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March 29, 2013

Who Pays What-Typical Closing Costs

How buyers and sellers in San Francisco split the closing costs pertinent to the sale of real estate is ultimately decided in the purchase contract itself, but this list details how they are typically split in San Francisco County.

Very generally speaking, a buyer can expect that closing costs will run anywhere from 1% to 3% of the purchase price, the major variable being the loan points charged, if any, by their lender. Other than loan-related fees, the big costs for buyers are for escrow fees and title insurance, home inspections, the first year of hazard insurance and property tax pro-rations, if any.

For sellers, closing costs usually run in the range of 6% to 8% of the sales price, not including loan pay-off and any home preparation or repair costs. Typically, the largest seller costs are brokerage commissions and transfer taxes.

Buyer_Seller_Closing_Costs

The information below is from the website of the San Francisco Assessor’s office, as of April 2013:

Property Taxes in San Francisco

Under State law (Proposition 13), real property is reappraised only when a change-in-ownership occurs, or upon completion of new construction. Except for these two instances, property assessments cannot be increased by more than 2% annually, based on the California Consumer Price Index. The property tax rate is 1% plus any bonds, fees, or special charges.

What is the Transfer Tax Rate for the City and County of San Francisco?

If entire value or consideration is:

More than $100 but less than or equal to $250,000, the tax rate is $2.50 for each $500 or portion thereof;

More than $250 but less than $1,000,000, the tax rate is $3.40 for each $500 or portion thereof;

$1,000,000 or more but less than $5,000,000, the tax rate is $3.75 for each $500 or portion thereof;

$5,000,000 or more but less than $10,000,000, the tax rate is $10.00 for each $500 or portion thereof;

$10,000,000 or more, the tax rate is $12.50 for each $500 or portion thereof.