Selling a house in California can feel overwhelming, especially when unexpected costs and long timelines start to pile up. Between agent commissions, escrow fees, and repair expenses, many homeowners realize they’ll walk away with less money than they expected.
This guide breaks down all the major expenses involved in selling a home and provides a step-by-step look at how to simplify the process, especially if you’re looking for a faster, low-cost alternative.
Table of Contents:
- How Much Does It Cost to Sell a House in California?
- How to Sell a House in California: 6 Steps
- How to Calculate Closing Costs
- How to Save Money When Selling in California
- Ready to Sell? Osborne Homes Makes It Simple
- Frequently Asked Questions
How Much Does It Cost to Sell a House in California?
In California, the total cost of selling a home typically ranges from 6% to 10% of the final sale price [1]. From title fees to property taxes, here’s a breakdown of the most common costs sellers can expect.
Title Fees and Title Insurance
Title fees help protect against future ownership disputes or hidden liens. In California, sellers usually pay for the owner’s title insurance policy, while buyers cover the lender’s policy.
These policies typically cost 0.5% to 1% of the sale price, depending on the property’s value and the title company’s rates [2].
Escrow Fees in California
Escrow companies act as neutral third parties to hold funds and documents until the deal closes. Escrow fees are generally calculated at $2.00 per $1,000 of the home’s sale price, plus a base fee of $250.
For example, on a $500,000 home, escrow fees would total around $1,250. These fees are usually split between buyer and seller but may vary depending on local customs and the purchase agreement [3].
Tip: Many sellers are surprised by how much the escrow fee is in California, so it’s important to factor them into your budget early.
HOA Fees (If Applicable)
If your home is part of a Homeowners Association, you’ll owe prorated HOA dues through the closing date. These are similar to property taxes and often overlooked during budgeting.
At Osborne Homes, we handle these details for you, making the process smoother.
Real Estate Agent Commissions
Traditional real estate commissions in California range from 5% to 6% of the sale price
split between the listing and buyer’s agents [4]. On an $800,000 home, that’s $40,000 to $48,000 in commission costs.
While these fees are technically negotiable, many sellers are now exploring commission-free alternatives. Osborne Homes eliminates agent commissions entirely, helping you keep more of your home’s value.
Seller Concessions
In some cases, you might choose to make certain concessions to attract buyers, like covering the cost of a home warranty for a year. Seller concessions can be a strategic way to make your home more appealing in a competitive market. Osborne Homes can offer guidance on which concessions, if any, will help your home sell faster.
Transfer and Property Taxes
California imposes a transfer tax of $1.10 per $1,000 of the sale price in most counties [5]. However, cities often add their own:
- Los Angeles: Adds $4.50 per $1,000 [6]
- San Francisco: Can charge up to $25 per $1,000 for high-value homes [7]
These taxes are often paid by the seller but may be negotiated during closing.
You’ll also owe prorated property taxes through the closing date. California’s average property tax rate is about 1% of assessed value, but this varies by location [8]. Understanding the difference between tax assessed value and market value can help you estimate this accurately.
When you sell to Osborne Homes, transfer taxes and prorated property taxes are often the only closing costs you’ll pay. We handle the rest.
How to Sell a House in California: 6 Steps
Selling a house in California follows a structured process, but you’re not limited to just one approach. Whether you choose a traditional agent, FSBO, or a direct cash sale, here’s what the process typically involves.
Step 1: Determine Your Home’s Value
Start by estimating your home’s market value through a Comparative Market Analysis (CMA), an online valuation tool, or a professional appraisal. In California, pricing can vary dramatically based on location, lot size, renovations, and local demand.
To avoid surprises, it’s helpful to understand what can hurt a home appraisal in California, such as outdated systems or unpermitted work.
Step 2: Prepare the Required Paperwork
California has some of the strictest disclosure requirements in the country. Sellers must provide:
- A Transfer Disclosure Statement (TDS)
- Natural Hazard Disclosure (NHD)
- Lead-based paint disclosure for homes built before 1978
- Title and deed documentation
- Recent property tax statements
- HOA documents (if applicable)
Missing paperwork can cause delays or even derail the sale, so it’s important to be prepared early.
Step 3: Decide How You’ll Sell
You have three main selling options:
- Hire a real estate agent – Offers marketing and negotiation support but includes 5–6% in commissions.
- Sell by owner (FSBO) – Saves money on agent fees but requires legal knowledge and significant time.
- Sell to a cash buyer – Fastest and most convenient, especially if you want to skip repairs and closing costs.
If you’re considering FSBO, check out our for-sale-by-owner tips in California, along with a complete paperwork checklist for selling without a realtor.
Step 4: Get the Property Ready
Getting your home ready to list can involve repairs, deep cleaning, and staging. According to a 2025 report by Bankrate, professional home staging in California typically costs between $837 and $2,924, with an average of $1,844 [9].
These costs vary depending on home size, rental duration, and the level of staging needed.
Step 5: Review Offers and Negotiate
In a traditional sale, reviewing offers means analyzing price, contingencies, financing, and timing. Negotiations can stretch out for weeks and deals can fall through due to financing or inspection issues.
Osborne Homes simplifies this step with a fair cash offer, no back-and-forth, and a guaranteed closing timeline.
Step 6: Close the Deal
The final step includes home inspections, document signing, and fund transfers via escrow. Traditional closings often face delays due to loan approvals or title issues.
When you sell directly to Osborne Homes, you skip those complications. We handle the paperwork, cover most closing costs, and help you close quickly.
How to Calculate Closing Costs
Closing costs for sellers in California typically include agent commissions, escrow fees, title insurance, transfer taxes, and prorated expenses like property taxes and HOA dues.
The exact amount can vary based on your location, especially since many California cities impose local transfer taxes on top of county fees.
To avoid last-minute surprises, it’s smart to budget for closing costs early in the selling process. Use our closing cost calculator or consult a real estate professional to get a personalized estimate based on your home’s value and location.
How to Save Money When Selling in California
Reducing the cost of selling a house in California makes a significant difference in your final profit. Here’s how to keep more money in your pocket:
Sell Without an Agent
By eliminating agent commissions, you can save 5% to 6% of your home’s sale price. However, going the FSBO route means you’ll need to manage the listing, marketing, negotiations, legal documents, and disclosures on your own.
This approach works best if you have real estate experience and time to spare. For most sellers, working with a reputable cash buyer offers similar cost savings without the stress.
Consider Selling As-Is
If your home needs repairs or cosmetic updates, selling as-is can help you avoid tens of thousands in prep costs. Skipping renovations, staging, and cleaning dramatically reduces the overall cost of selling a house in California.
At Osborne Homes, we buy homes in as-is condition—no cleaning, no repairs, no hassles.
Avoid Closing Delays
Financing issues, failed inspections, and appraisal shortfalls are some of the most common reasons traditional sales fall through. Selling to a cash buyer helps you avoid those risks by eliminating contingencies and lender delays.
Osborne Homes offers a guaranteed closing timeline, often within three weeks, helping you save on carrying costs and move on faster.
Ready to Sell? Osborne Homes Makes It Simple
Skip the stress of selling a house in California. With Osborne Homes, there are no agent commissions, no repairs, and no delays. We buy houses across California in any condition, whether you’re facing foreclosure, dealing with an inherited property, or need to relocate quickly.
Get your free cash offer today and see how much you could save by selling directly to us.
Sell for Cash Now!
Not sure if selling is the right move? Take our Sell or Stay Quiz to explore your options and make the best decision for your situation.
Frequently Asked Questions
Get quick answers to common questions about selling your home in California.
1. How much does it cost to sell a house in California?
The total cost of selling a house in California typically ranges from 6-10%, including commissions, fees, taxes, and repairs.
2. How do I avoid paying taxes when I sell my house in California?
Primary residence exclusion allows $250,000-$500,000 in tax-free capital gains if you lived there two years.
3. What happens when you sell a house in California?
You determine value, prepare disclosures, market property, review offers, negotiate terms, and close through escrow.
4. How much tax will I pay if I sell my house in California?
Tax depends on your profit and ownership length. Primary residences often qualify for federal exclusions.
5. Do sellers pay closing costs in California?
Yes, closing costs for sellers in California typically equal 6-10% in total costs, including commissions and fees.
References:
- HomeLight: Buyer Rejected Your Counter Offer? Here’s What to Do
- CTC Title Company: How Much Is Title Insurance?
- SoldNest: Seller Closing Costs in California: What You’ll Pay
- Investopedia: Real Estate Agents May Be Dodging New Commission Rules — Here’s How It Could Cost You
- LA County Registrar-Recorder/County Clerk: General Information on Documentary Transfer Taxes
- Multi-Housing News: Why LA’s New Transfer Tax Law May Not Take Effect
- Danielle Lazier Real Estate Blog: Understanding San Francisco Real Property Transfer Tax
- Axios: California Property Tax System Protects the Elite
- Bankrate: How Much Does Home Staging Cost?