Selling in San Francisco and wondering what you will actually take home? You are not alone. Closing costs can feel confusing, and in San Francisco a few local fees can be bigger than you expect. In this guide, you will learn what sellers typically pay, how to estimate your net proceeds, and how a cash, as‑is sale compares to a financed sale. Let’s dive in.
What sellers pay in San Francisco
Here are the major seller-side costs you should plan for. Exact amounts vary by price, contract terms, and service providers.
- Real estate commission. Commonly negotiated and often totals about 5 to 6 percent of the sale price. Structure and splits vary by agreement.
- San Francisco documentary transfer tax. The city uses a tiered schedule based on price. At higher price points, this can be a significant line item. Always confirm the current rate with the San Francisco Treasurer and Tax Collector before you list.
- Title insurance. In many California deals, the seller often pays for the owner’s policy as a market courtesy, but it is negotiable. Premiums follow regulated rate schedules tied to price.
- Escrow and closing fees. Escrow companies charge for document prep and settlement. The seller portion is typically several hundred to a few thousand dollars, depending on price and complexity. Custom on splitting can vary.
- Recording and reconveyance fees. The County Recorder charges to record the deed and release your mortgage. These are usually modest but vary by document count.
- Prorations and credits. You will pay your share of property taxes up to the closing date. HOA dues and utilities are often prorated. Some condos and HOAs charge resale or transfer document fees that are commonly paid by the seller unless the contract states otherwise.
- Payoff of mortgages and liens. Your lender will provide an exact payoff that includes principal, per‑diem interest through the payoff date, and any reconveyance fee. Any other recorded liens must be cleared.
- Inspections, repairs, and concessions. Pre‑listing inspections are optional. In negotiated deals, you might provide repair credits, agree to limited repairs, or offer a home warranty. In an as‑is sale, you may avoid many repair costs but pricing reflects condition.
- Miscellaneous costs. Natural hazard disclosures, notary, courier, and any tenant-related costs if applicable.
San Francisco transfer tax basics
San Francisco levies a documentary transfer tax on property transfers, and the rate depends on the sale price tier. At higher tiers, the tax can reach tens of thousands of dollars, so it deserves early planning. Because the schedule can change and tiers are specific, confirm the exact rate for your address and expected price with the San Francisco Treasurer and Tax Collector. Your escrow or title company will calculate the tax on your closing statement, but it helps to estimate it in advance when you set your pricing strategy.
Title, escrow, and recording fees
- Title insurance. Title premiums are tied to the sale price using regulated rate schedules in California. Who pays can be negotiated, though it is often seller-paid for the owner’s policy in many local deals.
- Escrow fees. Escrow companies handle the settlement process, collect payoffs, and disburse funds. Fees depend on price and complexity. The local custom on splitting varies by market conditions and negotiation.
- Recording and reconveyance. Plan for deed recording fees and a reconveyance fee to release your mortgage. These are usually smaller items compared to transfer tax and commission.
Property tax proration and assessments
California’s base property tax is roughly 1 percent of assessed value plus any voter-approved assessments, so the effective rate in San Francisco can be higher than 1 percent. At closing, taxes are prorated so you pay your share up to the closing date. Buyers often receive supplemental assessments after the purchase if the assessed value changes. While that supplemental bill usually impacts the buyer after closing, understanding timing and prorations helps you avoid surprises on your final statement.
Calculate your net proceeds
A simple way to think about your bottom line is this:
- Net proceeds = Sale price minus total seller closing costs minus mortgage and lien payoffs
Your total seller closing costs typically include commission, San Francisco’s transfer tax, title and escrow services, recording and reconveyance, prorated taxes and HOA dues, any repair credits, and miscellaneous admin fees. For routine sales, the non‑commission items often add up to a low single‑digit percentage of the sale price, but commission and transfer tax are usually the largest drivers.
Always request a preliminary net sheet from your listing agent and ask your lender for a written payoff quote. Your escrow officer can also give a fee estimate tailored to your price and close date.
Hypothetical examples
Below are simplified examples to show how the math can work. These examples are illustrative only. Always confirm exact figures with your escrow company, agent, and lender.
Example 1: SF condo at $1,000,000
Assumptions for illustration only:
- Sale price: $1,000,000
- Commission: 5.0 percent ($50,000)
- SF transfer tax: example placeholder $3,000
- Title and escrow, seller portion: $2,000
- Recording and reconveyance: $300
- Prorations and HOA: $1,500
- Repairs or credits: $0
- Mortgage payoff: $400,000
Calculation:
- Gross sale price: $1,000,000
- Less commission: $50,000
- Less transfer tax: $3,000
- Less title and escrow: $2,000
- Less recording: $300
- Less prorations: $1,500
- Less mortgage payoff: $400,000
- Estimated net proceeds: about $543,200
Small changes in commission or transfer tax can move the bottom line by thousands. A 1 percent shift in commission on a $1,000,000 sale equals $10,000.
Example 2: SF single‑family at $3,000,000
Assumptions for illustration only:
- Sale price: $3,000,000
- Commission: 5.5 percent ($165,000)
- SF transfer tax: example placeholder $30,000
- Title and escrow, seller portion: $4,000
- Recording and reconveyance: $500
- Prorations and HOA: $2,500
- Repairs or credits: $5,000
- Mortgage payoff: $1,200,000
Calculation:
- Gross sale price: $3,000,000
- Less commission: $165,000
- Less transfer tax: $30,000
- Less title and escrow: $4,000
- Less recording: $500
- Less prorations and credits: $7,500
- Less mortgage payoff: $1,200,000
- Estimated net proceeds: about $1,593,000
At higher price tiers, commission and the transfer tax dominate the closing costs. Confirm San Francisco’s current documentary transfer tax for your exact price bracket.
Cash as‑is vs financed sale
Both paths can get you to the finish line. The right choice depends on your priorities.
- Timeline. Cash sales often close in 7 to 21 days because there is no lender underwriting or appraisal. Financed sales commonly take 30 to 45 days, and complex loans can take longer.
- Fees. Title and escrow charges still apply in cash sales. Loan-related fees and appraisals are usually on the buyer side in financed deals, but buyers sometimes ask for seller credits.
- Repairs and contingencies. Cash, as‑is buyers often reduce or waive repair requests, or they factor condition into price. In financed sales, you may see inspection or appraisal repairs and escrow holdbacks.
- Price and certainty. Cash buyers may expect a discount in exchange for speed and certainty. Financed buyers may stretch on price, but the process has more steps and more risk of delays.
If you value speed and a low‑stress process, a well‑qualified cash buyer can simplify your closing and reduce the risk of last‑minute surprises.
Seller checklist
Use this checklist to prepare and avoid surprises at closing:
- List every likely seller cost, then mark which are negotiable. Include commission, transfer tax, title and escrow, recording, prorations, HOA fees, repairs or credits, and miscellaneous admin fees.
- Ask your agent for a preliminary net sheet at your target list price and a second one at a conservative price.
- Request written payoff quotes from all lenders and lienholders. Confirm how long the quotes are valid and whether daily interest applies.
- Confirm the current San Francisco documentary transfer tax tier for your expected price, then build that number into your estimate.
- Ask a local escrow or title company for a fee quote based on your price and proposed closing date.
- Review HOA documents early. Identify any resale or transfer fees and whether the seller customarily pays them.
- Decide how you will handle repairs. Consider pre‑listing inspections, an as‑is price strategy, or a credit cap for negotiated items.
Next steps and a faster option
If you want certainty, fewer moving parts, and a timeline that fits your plans, consider a direct cash sale. With a qualified cash buyer, you can sell as‑is, skip repairs and open houses, and close on the date you choose.
If that sounds right for you, connect with the team at Coko Acquisitions. You will get a fast, competitive cash offer, no fees, no repairs, and a clear, professional process that can close on your schedule.
FAQs
What are typical seller closing costs in San Francisco?
- Expect commission, San Francisco’s documentary transfer tax, title and escrow fees, recording and reconveyance, prorated property taxes and HOA dues, and any repair credits or misc fees.
How does San Francisco’s transfer tax work for sellers?
- The city uses a tiered rate by sale price that can be a large cost at higher prices, so verify the current tier with the Treasurer and Tax Collector for your expected price.
Who usually pays for title insurance in San Francisco sales?
- It is negotiable, though the seller often pays for the owner’s policy as a market custom; your agent and escrow can confirm current practice for your area and price point.
How are property taxes prorated at closing for sellers?
- You pay your share up to the closing date, based on the current tax cycle; buyers typically handle supplemental assessments after closing when the assessed value updates.
What is an escrow holdback in a home sale?
- It is a limited amount of money set aside at closing to cover incomplete repairs or conditions; once the condition is met, the funds are released as agreed.
Will I owe capital gains taxes at closing when I sell?
- Capital gains are separate from closing costs; consult a tax advisor about exclusions and your specific situation since escrow does not determine your tax liability.
How fast can a cash, as‑is sale close in San Francisco?
- Many cash deals close in 7 to 21 days if title is clear and documents are ready; financed transactions typically take 30 to 45 days or more.
How do I estimate my net proceeds before listing?
- Start with the formula: sale price minus total seller costs minus loan payoffs; then ask your agent for a net sheet, your lender for payoff quotes, and escrow for a fee estimate.
