Wondering how much you should budget for closing in Santa Clara? You are not alone. Closing costs can feel confusing, and the mix of county fees, title charges, prorations, and lender items adds up fast. This guide breaks down what you will likely pay as a buyer or seller, what is negotiable, and how to estimate your total before you sign. Let’s dive in.
Closing costs vs. down payment
Closing costs are the fees and adjustments you pay at the close of escrow, separate from your down payment. They include lender charges, title and escrow fees, prepaid taxes and insurance, prorations for property taxes and HOA dues, transfer taxes, and inspection costs. Your lender will give you a Loan Estimate within three business days of your loan application and a Closing Disclosure about three business days before funding.
For sellers, real estate commissions are usually the largest closing cost. They are separate from escrow and title fees and are negotiated in your listing agreement.
Buyer costs in Santa Clara
Common buyer fees
- Loan application, underwriting, and processing fees. These vary by lender and can sometimes be negotiated or offset with rate pricing.
- Discount points if you choose to buy down your rate.
- Appraisal and credit report fees.
- Lender’s title insurance policy, which most lenders require.
- A share of escrow or settlement fees, which are often split.
- Recording fees for the deed of trust and related documents.
What buyers often prepay
- Property taxes and homeowners insurance reserves. You will fund initial escrow deposits and pay a prorated share based on your closing date.
- HOA items if applicable. Expect prorated dues, plus possible transfer or document fees depending on the association’s rules.
Inspections and reports
- Home inspection, pest or termite inspection, roof and sewer inspections, and natural hazard disclosure reports are typically paid by the buyer. Any repair credits or holdbacks are negotiated in the contract.
- A home warranty is optional. Sometimes a seller offers one as a concession, or you can buy one yourself.
Seller costs in Santa Clara
Common seller fees
- Real estate commissions. In California, the total commission is commonly 5% to 6% of the sale price and is negotiated. It is usually the largest seller cost.
- Owner’s title insurance policy premium. In much of Northern California, including Santa Clara County, it is common for the seller to pay for the buyer’s owner’s title policy. Always confirm with your title company and your contract.
- A share of escrow or settlement fees, often split with the buyer.
- Documentary or transfer taxes where applicable. Many transactions assign municipal or county transfer tax to the seller, but this is negotiable and varies by jurisdiction.
Prorations, payoffs, and other items
- Payoff of existing mortgage(s), plus reconveyance and lien release fees.
- Prorations for property taxes, HOA dues, and special assessments through the closing date.
- Seller concessions, such as repair credits or buyer closing cost credits, if negotiated.
- Optional home warranty as a selling incentive.
Local norms to know
Title and escrow customs
- In Northern California, sellers often pay the owner’s title policy. Practices can vary by company and are negotiable, so confirm in your escrow instructions.
- Escrow or settlement fees are frequently split between buyer and seller. The split can vary by provider and contract terms.
Transfer taxes and recording
- Some Bay Area cities and counties charge transfer taxes in addition to recording fees. Whether the buyer or seller pays is often based on local custom and your contract. Verify current rules with the City of Santa Clara and the Santa Clara County offices for your specific property.
Property taxes and special assessments
- California’s base property tax rate is 1% of assessed value under Proposition 13, plus voter-approved local assessments. Effective tax rates vary by parcel.
- Some neighborhoods include Mello-Roos or other special assessments that appear as separate lines on the tax bill. Always check your preliminary title report and disclosures for any recurring obligations.
HOAs and documents
- Many condos and townhomes in Santa Clara have HOA transfer and estoppel fees. These are commonly charged to the seller for document preparation, but specifics vary by association and can be negotiated.
- HOA rules can affect timing. Plan ahead for document ordering and any required approvals.
Timing and logistics
- Escrow timelines in Santa Clara commonly run 21 to 30 days for conventional loans. More complex loans may take 30 to 45 days. Recording schedules can affect your exact funding and closing day.
How to estimate your total
Typical buyer range
For a conventional mortgage, buyer closing costs usually run about 2% to 3% of the purchase price when you are not paying many points. Cash buyers often pay less, while costs can increase if you choose discount points or have larger prepaids and reserves.
Typical seller range
For sellers, commission is the largest cost. When you include commission plus owner’s title policy where customary, escrow, transfer taxes, and prorations, total seller costs commonly land around 6% to 9% of the sale price. This varies by property and contract.
Sample estimates
Use these as illustrations, not quotes:
Example A — purchase price $1,000,000
- Buyer closing costs at 2.5%: about $25,000
- Seller closing costs:
- Commission at 5.5%: about $55,000
- Other seller costs at about 1.5%: about $15,000
- Total seller costs: about $70,000, or roughly 7%
Example B — purchase price $1,800,000
- Buyer closing costs at 2.5%: about $45,000
- Seller closing costs at roughly 7%: about $126,000
What is negotiable
- Transfer taxes: Payment can follow local custom or the contract. Clarify in your purchase agreement.
- Escrow fee split: Often split, but it can be negotiated with your offer.
- Owner’s title policy: Often seller paid in Northern California, but confirm and negotiate as needed.
- Seller credits: Buyers can request closing cost credits. Limits apply depending on the loan program.
- Home warranty: Optional and sometimes paid by the seller as a concession.
Steps to get exact numbers
Buyers: dial in your cash to close
- Request a Loan Estimate from your lender within three business days of your application. This shows projected loan costs, title and escrow estimates, prepaids, and cash to close.
- Ask a local title and escrow company for a fee quote for lender and owner title policies and escrow charges.
- If applicable, request HOA transfer and estoppel fee quotes and confirm any certification or move-in requirements.
- Review the preliminary title report for special assessments and Mello-Roos.
- About three business days before funding, review your Closing Disclosure for final figures.
Sellers: tighten your net sheet
- Request a detailed Seller Net Sheet from your listing agent that models commission scenarios, title premium, escrow split, and estimated transfer tax.
- Obtain written payoff demands from your mortgage servicer and any other lienholders.
- Confirm HOA payoff or document fees, including any move-out charges.
- Review the preliminary title report for liens and assessments that must be cleared.
Quick buyer checklist
- Confirm your budget with a 2% to 3% closing cost estimate.
- Get a Loan Estimate and title fee quote.
- Budget for inspections, prepaids, and reserves.
- Clarify who pays transfer tax in your contract.
- Review title for special assessments.
Quick seller checklist
- Model net proceeds with a commission range and add 1% to 3% for other costs.
- Confirm owner’s title policy custom with escrow.
- Verify transfer tax responsibility in your contract.
- Order HOA documents early.
- Get payoff demands in writing to avoid delays.
How Ashley Mateo can help
You want clean, decision-ready numbers before you commit. With deep Santa Clara market knowledge and a hands-on approach, Ashley builds clear, transaction-specific estimates that reflect local customs and your contract terms. Sellers get a polished net sheet and guidance on escrow timelines. Buyers get a budget plan, inspection strategy, and help negotiating credits where appropriate.
If you are preparing to sell, Ashley can also coordinate a smart prep plan that aligns with your goals and timeline. For buyers, Ashley’s local insight helps you anticipate costs, choose reliable partners, and close on schedule.
Ready to see your numbers with confidence? Reach out to Ashley Mateo for a tailored closing cost estimate and next steps.
FAQs
Who pays the owner’s title policy in Santa Clara?
- In much of Northern California, the seller commonly pays for the buyer’s owner’s title policy, but you should confirm with your title company and the purchase contract.
Can a buyer roll closing costs into the mortgage?
- Sometimes. It depends on your loan program and loan-to-value limits, so speak with your lender about options and any caps on seller credits.
Can a seller pay a buyer’s closing costs in Santa Clara?
- Yes. Seller concessions are negotiable, and program limits apply based on the type of loan the buyer uses.
Are transfer taxes always paid by the seller in Santa Clara County?
- Not always. Payment follows local custom and the contract terms, so verify responsibility for your specific city and deal.
How do property tax prorations work at closing?
- Property taxes are prorated through the closing date based on the county tax calendar, and each party pays their share; supplemental assessments and Mello-Roos follow the tax bill and escrow instructions.
How much should a seller budget beyond commission for other costs?
- A practical planning figure is an additional 1% to 3% of the sale price for title, escrow, transfer tax, and prorations, unless your agent provides a detailed net sheet.
