What Are Seller Closing Costs in Ventura County?

The main line items

• Real estate commission. Commissions are negotiable and set in your listing agreement. Ask your agent to walk through exactly what you are agreeing to, including how any buyer agent compensation is handled.
• Escrow and title. The escrow fee, and title insurance for the buyer, are often split or allocated by local custom and the purchase contract. Your escrow officer will show the exact figures.
• Documentary transfer tax. See below.
• Loan payoffs. Every mortgage, HELOC and lien is paid off from your proceeds, including interest through the payoff date.
• Prorations. Property taxes and HOA dues are split between you and the buyer as of the closing date.
• HOA transfer and document fees, where applicable.
• Repairs or credits negotiated after inspections.
• Disclosure reports such as natural hazard reports, if your agent orders them.

Ventura County documentary transfer tax

When a deed is recorded, the county collects a documentary transfer tax of $0.55 for each $500 of value, which is $1.10 per $1,000. Title company rate charts list no additional city transfer tax for Ventura County cities, unlike parts of Los Angeles County, but confirm with your escrow officer at the time of sale.

Example: on an $850,000 sale, the county transfer tax is about $935.

Withholding is not a cost, but it affects your check

California generally requires escrow to withhold 3 1/3 percent of the sales price as a prepayment of state income tax, unless an exemption applies. The most common exemption is that the property was last used as your principal residence. Others include a sales price of $100,000 or less, or a loss or zero gain. You certify the exemption on Form 593. If withholding does apply, you claim it on your California return.

How to estimate your net proceeds

1. Start with a realistic sale price, not the highest number you've heard.
2. Subtract all loan payoffs and liens.
3. Subtract commission, escrow, title and the transfer tax.
4. Adjust for prorated taxes and HOA dues.
5. Leave a cushion for repair credits.

Joe Hall started his career in lending, and he will build this sheet with you before you list, so the number at the end isn't a surprise.

A sample net sheet

Hypothetical numbers, for illustration only. Your actual figures come from your listing agreement, your escrow officer and your lender.

• Sale price: $900,000
• Loan payoff: $420,000
• Commission, as agreed in the listing: say $45,000
• Escrow, title and miscellaneous fees: say $5,000
• County transfer tax at $1.10 per $1,000: $990
• Prorated property taxes and HOA dues: varies by closing date
• Agreed repair credit: say $5,000

In this example the seller's net before prorations would be roughly $424,010. If the home was not the seller's principal residence and no other exemption applied, escrow would also generally withhold 3 1/3 percent of the price, $30,000, as a prepayment toward state income tax, which is reconciled on the seller's California return.

Questions to ask before you list

• What is my exact loan payoff, including any second loan or HELOC?
• Are there any liens, unpaid property taxes or HOA balances on the property?
• What commission am I agreeing to, and how is buyer agent compensation handled?
• Will escrow need to withhold state tax, or do I qualify for an exemption on Form 593?
• What repairs are worth doing before listing, and what should be priced in instead?

Getting these answers before you sign a listing agreement means the net sheet you see at the start is close to the check you get at the end.

Costs you can reduce

• Repairs: Pre-listing inspections help you decide what to fix and what to disclose and price in.
• Holding costs: Every month on the market costs mortgage interest, taxes, insurance and utilities. Pricing right the first time matters.
• Off-market sale: If the home needs major work, an as-is sale to verified cash buyers can make more sense than paying for repairs. It usually sells below retail, so compare the net, not the price. Read wholesaler vs real cash buyer first.

Compare both routes on Joe's sellers page.

This is general information, not legal or tax advice. Talk to a California attorney, a CPA, or a HUD-approved housing counselor about your situation.