Seller Closing Costs
Sellers always want to know how much their closing costs are going to be so they can figure out their net proceeds from a potential sale. The average seller closing costs in Los Angeles range from 6%-7% of the sale price as a general rule of thumb. The #1 largest closing cost for sellers is the real estate commissions. Real Estate commissions range between 5%-6% of the sale price for full-service brokerages in Los Angeles. A few other noteworthy expenses are Title Insurance, Escrow Fee, and the City Transfer Tax.
Your real estate agent or Escrow Company can prepare a seller ‘net sheet’ that will accurately estimate your seller side closing costs and tell you what your net proceeds are for the listing’s price.
At closing, Escrow is required by law to prepare a HUD-1 final closing statement. This document is an accounting of all the actual closing costs.
Here is an estimate of the different seller closing costs:
(Optional) Home Inspection ($400) – it is becoming an increasingly popular trend in Los Angeles to have a home inspection done prior to listing. That way you as a seller you are aware of any problems that a buyer might find and can either disclose them up front for an as is sale or repair them before going on the market.
Any Remodeling or Updating (Price Varies)
Cleaning ($80/hr for professional maid service)
In Escrow Cost:
Termite Inspection ($150 + Section 1 costs) can be done before you list or in escrow.
Retrofit– if you bought your property or it was built in the last 5-10 years it will probably already be retrofitted, if not this will be an expense.
9A Report $80
Title Insurance Policy ($3,000 to $3,500)
Seller Side Escrow Fee ($250 base + $1.75 per $1,000 of purchase price)
City Transfer Tax ($4.40 x $1,000 sales price city of LA)
Documentary Transfer Tax ($1.10 x $1,000)
Title Insurance ($1,500-$2,500 for 600K – 1M) Varies based on sales price
Prorated Property tax + HOA Dues (if applicable)
Home Warranty ($400-$500)
Have more questions or need help closing your sale? Let’s chat.