Understanding Closing Costs in the South Bay

Closing costs are the fees and expenses that buyers and sellers pay to complete a real estate transaction. In the South Bay — including Manhattan Beach, Hermosa Beach, Redondo Beach, and El Segundo — closing costs typically range from 1% to 3% of the sale price for buyers and 6% to 8% for sellers (including agent commissions). Some fees are negotiable between buyer and seller as to 'who pays what,' and customs may vary from county to county.

The seller can generally be expected to pay: real estate compensation, document preparation fee for the deed, documentary transfer tax, payoff of all loans in the seller's name, interest accrued to the lender being paid off, statement fees and reconveyance fees (plus any prepayment penalties), termite inspection and work (per contract), home warranty (per contract), any judgments or tax liens against the seller, tax proration for unpaid taxes at transfer, any unpaid HOA dues, recording charges to clear documents of record, any bonds or assessments (per contract), all delinquent taxes, seller notary fees, escrow fee (one half), owner's title insurance premium, homeowner's transfer fee, and city transfer/conveyance tax (per contract).

The buyer can generally be expected to pay: real estate compensation (if applicable), lender's title insurance premium, escrow fee (one half), document preparation fees (if applicable), buyer notary fees, recording charges for all documents in the buyer's name, tax proration from date of acquisition, all new loan charges (except those the lender requires the seller to pay), interest on the new loan from date of funding to 30 days prior to the first payment date, assumption/change of records fees for takeover of existing loan, beneficiary statement fee for assumption, inspection fees (roofing, property, geological, etc.), and first year fire insurance premium.

In Los Angeles County, the documentary transfer tax is $1.10 per $1,000 of the sale price. Some cities impose additional transfer taxes on top of the county rate. The personal property vs. real property distinction matters: items that are removable (e.g., a refrigerator, washing machine) vs. permanently affixed (e.g., a built-in dishwasher, window treatments) can affect what's included in the sale and how closing costs are calculated.

Team Goeglein provides complimentary net sheets — detailed closing cost estimates — for any property in the South Bay and Westside LA. Agents can request buyer or seller net sheets through our tools page, or by contacting Matt Goeglein or Xavier de la Piedra IV directly.