Closing costs can feel confusing, even if you’ve bought or sold before. You want a clear number for what you’ll bring to closing as a buyer, or what you’ll actually net as a seller. This guide lays out typical Tri‑Valley practices, who usually pays which fees, how to estimate your total, and exactly where to verify taxes and charges. Let’s dive in.
What closing costs cover
Closing costs are the one‑time fees and prepaids that finish your sale or purchase. You’ll see items like transfer taxes, escrow and title charges, lender fees, recording fees, and prorations for taxes or HOA dues. Many costs are customary, but most are negotiable and vary by provider, county, and city. Your escrow officer will itemize them on your closing statement.
Key categories you’ll encounter:
- Transfer or documentary taxes at the county and possibly city level
- Escrow and settlement fees for handling the transaction
- Title insurance and related title services
- Lender and loan fees for buyers
- Recording fees and county charges
- Prepaid items and impounds for buyers
- Prorations and credits for taxes, insurance, and HOA dues
Who pays what
Transfer taxes
In many California transactions the seller pays county documentary transfer taxes and any city transfer taxes. That is a custom, not a rule, and it can be negotiated in your purchase agreement. Because rates and city policies vary, confirm the exact Tri‑Valley amount and who will pay it with your escrow officer before you finalize numbers.
Escrow fees
Escrow companies charge to prepare instructions, manage funds, and close the file. In many Northern California deals these fees are split 50/50 between buyer and seller, though the split is negotiable. Expect several hundred to a few thousand dollars depending on price and complexity.
Title insurance
There are two common policies: an owner’s policy and a lender’s policy. In much of Northern California, sellers often pay for the owner’s policy while buyers pay for the lender’s policy, but practices vary by county and even by neighborhood. Ask your title company which custom applies to your property and request a written quote for both policies.
Lender fees
Buyers pay loan origination, underwriting, processing, appraisal, credit report, and any required third‑party inspections tied to the loan. Total lender‑related closing costs often range from about 0.5 percent to 2 percent of the loan amount, not including prepaids. Your Loan Estimate will show a precise figure for your scenario.
Recording fees
Counties charge to record the deed and the deed of trust (mortgage). Buyers usually pay mortgage recording fees, and deed recording is often split or paid by the seller, depending on the negotiation. These fees are relatively small compared to other items and usually total in the hundreds.
Prepaids and impounds
Buyers fund the first year of homeowners insurance, prorated property taxes, any HOA dues and transfer fees, and an initial escrow reserve if the lender requires impounds. Because Tri‑Valley home values are high, tax and insurance prepaids can add up to several thousand dollars. Your lender will estimate the exact reserve months needed.
HOA and estoppel
Many Tri‑Valley homes and condos sit in HOA communities. Sellers often pay HOA document and estoppel fees so the association can confirm dues status and transfer requirements. Confirm the fee amount and timeline early, since HOA processing can affect your closing date.
Prorations and credits
Taxes and HOA dues are prorated to the closing date. You might also see seller credits toward buyer closing costs, or a credit in lieu of repairs. All prorations and concessions appear on the closing statement and change the final cash to close or seller net.
Transfer taxes and recording
Tri‑Valley transactions primarily close in Alameda County or Contra Costa County. Cities you’ll often encounter include Pleasanton, Livermore, and Dublin in Alameda County, and Danville and San Ramon in Contra Costa County. Documentary transfer taxes are set by counties, and some cities add a separate city transfer tax.
How to verify your exact figure:
- Call the county recorder or treasurer‑tax collector to confirm the current documentary transfer tax rate and any forms required.
- Contact the city finance department or review the municipal code for Pleasanton, Livermore, Dublin, Danville, or San Ramon to confirm if a city transfer tax applies.
- Ask your escrow or title officer to show the transfer tax line on your preliminary settlement statement so you know who is paying and the exact amount.
Estimate your total
Rules of thumb for planning:
- Buyers: budget about 2 percent to 5 percent of the purchase price for closing costs and prepaids, not including your down payment.
- Sellers: budget about 5 percent to 8 percent or more of the sale price if you include common broker commissions, plus transfer taxes and other seller costs.
What to include in your estimate:
- Buyers
- Lender fees, appraisal, credit report
- Lender’s title policy, your share of escrow, recording fees
- Prepaids and impounds for taxes and insurance
- HOA dues, transfer fees, and reserves if applicable
- Sellers
- Real estate commissions
- Owner’s title policy if customary, your share of escrow
- Transfer taxes and any city tax
- Payoff of existing loans, liens, and HOA or document fees
Always request two documents early: a Loan Estimate from your lender and a preliminary settlement statement from your escrow officer. These two items will move you from rough ranges to numbers you can rely on.
Sample scenarios
The following are illustrative examples to show how costs scale in Tri‑Valley. Your own numbers will vary by agreement, lender, and provider quotes.
Example A: $1,000,000 sale
- Seller
- Broker commissions at about 5.5 percent: $55,000
- Payoff of existing mortgage: variable (example $400,000)
- Title, escrow, and seller docs: about $2,000 to $4,000
- Transfer taxes: verify county and any city tax; could be hundreds to several thousand
- Net to seller = Sale price minus commissions, payoff, taxes, and seller costs
- Buyer (excluding down payment)
- Lender fees, appraisal, and credit: about $4,000 to $10,000
- Lender’s title policy, escrow share, and recording: about $2,000 to $5,000
- Prepaids and impounds for taxes, insurance, and HOA: about $5,000 to $15,000
- Total buyer closing costs: roughly $11,000 to $30,000
Example B: $1,500,000 sale
- Seller
- Commissions at similar percentage rise with price
- Transfer taxes and escrow/title scale with price and local rates
- Payoff remains unique to your loan balance
- Buyer
- Lender fees depend on loan size and product
- Title, escrow, and recording grow with price tiers
- Prepaids and impounds increase with higher taxes and insurance
Negotiations that shift costs
- Seller credits to buyer: You can ask the seller to contribute toward buyer closing costs. Lender rules cap how much a seller can contribute based on loan program.
- Rate buydowns: Sellers or builders sometimes fund a permanent or temporary buydown. It appears as a seller credit on the closing statement and must be approved by the lender.
- Repairs vs credits: Instead of completing repairs, sellers may offer a credit that reduces seller net and lowers buyer cash to close.
- Escrow and title splits: The parties can agree to split fees differently than the local custom.
Practical Tri‑Valley tips
- Verify transfer taxes early. Ask your escrow officer and confirm with the county and city.
- Get provider quotes. Request written estimates from your title and escrow company for their fee schedules and title policy premiums.
- Request a Loan Estimate. Ask your lender for a current Loan Estimate showing closing costs and required impounds.
- Confirm HOA items. If the home is in an HOA, ask about transfer requirements, estoppel fees, and any move‑in fees or deposits.
- Ask about supplemental taxes. Changes in ownership can trigger a supplemental assessment that results in additional tax bills.
- Protect your wire. Always verify wiring instructions by phone using a known number for your escrow officer. Never rely solely on email instructions.
Sellers: plan your net
For most sellers, commission is the largest single cost, commonly around 5 to 6 percent in many U.S. markets, with local splits varying by listing. Add transfer taxes, your share of escrow and title, HOA document fees if applicable, and payoff of any loans or liens. Ask your escrow officer for a preliminary settlement statement so you can see an accurate net sheet before you accept an offer. If you plan renovations or staging, factor those costs and timelines into your net strategy.
Buyers: plan your cash
Separate your down payment from your closing costs and prepaids. Your cash to close will include lender fees, title and escrow, recording, and several months of insurance and property taxes for impounds. If you are purchasing in an HOA, set aside funds for dues and any transfer or move‑in fees. A clear Loan Estimate, plus your escrow officer’s fee quote, will help you dial in this number.
Ready to talk numbers?
If you want a precise breakdown for your home or the property you’re targeting, ask for a customized estimate from your lender and escrow team. If you are considering selling, a detailed net sheet helps you time the market and plan your next move. When you want a strategic plan that pairs clear numbers with premium marketing, request your free Instant Valuation and Custom Marketing Plan with Emiliana Flemate Baker.
FAQs
Who pays transfer tax in Tri‑Valley home sales?
- In many California deals the seller pays county documentary transfer taxes and any city transfer tax, but it is negotiable; verify local rates and the payor with your escrow officer.
How much should Tri‑Valley buyers budget beyond the down payment?
- Plan for about 2 percent to 5 percent of the purchase price for closing costs and prepaids, then confirm the exact amount with your lender’s Loan Estimate.
What do escrow and title fees typically cost in Tri‑Valley?
- Combined charges are usually several hundred to a few thousand dollars depending on price and provider; request an itemized quote from your escrow and title company.
Can a seller pay some of the buyer’s closing costs?
- Yes, via seller credits or concessions that appear on the closing statement, subject to loan program limits and lender approval.
When do I send funds to close an escrow in Tri‑Valley?
- Your escrow officer will give a funds‑to‑close deadline and wiring instructions; always confirm by phone using a trusted number to avoid wire fraud.
What are supplemental property taxes after I buy in Tri‑Valley?
- A change in ownership can trigger a supplemental assessment and additional tax bills; ask your escrow officer and the county tax collector what to expect for your parcel.
