The Real Cost of Selling a Home in California
Most sellers in California net 92–94% of their sale price after all costs. The biggest line items are agent commissions, transfer taxes, title and escrow, and any negotiated buyer credits.
Full Cost Breakdown (California, 2026)
| Cost | Typical Range | Notes | |---|---|---| | Listing agent commission | 2.0%–3.0% | Negotiable; varies by service level | | Buyer agent commission | 2.0%–2.5% | Now negotiated separately post-NAR settlement (guide) | | County transfer tax | $1.10 per $1,000 | $1,650 on a $1.5M sale | | City transfer tax (SD) | $0 | San Diego has no city transfer tax | | Escrow fees | $2 per $1,000 + $250 | ~$3,250 on $1.5M | | Title insurance (owner's) | 0.4%–0.6% of price | ~$6,000 on $1.5M | | HOA transfer / docs | $300–$800 | If applicable | | Natural Hazard Disclosure | $100–$150 | Required | | Home warranty (buyer) | $500–$700 | Often negotiated | | Pre-listing prep | $2K–$15K | Paint, clean, repairs | | Staging | $3K–$8K | 5–10x ROI | | Photography/video | $0 (included by good agents) | Should be free with full-service listing | | Buyer-requested repairs/credits | 0.5%–2% of price | Negotiated in escrow | | Property tax & HOA prorations | Varies | Paid through close date | | Mortgage payoff + prepayment | Loan balance + interest | Confirm no prepay penalty |
Real Net Sheet — $1.5M Solana Beach Sale
- Sale price: $1,500,000
- Listing agent commission (2.5%): $37,500
- Buyer agent commission (2.5%): $37,500
- County transfer tax: $1,650
- Escrow fees: $3,250
- Title insurance: $6,000
- HOA transfer + NHD + warranty: $1,500
- Pre-listing prep + staging: $9,000
- Buyer-requested repair credit: $7,500
- Prorations: $2,000
- Total costs: ~$106,000 (≈7.1%)
- Net before loan payoff: ~$1,394,000
Subtract your remaining mortgage balance for your actual walk-away check.
Capital Gains Tax — The Often-Forgotten Cost
- Single filer: Exclude first $250K of gain on primary residence
- Married filing jointly: Exclude first $500K of gain
- Anything above is taxed at federal long-term capital gains (15–23.8%) + California (up to 13.3%)
- Must have lived in home 2 of last 5 years
- Investment property? Consider a 1031 exchange to defer
How to Maximize Your Net (Not Just Your Sale Price)
- Negotiate commission structure smartly — cheapest isn't always best
- Invest in the right pre-listing prep (highest ROI items only)
- Push back on buyer repair requests with data
- Time the close to minimize property tax proration
- Confirm no mortgage prepayment penalty
Get Your Custom Net Sheet Before You List
I prepare a detailed seller's net sheet before you sign a listing agreement so there are no surprises at close. Request your free net sheet →
