Buying in West Portal or nearby and wondering how much cash you need beyond the down payment? You’re not alone. Closing costs can feel opaque, and first‑time buyers often underestimate them. This guide breaks down what you’ll likely pay in San Francisco, who typically covers each item, what is fixed vs. negotiable, and realistic ranges so you can budget with confidence. Let’s dive in.
What buyers typically pay in San Francisco
In the Bay Area, buyer closing costs (not including your down payment) commonly run about 2% to 5% of the purchase price. Where you land depends on your loan type, lender fees, whether you pay points, HOA charges, and how much you need to prepay for taxes and insurance.
Local custom matters. In many San Francisco deals the buyer pays most loan‑related costs, title charges for the lender’s policy, recording fees, and prepaids. Sellers often pay the city transfer tax and the owner’s title policy, but every contract is negotiable and customs can change. Your escrow officer will confirm who pays what on your specific transaction.
You will receive a Loan Estimate within three business days of loan application and a Closing Disclosure at least three business days before closing. Use the Loan Estimate to compare lenders and the Closing Disclosure to confirm your final numbers.
Buyer closing costs, line by line
Earnest money / deposit
- What it is: Upfront deposit held in escrow to show good faith; applied to your purchase price at closing.
- Who usually pays in SF: Buyer.
- Fixed vs. negotiable: Amount varies with market norms and offer strategy.
- Typical range: About 0.5% to 3%+ of the purchase price. Not a fee and reduces cash due at closing.
Lender fees (origination, processing, underwriting)
- What it is: Fees the lender charges to process and underwrite your loan.
- Who usually pays in SF: Buyer.
- Fixed vs. negotiable: Often negotiable or shoppable; can be offset by rate or lender credits.
- Typical range: About 0.25% to 1.0% of the loan amount, plus possible flat fees of $500 to $2,000.
Discount points
- What it is: Optional prepaid interest you pay to lower your rate.
- Who usually pays in SF: Buyer, unless a seller credit covers it.
- Fixed vs. negotiable: Fully optional. One point equals 1% of the loan amount.
- Typical range: 0 to 3 points are common.
Appraisal
- What it is: Lender‑ordered valuation to support the loan.
- Who usually pays in SF: Buyer.
- Fixed vs. negotiable: Required by most lenders; fee depends on property type and complexity.
- Typical range: About $500 to $1,500 in the SF metro.
Credit report, flood certificate, admin fees
- What it is: Small third‑party and lender admin charges.
- Who usually pays in SF: Buyer.
- Fixed vs. negotiable: Generally fixed, set by vendors.
- Typical range: Combined total often $30 to $200.
Title insurance
- What it is: Insurance that protects against title defects. There are two policies: lender’s and owner’s.
- Who usually pays in SF: Practices vary. Many deals have the seller pay the owner’s policy and the buyer pay the lender’s policy.
- Fixed vs. negotiable: Premiums follow rate tables tied to price and loan amount; parties can negotiate who pays.
- Typical range: Lender’s policy and related title charges can run about $1,000 to $3,000+ on mid six‑figure to low seven‑figure loans. Owner’s policy is a higher one‑time premium if the seller does not cover it.
Escrow / settlement fees
- What it is: Fees for the escrow company to manage the closing and disburse funds.
- Who usually pays in SF: Often split between buyer and seller, though practice can vary by deal.
- Fixed vs. negotiable: Set by the escrow company but sometimes negotiable or shoppable.
- Typical range: Buyer share often $1,000 to $2,500. Combined buyer and seller fees typically land in the low thousands.
Recording fees
- What it is: County fees to record the deed and your mortgage.
- Who usually pays in SF: Buyer typically pays to record loan documents; deed recording is often the seller’s or split by custom.
- Fixed vs. negotiable: Set by the county fee schedule.
- Typical range: Usually in the low hundreds to low thousands, depending on document count and complexity.
Real property transfer taxes
- What it is: Taxes imposed on property transfers at the state or local level.
- Who usually pays in SF: Typically the seller in San Francisco. Confirm with escrow and current city rules.
- Fixed vs. negotiable: Rates are statutory. Who pays can be negotiated in the contract.
- Typical range: Varies widely by price bracket. Always confirm the current San Francisco schedule.
General home inspection
- What it is: Independent review of structure, systems, and safety items.
- Who usually pays in SF: Buyer.
- Fixed vs. negotiable: Optional but strongly recommended.
- Typical range: About $350 to $800+ for many single‑family homes. Multi‑unit can be higher.
Pest inspection and repairs
- What it is: Termite and wood‑destroying organism inspection; repair needs vary.
- Who usually pays in SF: Buyer typically pays for the inspection; repair costs are negotiable.
- Fixed vs. negotiable: Inspection is modest; repairs vary by findings and agreement.
- Typical range: Inspection about $75 to $300. Repairs can range from minimal to several thousand dollars.
HOA and condo fees (resale packet, transfer, move‑in)
- What it is: Fees for HOA documents, transfer, move‑in scheduling, and any capital contributions.
- Who usually pays in SF: Varies by HOA and contract. Buyers often pay some move‑in or processing fees and prorated dues.
- Fixed vs. negotiable: Set by HOA bylaws; who pays can be negotiated.
- Typical range: Resale packet about $200 to $500. Transfer or capital contributions can be several hundred to a few thousand.
Prorations and prepaids (big budget item)
- What it is: Prepaid homeowners insurance (often the first year), prepaid mortgage interest from funding to your first payment, and initial escrow impounds for taxes and insurance. Property tax prorations settle who owes what for the closing period.
- Who usually pays in SF: Buyer funds prepaids and initial reserves; prorations show as credits or debits based on the closing date.
- Fixed vs. negotiable: Driven by calendar, tax cycles, insurance choices, and lender requirements.
- Typical range: Often 1 to 3 months of mortgage payments in reserves, plus the first year of homeowner’s insurance and prorated taxes. On a $1.5M purchase with 20% down, initial impounds can easily reach several thousand to $15,000+ depending on tax rates and premiums.
Mortgage insurance (PMI), if applicable
- What it is: Required on conventional loans with less than 20% down. FHA loans use mortgage insurance premiums.
- Who usually pays in SF: Buyer, paid monthly or sometimes upfront/financed.
- Fixed vs. negotiable: Determined by loan program, down payment, and credit profile.
- Typical range: Varies by scenario. Your Loan Estimate will show options.
Specialty reports (surveys, septic, boundary)
- What it is: Less common in urban SF but possible for unique properties or larger lots.
- Who usually pays in SF: Buyer when required.
- Fixed vs. negotiable: Highly variable and property‑specific.
Example budgets for West Portal buyers
The following examples assume a conventional loan, typical lender fees, and that the seller pays the San Francisco transfer tax and the owner’s title policy, which is common but not guaranteed. Buyers pay the appraisal, inspections, lender’s title policy, escrow share, recording, and prepaids. Your actual numbers will appear on your Loan Estimate and your Closing Disclosure.
Scenario A: Condo near West Portal — $900,000
- Estimated buyer closing costs: About 2.0% to 3.5% ($18,000 to $31,500)
- Typical line items: Appraisal $600 to $900; loan origination/processing $2,000 to $6,000; lender’s title policy $900 to $1,800; escrow/recording $1,200 to $3,000; inspections and HOA packet $400 to $1,200; prepaids and initial escrow $3,000 to $8,000.
Scenario B: West Portal single‑family — $1,500,000
- Estimated buyer closing costs: About 2.0% to 4.0% ($30,000 to $60,000)
- Typical line items: Appraisal $700 to $1,200; loan fees $3,500 to $10,000; lender’s title $1,400 to $3,000; escrow fees $1,500 to $3,500; inspections and pest $800 to $2,000; prepaids and impounds $5,000 to $20,000.
Scenario C: Higher‑end single‑family — $2,500,000
- Estimated buyer closing costs: About 2.0% to 4.5% ($50,000 to $112,500)
- Notes: Larger prices and loans can increase title premiums, escrow complexity, and prepaids.
When you pay each cost
- At application: Your lender issues a Loan Estimate with projected closing costs within three business days.
- During escrow: You usually pay for the appraisal and any inspections as they are ordered. Your earnest money deposit is due early in the process.
- Before closing: You receive a Closing Disclosure at least three business days before signing. It shows your final cash to close, including prepaids and reserves.
- At closing: You wire funds per escrow instructions. Escrow disburses money, records documents, and you receive keys after confirmation.
Smart ways to manage costs
- Compare at least two lenders. Review rate, origination, points, and any lender credits on each Loan Estimate.
- Ask for a full fee breakdown. Have your lender and escrow officer estimate title, escrow, recording, HOA, and prepaids early.
- Confirm local custom. Ask who typically pays the owner’s title policy, escrow split, and SF transfer tax in current practice.
- Negotiate strategically. Seller credits toward closing costs are possible, especially for repairs or in slower markets.
- Budget for prepaids. Reserves for taxes and insurance can be one of your largest cash items at closing.
- Check the Closing Disclosure carefully. Compare it to the Loan Estimate and ask about any unexpected increases.
Local pros and offices to consult
- Your lender for the Loan Estimate and Closing Disclosure
- Your escrow and title company for escrow fee schedules, title premiums, and recording fees
- San Francisco Treasurer and Tax Collector for the current transfer tax table and policy
- San Francisco County Recorder for recording fees and procedures
- California Association of Realtors for common practices on who pays what in California
- Consumer Financial Protection Bureau for the Loan Estimate and Closing Disclosure timeline rules
Ready to plan your budget?
Buying in West Portal, the Sunset, or nearby neighborhoods is more predictable when you know what each line item means. Use the 2% to 5% guideposts above, then fine‑tune your numbers with your lender and escrow team. If you want clear, practical guidance from offer to keys, connect with Russell Pofsky to review your scenario and next steps.
FAQs
How much cash do San Francisco buyers typically bring to closing?
- Most buyers should plan for closing costs of about 2% to 5% of the purchase price, plus the down payment and any required prepaids and reserves.
Who usually pays the San Francisco transfer tax on a home sale?
- It is typically paid by the seller, but the parties can negotiate this; confirm the current custom with your escrow officer and the city.
What buyer costs are most negotiable in San Francisco?
- Lender origination and some escrow fees can be shopped or negotiated, and sellers can offer credits toward buyer closing costs depending on market conditions.
Why are prepaids and reserves sometimes the biggest cash item?
- Lenders often require initial escrow deposits for taxes and insurance, plus prepaid interest and the first year of homeowner’s insurance.
When will I see the exact amount I need to wire for closing?
- Your lender provides a Closing Disclosure at least three business days before closing that shows your final cash to close, including prepaids and reserves.
Can I use a seller credit to cover discount points or closing costs?
- Yes, seller concessions can be applied to buyer closing costs and points, subject to lender program limits and terms.
