Sellers in East Bay counties may need to cover various closing costs, these costs  can differ from one county to another.   Here is a general overview of these costs in the East Bay, which is important for sellers to understand in order to be fully prepared. Please be aware many closing costs are negotiable with the buyer. This information outlines the closing costs for sellers and explains their significance.

The typical closing costs for sellers include:

• Real estate commission (buyer’s agent fee can be partially or be a total buyer cost with NAR settlement)
• Title and escrow fees (can be a buyer cost)
• Transfer taxes (can be a buyer cost)
• Home warranty (can be a buyer cost)
• Outstanding liens and judgments

Typical Closing Costs for Sellers in East Bay

In East Bay counties, both buyers and sellers have specific costs to cover on closing day, most of which may be negotiable as part of the real estate transaction. Below is a list of common costs sellers can incur, though it is not exhaustive.

Real Estate Agent Commission

This is the percentage paid to the real estate agent for their service finding a buyer for the property. This website has discussed in detail about Bay Select Realty’s reduced commission and NAR settlement and how that settlement affects how a buyer’s agent gets paid.  Generally speaking it is important that a home seller understands their options when choosing a listing agent and having an open discussion with that agent of what a seller might consider paying a buyer’s agent commission, if any.  The commission varies between agents, and sellers should be aware of it from the outset of their dealings.

Title and Escrow Fees

Depending on the agreement with the buyer, title fees may be the seller’s responsibility. These fees cover insurance policies that protect lenders and buyers from claims against the property’s title. Escrow fees, often associated with the buyer, are charged by the escrow company for managing the release of funds at closing.

Transfer Taxes

For example, Contra Costa County charges a standard tax on property transfers, at $1.10 for every $1,000 of the home’s value. Typically, the seller pays this tax, though exceptions occur if an alternative arrangement is made between the buyer and seller.

Home Warranty

A home warranty reduces out-of-pocket costs for repairs and replacements within the property, costs not covered by homeowner’s insurance. Usually arranged and paid for by the buyer, the warranty is aimed at minimizing their expenses and can be paid annually or monthly.

Outstanding Liens and Judgments

Not relevant to every property transaction, but any outstanding liens or judgments against a property must be settled before it can be sold. This responsibility falls to the seller unless another arrangement is made with the buyer.

This gives you a general overview of closing costs in the East Bay. For more specific information, please contact us.