid at the end of a real estate transaction, separate from the down payment. In California, sellers typically pay around 2.71% of the sale price in closing costs not counting agent commissions, while buyers generally pay between 2% and 5% of the purchase price.

Most people walk into a real estate transaction focused on the purchase price. Then the closing disclosure arrives, and there's a whole other list of numbers they weren't fully expecting.

Closing costs aren't hidden — but they're rarely explained clearly upfront. Whether you're buying your first home in Menifee or selling a property in Moreno Valley you've owned for 15 years, knowing what you're actually paying at closing matters. It affects how much cash you need to bring, what you'll net from your sale, and how you evaluate an offer.

Here's how it works in California.

What Are Closing Costs?

Closing costs are the fees required to complete a real estate transaction. They cover services like the title search, escrow, loan origination, recording fees, and prorated property taxes — the behind-the-scenes work that makes it legal for a property to change hands.

These fees are separate from the down payment. They're due at closing, when ownership officially transfers from seller to buyer.

Both sides pay closing costs. But they pay different things, and the amounts aren't equal.

What Sellers Pay in California

Based on aggregated market data, average seller closing costs in California run approximately 2.71% of the sale price, not including agent commissions. When commissions are factored in, total seller costs typically land between 8% and 9% of the sale price.

Here's what makes up a seller's closing costs in California:

Escrow Fees The escrow company manages the closing process — holding funds, coordinating documents, and ensuring the transaction closes correctly. In California, buyers and sellers each typically pay their own escrow fee. On a Riverside County home at the current median price of $615,000, expect $2,400 to $3,500 for your side of escrow.

County Transfer Tax California counties charge $1.10 per $1,000 of sale price. On a $615,000 home, that's approximately $677. Some cities layer their own transfer tax on top of the county rate, so the exact amount can vary depending on where the property is located.

Owner's Title Insurance In most California counties, the seller pays for the owner's title insurance policy. This protects the buyer from any claims against the title that existed before the sale.

Prorated Property Taxes Taxes are prorated to the closing date. If taxes are owed for the period you owned the home, they're deducted from your proceeds at closing.

Recording Fees Small but real — typically $15 to $25 per document to officially record the deed transfer with the county.

Real numbers on a $615,000 sale in Riverside County:

Cost Estimated Amount

Closing costs (2.71%)

~$16,667

Agent commissions (~5%)

~$30,750

Total seller costs

~$47,400

That's a significant number. It's exactly why we provide every seller with an estimated net sheet before they ever list. That document shows you what you're expected to walk away with based on your sale price, your loan payoff, and all applicable fees. If you receive multiple offers with different structures, we can run a net sheet on each one so you're comparing actual proceeds — not just the headline price. Understanding what's actually in an offer and how each term affects your net proceeds makes a real difference in which offer you choose.

What Buyers Pay in California

Buyer closing costs typically run between 2% and 5% of the purchase price, according to Rocket Mortgage. On a $615,000 Riverside County home, that's $12,300 on the low end and $30,750 on the high end — before the down payment.

Here's what drives those costs:

Loan Origination Fee The lender's charge for processing and underwriting your mortgage. It varies by lender but commonly runs around 1% of the loan amount. This is one of the more negotiable fees in the stack — getting quotes from multiple lenders can make a real difference.

Appraisal Fee Required by most lenders to confirm the home's value before they'll fund the loan. Expect $500 to $700 in most Inland Empire markets.

Lender's Title Insurance In California, buyers pay for the lender's title insurance policy. This protects the lender — not you — if a title issue surfaces after closing. It's separate from the owner's title insurance the seller typically covers.

Escrow Fee Your side of the escrow fee, mirroring what the seller pays on their end.

Prepaid Items This is the category that tends to catch buyers off guard. Prepaids aren't traditional fees — they're money the lender collects upfront to fund your escrow impound account. They include:

• 12 months of homeowners insurance
• 2 to 6 months of property tax reserves
• Prepaid mortgage interest from the closing date to the end of the month

Closing at the end of the month reduces the prepaid interest you owe. It's a small thing, but on a large loan it adds up.

Your lender is required by federal law to give you a Loan Estimate within three business days of submitting your application. According to the Consumer Financial Protection Bureau, that document breaks down every cost you'll face at closing in a standardized format so you can compare offers from different lenders side by side. Then, at least three business days before closing, you'll receive the Closing Disclosure — your final, locked-in numbers. Compare these two documents carefully before you get to the table.

For a full walkthrough of when these documents arrive and what to do with each one, see The Home Buying Process in the Inland Empire.

What's Negotiable

Some closing costs are fixed. Transfer taxes and recording fees are set by the county and city — those numbers don't move.

Others have room:

Seller Concessions A seller concession is when the seller agrees to credit the buyer for a portion of their closing costs at closing. This reduces the cash the buyer needs to bring without changing the purchase price on paper. Seller concessions are more realistic in markets where homes are sitting longer, like we're seeing in parts of Beaumont, Perris, and Moreno Valley right now. Whether you can get one depends entirely on current market conditions and how motivated the seller is.

Lender Fees Origination fees, underwriting fees, and discount points vary significantly from lender to lender. Getting at least three Loan Estimates before committing to a lender is one of the most straightforward ways to reduce your buyer-side closing costs.

For a current read on what sellers are agreeing to and what buyers are successfully negotiating in Riverside County, see how buyers and sellers are negotiating right now in Riverside County.

No Surprises at the Closing Table

Closing costs are predictable. You don't have to wait until the last minute to understand what you're paying.

If you're selling in Riverside County, ask for a net sheet before you list. If you receive offers, we'll run the numbers on each one so you can see your actual bottom line under different scenarios. If you're buying, your lender walks through your costs in detail — but make sure you're reading the Loan Estimate the moment it arrives, not the night before closing.

Closing costs are one piece of the full financial picture — for a complete walkthrough of every step in a Riverside County real estate transaction, visit our Inland Empire Home Buying and Selling Resource Center.

The goal is simple: no surprises.

Frequently Asked Questions

Who pays closing costs in California? Both buyers and sellers pay closing costs, but different ones. Sellers typically cover escrow fees, the county transfer tax, owner's title insurance, and prorated property taxes. Buyers cover lender fees, their side of escrow, the lender's title insurance policy, and prepaid items like homeowners insurance and property tax reserves.

How much are closing costs for a seller in California? Seller closing costs in California average around 2.71% of the sale price, not including agent commissions. On a $615,000 Riverside County home, that works out to roughly $16,667 in closing costs. When commissions are included, total seller costs typically reach 8% to 9% of the sale price.

Can buyers ask sellers to pay their closing costs? Yes. A seller concession is when the seller credits the buyer for some or all of their closing costs at closing. Whether that's realistic depends on current market conditions and how much leverage the buyer has. In a competitive market with multiple offers, concessions are rare. In a softer market, they're a common part of the negotiation.

About Chris Leeper

Chris Leeper is the founder of Leeper Realty Group and has served buyers and sellers across Riverside County and the Inland Empire since 2009. With 400 homes sold, 350 five-star reviews, and 16 years of local experience, Chris specializes in helping clients navigate transactions with clarity — from first conversation to closing day.

Chris Leeper, REALTOR® | DRE #01881634 | Brokered by eXp Realty of California, Inc.

Ready to understand exactly what you'll net from your sale — or what buying will cost you in today's Riverside County market? Call or text Chris Leeper at 951-741-5311 or visit linktr.ee/leeperrealtygroup.

Who you work with matters.