What it costs to sell a home in South Orange County, with a net proceeds calculator

The costs of selling a home fall into four groups:

• Set by law. The documentary transfer tax is the only one.
• Quoted from filed or company rates. Title insurance and escrow.
• Negotiated. Brokerage compensation, repairs and credits to the buyer.
• Your own situation. Your loan payoff, property taxes, and HOA.

So a single percentage for the cost of selling doesn't mean much. The calculator below lets you put in your own numbers and shows which kind of cost each one is.

Brokerage compensation

California requires every residential listing agreement to carry this notice in bold type (Bus. & Prof. Code § 10147.5):

The amount or rate of real estate commissions is not fixed by law. They are set by each broker individually and may be negotiable between the seller and broker.

Since August 17, 2024, offers of compensation to buyers' brokers can no longer be published on the MLS. A seller may still offer to pay the buyer's broker, offer a credit to the buyer instead, or offer nothing (NAR settlement FAQs). On the buyer's side, California has required a written agreement between buyer and broker since January 1, 2025. The agreement sets out that broker's compensation (Civil Code § 1670.50). Whether you contribute to it is part of your negotiation with the buyer.

That's why the calculator leaves both fields blank. Enter what you have agreed to, or try a few scenarios.

Documentary transfer tax

This is the one cost fixed by statute. It is $0.55 for each $500 of the sale price or fraction of $500, which works out to $1.10 per $1,000 (Rev. & Tax. Code § 11911). The Orange County Clerk-Recorder's current fee schedule shows the same rate (OC Clerk-Recorder). On a $1,200,000 sale, that is $1,320.

The rate is the same in every Orange County city. Each city's share is credited against the county's, so no South County city adds a tax of its own, and the unincorporated communities pay the same county rate (California City Finance). By local custom the seller pays it in Orange County, but like most closing costs it can be negotiated (Old Republic Title).

Escrow and title

Title insurers and the escrow companies they control have to file their rates with the California Insurance Commissioner (Ins. Code § 12401.1). That means you can get a real quote before you list. Old Republic Title's guide to Southern California customs shows that in Orange County the seller usually pays for the owner's title policy, and the escrow fee is usually split evenly with the buyer. It adds that these splits are custom and can be negotiated (Old Republic Title).

For your own number, try the rate calculators from Old Republic, First American or Orange Coast Title, or ask the escrow company for an estimated closing statement.

Paying off your loan

Mortgage interest is paid after the fact, so your payoff includes interest from your last payment up to the payoff date. Ask your lender for a payoff statement. There are two small caps in state law:

• the lender can charge no more than $30 for the payoff statement (Civil Code § 2943)
• a reconveyance fee of $45 or less is presumed reasonable (Civil Code § 2941)

Property taxes and Mello-Roos at closing

The Orange County tax year runs from July 1 to June 30:

• The first installment is due November 1 and becomes late after December 10.
• The second is due February 1 and becomes late after April 10 (OC Treasurer-Tax Collector).

At closing, escrow splits the year's tax between you and the buyer by the days each of you owns the home. If you have already paid an installment that covers days after closing, you get a credit.

Mello-Roos and other special taxes are billed on the same property tax bill (OC Treasurer), so they are split the same way. The special tax itself stays with the home, and the buyer takes it over. You must give the buyer a notice describing it (Civil Code § 1102.6b) and a notice explaining supplemental tax bills (Civil Code § 1102.6c). Our Mello-Roos and HOA guide explains how to find the numbers on your bill.

HOA documents and fees

If your home is in an HOA, you are responsible for giving the buyer the association's resale documents. The association can charge a reasonable fee based on its actual cost to prepare them, itemized by document (Civil Code § 4530). Any fee tied to transferring the home is limited to the association's actual cost of changing its records, with some exceptions (Civil Code § 4575).

Some master-planned communities have a separate transfer or community fee recorded against the property. The preliminary title report will show it. Past-due dues and any special assessment due before closing are paid from your proceeds.

Repairs, credits and the smaller items

Repairs after inspection, credits to the buyer, a home warranty, and who pays for a termite inspection are all negotiated in the purchase contract. You will also need a Natural Hazard Disclosure report, which most sellers order from an outside company. Put all of these in the calculator's repairs and other lines.

Taxes on the sale itself

• Capital gains exclusion. If you owned and lived in the home for at least two of the last five years, you can generally exclude up to $250,000 of gain, or $500,000 for a married couple filing jointly (IRS Publication 523).
• California rate. California has no lower rate for capital gains. Any gain above the exclusion is taxed as ordinary income (Franchise Tax Board).
• California withholding. Escrow may withhold 3⅓% of the sale price for the state (Form 593) unless you qualify for an exemption. Selling your main home is one of the exemptions, and so is a sale price of $100,000 or less (Form 593 instructions). Withholding is a prepayment credited on your tax return, not an extra cost.
• Sellers who are not U.S. persons. Federal FIRPTA rules generally require the buyer to withhold 15% of the amount realized (IRS). Talk to a tax professional early.

If you are 55 or older and buying again

Proposition 19 lets homeowners 55 and older carry their current assessed value to a replacement home anywhere in California, up to three times. The rules (Board of Equalization):

• The replacement must be bought within two years of the sale.
• If it costs more than the old home sold for, the difference is added to the carried-over value. The limit rises to 105% of the old home's price if you buy in the first year after selling, and 110% in the second.

It can make a large difference in the tax on your next home, so it is worth planning before you list.

Before you list

1. Order a payoff statement for every loan on the home.
2. Get an estimated closing statement or title and escrow quote.
3. Pull your latest tax bill and note any special taxes.
4. Ask your HOA what its resale documents and transfer fees cost.
5. Decide how you want to handle buyer-broker compensation and credits.
6. Run the numbers above with a few sale prices to see your range.