Buying or selling a home on the Peninsula comes with big numbers, and closing costs can surprise you if you only plan around the purchase price. You want a clear picture of what you will actually bring to closing or walk away with after fees. In this guide, you will learn typical buyer and seller costs in San Mateo County, what is negotiable, and how to plan your timeline so there are no last‑minute hiccups. Let’s dive in.
What closing costs cover in San Mateo County
Closing costs are the one‑time fees and prepaids due when a property changes hands. They include lender charges, title and escrow services, transfer taxes, prorated property taxes and HOA dues, inspections, and more. Because many items are percentage‑based, the dollar amounts add up quickly at Peninsula price points. Local custom also matters, so who pays for what can vary by city and by contract.
Buyer closing costs: typical items and ranges
Most buyers in the Bay Area spend about 2–5 percent of the purchase price in closing costs, not counting the down payment. Your total depends on your loan type, points, timing, and any seller credits you negotiate.
Loan and lender fees
- Origination, processing, and underwriting: often 0.25–1.0 percent of the loan amount.
- Discount points to buy down your rate: 0–3 percent of the loan amount, optional.
- Appraisal: commonly 600–1,500 dollars or more depending on property complexity.
- Credit report, flood cert, and small lender charges: about 20–250 dollars in total.
- Recording of the mortgage: typically 50–200 dollars.
These charges are buyer‑paid and vary by lender. You can shop lenders and compare Loan Estimates to reduce costs or secure lender credits.
Title, escrow, and recording
- Lender’s title insurance policy: often about 0.2–0.5 percent of the loan amount.
- Owner’s title insurance policy: who pays can vary in Northern California. Sellers often pay this, but it is negotiable. If buyers pay, budget roughly 0.5–1.0 percent of the price.
- Escrow fee: usually split between buyer and seller on the Peninsula, often 50/50. Buyer share is commonly 500–2,500 dollars depending on price and provider.
- Recording fees for the deed and other documents: about 50–300 dollars.
Title and escrow fees are provider‑specific, so request quotes early.
Prepaids and prorations
- Property taxes: prorated at closing based on the closing date and local tax cycle. You may also fund the first installment if timing requires it.
- Prepaid mortgage interest: daily interest from funding to your first payment due date.
- Homeowners insurance: usually the first year’s premium is paid at closing.
- HOA dues and reserves: prorated dues; some HOAs also charge transfer or estoppel fees, which are negotiable in the contract.
- Special assessments: Mello‑Roos or other district taxes, prorated if applicable.
These items can be among your largest cash needs at closing beyond lender fees.
Inspections and optional reports
- Pest or wood‑destroying organism inspection: typically 100–400 dollars.
- General home inspection, sewer scope, roof, or foundation specialists: about 300–2,000 dollars depending on scope.
Buyers commonly pay for inspections unless the contract states otherwise.
What is negotiable for buyers
- Seller credits toward closing costs, subject to loan rules.
- Points vs. rate: trade a higher rate for lower upfront costs, or vice versa.
- Title and escrow provider and fee quotes.
- Who pays owner’s title insurance and HOA transfer fees, based on local custom and your contract.
Seller closing costs: typical items and ranges
For sellers, the largest cost is usually the real estate commission. When you include commission, title and escrow, transfer taxes, and routine fees, total seller costs commonly range around 6–10 percent of the sale price, excluding your mortgage payoff.
Real estate commission
- Common local examples total 5.0–6.0 percent of the sale price, typically split between the listing and buyer’s agents. Commission is negotiable and agreed upon in your listing agreement.
Title, escrow, and transfer taxes
- Owner’s title insurance policy: often a seller‑paid item in Northern California, with a one‑time premium that can approximate 0.5–1.0 percent of the sale price.
- Escrow fee: often split between buyer and seller; seller share commonly mirrors the buyer share.
- Recording and reconveyance fees: roughly 50–500 dollars for payoff‑related recordings.
- Transfer tax: charged by the county and sometimes by the city. Liability can be set by local ordinance or negotiated in the contract, but seller payment is common in practice.
Always verify city and county transfer tax schedules before you go to market.
Payoffs and liens
- First mortgage, second mortgage or HELOC, unpaid property taxes, and any recorded liens are paid from your proceeds at closing. Your escrow officer will order payoff demands and account for related recording fees.
Repairs, credits, and warranties
- Negotiated repairs or credits after inspections vary by property condition.
- Optional home warranty for the buyer can run about 400–800 dollars.
What is negotiable for sellers
- Commission structure and services.
- Allocation of title and escrow fees.
- Transfer tax responsibility, depending on local statutes and your agreement.
- Repair requests and credits, including escrow holdbacks when needed.
Local factors that drive totals in San Mateo County
Transfer taxes vary by city
Transfer tax can apply at both the county and city level, and rates change. A simple way to estimate is sale price divided by 1,000, multiplied by the local rate per 1,000 dollars. Because city surcharges can be material, confirm the current schedule with your title company, the San Mateo County Recorder, and the specific city’s finance office before finalizing your budget.
Title and escrow customs
Northern California practice often has the seller pay the owner’s title policy and the buyer pay the lender’s policy, with escrow fees split roughly 50/50. That is a custom, not a rule. Your contract can allocate fees differently, so align early with your agent and escrow officer.
HOA, Mello‑Roos, and special districts
Many Peninsula communities have HOAs and some newer areas have special tax districts. Expect proration of dues and taxes at closing. Ask for the HOA estoppel package and any special tax disclosures early so there are no surprises.
Typical escrow timelines
Financed sales often close in 30–45 days. Cash or highly competitive offers can close in 7–17 days if the title, lender, and appraisal timeline allows. Shorter escrows may trigger rush fees, and longer escrows can increase prorated interest and taxes.
Budget examples at Peninsula price points
Below are illustrative estimates to show how percentages translate into dollars. Your actual numbers will depend on fee quotes, timing, and negotiations.
Buyer on a 1,500,000 dollar purchase
- Lender fees at 0.5 percent of a 1,200,000 dollar loan (80 percent LTV): about 6,000 dollars
- Appraisal: about 900 dollars
- Lender’s title policy and recording: about 3,000 dollars
- Escrow and buyer share of title/escrow: about 1,500 dollars
- Prepaids and prorations: 5,000–10,000 dollars
- Inspections: 500–2,000 dollars
Estimated buyer cash to close for costs only, excluding down payment: roughly 17,000–24,000 dollars, or about 1.1–1.6 percent of the price. If you pay for an owner’s policy or have higher prepaids, the total rises.
Seller on a 1,500,000 dollar sale
- Real estate commission example at 5.5 percent: 82,500 dollars
- Owner’s title policy, seller escrow share, and recordings: about 4,000–10,000 dollars
- Transfer taxes: varies by city and county; totals can be meaningful at this price, so verify the current schedule
- Mortgage payoff and any liens: variable
- Repairs, credits, or holdbacks: variable
Estimated seller closing costs excluding mortgage payoff: often 6–10 percent of the sale price, which would be about 90,000–150,000 dollars in this example, with commission being the largest component.
Timeline and closing checklist
What to expect during escrow
- Day 0–3: Open escrow, deposit earnest money, schedule inspections, order appraisal.
- Day 5–14: Receive seller disclosures, complete inspections, negotiate repairs or credits.
- Day 10–25: Appraisal and loan underwriting, title search and title commitment.
- Day 20–30: Final loan approval, Closing Disclosure issued to buyer with required review period.
- Day 25–45: Sign loan and closing documents, fund, and record.
Actual dates vary by contract and lender schedule. Stay in close contact with your escrow officer and lender to keep all milestones on track.
Documents and items you will need
- Government‑issued photo ID for all signers
- Wiring instructions confirmed directly with your escrow or title company by phone
- Buyer: final loan package, homeowners insurance binder, and any required reserves
- Seller: payoff demands for mortgages and liens, HOA statements, grant deed and reconveyance documents
- Final closing statements for both parties
Security and payment tips
- Always confirm wiring instructions by calling your escrow or title company at a known phone number. Do not rely on email links or last‑minute changes.
- Verify amounts and deadlines on your Closing Disclosure and settlement statements as soon as you receive them, and ask questions right away.
How to keep costs under control
- Request written quotes early from your lender and at least one alternative lender.
- Ask your agent to request title and escrow fee estimates from multiple providers.
- Time your closing date to manage prepaid interest and the property tax cycle.
- Consider seller credits to offset buyer costs, within loan limits.
- For sellers, address repair items upfront and evaluate improvements with a clear return on investment to reduce renegotiation and protect your net.
How Next Gen Properties supports your bottom line
You deserve a clear plan, not surprises. Our team brings local expertise in San Mateo County and across the northern Peninsula, strong negotiation, and a process built for clarity and results.
- Strategic, design‑forward listings. We coordinate professional staging, photography, and curated marketing to drive demand and protect your net proceeds.
- Financed pre‑sale renovations. If your home needs improvements to shine, we can help you access programs that cover approved updates upfront so you close at a higher price without delays.
- Multilingual service. We communicate in English, Mandarin, and Cantonese, making complex steps simple for you and your family.
- Investor and 1031 guidance. For investors, we help coordinate timelines, repairs, and repositioning so you can move quickly and keep tax‑advantaged strategies on track.
Ready to buy or sell with confidence on the Peninsula? Let’s map your numbers, timeline, and plan to win. Connect with Next Gen Properties to get started.
FAQs
What are typical buyer closing costs in San Mateo County?
- Most buyers spend about 2–5 percent of the purchase price on closing costs, excluding the down payment, depending on loan type, points, prepaids, and any seller credits.
Who usually pays for title insurance and escrow fees locally?
- In much of Northern California, sellers often pay the owner’s title policy and buyers pay the lender’s policy, with escrow fees commonly split, but these items are negotiable in the contract.
How do city transfer taxes affect my budget?
- City surcharges can significantly change totals; estimate transfer tax as sale price divided by 1,000 times the local rate, and verify current schedules with your title company and the city and county offices.
How long does escrow usually take on the Peninsula?
- Financed purchases often close in 30–45 days, while cash or very competitive deals can close in 7–17 days if title and appraisal timing allows.
Can a seller credit cover my closing costs?
- Yes, seller credits are common and can offset buyer costs within lender limits, though the final structure depends on negotiations and your loan program.
What is the biggest seller expense at closing?
- Commission is typically the largest line item, often totaling 5.0–6.0 percent of the sale price, followed by transfer taxes and title and escrow fees.
