How much does it cost to sell a house in California?

Written by

Erik J. Martin,

Edited by

Michele Petry

Published on April 21, 2025 | 5 min read

Bankrate is always editorially independent.

California typical suburban street, tropical Oceanside USA. Different colorful houses row

The Golden State offers golden opportunities for homeowners to sell their properties, potentially for a handsome profit. While California has a higher cost of living and higher home prices than many other states, it remains a go-to destination for those who covet comfortable weather year-round, natural scenic beauty and a coastal atmosphere.

However, it’s important to carefully factor in the costs involved with selling a home in California. Closing costs and other expenses can be steeper than many sellers anticipate. Here we’ll break down the cost to sell a house in California.

Sellers’ closing costs

Selling a house isn’t all profit. Californians getting ready to list their homes need to be ready to cover the closing costs that all sellers must pay. These can typically include the following:

Title insurance: If you’re in Southern California, you’ll likely cover the cost of title insurance, which protects against problems with the property’s ownership. In Northern California, the buyer typically pays this cost.
Transfer taxes: This common cost is called “documentary transfer tax” in California, and it will vary based on your specific location. It follows a consistent rate of $1.10 per $1,000 of the sale price across the state, but some cities impose an additional tax. This fee can be negotiated, so it might be paid by either the seller or the buyer.
Property taxes: You’ll need to be up-to-date on property taxes for the time you owned your home, right up to closing day. California’s property-tax rate is 1 percent of the assessed value of the property.
HOA fees: The same goes for any HOA fees, if applicable. Both these and property taxes are prorated based on the closing date. For instance, if you sell your home on September 15, you would pay your portion of property taxes and HOA fees for that month, through the 15th.
Seller concessions: Some sellers choose to entice buyers with incentives or concessions. A common sweetener that sellers throw in the deal is agreeing to cover the cost of a particular repair, for example.
Legal fees: Unlike some states, California doesn’t require the involvement of attorneys in the closing process. However, it’s worth enlisting a real estate attorney’s services anyway: With so much money at stake, a legal eye on the contract is always smart.

Real estate agent commissions

If you use a real estate agent to help sell your house, that agent will earn a commission based on the home’s final sale price. Each agent involved in a transaction typically earns somewhere between 2.5 and 3 percent of the sale price — and, according to Redfin data, the median price of a home in the Golden State was a high $832,500 as of February 2025. On a home of that price, a full 3 percent commission comes to just under $25,000.

But median prices can vary widely across the state. For example, in Fresno, the median was just $414,000, which would make a 3 percent commission $12,420. But in notoriously pricey San Francisco, the median was nearly $1.4 million; 3 percent of that is $42,000.

Keep in mind that, while it used to be customary that sellers paid both agents’ commissions (essentially doubling the numbers above) that is no longer necessarily the case. Agent commissions will be negotiated in advance — some sellers still agree to pay the buyer’s agent’s fee as a concession, but it’s not automatic. Be sure your contract spells out who is paying for what very specifically.

Home prep and moving costs

Getting a house ready for sale and managing a move requires careful preparation and budgeting. To make the home more appealing to buyers, you might choose to put money into small repairs, staging, sprucing up the landscaping outside, professional cleaning inside and more.

In addition, the average cost to hire movers in California can be steep. According to MoveBuddha, the average cost for pro movers in the state is $124 per hour, with an average move ranging between $444 and $4,083. In such a big state, even an in-state move can be considered long-distance — and cost even more.

How much do I get from selling my house?

If, like many California properties, your home has significantly increased in value over recent years, you could pocket a handsome profit. The median sale price in the state has increased 6 percent year-over-year, according to Redfin.

But the amount of money you’ll actually receive when you sell your home can vary significantly depending on a number of factors. The price you bought it for, the sale price you’ve negotiated, any remaining mortgage balance and closing costs will all directly influence your net proceeds.

Reducing costs

There are several approaches you can take to reduce your closing costs. And one of the biggest expenses is actually one of the most negotiable: real estate agent commissions. With California’s high home prices, even a fraction of a percent less can equate to thousands of dollars in savings — the difference between 2.5 percent and 3 percent on a median-priced $832,500 house can save you about $4,000.

Your agent can likely advise you on the most cost-effective approaches to marketing the home as well. For example, if the home is in need of repairs that you’d rather not invest in, you might consider selling in as-is condition, which lets buyers know the cost of any repair work is on them. If you do make repairs or any other home improvements prior to listing, take the time to compare different service providers to assess their costs before you select one.

Alternatives

If you want to save on commission altogether, consider more non-traditional options:

Cash-homebuyers and iBuyers: Selling directly to a company that buys houses, whether they operate online or have local offices in your area, lets you avoid agent involvement entirely. Many companies also charge no fees at all. There are several national options, or consider a local cash-homebuying company in California. Keep in mind, though, that these options will typically pay less for your home than you’d make in a traditional sale.
For sale by owner: Selling your house on your own, essentially acting as your own agent, is also an option. This lets you skip a listing agent’s fee, since you’re going without one, but it’s a lot of work and a big time commitment.
Home equity: If you don’t need the cash from the sale right away, consider leveraging your equity instead with a home equity loan or line of credit. The money could even go toward renovations, which would benefit you whether you decide to stay or eventually sell.
Renting: If you can afford to hang on to the home for a while and have somewhere else to live in the meantime, you could even rent it out to tenants and bring in some monthly rental income.

Next steps: Ready to sell?

If you think a traditional sale is right for you, your first step should be to connect with a local real estate agent in your area to explore a pricing strategy. If you’re interested in exploring a non-traditional route, do some online research to see what homebuying companies and iBuyers operate in your area. Their cash offers are typically free and you’re under no obligation to accept, so it can’t hurt to see what they’re willing to offer. You can always decide to work with an agent instead.