How Much Are Closing Costs In San Diego

What Are Closing Costs?

Closing costs are the final puzzle piece in a real estate deal. They’re the collection of fees and expenses that show up right before the keys are handed over—covering everything from loan processing to title insurance. Whether you’re buying or selling a home, these costs are the price of wrapping up the transaction legally and smoothly. While they might not be as exciting as choosing a neighborhood or decorating a new space, knowing what they include can save you from last-minute surprises.

Average Closing Costs in San Diego: What to Expect

In San Diego, closing costs can vary depending on the property price, loan type, and whether you’re the buyer or the seller. On average, homebuyers can expect to pay between 2% to 5% of the home’s purchase price in closing costs. For a $750,000 home, that’s anywhere from $15,000 to $37,500.

These expenses typically include escrow fees, lender fees, title insurance, appraisal costs, and prepaid property taxes. While sellers also have their own share—like agent commissions and transfer taxes—buyers usually carry the bulk of the transaction-related fees.

If you’re budgeting for a home purchase, planning for the typical closing costs in San Diego upfront can help avoid sticker shock when it’s time to sign the final paperwork.

​​Buyer Closing Costs in San Diego

So you’ve found the right home, your offer is accepted, and you’re getting ready to close — but before the keys change hands, there’s a final list of expenses every buyer needs to know about. These costs cover the behind-the-scenes work that makes your purchase official, from paperwork and loan fees to insurance and inspections. Understanding what’s included can help you move through the process with confidence and no unpleasant surprises. Here’s a detailed breakdown of these costs:

Mortgage-related fees

One of the first expenses you’ll encounter is the loan origination fee, which lenders charge for setting up your mortgage. It typically falls between 0.5% and 1% of the loan amount. Then there are underwriting and processing fees, which vary by lender but are standard parts of the approval process.

Your lender will also run a credit report, and while it’s a minor cost — usually under $35 — it still gets added to your total. If your down payment is under 20%, prepare for private mortgage insurance (PMI). This extra cost protects the lender and can make a noticeable impact on your monthly payments.

Property-related costs

Before the deal can move forward, you’ll need an appraisal to confirm the property’s market value. Expect this to cost somewhere between $300 and $600. Many buyers also choose to get a home inspection, which isn’t required but is strongly recommended to uncover any hidden issues. That typically runs another $300 to $500.

Another key item is title insurance. It protects you if there’s ever a legal dispute over who owns the property. Prices vary, but it’s often close to 0.5% of the home’s price.

Escrow and legal services

You’ll work with an escrow company to handle money and paperwork throughout the transaction. In San Diego, escrow fees usually land between $1,000 and $3,000 and are often split with the seller.

To make everything official, you’ll pay for notary services and county recording. These are smaller fees, often under $250 combined, but they’re essential for making your ownership legally binding.

Taxes and government fees

There’s also the transfer tax, which in San Diego is calculated at $1.10 per $1,000 of the sale price. On a $750,000 home, that’s $825. Buyers may also reimburse the seller for property tax prorations, depending on how far into the year the sale closes.

Prepaid costs

Most lenders require buyers to prepay the first year of homeowners insurance, which usually comes in around $1,000 to $1,500. You’ll also pay prepaid interest, covering the period from your closing date to your first mortgage payment.

And if the home belongs to an HOA, there may be HOA dues or transfer fees to take care of in advance.

Seller Closing Costs in San Diego

Selling a home in San Diego isn’t free, and before the proceeds hit your account, a handful of deductions will be made. From agent commissions to title fees and transfer taxes, sellers cover more than most people expect. 

Real Estate Agent Commissions

This is usually the largest cost, commonly set at 5% to 6% of the sale price, split between the buyer’s and seller’s agents. For a $900,000 home, that’s $45,000 to $54,000 — a major factor to account for when calculating your net proceeds.

Escrow and Title Fees

Sellers generally split escrow fees with the buyer, though it can vary based on the contract. These fees cover the third-party handling of funds and paperwork. In San Diego, sellers are also expected to pay for the owner’s title insurance policy, which protects the buyer against future claims on the property.

Transfer Tax

San Diego County charges a documentary transfer tax of $1.10 per $1,000 of the home’s value. Some cities within the county may also add a local transfer tax, depending on location.

Repairs and Credits

If issues come up during the inspection, the seller may agree to either fix the problems or offer the buyer a credit at closing. This part is negotiable and can impact the final amount you walk away with.

Mortgage Payoff and Prepayment Penalties

If you still owe on your mortgage, the remaining balance will be paid off at closing. Some lenders may also charge a prepayment penalty, though this is less common with newer loans.

HOA Documents and Transfer Fees

If your home is in an HOA, you may be responsible for covering the document preparation fees and any transfer charges required by the association. These can range from a few hundred to over a thousand dollars.

How to Accurately Estimate Your Closing Costs in San Diego?

Knowing your closing costs ahead of time can help you budget smarter — and avoid last-minute surprises. While general percentage ranges (like 2–5% for buyers or 5–8% for sellers) offer a rough guide, a more precise estimate comes down to your specific transaction. Here’s how to calculate with clarity:

• Start with the Sale Price

Your home’s price is the foundation. Most closing costs are calculated as a percentage of this number — so the higher the sale price, the more you’ll likely pay.

• Get a Loan Estimate (Buyers)

If you’re taking out a mortgage, your lender is required to provide a Loan Estimate within three business days of your application. This document breaks down expected costs like loan origination fees, appraisal charges, title insurance, and escrow fees — tailored to your exact scenario.

• Review a Net Sheet (Sellers)

Real estate agents often prepare a seller’s net sheet, which outlines estimated closing costs, including commissions, escrow fees, title charges, and loan payoff amounts. This gives you a quick snapshot of what you’ll walk away with after all expenses.

• Consider Local Variables

San Diego has city- and county-specific fees — like transfer taxes and potential local assessments — that can impact your bottom line. If your property is in an HOA, don’t forget to factor in document fees and potential transfer charges as well.

• Ask the Right People

The most accurate numbers come from the professionals directly involved in your deal:

• Your lender for loan-related costs
• Your escrow officer for transaction-specific fees
• Your agent for commissions and prorated items like taxes and HOA dues

• Use Online Calculators (Cautiously)

There are plenty of closing cost calculators online, and while they’re helpful for ballpark figures, they often leave out region-specific details or credits negotiated during escrow. Use them as a starting point — not a final answer. One useful tool you can try is the Zillow Closing Cost Calculator, which gives a general estimate based on your purchase price, location, and loan details. Just keep in mind that actual costs in San Diego can vary depending on your lender, negotiations, and local taxes or fees.

How to Reduce or Offset Closing Costs in San Diego?

Closing costs can add up fast, but there are a few smart ways to keep them in check:

• Negotiate with the other party – Buyers can ask sellers to cover part of the closing costs as part of the deal. In a slower market, this tactic often works.
• Shop around for services – Title insurance, escrow, and even lender fees can vary. Comparing options can save hundreds.
• Look for lender credits – Some lenders offer credits toward closing costs in exchange for a slightly higher interest rate.
• Check for local or state programs – First-time buyers may qualify for grants or assistance programs that help offset closing expenses.
• Time the closing strategically – Closing later in the month can reduce prepaid interest, trimming the final amount due.