Quick answer: Closing costs in California typically run 2–3% of the purchase price for buyers, covering lender, title, escrow, appraisal, and government fees plus prepaid taxes and insurance. On a $700,000 home that’s roughly $14,000–$21,000. Sellers pay their own costs, including the largest one — agent commissions.
Key takeaways
- Buyer closing costs are usually 2–3% of price.
- They include lender, title, escrow, appraisal, and prepaids.
- Sellers pay separate costs, typically including commissions.
- Some costs are negotiable or can be credited by the seller.
- Your lender’s Loan Estimate itemizes everything upfront.
What’s included in buyer closing costs
- Loan origination and lender fees
- Title insurance and escrow fees
- Appraisal and inspection fees
- Recording and transfer fees
- Prepaid property taxes and homeowners insurance
Estimated closing costs by price
| Home price | 2% costs | 3% costs |
|---|---|---|
| $500,000 | $10,000 | $15,000 |
| $700,000 | $14,000 | $21,000 |
| $1,000,000 | $20,000 | $30,000 |
Who pays what?
Buyers and sellers each cover customary costs, and some are negotiable. In some deals a seller offers a credit toward the buyer’s closing costs. Your agent and lender can help structure this. Have questions? Book a free consultation and we’ll walk you through your options.
Frequently Asked Questions
How much are closing costs in California?
For buyers, typically 2–3% of the purchase price, covering lender, title, escrow, appraisal, government fees, and prepaid taxes and insurance.
Who pays closing costs, the buyer or seller?
Both pay their own customary costs. Buyers cover loan and escrow-related fees; sellers typically cover commissions and certain transfer costs.
Can closing costs be rolled into the loan?
Some can be covered through a seller credit or a slightly higher rate, rather than paid in cash. A lender can show you the options.
Are closing costs separate from the down payment?
Yes. Closing costs are paid in addition to your down payment.
How do I know my exact closing costs?
Your lender’s Loan Estimate, provided after you apply, itemizes every fee so there are no surprises.
Written by Surbhi Gupta, REALTOR® · CA DRE# 02314083 · eXp Realty of California, Inc. Serving Fremont, Union City, Newark, Hayward & Milpitas. This article is for general education, not financial advice — confirm current figures with a licensed professional.
