San Mateo closing costs

What are the closing costs and transfer taxes in San Mateo county and who pays what? In short, when you sell a property or buy one, you need to pay closing costs. This happens when the title of the property in question is transferring ownership. You usually pay these as the last step before the deal is complete

How much are the closing costs in San Mateo?

Closing costs may vary depending on the property you sell or buy, if you use a loan and what type of loan, where you live and a few other variables. Below we will provide info on both the seller side and buyer side and how much you can expect to pay.

Closing costs for sellers

A seller will usually pay more at closing costs compared to the buyer as it is the seller that pays the most of the commission of the listing agent and also the buyer’s agent commission as well. As a general rule, closing costs for sellers are usually between 6-10% of the sale price of the property.

In San Mateo County, sellers are expected to pay an additional fee called transfer tax of $1.10 per thousand dollars of the transferred property value and a few other minor fees. These will be a mobile notary fee of around $200, and a recording fee.

Note – These fees and closing costs are most likely deducted from the proceeds of the sale, so you don’t need to pay them out of pocket. Below are the typical closing costs for sellers:

Transfer taxes or recording fees	Title insurance
Attorney fees	Credits towards closing costs
Escrow and closing fees	Loan payoff costs
Agent commissions	Property tax ( prorated )

Closing costs for buyers

Closing costs for buyers are usually between 1 to 1.5% of the purchase price, this will include any commissions. Here are the most common costs buyers pay:

Escrow fees	Home inspection
Appraisal fees	Commission
Recording fees for the deed and mortgage	Loan originating fee if buying with loan
Tax	Title insurance
Private mortgage insurance ( if taking a loan and putting less than 20% down payment )	Mortgage buy down rate ( If you want to lower your mortgage loan interest rate, you will pay that in the closing costs )

Difference between closing costs and prepaid items

Prepaid items and closing costs are not the same thing. The prepaid fees are used to pay the first month’s interest on the loan and to create your escrow account for taxes and insurance before you start paying your regular monthly payments. These are usually called ” Items required by Lender to be paid in advance ” or ” Reserves Deposited with Lender ” Some of the most common prepaid items are:

• Escrow money
• Mortgage interest
• Home owner’s insurance advance premium
• Real estate taxes advance payment
• First year hazard insurance

Transfer tax

When an asset in real estate is transferring ownership from one owner to another, there is a transfer tax ( deed transfer tax ), this is true in California and other states as well, the seller is the one who pays this tax usually, however some sellers may nagotiate this with the buyer. Depending on the city where the transaction took place, there may be an additional transfer tax and even on the county level.

In San Mateo, the city of San Mateo is the only one who imposes this tax in the entire county of San Mateo.

The tax rate is $5 per thousand dollars from the purchase price. The transfer tax in San Mateo county is usually $1.10 for every thousand dollars of asset price.

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