What Are The Costs of Selling Your Home in Southern California?

Do you want to sell a home? You’ve probably asked yourself about what would be the cost of selling your home. This article is going to help you with everything that you need to know in order to do the math yourself. However, don’t forget to first learn how The Kovacs Connection’s 21st Century Real Estate Marketing Plan can set your home apart from others and earn you more.

Let’s get started!

When a real estate agent comes to list your home, they are going to have a net sheet with them. A net sheet shows approximately how much the seller will be paying or receiving during the sale. In total, the seller needs to pay between 6-7% of the purchase price of the home.

So, now you’re probably asking yourself what do these costs include. Let’s break down each one of them in detail. In order to explain how the whole process goes, we’re going to use a $500,000 home as our example.


The most common commission charged is between 6-7%. In case of a 5% commission, 2 ½ % goes to the agent that the seller hires to sell the home (listing broker), and then the same amount goes to the agent that represents a person that’s buying a home (selling broker).

The selling agent actually brings the buyer, which can be a bit confusing, but that’s just the way it is. There are some cases where the listing broker can make a deal with the seller by offering a reduced commission if they are able to find and represent both the seller and buyer of the home.

If it comes to that, then that situation is called a dual agency. Okay, now let’s take that $500,000 home. If the commission is 5%, that is going to come to $25,000, which means that each side is going to get $12,500.

Brokerage Processing Fees

Most Real Estate offices are going to take from you between $300-$500. That is if you are running the transaction through one of these offices.

Title Charges

The home seller will need to pay approximately $1,320 for Title Insurance on our $500,000 home. But, that is the insurance policy that a seller buys in order to ensure a clear title. There are also some other Title Fees which, when combined, will cost the seller an additional $100.

Escrow Fees

Both sides of the transaction pay their own escrow fees. In this case, escrow fees are going to cost $1,500. We reach that number by taking a fee of $250 and then adding $2.50 per one thousand of the full price of the home. A seller is also going to pay a documentation fee of $75, a loan payoff fee of $50 per loan payoff, a wire fee of $25, and an archive fee of $50.

Governmental Retrofit (Los Angeles County)

A Retrofit certification needs to be performed on homes that are being sold in Los Angeles County. This can get pretty expensive for the seller. The cost of this depends on what needs to be installed in a home.

HOA (Home Owners Association) Transfer Fees

This applies only when the seller has HOA’s involved. The cost of these documents can vary, but some of them can even cost from $300-$400. But, the buyer of the home is going to want to get these documents, so they can review them and determine what the HOA is going to expect of them. In turn, the buyer can decide if they want to buy the home with the particular regulations.


Termite Inspection

Some time ago, this was the seller’s responsibility. But, as of November 20, 2014, the termite inspection needs to be done by the buyer of the home. However, if it happens that the buyer’s termite inspector finds some damage that was done by the termites, he can ask you to perform the needed repairs or give credit for the needed repairs to be performed.

Flood Certification

The seller has to have the home certified because that way they can show the buyer how much it’s going to cost them to buy the flood insurance. This certification can be pretty expensive. It can cost the seller $500. It can also cause some issues for the seller while trying to sell their home.

Home Warranty

The buyer has the option to ask for a home warranty. However, the seller is not required to purchase a home warranty plan. But, it would be good to do so because that would be a good faith gesture by the seller to the buyer. The warranty plan for one year generally costs from $350-$550.

Transfer Taxes

The home seller needs to pay State and local transfer taxes. In Los Angeles County and Ventura County, these taxes cost approximately $550.

Natural Hazard Disclosure

A Natural Hazard Disclosure costs approximately between $85-$125. These reports are very detailed, and they are actually very interesting to read.

Requests for Repair

The cost of selling your home can increase if there is any damage in the home. That is because the buyer has the opportunity to inspect the home to see if there is anything that needs to be repaired. If they find something that’s damaged, they can ask the seller to either perform the needed repairs or give credit for the repairs to be done.

So, to make the cost of selling your home as small as possible, it is important to tell the buyer everything they need to know early on in the transaction.

Paying Off the Mortgage

In case the seller didn’t pay for the home in full, it is vital that they pay off the balance of their loan or mortgage. If the seller happens to have any liens on the home, then these will need to be settled, too.

As you can see, it is not always possible to precisely calculate how much would the cost of selling your home be. But, it is very easy to approximately calculate costs.

It may seem like quite a bit of fees to digest, but the correct pricing will get you on the right side of a sale (the one that makes you a healthy profit.) We hope that this article will help you understand the calculation progress, so you can sell your home with no stress.

While you’re selling your home, it’s likely that you’re looking for another home to move to. Be sure to check out our Featured Communities to give you a better idea of what’s out there!

Need Help?

This guide should be able to answer most of your questions, but if you need more help please call us at 949-350-0146 or email us at Debrakovacs@cox.net and we can help understand the costs of selling your home in today’s market.