San Diego Closing Costs - A Guide for Buyers & Sellers

Whether you're a home buyer or seller in San Diego, it's important to understand the real estate closing costs involved in a property transaction. There are various fees and charges that can add up quickly, so it's crucial to know what to expect ahead of time. 

Below, we provide an overview of the most common closing costs in San Diego. Keep in mind that actual costs may vary depending on a specific home sale. 

What are real estate closing costs?

When buying or selling a home in San Diego, there are a number of transaction fees and costs that must be taken into account. These include the commission for the real estate agent, as well as various other closing costs. 

For buyers, these costs can add up to more than just the downpayment on the home. For sellers, closing costs can eat into the total proceeds from the sale. As a result, it is important for both buyers and sellers to be aware of all the potential costs involved in a real estate transaction. 

By understanding these costs, both buyers and sellers can negotiate their desired goals and avoid surprises.

Average closing costs in San Diego

The average closing costs in San Diego range between 2% and 3% of sale price for buyers and between 5% and 8% of sale price for sellers. These transaction fees will vary for each real estate transaction based on the lender, sale price, mortgage loan amount, location, property taxes, and other details specific to the house.

The largest transaction costs when buyers purchase a home are focused on mortgage related fees if the buyer is pursuing a mortgage. Whereas, the largest transaction costs for sellers are concentrated in realtor commission which can total between 4% and 6% of sale price.

Buyer closing costs in San Diego 

• Mortgage origination fees
• Appraisal fee
• Property taxes
• Escrow fees
• Homeowners insurance
• HOA fees (if applicable)

Seller closing costs in San Diego

• Realtor commissions
• Title insurance
• Transfer taxes
• Escrow fees
• Seller concessions 

How to estimate closing costs in San Diego

There are a few different ways to estimate closing costs. For buyers, it is common to ask their mortgage broker for an estimate. Another is to ask their realtor for an estimate based on experience with similar properties purchased.

For sellers, realtors will typically discuss closing costs prior to listing in order to help assess the goals of the sale and estimate proceeds based on potential sale prices.

How to offset closing costs in San Diego

There are a few ways that both buyers and sellers can offset closing costs in San Diego. 

Buyers can work with a buyer's agent who offers a commission rebate. This rebate can be used to offset closing costs or replenish savings if received as a cash back rebate after closing. The concept of rebating is simple - buyer’s agents give buyers a portion of the commission they receive for representing the buyer.

For example, Prevu Real Estate offers the largest commission rebate in San Diego, enabling homebuyers to receive a rebate up to 1% of their purchase price.

Realtor commissions are the largest closing costs for sellers. As a result, sellers should focus their efforts on negotiating this. 

The best way for sellers to make an informed decision is to interview multiple listing agents to compare commission rates and the services provided. Then, sellers should create competition between the realtors to propose the lowest commission possible to list their home.

Prevu Real Estate, Inc. is a licensed real estate broker in California, license number 02134758.