SF Bay Area Counties & Property Tax Guide™

Buying or selling a home comes with more than just the purchase price. There are also closing costs to prepare for. These are the final set of fees that must be paid once, right before the transaction is complete. 

For buyers, closing costs in the SF Bay Area typically range from 2% to 5% of the home’s purchase price.

For sellers, closings costs can be higher— historically ranging between 8 to 10%— of the home's sale price due to taxes, commissions, and prep costs. 
 

This guide is for educational purposes only. It offers a comprehensive overview of common closing costs, who typically pays for what, and how customs vary across SF Bay Area Counties, so you have an idea of what to expect. While some costs are standard, others can be negotiated depending on the deal and market conditions. However, for specific and more accurate details on closing costs— please ask the lender or escrow/title company directly!

 

1. Title Insurance Fees (County-by-County Breakdown)
 

Title insurance protects both the buyer and the lender from any legal issues related to the ownership history of the property. The fee depends on the sales price of the home and is paid once at closing.
 

Customs regarding who *typically pays vary by county:
 

• San Mateo County: Buyer

• Santa Clara County: Seller

• San Francisco County: Seller

• Alameda County: Buyer

• Contra Costa County: Buyer

• Marin County: Seller

• Solano County: Buyer

• Napa County: Buyer

• Sonoma County: Seller
   

Note: These are customary practices, not legal requirements. The responsibility for title insurance can always be negotiated in the purchase agreement.

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2. Transfer Taxes

Transfer taxes are imposed by counties — and sometimes cities — when a property changes ownership.
 

County Transfer Tax

This is a standard fee in all Bay Area counties and is typically paid by the seller, though this is negotiable.
 

City Transfer Tax

Some cities impose an additional city-level transfer tax. In these cases, the cost is often split between the buyer and the seller, though in some cases the seller pays the full amount. Not all cities charge a city transfer tax, so it’s important to check based on the property’s location.

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3. Escrow Fees
 

Escrow companies serve as neutral third parties that manage the transaction, hold funds securely, and ensure that all contractual terms are met. Escrow fees are charged for their services.
 

• In most Bay Area counties, buyers and sellers split escrow fees 50/50

• The total fee varies depending on the property value and complexity of the transaction
   

Tips for Escrow:

• Choose a reputable escrow company that regularly handles transactions in your county

• Ask for a detailed estimate of escrow fees early in the process

• Carefully review your final settlement statement (known as the Closing Disclosure or ALTA statement) to ensure all charges are accurate

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4. Inspection Fees
 

Home inspections are a key part of the real estate process and help uncover any potential issues with the property.
 

• General Home Inspection: Often paid by the seller in advance, especially if done prior to listing. In competitive markets, buyers may choose to order their own.

• Pest Inspection: Typically paid by the seller before listing the home, although buyers may also order one during escrow.

• Other Specialized Inspections (e.g., roof, chimney, foundation, sewer line): May be ordered by the buyer and paid out of pocket during escrow

In many Bay Area markets, sellers complete inspections up front and make them available to prospective buyers to streamline the transaction.

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5. Lender and Loan-Related Fees (Buyers Only)
 

If you're purchasing a home with financing, your lender will charge several fees as part of the loan process. These may include:
 

• Loan origination fees

• Appraisal fee

• Credit report fee

• Underwriting and processing fees

• Prepaid interest

• Mortgage insurance (if applicable)

These fees are typically disclosed in your Loan Estimate early in the process and are paid by the buyer at closing.

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6. Prorated Taxes, HOA Dues, and Utilities
 

Buyers and sellers often split property-related costs based on the closing date:
 

• Property taxes: Prorated between buyer and seller based on time of ownership during the tax year

• HOA dues: If the property is part of a homeowner’s association, dues are prorated accordingly

• Utilities: Sellers typically pay up until the date of closing
   

These prorations are listed on the closing statement and ensure each party pays their fair share.

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7. Home Warranty (Optional)
 

A home warranty covers certain repairs and replacements of appliances or major systems for the first year after purchase. It is often offered by the seller as a buyer incentive, though this is optional.
 

Buyers can also choose to purchase a home warranty themselves for peace of mind.

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8. Repairs and Credits

If issues are discovered during inspections, the buyer and seller may negotiate who is responsible for repairs.

There are generally two options:
 

• Seller completes the repair before closing

• Seller offers a credit to the buyer at closing
   

All agreed-upon credits or repairs will be reflected in the final settlement documents.
 

 

9. Notary and Recording Fees
 

Some documents must be notarized and officially recorded with the county. These fees are relatively minor but necessary to finalize the transaction. They are typically itemized on the settlement statement and may be split or assigned based on local custom.

 

Who Pays What?

Below is a general breakdown of common closing costs:

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Final Thoughts
 

Closing costs in the Bay Area typically range from 2% to 5% of the home’s purchase price for buyers and can be higher for sellers due to taxes, commissions, and prep costs. While many costs follow local custom, virtually all of them are negotiable depending on the terms of the deal.
 

Working with a knowledgeable real estate professional ensures that you’re aware of what to expect in the home buying and selling process.

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Need Help Navigating Your Closing Costs?

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