Understanding Closing Costs When Buying or Selling a Home in San Francisco

Buying or selling a home in San Francisco is a major milestone—and one that comes with a unique set of financial considerations. Among the most important (and sometimes surprising) are closing costs. These are the fees and expenses that buyers and sellers must pay when a real estate transaction is finalized. While many are focused on the sale price, closing costs can significantly impact how much money you walk away with—or bring to the table.

Here’s what you need to know about closing costs in San Francisco, whether you're purchasing your first condo in Noe Valley, refinancing a Victorian in the Mission, or selling a single-family home in the Sunset.

What Are Closing Costs?

Closing costs include all the fees tied to the purchase, sale, or refinance of a property. For buyers, these costs are in addition to your down payment. For sellers, they come out of your final proceeds. Typically, buyers in San Francisco can expect closing costs to total 2% to 5% of the purchase price, while sellers can expect to pay 6% to 10% of the sale price—largely due to real estate commissions and local transfer taxes.

What’s Included in Closing Costs?

While closing costs can vary based on the specific property and transaction, here’s a breakdown of the most common expenses:

For Buyers

Lender Fees

• Loan origination and processing fees

• Underwriting and document prep fees

• Private Mortgage Insurance (PMI) if putting down less than 20%

• Rate lock or discount points (if applicable)

Third-Party Fees

• Appraisal and credit report

• Title search and lender’s title insurance

• Escrow and notary services

• Inspection fees (home, termite, sewer lateral, etc.)

• Recording and courier fees

• Transfer taxes (sometimes negotiated)

Prepaid Items

• Homeowners insurance

• Prorated property taxes

• HOA dues and transfer fees (if applicable)

For Sellers

• Real estate commissions (typically 5–6% split between buyer and listing agents)

• San Francisco City and County Transfer Tax (ranges from $5 to $25 per $1,000 of sale price)

• Escrow and title fees (can be negotiated)

• Outstanding HOA dues or assessments

• Repairs or credits negotiated during escrow

Who Pays for What?

In San Francisco, buyers and sellers often split some of the escrow and title costs, but everything is negotiable. However, sellers typically pay the transfer taxes and both agents’ commissions, while buyers shoulder most of the lender and third-party fees. Buyers may request sellers to cover some of their costs during negotiations, especially in a slower market—but in a competitive climate, that's less common.

How Do I Know What My Costs Will Be?

Buyers: After applying for a loan, you’ll receive a Loan Estimate (LE) from your lender that outlines your projected closing costs. Closer to the transaction, you’ll get a Closing Disclosure (CD) with exact numbers—this must be provided at least three days before closing.

Sellers: Your real estate agent will prepare a net sheet that estimates your closing costs and how much you’ll net from the sale. Be sure to compare this to your final closing documents for accuracy.

Tips for Buyers and Sellers

• Buyers: Shop around for lenders. Fees can vary widely, and a higher credit score can help reduce costs.

• Sellers: Review transfer tax rates and commission expectations in your neighborhood. Your agent can guide you on typical cost breakdowns.

• Both: Use online calculators or tools like net sheets early in the process to avoid last-minute surprises.

Final Thoughts

Whether you’re selling a Marina District condo or buying a fixer in Glen Park, understanding closing costs will help you budget confidently and make smarter decisions. Partnering with a knowledgeable San Francisco real estate agent is the best way to anticipate your expenses—and avoid any unwelcome surprises at the closing table.

Have questions about what your closing costs might look like in today’s market? Let’s talk—I’m happy to walk you through the numbers.