What it costs to sell

Brokerage commission

Usually the largest single cost, and negotiable - there is no standard rate, and anyone implying otherwise is telling you something that is not true. What is worth asking is not just the number but what it covers: photography, marketing, who actually attends showings, and who manages escrow once you are in it.

How buyer-side compensation is handled has changed in recent years and is now an explicit negotiation rather than an assumption. We will walk you through how it works for your listing before you sign anything.

Escrow and title

Escrow charges a fee for holding funds and managing the closing. Title charges for the search and the policy insuring clear ownership.

Who pays which is local custom, and it differs between counties - San Diego and Riverside do not handle this identically. Custom is also not law: it is negotiable, and in a slower market it sometimes is.

Transfer tax

The county levies a documentary transfer tax on the sale. Some cities levy an additional one on top. Whether a city tax applies depends on where the property sits, so this is a question with a specific answer for your address rather than a general one.

Repairs and credits

Usually the largest genuinely variable cost, and the one you have most influence over. After inspection, buyers commonly request repairs or a credit. You can do the work, credit them, or decline and risk renegotiation.

Getting your own inspection before listing costs little and removes most of the surprise - you find out what a buyer's inspector will find while you still have time to deal with it on your terms.

Assessments and HOA

Outstanding property tax, HOA dues and any special assessment are settled through escrow. In much of the Inland Empire that includes Mello-Roos, which must be disclosed and cleared. See the Mello-Roos guide →

HOAs also charge for the document package a buyer is entitled to receive, and they are rarely quick about producing it. Requesting it early prevents a slow association from delaying your closing.

Pre-listing preparation

Entirely your choice, and the place sellers most often overspend. Paint, flooring where it is visibly worn, deep cleaning and decluttering reliably return more than they cost. Full remodels undertaken specifically to sell generally do not.

Ask us before spending money on this. Sometimes the honest answer is that the work will not come back to you, and we would rather say so than watch you spend it.

Your mortgage payoff

Not a cost of selling exactly, but it comes out of the same proceeds and surprises people. Request a payoff demand early - the figure includes interest to the payoff date and is not the same as your statement balance. Check whether your loan carries a prepayment penalty.

What we do about all of this

Before you list, we put real numbers against every category above for your specific property and give you an estimated net - what actually lands in your account. Not at signing, when it is too late to change anything.

General information, not tax or legal advice. Costs vary by property, county and contract - and tax consequences of a sale are a question for your accountant.