Closing day should feel like a win, not a surprise. If you are buying or selling in San Mateo, the mix of lender fees, title and escrow charges, transfer taxes, and local assessments can add up fast. You want clear numbers early and a plan to control what you can. In this guide, you will learn typical cost ranges, who usually pays what, local items to watch, and the requests to make now to avoid last‑minute stress. Let’s dive in.
What closing costs cover
Closing costs are the third‑party fees, taxes, prepaids, and lender charges due when the home changes hands. They are separate from your down payment and your monthly payments after you close. These fees compensate lenders, title and escrow companies, local governments, and service providers for the work to fund and record the sale.
How much to budget in San Mateo
- Buyers: plan for roughly 2% to 5% of the purchase price in closing costs if you are financing. Simple loans with no points can be closer to 1% to 2%; buying points or higher prepaids can push totals toward 3% to 5%.
- Sellers: plan for roughly 6% to 10% of the sale price including real‑estate commissions, which are commonly 5% to 6% on the Peninsula, plus title, escrow, and any transfer taxes or concessions.
- Keep in mind that city transfer taxes, Mello‑Roos assessments, HOA transfer fees, and price‑tier title premiums can shift totals in San Mateo County. For exact figures, ask your lender for a Loan Estimate and your title/escrow officer for a detailed fee quote and sample closing statement.
Buyer closing costs: what to expect
Loan fees
- Origination, underwriting, and processing: vary by lender and loan type; your Loan Estimate will itemize these.
- Points: optional fee to reduce your rate; one point equals 1% of the loan amount.
- Appraisal: commonly several hundred to over one thousand dollars based on property and lender.
- Credit report: typically a small fee.
Title and escrow
- Escrow fee: paid to the escrow company that manages the closing. In California, this is often split, but practice varies by county and contract.
- Lender’s title insurance: required if you finance; premium is set by published rate tables and scales with price.
- Owner’s title policy: often paid by the seller in many California transactions, though it is negotiable.
Recording and transfer items
- Recording fees: county‑set amounts to record your deed and loan documents.
- Transfer taxes: San Mateo County and some cities may levy documentary or municipal transfer taxes. Whether buyer or seller pays depends on city custom and negotiation. Confirm with the County Recorder and the relevant city finance office.
Prepaids and escrows
- Property taxes: prorated from the close date to the next installment.
- Homeowner’s insurance: typically the first year premium is paid at closing.
- Prepaid interest: daily interest from funding to your first payment date.
- HOA charges: transfer fees, document fees, and any capital contributions if the home is in an HOA.
Inspections and due diligence
- Home, pest/termite, roof, sewer lateral, or septic as applicable. Combined, these can range from a few hundred to a couple thousand dollars depending on scope.
Other potential buyer costs
- Home warranty (optional), HOA move‑in fees, or rare private transfer fees.
Buyer budgeting example
On a $1,500,000 financed purchase, it is common for buyer closing costs (not including down payment) to fall in the low tens of thousands of dollars. The exact total depends on your loan structure, title and escrow fees, prepaids, and any HOA or city-specific items. Always rely on your Loan Estimate and the escrow/title fee quote for precise numbers.
Seller closing costs: what to expect
Major seller costs
- Real‑estate commissions: commonly 5% to 6% of the sale price on the Peninsula, negotiated in your listing agreement.
- Owner’s title insurance: often paid by the seller in California; premium is based on published rates.
- Escrow fee: typically split by local custom; confirm with your escrow officer.
- Transfer taxes: county documentary tax and any city transfer tax where applicable.
- Loan payoffs: any mortgages or liens are paid off at closing, including reconveyance fees.
- HOA items: any due assessments plus estoppel and transfer fees if in an association.
- Repairs and concessions: credits or repairs negotiated after inspections, or escrow holdbacks if needed.
Seller budgeting tips
Commission is usually the largest predictable cost. Most other fees land in the low thousands unless your city imposes a sizable municipal transfer tax or you agree to a buyer credit. Ask your escrow officer for a preliminary closing statement and your agent for a net‑proceeds estimate that includes commissions, payoffs, title and escrow fees, and estimated transfer taxes.
San Mateo specifics to check
County and city transfer taxes
San Mateo County collects recording fees and the county documentary transfer tax. Some cities also levy a municipal transfer tax, and who pays can vary by city or by contract. Confirm current rules with the San Mateo County Recorder and with the finance office in your specific city, such as San Mateo, Redwood City, Burlingame, Daly City, South San Francisco, San Bruno, Millbrae, Menlo Park, or Foster City. Some cities may not levy a municipal tax.
Mello‑Roos and special assessments
Newer developments or certain bond districts may carry community facilities district (CFD) Mello‑Roos or other assessments. These are recurring, appear on the title report, and are prorated at close. Ask your title/escrow officer for the assessment schedule and review HOA disclosures if applicable.
HOA transfer and move‑in fees
Associations can charge transfer, estoppel, document, capital contribution, or move‑in fees. Amounts vary widely and may total several hundred to several thousand dollars. Request HOA fee details early.
Supplemental taxes and prorations
California prorates county property taxes at close and may issue supplemental tax bills after a change in ownership. Your title/escrow officer or county assessor can explain how these affect you.
Sewer lateral compliance
Several Bay Area cities have sewer‑lateral inspection or certification rules at sale. Responsibility can fall to either party depending on local ordinance and your contract. Check with your city to see if this applies.
Who pays what (typical practice)
- Seller: commissions and often the owner’s title policy.
- Buyer: lender and loan-related costs, prepaids, and most inspection fees.
- Escrow fee: often split 50/50 in California, but confirm local custom with your escrow officer.
- Transfer taxes: city and county rules vary, and payment is negotiable unless specified by ordinance.
Ways to reduce or control costs
For buyers
- Compare lenders on rate, points, and fees. Request written Loan Estimates to line up costs side by side.
- Ask about lender credits to offset closing costs and the trade‑off to rate.
- Request a detailed title/escrow estimate and ask about any reissue or bundle discounts.
- Complete inspections early to avoid expensive last‑minute credits.
For sellers
- Discuss commission structure with your agent and weigh service levels and outcomes.
- Order payoff statements early to avoid surprises in balances or reconveyance timing.
- Consider pre‑listing inspections and repairs to reduce concessions and escrow holdbacks.
- Confirm city transfer tax policy in advance and plan for who pays in your negotiations.
What to request early (your checklist)
- From your lender (if financing): Loan Estimate within three business days of application, plus a breakdown of expected prepaids and monthly payment.
- From title/escrow: preliminary title report, escrow fee schedule, itemized title insurance premiums, and a sample closing statement for your price point.
- From your listing agent (sellers): a net‑proceeds estimate including commissions, transfer taxes, payoffs, and title/escrow fees, plus guidance on local custom for who pays which title/escrow items.
- From county and city offices: current recording fees, documentary transfer tax rules, and any municipal transfer taxes or sewer‑lateral requirements.
- From your HOA: estoppel, transfer fee amounts, special assessments, and any working‑capital or move‑in charges.
How to get exact numbers
Use written estimates, not guesses. Your lender’s Loan Estimate and, later, the Closing Disclosure will detail loan costs and prepaids. Your escrow officer can produce an itemized estimate for title, escrow, transfer taxes, and prorations based on your close date. Review each document and ask questions until you are comfortable with every line item.
Ready to plan your closing?
If you want calm, complete answers and a clear plan, we can help you map costs, negotiate who pays what, and coordinate the right estimates early. Reach out to Breakwater Properties to talk through your timeline, compare scenarios, or to Request a Home Valuation.
FAQs
Who pays closing costs in California home sales?
- It is negotiable. Commonly, sellers pay commissions and often the owner’s title policy; buyers pay loan-related costs and prepaids. Escrow fees are often split, but confirm local custom.
How much are transfer taxes for San Mateo properties?
- San Mateo County charges a documentary transfer tax, and some cities add a municipal transfer tax. Rates and who pays vary by city and can change; confirm with the County Recorder and your city finance office.
What buyer costs are typically the largest in San Mateo closings?
- Loan fees and points, title and escrow charges, and prepaids like taxes and insurance are common big items; inspections and HOA fees can add more depending on the property.
Can a seller cover a buyer’s closing costs with a credit?
- Yes. Seller credits for closing costs or rate buy‑downs are common and negotiated in the purchase contract. Lenders may cap allowable credits by loan type.
How do I get exact closing cost numbers for my deal?
- Ask your lender for a Loan Estimate and later a Closing Disclosure, and request an itemized estimate from your title/escrow officer. These documents provide the most accurate, current figures for your transaction.
