What will you actually pay at the closing table in Costa Mesa, and what will the other side cover? If you’re buying or selling in Orange County, understanding closing costs helps you plan your cash, price your home wisely, and avoid last-minute surprises. You’ll learn who typically pays which fees here, the usual ranges for Costa Mesa, and how to get exact numbers for your situation. Let’s dive in.
Closing costs at a glance
Closing costs are the fees and prepaid items required to complete a real estate transaction. They are in addition to your down payment if you are buying or deducted from your proceeds if you are selling. In Orange County, who pays what often follows local custom and your negotiated contract.
As a simple guide, buyers often pay about 2% to 5% of the purchase price in closing costs. Sellers commonly pay about 7% to 11%, mostly due to agent commissions. These are estimates only. Always request written estimates from your lender and your escrow or title company.
What buyers typically pay in Costa Mesa
Most buyer costs relate to the loan, title, escrow, and prepaid items that depend on timing.
- Loan origination and points: usually 0% to 2% of the loan amount, depending on your lender and whether you choose to pay points for a lower rate.
- Lender-required services: appraisal, credit report, underwriting, and flood certification. Total often ranges from about $500 to $1,500.
- Title and escrow fees: lender’s title policy is required for financed purchases. Owner’s policy payment is by local custom and negotiation. Combined title and escrow fees often run about 0.2% to 0.6% of the sale price.
- Recording charges: Orange County recording fees for deeds and mortgages are generally modest flat amounts.
- Prepaids and prorations: mortgage interest, homeowners insurance premium, and prorated property taxes and HOA dues based on the closing date.
- HOA transfer or estoppel fees: common for condos and planned communities, often $100 to $500 or more depending on the HOA.
- Initial escrow or impound setup: many lenders collect 1 to 3 months of taxes and insurance.
- Inspections and due diligence: general home inspection often $300 to $800. Specialty inspections like pest, sewer, or roof vary by scope.
Cash buyers usually land toward the low end of the range since there are no loan-related fees.
What sellers typically pay in Costa Mesa
Sellers primarily pay agent commissions and a share of title and escrow-related costs, plus any negotiated items.
- Real estate commissions: commonly 5% to 6% of the sale price total for both the listing and buyer’s agents.
- Owner’s title insurance policy: in many Southern California transactions, sellers pay for the owner’s policy, though this is negotiable.
- Escrow and closing fees: often around 0.2% to 0.6% of the sale price, frequently split between buyer and seller by custom, but negotiable.
- Transfer and documentary taxes: state, county, and sometimes city taxes may apply. Responsibility varies by jurisdiction and negotiation. Confirm specifics with your escrow officer.
- Prorations and payoffs: unpaid property taxes, HOA dues, utilities, special assessments, and payoff of any existing loans, including reconveyance fees.
- Repair credits or holdbacks: any agreed credits or escrow holdbacks for repairs found during inspections.
- Optional items: home warranty, pre-listing inspections, staging, and prep costs before going to market.
Actual totals depend on your sale price, commissions, negotiated terms, and timing.
Local fees and taxes to watch
Costa Mesa and greater Orange County have a few local nuances that can affect your bottom line.
- Transfer and documentary taxes: California, counties, and some cities charge transfer taxes. Responsibility can be negotiated. Confirm with your escrow team and check local jurisdiction rules.
- Mello-Roos and special assessments: common in parts of Orange County, especially newer communities. These are separate line items on your property tax bill. Buyers should review the preliminary title report and recent tax statements to understand ongoing costs.
- HOA fees and special assessments: if the property is in a condominium or planned community, plan for HOA transfer fees and any current special assessments.
- Property tax prorations: California property taxes are prorated through the closing date. Sellers typically pay up to the day of closing, buyers from the day of closing forward. Supplemental tax bills may apply after reassessment.
- Title matters: easements, liens, or other title issues can sometimes add curative costs and time. Order the preliminary title report early in the process.
How negotiation affects who pays
Many closing costs are flexible. A few examples of how negotiation can shift the numbers:
- Seller credits: you can request a seller credit toward your buyer closing costs. Note that loan programs limit how much a seller can contribute.
- Owner’s title policy: in many Southern California deals the seller pays for the owner’s policy, but this is not guaranteed. Confirm with your title company and your agent.
- Splitting escrow and title: common practice is a 50-50 split, but you can negotiate another allocation.
- Lender credits and rate trade-offs: buyers sometimes take a slightly higher interest rate in exchange for lender credits that offset upfront costs. Compare the long-term cost carefully.
- Cash offers: if you are selling to a cash buyer, the buyer avoids loan-related costs, which can make the deal simpler. Total seller costs still depend mostly on commission and negotiated items.
When you get exact numbers
You do not need to guess. You will receive written estimates and final figures during escrow that show your actual costs.
- Buyers: your lender issues a Loan Estimate within three business days of application. Before closing, you receive a Closing Disclosure at least three business days in advance with final loan costs.
- Sellers: your escrow or title company can produce a net sheet early that estimates payoffs, prorations, and expected proceeds. You will receive a final settlement statement before closing.
Ask your lender and escrow or title officer for fee quotes early. Update them as your contract terms change so you always know where you stand.
Example: $1,000,000 Costa Mesa sale
The figures below are illustrative and not a quote. Your actual costs vary based on loan terms, escrow and title fees, taxes, and negotiated items.
- Buyer closing costs at 2% to 5%: about $20,000 to $50,000 in addition to the down payment.
- Seller closing costs at 7% to 11%: about $70,000 to $110,000, with the largest portion typically being commissions.
Use this only as a planning guide. Always request written estimates from your lender and escrow or title company for your exact numbers.
How to prepare and avoid surprises
A little prep goes a long way. Use these quick checklists to stay ahead.
Buyer checklist
- Ask at least one lender for a detailed Loan Estimate and compare origination fees, points, and credits.
- Verify Mello-Roos, special assessments, and HOA fees in the preliminary title report and recent tax bills.
- Budget for inspections, appraisal, and initial impounds for taxes and insurance.
- Clarify who pays for the owner’s title policy on your purchase.
Seller checklist
- Request a seller net sheet from escrow showing commissions, title and escrow fees, prorated taxes, payoffs, and estimated proceeds.
- Review whether transfer taxes apply and who pays based on contract terms and local practice.
- Confirm payoff amounts and reconveyance fees for any existing loans.
- Decide early on any seller-paid credits or home warranty so they are reflected in your net.
For both parties
- Get written estimates from your lender and escrow or title company as soon as you open escrow.
- Review the preliminary title report promptly and resolve any issues early.
- Keep an eye on timing. Closing near tax installment dates can change prorations and cash due.
Protect your funds from wire fraud
Wire fraud attempts are common in real estate. Protect yourself with a few simple steps:
- Call your escrow or title company using a phone number from their official website or your executed documents, not from an email.
- Confirm wiring instructions verbally before sending any funds and again before closing.
- Never open or act on unexpected emails about changed wire instructions. Report anything unusual immediately.
Planning to buy or sell in Costa Mesa and want a clear, customized estimate of your closing costs along with negotiation strategies to protect your bottom line? Reach out to The Lily Campbell Team for a local, step-by-step plan tailored to your goals.
FAQs
How much are closing costs in Costa Mesa?
- Buyers often pay about 2% to 5% of the purchase price in closing costs, while sellers often pay about 7% to 11% including commissions. Request written estimates for exact figures.
Who pays transfer taxes in Costa Mesa and Orange County?
- Responsibility varies by jurisdiction and contract negotiation. Confirm with your escrow officer and review your purchase agreement to see how taxes are allocated.
What is Mello-Roos and how does it affect me?
- Mello-Roos is a special district tax found in many California communities that adds to annual property taxes. Review the preliminary title report and recent tax bills to see if it applies.
Does the seller pay for the owner’s title policy in Orange County?
- In many Southern California transactions the seller pays for the owner’s title policy, but this is negotiable. Confirm local practice with your title and escrow team.
When will I see my exact closing costs before closing?
- Buyers receive a Loan Estimate early and a Closing Disclosure at least three business days before closing. Sellers receive a net sheet and a final settlement statement from escrow.
