Leave a Message

Thank you for your message. We will be in touch with you shortly.

Browse Homes

What are the Traditional Closing when Selling a Home in Santa Clara County?

When selling a home in Santa Clara County, California, sellers typically incur various closing costs that are deducted from the final sale proceeds. On average, the total cost of selling a home in California (including commissions) can range from 6% to 10% of the final sale price (Source 2.1, 2.8).

Here's a breakdown of the common costs and who typically pays them in Santa Clara County:

1. Real Estate Agent Commissions (Largest Expense)

  • Cost: This is usually the largest expense, typically ranging from 5% to 6% of the home's sale price (Source 1.2, 2.1, 2.2).
  • Breakdown: This total commission is generally split between the listing agent and the buyer's agent (e.g., 2.5% to 3% for each). While traditionally paid by the seller, recent changes allow for negotiation, and buyers may now negotiate their agent's compensation directly (Source 1.1, 1.3, 2.6).

2. Escrow Fees

  • Who Pays: In Santa Clara County, the seller typically pays for escrow charges (Source 1.6, 1.9).
  • Cost: Generally calculated at around $2.00 per $1,000 of the sale price, plus a base fee of $200-$250 (Source 1.2, 2.1, 2.7). For example, on a $1,000,000 home, this could be roughly $2,250 (Source 1.2).

3. Title Insurance (Owner's Policy)

  • Who Pays: In Santa Clara County, the seller typically pays for the Owner's Title Insurance Policy (Source 1.6, 1.9).
  • Cost: This can range from 0.5% to 1% of the sale price, or around $1.10 to $2.25 per $1,000 of the property's value, depending on the title company and property value (Source 1.1, 1.2, 2.1, 2.3).

4. Transfer Taxes (Documentary Transfer Tax)

  • County Transfer Tax:
    • Who Pays: In Santa Clara County, the seller typically pays the county documentary transfer tax (Source 1.6, 1.9).
    • Cost: This is a consistent rate of $1.10 for every $1,000 of the sale price across California counties (Source 1.2, 1.7, 2.1, 2.6).
  • City Transfer Tax:
    • Who Pays: In cities like San Jose, Palo Alto, and Mountain View within Santa Clara County, there's an additional city transfer tax. This is usually split 50/50 between the buyer and seller (Source 1.6, 1.9).
    • Cost (San Jose, Palo Alto, Mountain View): $3.30 for every $1,000 of the sale price (Source 1.2, 1.6, 1.9).
  • Measure E Transfer Tax - For Homes over $2,300,000
    • Thresholds and Rates (Effective July 1, 2025):
      • Properties transferred for under $2.3 million are exempt from this tax.
      • For properties valued at $2,300,000 or more, the tax is applied to the full value of the consideration (sale price) at progressive rates:
        • $2,300,000 to $5,000,000: 0.75%
        • $5,000,000.01 to $10,000,000: 1.0%
        • Over $10,000,000: 1.5%
    • Who pays: While the tax is imposed on the transfer, buyers and sellers can negotiate who pays the tax at the time of sale. Historically, in San Jose, city transfer taxes (including Measure E) are often split 50/50 between the buyer and seller, though this is not legally mandated and can be negotiated.

5. Prorated Property Taxes & HOA Fees

  • Who Pays: The seller is responsible for their portion of property taxes and HOA dues (if applicable) up to the closing date. These are prorated at closing (Source 1.2, 2.2, 2.6).
  • Cost: Property taxes in California average about 1% of the assessed value, but this varies. HOA fees can range from $100 to $1000, plus potential transfer fees ($100-$400) (Source 2.1, 2.3, 2.4).

6. Miscellaneous Fees & Potential Costs

  • Loan Payoff: The remaining principal and interest on your mortgage(s), plus any lender fees or prepayment penalties (Source 1.1, 1.2, 2.3).
  • Drawing Fees/Notary Fees: Small fees for preparing documents and notarizing signatures (Source 1.2, 1.6).
  • Recording Fees: Fees paid to the county to officially record the change in property ownership (Source 1.1, 1.3, 2.1).
  • Home Warranty: Sometimes offered by the seller as a concession to the buyer (negotiable, typically $350-$1000) (Source 1.8, 2.7).
  • Repairs & Renovations: Any costs incurred to prepare the home for sale (e.g., staging, cleaning, minor repairs, as discussed with the Intero Elevate program). These are not "closing costs" but directly impact your net proceeds (Source 1.1, 1.2, 2.1, 2.3).
  • Seller Concessions: Any credits or payments the seller agrees to make towards the buyer's costs (e.g., buyer's closing costs, repair credits) to facilitate the sale (Source 1.1, 2.1, 2.4).
  • Attorney Fees: While not required in California, some sellers choose to hire a real estate attorney (flat fees or hourly, e.g., $301/hour) (Source 1.1, 2.2, 2.7).

All these costs are typically deducted from your home's sale price at closing, meaning you usually don't pay anything out of pocket upfront for these specific items (excluding pre-listing preparations). For the most accurate estimate tailored to your specific property and situation in Santa Clara County, it's always best to get a detailed seller's net sheet from your real estate agent.

Work With Us

We provide the absolute finest service, dedication, and expertise possible to our clients.

CONTACT US

Follow Us on Instagram