Are closing costs catching you by surprise? You are not alone. Whether you are buying your first home or selling one you have loved for years, the final numbers can feel confusing. In this guide, you will see what typical buyer and seller closing costs look like in Sonoma County, where costs are commonly split, and smart ways to reduce them. Let’s dive in.
What closing costs cover
Closing costs are the one-time fees and prepaids due when a home changes hands. They include lender charges, title and escrow services, county and city fees, and prorations for taxes and dues. Buyers also prepay items like interest and insurance, while sellers settle commissions and payoffs. The exact mix depends on your contract and local custom, so always confirm with your lender and escrow team.
Typical buyer costs in Sonoma County
Most buyers should plan for total closing costs around 2% to 5% of the purchase price, not including the down payment. Your final number depends on your loan type, the time of year, and negotiated credits.
Loan fees and appraisal
- Loan origination and lender fees, often a percentage or flat amount.
- Underwriting and processing fees.
- Credit report fee.
- Optional discount points if you choose to buy down your rate.
- Appraisal fee, commonly paid upfront or at closing.
- Prepaid interest from your closing date to the start of your first payment.
Title and escrow services
- Lender’s title insurance policy is usually a buyer expense.
- Escrow fees are often split between buyer and seller by local custom or by contract.
- Owner’s title policy is commonly a seller expense in many California markets, but this is negotiable.
Inspections and due diligence
- General home inspection.
- Pest inspection and any specialty inspections you choose, such as roof, sewer scope, or geological.
Prepaids and prorations
- Prepaid property taxes, homeowners insurance, and escrow reserves if your lender requires impounds.
- Recording and notary fees.
HOA and move-in charges
- HOA transfer or estoppel fees if the property is in an association.
- Prorated HOA dues from the closing date.
Typical seller costs in Sonoma County
Most sellers should plan for total closing costs around 6% to 10% of the sale price when real estate commissions are included. The largest line item is usually the broker commission, which is negotiated with your listing agent.
Commission and representation
- Real estate commission is agreed upon in your listing contract. It is paid from your proceeds at closing and split according to the agreement.
Title, escrow, and transfer taxes
- Owner’s title insurance policy is often a seller expense in many California transactions, subject to negotiation.
- Escrow fees are commonly split with the buyer unless the contract states otherwise.
- Documentary transfer taxes may apply at the county and possibly the city level and are often paid by the seller. Confirm current rates and who pays with your escrow officer.
Payoffs, prorations, and repairs
- Payoff of any existing mortgage and lien release fees.
- Prorated property taxes and HOA dues based on the closing date.
- Any agreed-upon repair credits, buyer concessions, or a home warranty if you offer one.
Who pays what locally
In California, many items are customary yet negotiable. In many Sonoma County transactions, sellers pay the owner’s title policy and county transfer tax, while buyers pay the lender’s title policy. Escrow fees are often split. Your contract can adjust these defaults, so ask your title and escrow team to confirm current local practice before you sign.
Ways to reduce closing costs
Small choices can move the needle on your bottom line. Here are practical levers for both sides.
For buyers
- Compare lenders and Loan Estimates to minimize origination and third-party fees.
- Ask about lender credits in exchange for a slightly higher interest rate.
- Request a seller credit toward closing costs when market conditions allow.
- Limit optional services that are not required for your loan.
For sellers
- Discuss commission structure and marketing plan with your listing agent. A clear strategy can support your goals and timeline.
- Offer targeted concessions, such as a limited credit toward buyer escrow fees, instead of large blanket credits.
- Handle key repairs pre-listing to lower surprise costs during escrow and strengthen your negotiating position.
- Decide if providing the owner’s title policy is a smart incentive for your listing plan.
Timing and shared strategies
- Adjusting your closing date can change tax and HOA prorations and buyer prepaids.
- You can negotiate how escrow fees are split and which side pays certain administrative fees.
- Ask your escrow officer for an early, itemized fee quote to avoid surprises.
Example estimates you can follow
The examples below are illustrative. Your lender, escrow, and title company will provide exact figures.
Buyer cash-to-close template (illustrative)
- Purchase price: $700,000
- Down payment at 20%: $140,000
- Estimated buyer closing costs at 3%: $21,000
- First year homeowners insurance: estimate $1,000
- Lender escrow reserves: estimate two months of taxes and insurance
Estimated cash to close equals down payment plus closing costs plus prepaids and reserves. In this scenario, a reasonable range could be $162,000 to $170,000, depending on the exact reserves and timing.
Seller net sheet template (illustrative)
- Sale price: $700,000
- Commission at 6%: $42,000
- Other seller costs for owner’s title policy, escrow share, transfer taxes, and administrative items: estimate 1% to 2% excluding commissions
- Mortgage payoff(s): insert your current payoff amount
Estimated seller net equals sale price minus commissions, payoffs, transfer taxes, closing costs, and any credits. Your agent and escrow team can prepare a custom net sheet that reflects your property, timing, and negotiated terms.
Key documents and timelines
If you are financing your purchase, your lender must provide a Closing Disclosure at least three business days before closing. This document lists your final loan terms and the exact dollar amount you need to bring to closing. Ask your lender for an updated Loan Estimate early in the process and request a preliminary settlement statement from escrow so you can plan your cash needs with confidence.
Local details to verify
- Current county and any city documentary transfer tax rates.
- Who pays owner’s title policy and how escrow fees are split.
- HOA disclosure, transfer, or estoppel fees and which party pays.
- Property tax billing cycle and how prorations will appear on your closing statement.
Your escrow officer and title company can confirm each item for your address and contract.
Next steps
- Buyers: gather two or three Loan Estimates, review total cash to close, and ask about lender credits that fit your budget and timeline.
- Sellers: request a detailed net sheet and payoff quote, then decide how you want to handle repairs, title policy, and any concessions.
- Both: ask your escrow team for an early fee breakdown and a draft settlement statement so you can make informed decisions before you remove contingencies.
If you want a clear closing plan and a calm, managed process, we would love to help. Reach out to Shannon Howard-Bisordi for a tailored estimate and a step-by-step strategy for your next move.
FAQs
Who typically pays the transfer tax in Sonoma County?
- In many local transactions the seller pays the documentary transfer tax, but your contract and any city rules control. Confirm the current practice with your escrow officer.
Do buyers or sellers pay escrow fees?
- Escrow fees are often split, although this is negotiable. Your purchase agreement and local custom will set the final split.
Does the buyer always pay for the appraisal?
- Yes, when there is a loan, buyers typically order and pay for the appraisal. It may be billed upfront or at closing.
Who pays for the owner’s title policy in Sonoma County?
- Many California deals have the seller pay for the owner’s policy, but this is a negotiable item. Ask your title company to quote both scenarios.
Can a seller pay a buyer’s closing costs?
- Yes. Sellers can offer a credit toward closing costs as an incentive, subject to lender limits and required disclosures.
How do I get my exact cash-to-close number?
- Buyers should request an updated Loan Estimate and the final Closing Disclosure from their lender plus a preliminary settlement statement from escrow. Sellers should ask for a custom net sheet and a mortgage payoff quote.
