What Are the Average Seller Closing Costs in San Diego?

The average cost of a home in San Diego is $842,000, and that number is only expected to keep climbing in the years to come. If you're thinking about selling your home in San Diego, you might be wondering about the seller closing costs you might have to deal with.

After all, San Diego closing costs depend on a variety of factors, and it is important to understand how much you'll have to pay so you can plan ahead.

But where should you start? Keep reading and learn more about the average seller closing costs in San Diego and what can affect them. 

What You Need To Understand About Seller Closing Costs

If you're not sure what to expect when selling a home, you might not know much about seller closing costs. After all, what are they and what are they supposed to do? Many people don't even know about closing costs when they first sell their homes, and they end up being surprised by the large costs later on. 

It is best to be prepared for home sale costs since they can be quite large and unexpected in many cases. You might even be shocked to see what a big chunk some closing costs can take out of the money you earned from selling your house. Closing costs aren't just important for sellers but for buyers as well. 

Closing costs are nothing more than a collection of transaction costs. After all, there are many transactions involved in selling a home in San Diego. In particular, you will have to add in the commission for the real estate agent, taxes, property fees, and so on. 

As a seller, you shouldn't have to worry about being unable to pay for these closing costs since you'll have enough money from selling your property. Unfortunately, there isn't much you can do to negotiate the price of these costs.

Real Estate Agent Commission

This is because most of the closing costs have to do with taxes that cannot be changed. However, there is one notable exception: the commission for the real estate agent involved. The commission for real estate agents tends to take up a large chunk of the closing costs, and the commission may vary according to a variety of factors. 

In some cases, it is possible to cut down on these fees in particular. That way, the total amount of the closing costs won't be as much as usual. You can accomplish this by opting for a more affordable real estate agent. 

You can also try to sell your house without a real estate agent if you really want to cut down on costs. However, it is usually not recommended to do this.

Trying to sell your house on your own without an agent is very difficult, especially if you've never done it before, and it usually isn't worth it even if you do end up saving some money on closing costs. 

Average Seller Closing Costs in San Diego

The average closing costs for sellers in San Diego are usually between 5% and 8% of the total sale price. This may not sound like a lot, but it can certainly add up, especially if you end up selling your property for a lot of money. Keep in mind that the price of a real estate agent's commission can be as much as 6% of the total sale price in some cases.

But besides real estate agent commissions, what else are you paying for when you pay off your closing costs? In particular, title insurance plays a big part as well as transfer taxes. You will also need to take into account seller concessions and escrow fees.

Even though closing costs are usually a small percentage of what you end up earning from the property sale, you could still end up having to pay tens of thousands of dollars. If you happen to sell a property that is worth millions, then you might even have to pay hundreds of thousands of dollars in closing costs. 

But is there any way to estimate these costs ahead of time so you won't be shocked by them at the last minute? In general, your real estate agent will tell you the details of what to expect from your property's closing costs. That way, you'll have a better idea of how much money you'll walk away from after the property sale.

The Details

You'll also be able to better plan the goals you want to reach when selling your property. You might be wondering if there is any way you can get away with not having to pay closing costs. Unfortunately, there isn't. 

Sooner or later, you will have to face the closing costs for your property. California, in general, has rather expensive closing costs. This is because the majority of California is prime real estate and very expensive. 

This is especially true for properties in cities that are along the coast like San Diego. Pieces of property in these areas are greatly sought-after and tend to sell for a lot of money. The more a piece of property sells for, the more the closing costs will be. 

You will find that other states and cities that are more rural tend to have slightly more affordable closing costs. Of course, if you're trying to sell a piece of property in San Diego, there isn't much you can do about the closing costs. Keep in mind that buyers also have to deal with closing costs in addition to the price of the property they're buying. 

Buyers, however, don't have to worry about the cost of realtor commission as sellers do. Fortunately, even though seller closing costs can range up to 8% or so of the final sale price, most closing costs are not this high. Instead, most of them tend to be around the lower range of 5% or so. 

Other Closing Cost Fees You Should Know About

As mentioned before, closing costs consist of several different transaction fees. The most obvious fees, besides the realtor commission, involve taxes but also many smaller fees that you might not be aware of. For example, closing cost concessions may be involved. 

This involves the buyer of the property asking the seller to pay off their portion of the closing costs.

Keep in mind that concession costs don't always show up and you do not necessarily have to pay for them. Concession costs are usually only a problem if the buyer will need to make some repairs on the property. 

If the property you're selling is in good or even great condition, you likely won't have to deal with concession costs. You will also need to keep notary fees in mind. You will need to pay a small fee to a notary whose job is to make sure that your identity is verified and that all the paperwork is in order. 

What You Need to Know

Fortunately, notary fees are quite cheap and are usually $15. In some cases, you may need to pay more than this, but this is not common for most normal types of property sales. You will also need to think about the cost of your home warranty. 

Most sellers have to pay this fee and, while it varies, it tends to be quite hefty. Most sellers in San Diego end up paying around $1,000 for home warranty fees. Depending on the state of your home, you may need to pay several fees relating to inspections and repairs. 

For example, you may need to pay fees regarding termite inspections, foundation inspections, pipeline inspections, and so on. Individually, these inspections don't tend to cost very much (usually around $100 each or so) but when combined, they can start to pile up.

However, if you have recently gotten these inspections only a few years in the past, you may not need to pay for them again when you sell your property. 

This will not only save you a bit of money but it will save you some time as well. 

All About Seller Closing Costs

Seller closing costs might be hard to wrap your head around at first, but they're not really all that complicated. These costs consist of several different transaction fees that are necessary to pay after you sell your property. The fees consist of realtor commissions, property taxes, warranties, inspections, and more. 

Usually, these fees are around 5% of the sale price. To learn more about San Diego properties, don't hesitate to contact us here.

Monthly Newsletter

Subscribe to our monthly newsletter to keep up with San Diego's real estate market and for tips and information on buying and selling!

The Home Buyer's Checklist
home seller's checklist

RECENT ARTICLES

View More

Get Ahold of Us

Buying or selling a home is among the largest financial decisions a person makes in their lifetime. We are here to ensure that you are confident in your decision. Reach out, and let us show you how we can help!

John and Melissa Steele, San Diego Real Estate Agents
CONTACT AGENTS

John and Melissa Steele

619-887-4429