Buying or selling a home in San Jose comes with more than the price on the contract. Closing costs can add up fast, and the Bay Area has a few local twists. You want clear numbers, what is negotiable, and how to plan with confidence. This guide breaks down typical buyer and seller costs in Santa Clara County, what drives them, and how to keep them under control so you are not surprised on closing day. Let’s dive in.
What buyers pay in Santa Clara County
Loan fees and points
Most buyers pay lender fees like underwriting, processing, and a credit report. You can also choose discount points to lower your rate. These fees often total several hundred to a few thousand dollars. Points equal a percentage of your loan amount and are optional unless you choose them.
Appraisal and inspections
Your lender will require an appraisal. In the Bay Area, appraisals often run about $500 to $1,200 or more depending on the home. You also choose inspections such as general home, pest, roof, or sewer. Buyers typically pay for these.
Title and escrow
You will pay for a lender’s title policy. Who pays for the owner’s policy and how escrow fees are split varies by local custom and contract. Title insurance premiums in California are regulated and scale with the price. Escrow handles funds, paperwork, and recording.
Prepaids and impounds
Plan for prepaid interest from funding to month end, the first year of homeowners insurance, and property tax reserves if your lender requires an escrow account. These amounts change based on your closing date and tax schedule.
HOA and recording items
Condos and townhomes often include HOA transfer charges and document fees. Buyers typically pay county recording fees for the deed of trust and other small charges unless otherwise negotiated.
Buyer total to budget
A common rule of thumb for buyers is about 2% to 5% of the purchase price, not including your down payment. On a $1,000,000 home, a range of $20,000 to $50,000 is a reasonable starting point.
What sellers pay in San Jose
Broker commissions
Commissions are often the largest seller cost. In California, combined commissions are commonly around 5% to 6% of the sale price. Commission amounts are negotiable and reflected in the listing agreement.
Transfer taxes and recording
State, county, and sometimes city transfer taxes can apply. Who pays them depends on your contract and local custom. Recording and notary charges also apply at close.
Title policy and escrow
In many California markets, sellers often pay for the owner’s title insurance policy. Escrow fees are either split or assigned by custom and negotiation. Confirm the local practice in your purchase agreement.
Prorations and payoffs
Sellers pay off existing mortgages and liens and settle prorated property taxes and HOA dues through the closing date. Any agreed credits or repair costs are also paid at close.
Seller total to budget
Sellers often spend about 6% to 9% of the sale price. On a $1,000,000 sale, that is roughly $60,000 to $90,000. Your total depends on commission, transfer taxes, title and escrow charges, and any repair credits.
Who pays what in Santa Clara County
Local customs and negotiation
Many cost items are negotiable. Market conditions matter. In a hot seller’s market, buyers may accept more costs. In a softer market, sellers often offer credits. Your contract defines who pays what, so work closely with your agent and escrow officer.
Title and escrow norms
Sellers commonly pay the owner’s title policy in many parts of California, and buyers pay the lender’s policy. Escrow fee splits vary by county and brokerage. Confirm current practice for your San Jose neighborhood with your escrow team.
HOA document costs
HOA preparation and transfer fees can be several hundred dollars. Either party can pay, but the contract will assign the responsibility. Ask for these fees upfront so you can budget.
How much to budget — examples
- Example 1 — $1,000,000 sale
- Buyer: about $20,000 to $50,000 total closing costs.
- Seller: about $60,000 to $90,000 total closing costs.
- Example 2 — $2,000,000 sale
- Buyer: about $40,000 to $100,000 total closing costs.
- Seller: about $120,000 to $180,000 total closing costs.
These are ballpark ranges. Title insurance, transfer taxes, escrow charges, and prepaid items can shift totals. Ask your escrow officer and lender for itemized estimates early.
Property taxes and proration basics
Proposition 13 and rates
California’s base property tax rate is 1% of assessed value, plus voter-approved assessments and special district levies. Total bills in Santa Clara County often exceed 1% depending on the parcel. To see parcel-specific assessments, use the Santa Clara County Assessor’s tools.
Tax calendar and closing credits
The California tax year runs from July 1 to June 30. Installments are due November 1 and February 1. Your escrow will prorate taxes based on the closing date so each party pays their share.
- Check parcel taxes and assessments on the Santa Clara County Assessor site.
Loan rules that can shift costs
Seller concessions
Loan programs cap how much the seller can credit the buyer. Caps differ for FHA, VA, and conventional loans, and they can change. Review current guidelines with your lender before you negotiate credits.
- See the Fannie Mae Selling Guide for conventional caps.
- See the Freddie Mac Seller/Servicer Guide for conventional caps.
- See the FHA Single Family Housing Policy Handbook for FHA rules.
Lender credits and rate buydowns
You can use seller credits for points that buy down your rate, either temporary or permanent, subject to loan program limits. Lender credits can also offset some closing costs in exchange for a higher rate.
What can be financed
Some costs can be financed into the loan amount, while many third-party fees and prepaids cannot. Jumbo and specialty loans may have different rules. Ask your lender for a clear breakdown early in the process.
Timeline and required disclosures
Your Loan Estimate
Lenders must send a Loan Estimate within 3 business days of application. Use it to compare offers and understand fees. Learn more about the Loan Estimate from the Consumer Financial Protection Bureau.
Your Closing Disclosure
You must receive a Closing Disclosure at least 3 business days before you sign. Review every line and ask questions about changes. Learn more about the Closing Disclosure from the CFPB.
Typical escrow periods here
Financed purchases in Santa Clara County often close in 30 to 45 days. Some close faster, in 17 to 30 days, if the appraisal and underwriting move quickly. Ask your lender about appraisal timing and documentation needs.
Smart negotiation plays
For buyers
- Request a seller credit to cover part of your closing costs or a rate buydown.
- Shop lenders and compare Loan Estimates. Do the math on discount points.
- Ask for HOA and title fee estimates upfront.
For sellers
- Offer a targeted credit to widen your buyer pool while preserving price.
- Pre-clear title issues and complete disclosures to avoid delays and last-minute credits.
- Consider a pre-inspection to streamline negotiations.
For both sides
- Clarify who pays owner’s title, transfer taxes, and escrow split in the contract.
- Get itemized estimates from escrow and the lender early and compare.
- Confirm any seller credits comply with loan program limits.
Red flags to avoid
- Wire fraud: Always verify wire instructions by calling your escrow officer at a known phone number. Do not rely on email links.
- Surprise prepaids: Prepaid taxes and insurance can swing based on closing date. Ask for an updated estimate a week before closing.
- Title issues: Unreleased liens or unknown easements can delay closing. Sellers should get a preliminary title report early.
Quick checklists
Buyers
- Compare Loan Estimates from at least two lenders.
- Schedule appraisal and inspections.
- Get a title and escrow fee estimate from your escrow officer.
- Confirm prepaid taxes, insurance, and impounds with your lender.
- Arrange funds and verify wire instructions by phone.
Sellers
- Order disclosures and review a preliminary title report.
- Request payoff statements for all loans and liens.
- Confirm who pays owner’s title policy, transfer taxes, and escrow split.
- Plan for prorations of taxes and HOA dues through the closing date.
Verify local fees and taxes
For current transfer taxes, recording fees, and parcel assessments, use official sources and your escrow officer.
- Recording and county fees: Santa Clara County Clerk-Recorder
- City transfer taxes and local revenue: City of San Jose Finance Department
- Parcel taxes and assessments: Santa Clara County Assessor
- Consumer guidance on practice and licensing: California Department of Real Estate
Ready to map out your exact closing costs and strategy for the San Jose market? Reach out to Susan LaRagione for a clear, local plan from first estimate to final signing.
FAQs
What are typical buyer closing costs in San Jose?
- Buyers often spend about 2% to 5% of the purchase price, excluding the down payment, covering lender fees, title and escrow, appraisal, inspections, and prepaids.
What do sellers usually pay in Santa Clara County?
- Sellers commonly pay about 6% to 9% of the sale price, driven by commissions plus transfer taxes, title and escrow, prorations, and any agreed credits.
Who pays the owner’s title policy and escrow fees locally?
- In many California markets sellers pay the owner’s policy and buyers pay the lender’s policy, while escrow fees are split, but customs vary and the contract controls.
How do property tax prorations work at closing?
- Escrow prorates taxes based on the closing date within California’s July 1 to June 30 tax year so each party pays their share of the installment periods.
Can the seller pay my closing costs on a financed purchase?
- Yes, but loan programs cap seller credits; ask your lender about FHA, VA, or conventional limits before you write the offer.
When will I see my final numbers before closing?
- Your lender must provide a Closing Disclosure at least 3 business days before closing; review it line by line and ask for updates if anything changes.