Understanding Selling Costs
Below I explain the common selling expenses in real estate, including local nuances. I have laid out a couple different scenarios to offer some concrete examples.
Please do your own due diligence and research, in addition to this article. This is meant for informational purposes only and details presented below are subject to change.
Sincerely,
Landon H.
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5-6% of Sales Price
Commissions are the largest cost sellers will have and they are fully negotiable, since the 2024 National Association of Realtors settlement took effect.
Listing agents and buyers’ agents are now required to negotiate their compensation separately, with their clients. Sellers are no longer required to offer to pay the buyer’s agent’s commission. However, in practice, nearly every seller will still offer to pay the buyer’s agent, because it widens the pool of potential buyers.
In real numbers, you can expect commissions to average 5-6% of your home’s sales price. Listing agents typically offer their services between 2.5-3%, depending on what you need. More complex sales will typically result in higher commissions.
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~$2,000-5,000 as of 9/01/26 data
In Santa Cruz County, escrow fees & the owner’s title insurance policy are traditionally split 50/50, between buyers and sellers, but can also be negotiated in the Purchase Agreement.
Here are two basic examples to reference costs, note that data is subject to change and these are for informational purposes only: Click on the example for the document.
Keep in mind that real transactions are more complicated and will have more line items, such as lender fees, pre-payment penalties, other title fees, etc. These will result in higher overall fee. As of 9/01/26, a good range for estimation is between ~$2,000-5,000.
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$0.55 per $500 of value (0.11%)
This is Santa Cruz County’s documentary transfer tax. If you want further information about the County’s fees, go here.
Thus, on a $1,000,000 home, you would pay $1,100 in transfer taxes.
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In California property taxes are billed semi annually. The first installment covers July 1st to December 31st and is due November 1st. The second installment runs January 1st to June 30th and is due February 1st.
At Closing, sellers usually owe their prorated share of property taxes through the recording date, unless otherwise negotiated.
Thus, this bill varies depending on your contract, time of sale, and the value of your property.
For more info on property taxes, go to the County’s website.
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When you are selling your home, as talked about in the guide for Sellers, inspections are critical for accurate disclosure to buyers, about the property.
Since July 1, 2023, County Code Chapter 7.38 requires sellers of property, who have a septic system, to have their tank(s) pumped and inspected before closing a sale. This inspection & pumping typically cost around $600-900.
Additionally, since September 1, 2025, County Code Chapter 7.73.075 requires properties with wells and other individual water system to complete both a yield test and water-quality test. Flow tests usually cost around ~$500. However, lab fees for water-quality testing can be north of $1,000.
The inspections that are relevant for nearly all sales are the following:
General Home Inspection: ~$300-500
Pest Inspection: ~$250-500
Natural Hazards Disclosure Report: ~$100
Cost will vary depending on the inspector, their travel distance, and your home’s size. Larger homes take longer to inspect.
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While you are not required to make most repairs, or renovate, or stage, these are all strategies that can help reduce time to sell and potentially increase your sale price.
That being said, there are many factors, between your property itself and current market conditions, which will influence the effectiveness of these strategies.
Due to the significant variance in costs, it would be best if you call me to have a conversation about what is happening in the market and the nuances of your property, so we can discuss what strategies would be most effective for your situation. Otherwise, estimates will be so imprecise that they will be unactionable.