Buying in San Francisco is exciting, but the final stretch can feel confusing when you see all the line items on your Closing Disclosure. You want to understand what you are paying for, how much to budget, and where you have room to negotiate. This guide breaks down buyer closing costs in plain English, with realistic San Francisco ranges, example worksheets, and a step-by-step checklist to help you plan. Let’s dive in.
What closing costs include
Closing costs are the third-party and lender fees required to fund your mortgage and transfer the property into your name. They are separate from your down payment. In San Francisco, they typically include lender fees, appraisal, title and escrow, recording charges, transfer and documentary taxes, prepaid items like interest and insurance, inspections, and any HOA-related charges.
How much to budget in San Francisco
Across the U.S., buyers often pay about 2% to 5% of the purchase price in closing costs, not including the down payment. In the San Francisco metro, totals can land at or above that range because local service fees and taxes tend to be higher. Plan conservatively and ask for an itemized Loan Estimate from your lender and a preliminary Closing Estimate from your title and escrow team early in the process.
A key San Francisco factor is the city’s documentary transfer tax. It is tiered and can be substantial at higher price points. Who pays it is negotiable and can vary by deal, so confirm what your contract states. Always verify transfer tax for your exact price and situation with title, escrow, or the City before you finalize your budget.
Buyer closing costs breakdown
Lender-related costs
- Loan origination and processing: often 0.25% to 1.0% of the loan amount. Sometimes shown as a flat fee. You can often negotiate.
- Discount points: optional. Each point equals 1.0% of the loan amount and is typically used to lower your interest rate. Terms vary.
- Application and administration: usually $300 to $1,000.
- Credit report: typically $25 to $50.
- Rate-lock fee: $0 to $300 if charged separately.
Loan-related third-party fees
- Appraisal: usually $600 to $1,500 or more in San Francisco, with complex or high-value properties costing more.
- Lender-required checks or inspections: $100 to $600 depending on the item, such as pest reports or condo questionnaires.
- Flood certification: about $10 to $40.
Title and escrow
- Escrow settlement fee: often $1,200 to $4,000 for the buyer share in California, with fees rising alongside price and complexity.
- Title insurance:
- Lender’s policy: typically paid by the buyer. Premium scales with loan amount and may range from a few hundred to a few thousand dollars.
- Owner’s policy: who pays varies. In many California deals, the seller pays for the owner’s policy, but this is negotiable. Confirm with your purchase contract.
- Recording fees to register the deed: usually $50 to $300.
Transfer and documentary taxes
- San Francisco charges a documentary or transfer tax using tiered rates that increase with price. Complex rules apply for certain types of sales, such as corporate transfers.
- Who pays is negotiable and can depend on market conditions. Do not assume the seller pays. Confirm responsibility in writing during contract.
Prepaids and lender-held escrows
- Prepaid interest: daily interest from your closing date until your first mortgage payment. The amount depends on rate, loan size, and the day of the month you close.
- Homeowners insurance: first-year premium is commonly $600 to $2,500 or more depending on coverage and property type.
- Mortgage insurance: if applicable, confirm structure and any upfront charges with your lender.
- Property tax prorations and reserves: you will pay your prorated share of taxes from the closing date forward and may need to fund tax and insurance reserves depending on the loan program.
Inspections and reports
- General home inspection: about $400 to $1,200, often at the upper end in San Francisco due to older housing and complexity.
- Specialty inspections: pest, foundation, sewer, roof, chimney often range from $150 to $1,000 each.
- Condo documentation and review fees: sometimes $200 to $500.
HOA, municipal, and assessments
- HOA transfer or move-in fees: often $100 to $500.
- HOA reserves or special assessments: prorations vary by association and timing.
- Mello-Roos or other district bonds: these are neighborhood-specific and may involve prorations at closing.
Recording and miscellaneous
- County recording, reconveyance, and document prep: usually $50 to $400.
- Notary, settlement statements, and wire fees: about $25 to $200.
- Courier or wire charge for loan funding: about $40 to $150.
What is negotiable
- Seller credits can reduce your out-of-pocket costs, subject to loan program limits.
- In California, it is common for the seller to pay for the owner’s title policy and sometimes transfer tax, but market conditions often drive who pays what. Confirm these items in your contract.
San Francisco transfer tax: what to know
San Francisco uses a tiered documentary transfer tax that rises with the sale price, with special rules that may apply to entities or certain kinds of transfers. It can be one of the largest single line items in your closing costs on higher-priced homes. Who pays this tax is often negotiated in the contract. Because rates and rules can change and include exceptions, verify the exact amount and responsibility with your title and escrow team or the City before you finalize your cash-to-close.
Sample closing cost estimates
The following are hypothetical examples to help you visualize the math. Your numbers will vary. Always rely on your lender’s Loan Estimate and your title and escrow Closing Estimate for accuracy.
Scenario A: Modest San Francisco condo at $900,000
- Purchase price: $900,000
- Down payment at 20%: $180,000
- Loan amount: $720,000
Estimated buyer closing costs (excluding down payment):
- Lender fees and possible points at 0.5% of loan: about $3,600
- Appraisal: about $700
- Escrow and title (buyer share): about $1,800
- Lender’s title policy: about $700
- Recording and miscellaneous: about $200
- Prepaids for insurance, interest, and tax proration: about $3,000
- HOA transfer and inspections: about $1,000
Estimated total: approximately $11,000 to $13,000, or about 1.2% to 1.4% of the purchase price. If a San Francisco transfer tax or additional negotiated items apply to the buyer, the total will increase.
Scenario B: Single-family home at $2,000,000
- Purchase price: $2,000,000
- Down payment at 20%: $400,000
- Loan amount: $1,600,000
Estimated buyer closing costs (excluding down payment):
- Lender fees and possible points: $8,000 to $16,000
- Appraisal: about $1,200
- Escrow and title (buyer share): $3,000 to $6,000
- Lender’s title policy: $1,500 to $3,000
- Recording and miscellaneous: about $300
- Prepaids for insurance, interest, and tax proration: $6,000 to $12,000
- Inspections and specialty reports: about $1,500
Estimated total: approximately $21,500 to $39,000, or about 1.1% to 2.0% of the purchase price, before any municipal transfer tax or special assessments. Transfer taxes on multi-million-dollar properties can materially increase your total, so confirm early.
Cash-to-close worksheet
Use this simple worksheet to estimate your cash-to-close alongside your down payment. Replace the placeholders with your actual figures from the Loan Estimate and Title/Escrow estimate.
- Enter purchase price.
- Enter down payment percentage or dollar amount.
- From your Loan Estimate, record origination fees, points, lender fees, and prepaids.
- From your preliminary title and escrow estimate, record escrow fees, title premiums, recording charges, and transfer tax responsibility.
- Add known third-party fees such as appraisal, inspections, and HOA charges.
- Sum items from steps 3 to 5 to calculate estimated closing costs. Add your down payment to see total funds needed.
- If you expect seller credits, ask your lender for the estimated adjustment and subtract from your total.
Smart next steps for San Francisco buyers
- Request your Loan Estimate within three business days of your mortgage application. If you are comparing lenders, review the fee sections line by line.
- Ask for a preliminary title and escrow estimate and a sample closing statement showing buyer-side charges.
- Confirm in writing who pays the owner’s title policy, San Francisco transfer tax, and any HOA transfer fees. Make sure your purchase contract reflects the agreement.
- If you are buying a condo, obtain HOA documents early. Lender condo reviews and reserve checks can add time.
- Shop for homeowners insurance early to lock your first-year premium and satisfy lender requirements.
- Budget for prepaids: property tax prorations, homeowners insurance, and prepaid interest. Timing matters. Closing later in the month usually reduces prepaid interest.
- Practice wire safety. Call your escrow officer using a known phone number to confirm instructions. Do not rely on email links.
- Negotiate credits if needed. Seller concessions can cover part of your closing costs, subject to program limits.
- For higher-value or entity-involved purchases, ask your title and escrow team to verify transfer tax rules and any exemptions.
- Keep a cushion. In the San Francisco–Redwood City–South San Francisco area, specialty fees or transfer taxes can push totals above your first draft estimate. Aim to reserve an extra 2% to 5% of the purchase price if possible.
Final thoughts
Closing costs in San Francisco are manageable when you plan ahead, request accurate estimates early, and confirm who pays which items in your contract. Focus on the big drivers like lender fees, prepaids, and any transfer tax, then fill in the rest with quotes from your lender, title, and escrow team. If you want a steady hand guiding you through each line item and negotiation, reach out. You will have clear numbers, fewer surprises, and confidence on closing day.
Ready to map your budget and timeline with a local expert? Connect with JeanMarie Buckley to plan your next step.
FAQs
What are typical buyer closing costs in San Francisco?
- Buyers often budget about 2% to 5% of the purchase price for closing costs, with San Francisco sometimes landing at or above that due to higher service fees and local taxes.
Do San Francisco buyers pay the transfer tax?
- It depends on the contract and market conditions. Responsibility is negotiable, so confirm in writing who pays before you finalize your budget.
How do discount points affect my closing costs?
- Each point equals 1.0% of the loan amount and is paid at closing; buying points can reduce your rate, but the trade-off depends on how long you plan to hold the loan.
What prepaid items should I expect at closing?
- Common prepaids include daily mortgage interest from closing to your first payment, the first-year homeowners insurance premium, and property tax prorations and reserves as required by your lender.
Are inspections part of closing costs in San Francisco?
- Yes. General inspections often run $400 to $1,200, and specialty inspections such as pest, foundation, sewer, or roof can add $150 to $1,000 each.
Who usually pays for title insurance in California?
- Practice varies by market, but it is common for the seller to pay the owner’s title policy while the buyer pays the lender’s policy. Always confirm in your contract.
Can seller credits cover my closing costs?
- Often yes, up to program limits set by your loan type. Ask your lender how much is allowed and have credits reflected in the purchase contract.
