Buying or selling a home in Santa Clara County often comes with one surprise: closing costs can be higher than you expect. With Silicon Valley prices, percentage-based fees add up quickly in dollars. You want a clear view of what you will owe, who usually pays what, and where you can negotiate. This guide breaks down typical buyer and seller closing costs, local variations to watch, and the documents that confirm your final numbers. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaid items due at the end of your transaction, in addition to the down payment. They typically include third-party charges like escrow, title, recording, and appraisal; lender-related fees such as origination and underwriting; prepaid items like property tax and insurance reserves; and transaction-specific items like transfer taxes and HOA transfer fees.
If you are financing, your lender must provide a Loan Estimate soon after you apply and a final Closing Disclosure before you sign. These forms are required under federal rules and itemize your costs. You can learn what to expect from the Consumer Financial Protection Bureau’s guides to the Loan Estimate and the Closing Disclosure.
In California, title insurance premiums follow regulated rate schedules. You can review how title insurance works through the California Department of Insurance’s consumer guide. Local government charges, including recording and transfer taxes, are set by the county and sometimes by the city. Santa Clara County publishes recording and transfer tax details through the Clerk-Recorder.
Who pays what in Santa Clara County
Customs vary by city and even by neighborhood, and nearly everything is negotiable. That said, here is what you typically see in Santa Clara County.
Buyer costs: typical items
Most financed buyers should plan for roughly 2% to 5% of the purchase price in closing costs, not counting the down payment. Your total changes with your loan type, rate buy-downs, and any seller credits.
- Lender fees: Origination, processing, underwriting, and credit report are usually paid by the buyer when financing.
- Appraisal: Generally required by the lender and paid by the buyer.
- Discount points: Optional and paid by the buyer if you choose to lower your interest rate.
- Escrow fees: Commonly split between buyer and seller, often near 50/50, but negotiable.
- Title insurance: The lender’s policy is typically a buyer expense. The owner’s policy often comes from the seller in many California markets, though local practice can vary.
- Recording fees: Buyers usually pay to record the deed and the deed of trust. See the county’s recording fee schedule for general categories.
- Prepaid items: Buyers fund prorated property taxes and initial insurance impounds if your lender requires an escrow account.
- HOA fees and documents: Transfer or document fees are common for condos and townhomes. Buyers often pay these, but they can be negotiated.
- Inspections: Home, pest, roof, and sewer inspections are usually buyer expenses.
Cash buyers avoid lender-related fees and appraisals, which can materially reduce total closing costs.
Seller costs: typical items
Seller totals are often larger because of commissions. A common combined seller cost range is about 6% to 10% of the sale price, dominated by agent commissions. Commission rates are negotiated between you and your listing agent.
- Real estate commissions: Sellers typically pay the listing broker’s commission, which is then shared with the buyer’s broker. The total rate is negotiated.
- Owner’s title insurance: Customarily paid by the seller in many California transactions, though negotiable.
- Escrow fees: Frequently split with the buyer. The final split is negotiable.
- Transfer taxes: In Santa Clara County, the county and some cities collect transfer taxes. Sellers commonly pay these, subject to local custom and any city-specific rules. Check the county’s documentary transfer tax guidance, and verify whether your city also charges a municipal transfer tax.
- Home warranty: Optional and sometimes offered by sellers.
- Repairs and credits: Negotiated during escrow based on inspections.
- Prorations: Sellers pay their share of property taxes, HOA dues, and utilities up to the closing date.
- Mortgage payoff and lien releases: Any outstanding loans or liens are paid off at closing and must be cleared to transfer title.
How much to budget
- Buyers: Plan for down payment plus about 2% to 5% of the purchase price in closing costs if you are financing. Your lender’s Loan Estimate will model these line items early in the process.
- Sellers: Core costs include commissions, your mortgage payoff, any transfer taxes, and escrow/title items. Many sellers see total costs in the 6% to 10% range of the sale price. Your escrow officer will prepare a net sheet so you can estimate proceeds.
Because Santa Clara County prices are high, percentage-based fees can produce larger dollar amounts than in many other markets. Focus on the percentages, then apply them to your specific price.
Local taxes, fees, and variations to watch
Santa Clara County has county-level fees and, in some cities, additional municipal transfer taxes. Not every city charges a city transfer tax. The exact rate for a given property depends on its location and is set by ordinance.
- Transfer taxes: Confirm both the county and city requirements for your property’s address. Start with the county’s documentary transfer tax page, then check your city finance office for any additional municipal tax.
- Recording fees: Amounts are set by the county and are generally modest fixed amounts per document type. See the Clerk-Recorder fee schedule for categories.
- Supplemental property taxes: After a change in ownership, California issues supplemental assessments. These can result in additional tax bills after closing. Review the Preliminary Title Report and seller disclosures, and consult the Santa Clara County Assessor’s Office for assessment information.
- Special assessments: Mello-Roos and local parcel taxes can apply to specific neighborhoods. These appear in the Preliminary Title Report and seller disclosures and will continue after closing.
- HOA costs: Condos and townhomes often involve transfer or document fees. These are common locally and negotiable.
How closing costs are disclosed and paid
If you are getting a mortgage, your lender must deliver a Closing Disclosure at least three business days before signing. It shows each fee and the exact cash you need to bring to closing. Escrow will prepare a settlement statement that aligns with the lender’s figures.
- Buyers: Expect to wire your final funds to escrow shortly before closing. Your earnest money deposit counts toward your total.
- Sellers: Your settlement statement will show commissions, prorations, transfer taxes, lien payoffs, and any credits. Net proceeds are wired to your account after recording.
For a deeper look at the forms and timing, review the CFPB’s guides to the Loan Estimate and Closing Disclosure.
Negotiation points to lower costs
You cannot eliminate every fee, but you can often optimize your total through strategy.
- Ask for credits: Seller concessions are common, especially if you are flexible on timing or terms. Lender rules cap allowable credits based on loan type and down payment.
- Compare lenders: Origination, underwriting, and discount points vary. Rate shopping and timing can reduce your cost of borrowing.
- Consider rate buy-down math: In a high-price market, points can be a large upfront cost. Run the breakeven period with your lender before you commit.
- Optimize escrow and title splits: Many Santa Clara County deals split escrow fees 50/50. Practices vary by city, so confirm current custom and negotiate accordingly.
- Pre-list preparation: For sellers, addressing maintenance and clarity in disclosures can minimize requests for repairs or credits later.
Documents to review for your exact numbers
For any specific property, rely on the documents prepared for your transaction:
- Preliminary Title Report: Confirms liens, easements, and special taxes or assessments on the parcel.
- Seller disclosures: Statewide forms flag natural hazard zones and local risk factors.
- Loan Estimate and Closing Disclosure: Required lender forms that itemize buyer costs. See CFPB’s explainers for what each line means.
- Escrow settlement statement: Final summary showing who pays what and your cash to close or net proceeds.
Taxes when selling: plan ahead
If you plan to sell, talk with a tax professional early. Federal law allows a primary residence capital gains exclusion if you qualify. The IRS explains the rules in Publication 523, Selling Your Home. California taxes may also apply at the state level. Early planning can help you time the sale, track improvement records, and estimate net proceeds more accurately.
What to verify by city
Because municipal transfer taxes differ across Santa Clara County cities, verify your property’s exact obligations before you list or write an offer:
- Start with the county’s documentary transfer tax page to understand the base rules.
- Then check your city finance or treasurer office website for any municipal transfer tax or exemptions.
- Ask your escrow officer for an estimated settlement statement specific to your price and address.
A data-driven estimate for your plan
Whether you are buying your first Silicon Valley home or selling a long-held property, accurate closing cost planning helps you control your timeline and net outcome. A quick review of your address, price point, loan scenario, and city requirements can produce a clear estimate in minutes. If you want an analysis that accounts for local transfer taxes, supplemental assessments, and realistic escrow/title splits, reach out for a tailored estimate that reflects today’s Santa Clara County norms.
Ready to see your numbers and next steps? Get your instant home valuation with Unknown Company, then request a custom closing cost breakdown aligned to your goals.
FAQs
Who typically pays transfer taxes in Santa Clara County?
- In many transactions the seller pays county and any city transfer taxes, but custom can vary by city. Confirm your property’s exact rate with the county’s documentary transfer tax guidance and your city finance office.
How much are buyer closing costs in Santa Clara County?
- Financed buyers commonly budget about 2% to 5% of the purchase price, excluding the down payment. Your lender’s Loan Estimate and final Closing Disclosure will show your exact cash to close.
Who pays for title insurance in Santa Clara County?
- The lender’s title policy is usually a buyer cost. The owner’s policy is often paid by the seller in many California markets, though it is negotiable and can vary locally.
How are escrow fees split between buyer and seller?
- Many Santa Clara County transactions split escrow fees roughly 50/50, but the split is negotiable and practices vary by city. Your escrow officer can show the exact fee for your sale price.
What unexpected closing costs should I watch for locally?
- Watch for supplemental property tax bills after a change in ownership, special district or Mello-Roos assessments, HOA transfer or special assessments, and municipal transfer taxes in certain cities. Check the Preliminary Title Report and county Assessor’s Office resources.
When do I receive my final closing figures?
- Buyers receive the lender’s Closing Disclosure at least three business days before signing. Escrow then finalizes a settlement statement that shows your cash to close or net proceeds.
Can a seller pay a buyer’s closing costs in Santa Clara County?
- Yes, sellers can offer credits to cover some buyer costs, subject to lender limits that depend on loan type and down payment. Your lender will confirm what is allowed for your loan.
