Ever wonder why closing day totals in Sunnyvale feel bigger than you expected? In Santa Clara County, even small percentage fees can add up fast because purchase prices are high. If you are buying, you care about your cash to close. If you are selling, you care about your net proceeds. In this guide, you will learn who typically pays what, how to estimate realistic numbers with local context, and where to verify exact fees before you sign. Let’s dive in.
What closing costs cover
Closing costs are the fees, taxes, and prepaid items needed to complete your home purchase or sale beyond the price and the loan amount. They include things like title insurance, escrow and recording fees, transfer taxes, lender charges, and prorations. Many items follow local custom in California, but the purchase contract controls who pays.
For buyers, closing costs are part of your total cash to close. That total usually includes four pieces: your down payment, your buyer closing costs, your initial escrow or impound deposits for property taxes and insurance, and prepaid interest based on your closing date.
For sellers, the number you care about is net proceeds. That is your sale price minus your mortgage payoff, commissions, seller-paid closing costs, prorations, and any credits or repairs you agreed to in the contract.
These definitions matter in Sunnyvale because price points are high. A half percent here or there can mean thousands of dollars.
Who typically pays what in Sunnyvale
Local custom helps you plan, but remember every line item is negotiable in the contract. Practices can also vary by transaction.
Seller costs
- Real estate commissions. A common range for residential sales is about 5% to 6% of the sale price, set in the listing agreement.
- Owner’s title insurance policy. In California, sellers commonly pay for the owner’s title policy at closing.
- Escrow and recording. Escrow fees are often split, but the split can be negotiated. Sellers typically pay recording costs tied to releasing their existing loan.
- Transfer taxes. County and sometimes city transfer taxes may apply. Sellers often pay, but it can be negotiated.
- Seller concessions and repairs. Credits, agreed repair costs, and a buyer home warranty if offered are seller expenses when negotiated.
- HOA items. If there is an HOA, sellers often pay the transfer or estoppel fee and prorated dues through the closing date.
Buyer costs
- Down payment. Your largest cash item, set by your loan program or strategy.
- Lender and loan fees. Origination, underwriting, processing, discount points if you choose, appraisal, and credit report fees.
- Lender’s title insurance policy. If you have a mortgage, buyers typically pay for the lender’s policy.
- Escrow and recording. Escrow fees are often split. Buyers commonly pay to record their deed of trust or mortgage.
- Prepaids and initial escrow deposits. First year of homeowner’s insurance, initial deposits for taxes and insurance to fund your impound account, and prepaid interest from funding to your first payment.
- Inspections and reports. General home inspection, termite or pest, roof, sewer, or other buyer-ordered evaluations.
- HOA move-in or transfer fees. Charged by some associations per their rules and your contract.
Shared and prorated items
- Property taxes. In California, property taxes are prorated daily between buyer and seller based on timing and prior payments.
- Utilities and HOA dues. These can also be prorated so each party pays for days they own the property.
Local items to check
- City or county transfer taxes. Confirm exact rates for Santa Clara County and whether Sunnyvale levies any city transfer tax.
- Special tax districts. Some properties carry Mello‑Roos or other special assessments that affect ongoing tax bills and prorations.
- Local processing and recording fees. County fees vary by document type and recording needs.
These are common local practices, but actual fees vary by deal. Your purchase contract will state who pays each item.
How to estimate your numbers
You can get close with percentages, then refine with quotes from your lender, title, escrow, and the county. Because prices in Sunnyvale are high, thinking in percentages keeps your estimates meaningful.
Quick rules of thumb
- Seller commission: commonly 5% to 6% of the sale price.
- Seller additional closing costs: commonly 0.5% to 2% of the sale price for the owner’s title policy, escrow share, and smaller fees, plus any transfer tax and repairs.
- Buyer closing costs, excluding down payment: commonly 2% to 5% of the purchase price. This can be higher if you buy down your rate with points.
- Initial escrow or impounds: commonly 0.5% to 2% of the purchase price, depending on timing and local tax structure.
- Inspections and HOA certificates: from a few hundred to a few thousand dollars, depending on scope and property type.
Example scenarios
These examples use simple percentage estimates. Your exact costs will depend on your loan terms, closing date, and service quotes.
Example A: Sunnyvale condo, $800,000 purchase
- Seller
- Commission at 5.5%: $44,000
- Seller closing costs and owner’s title policy at 1%: $8,000
- Estimated net before mortgage payoff and prorations: sale price minus the items above
- Buyer
- Down payment at 20%: $160,000
- Buyer closing costs at 3%: $24,000
- Initial escrow or impounds at 1%: $8,000
- Estimated cash to close: $192,000 plus inspections and any HOA fees
Example B: Sunnyvale single-family home, $2,000,000 purchase
- Seller
- Commission at 5.5%: $110,000
- Seller closing costs and owner’s title policy at 1%: $20,000
- Buyer
- Down payment at 20%: $400,000
- Buyer closing costs at 3%: $60,000
- Initial escrow or impounds at 1.5%: $30,000
- Estimated cash to close: $490,000
These templates show why a small percentage change can move your cash or net by thousands. Your Loan Estimate and later your Closing Disclosure will provide the precise buyer numbers. Sellers can request a detailed net sheet from the listing agent.
How to get exact figures
For buyers
- Get preapproved and ask for a Loan Estimate. This three-page form lists your lender fees, estimated title charges, escrow deposits, and prepaids.
- Ask the lender for an impound breakdown. Confirm how many months of taxes and insurance will be collected at closing.
- Request title and escrow quotes. Your agent or lender can introduce you to local title and escrow teams who will price the owner and lender policies and the escrow fee.
- Budget for inspections and any HOA-related fees. Align your scope with the property type and your comfort level.
For sellers
- Request a seller net sheet. Ask your agent to model commission, owner’s title policy, escrow share, transfer taxes, and likely prorations.
- Order disclosures early. California requires several disclosures. Plan for any fees tied to required reports such as natural hazard disclosure or pest reports if you choose to provide them.
- Discuss credits and repair strategy. If you plan to offer a closing cost credit or a rate buydown, add that to your net sheet.
For both parties
- Verify transfer taxes. Confirm Santa Clara County documentary transfer tax and whether Sunnyvale has a city transfer tax.
- Confirm HOA fees. If there is an HOA, ask about transfer, estoppel, and move-in fees, and how dues are prorated.
- Review final statements. Buyers review the Closing Disclosure. Sellers review a preliminary settlement statement before signing. Ask questions early so you have time to adjust.
Local taxes and fees to verify
Transfer taxes
Documentary transfer taxes can be charged by the county and sometimes by the city. Who pays is negotiable, but sellers often cover these in Santa Clara County. Confirm current county rates and whether Sunnyvale adds a city transfer tax before you set your budget.
Property taxes and assessments
California’s base property tax rate under Proposition 13 is about 1% of assessed value. The total bill varies by parcel because voter-approved bonds, parcel taxes, and special assessments can apply. If a property is in a Mello‑Roos district or has assessment bonds, that will affect the ongoing tax bill and prorations at closing. Verify this with county offices.
HOA fees, estoppels, and move-in rules
Many Sunnyvale condos and some neighborhoods have HOAs. Sellers commonly order the resale or estoppel package and pay the related fee. HOA dues are typically prorated. Some associations charge move-in or transfer fees, which the contract can assign to either party.
Title and escrow practices
Title companies publish premium schedules for owner and lender policies, and escrow companies publish fee schedules. Fees scale with price and are often split by custom or negotiation. Ask for written quotes tied to your purchase price.
Required disclosures and city fees
California law requires several seller disclosures. Some cities or the county may have local filing requirements and small fees. While not strict closing costs, you should account for report costs and any local document fees in your planning.
Smart negotiation tips
Consider credits as a tool
Buyers sometimes request a closing cost credit or a rate buydown credit. Sellers can use credits to bridge inspection findings or appraisal gaps without changing list price strategy. Credits reduce seller net proceeds and must be allowed by the buyer’s loan program.
Clarify title and escrow splits early
In California it is common for sellers to pay for the owner’s title policy, while buyers pay for the lender’s policy when there is a new loan. Escrow fees are often split. Put the agreed split in the contract to avoid surprises.
Watch contingency timelines
If a buyer cancels after contingency periods expire, some fees like inspection or appraisal costs are not recoverable. Stay on top of dates so you do not spend more than needed.
Simple checklists
Buyer checklist
- Get preapproved and request a Loan Estimate from at least two lenders.
- Ask for an itemized estimate of impounds and prepaid interest.
- Budget for inspections and any HOA transfer or move-in fees.
- Confirm in the contract who pays owner’s and lender’s title insurance.
- Request title and escrow quotes to refine your cash to close.
Seller checklist
- Ask your agent for a seller net sheet with multiple price scenarios.
- Confirm owner’s title policy cost, your escrow share, and transfer taxes.
- Order required disclosures and estimate any report fees.
- Decide on possible credits or repair budgets and add them to your net sheet.
- Review your preliminary settlement statement before signing.
When you plan with percentages and confirm with written quotes, you avoid most closing day surprises. If you want a tailored estimate for your Sunnyvale home or purchase, we are here to help. Reach out to the Taylor Lambert Group for guidance or to get your free home valuation.
FAQs
How much cash do buyers need to close in Sunnyvale?
- A common estimate is your down payment plus 2% to 5% of the purchase price for buyer closing costs, plus about 0.5% to 2% for initial escrow deposits, and prepaid interest based on your funding date.
Who pays for title insurance in California transactions?
- It is customary for the seller to pay the owner’s title policy and for the buyer to pay the lender’s title policy when the buyer has a mortgage, but the purchase contract controls.
Does Sunnyvale charge a city transfer tax on home sales?
- Some Bay Area cities do, but you should verify whether Sunnyvale currently charges a city transfer tax and confirm the Santa Clara County documentary transfer tax before finalizing your budget.
How are property taxes prorated at closing in Santa Clara County?
- Taxes are typically prorated daily between buyer and seller. The settlement accounts for whether current tax installments have been paid, then allocates days of ownership to each party.
What can a seller expect to net from a Sunnyvale sale?
- A simple formula is sale price minus mortgage payoff, commissions that commonly range from 5% to 6%, seller closing costs that often fall between 0.5% and 2% plus any transfer taxes or repairs, and prorations or agreed credits.
