Buying in Union Square or downtown San Francisco and wondering what you will actually pay at closing? You are not alone. Even experienced buyers can find the line items confusing, especially with San Francisco’s local customs and city transfer tax. In this guide, you will learn what typical buyers pay, how SF norms differ from other markets, and how to estimate and control your cash to close. Let’s dive in.
What closing costs cover in San Francisco
Closing costs are the fees due to finalize your purchase. In San Francisco, they fall into a few buckets.
Loan-related charges
If you are financing, your lender will disclose these on your Loan Estimate and Closing Disclosure.
- Loan origination or application fee
- Underwriting and processing fees
- Discount points if you choose to buy down your rate
- Appraisal fee
- Credit report fee
- Mortgage insurance or upfront MIP when applicable
- Lender’s title insurance policy premium (a one-time charge based on loan amount)
Title and escrow fees
Escrow is a neutral third party that handles funds and documents. Title insurance protects ownership.
- Escrow or settlement fee
- Title search, document prep, and recording service charges
- Owner’s title insurance policy (commonly paid by the seller in California, but negotiable)
- Lender’s title insurance policy (typically a buyer expense if you have a mortgage)
- Endorsements, reconveyance, courier, and notary fees
Government fees and taxes
- City and county documentary transfer taxes (see local custom below on who pays)
- Recording fees for the deed and any loan documents
Prepaids and prorations
- Property tax prorations based on the closing date and the San Francisco tax cycle
- Prepaid mortgage interest from funding date to your first payment
- Homeowner’s insurance, often the first year due at or before closing
- HOA dues for condos, including possible prepayment of one or more months
Inspections and reports
Buyers often pay for inspections before or during escrow.
- General home inspection
- Pest or termite inspection
- Sewer scope, roof, structural inspections as needed
Miscellaneous
- HOA estoppel or resale certificate fees for condos (costs vary and may be shared or negotiated)
- Natural hazard and standard transfer disclosures are often a seller expense in California, but additional HOA document requests may be charged to the buyer
- Wire, courier, and mobile notary fees
San Francisco norms that affect your costs
Local customs in San Francisco can shift who pays what. Confirm everything in your purchase contract and escrow instructions.
Who pays the city transfer tax
San Francisco has a city real property transfer tax with progressive brackets. Under local rules, the party executing the deed is responsible, and by custom the seller usually pays the city and county transfer taxes. This is negotiable, especially at higher price points where the tax is significant. Ask your escrow officer for the current calculation and check the San Francisco Treasurer and Tax Collector for the latest bracket schedule.
How escrow and title charges are split
In California, sellers commonly pay the owner’s title policy and transfer taxes, while buyers pay their lender-related costs, lender’s title policy, and loan recording fees. In many Bay Area transactions, buyers and sellers split escrow fees roughly 50-50. Your contract sets the final allocation.
Condo vs. single-family near Union Square
Most homes near Union Square are condos in mid or high-rise buildings. Expect HOA-related items such as estoppel or resale package fees, prorated dues, and potential prepayment of upcoming dues. Review HOA financials and any special assessments early. If you purchase a single-family home, you typically avoid HOA documents, but you may have higher inspection needs, such as sewer or structural evaluations.
Jumbo loans and cash purchases
Jumbo financing is common at San Francisco price points. Jumbo loans can carry different underwriting timelines and fee structures, which may affect your appraisal and lender costs. Cash purchases eliminate lender fees but you still have title, escrow, and recording costs, plus any prepaids and inspections.
How SF differs from other markets
In some U.S. markets buyers pay transfer taxes. In California, the seller has historically paid the documentary transfer tax, which can lower buyer closing costs on that specific line item. California buyers more commonly pay lender title insurance, lender fees, and certain prepaids. Title insurance premiums are state-filed in California, and escrow practices vary by county, so request quotes for precision.
Sample closing cost estimates
The examples below are illustrative only. Your exact costs depend on loan program, escrow and title quotes, HOA rules, and your closing date.
Example A: Union Square condo at $1,000,000 (buyer with a mortgage)
Assuming a common local allocation where the seller covers owner’s title insurance and city transfer tax.
- Loan origination or points: $0 to $8,000 (optional, varies by lender and rate choice)
- Appraisal: $600 to $1,200
- Credit report: $30 to $60
- Lender’s title insurance: $1,200 to $3,000
- Escrow fee, buyer share: $600 to $1,200
- Recording fees: $100 to $400
- Property tax proration: varies by closing date and tax cycle
- Prepaid mortgage interest: for funding date to first payment, example range $200 to $2,000
- Homeowner’s insurance, first year: $600 to $1,500
- HOA dues and any estoppel fee: $0 to $500, plus possible prepayment of dues
- Inspections: general $400 to $1,200, pest $300 to $800, optional others as needed
Illustrative buyer cash to close, excluding down payment: roughly $10,000 to $25,000, about 1.0 to 2.5 percent of the price.
Example B: Single-family style property at $2,500,000 (buyer with a jumbo mortgage)
Assuming seller pays owner’s title insurance and city transfer tax.
- Loan origination or points: $0 to $25,000
- Appraisal: $1,200 to $3,000
- Credit report: $30 to $60
- Lender’s title insurance: $3,000 to $6,500
- Escrow fee, buyer share: $1,200 to $2,500
- Recording fees: $200 to $500
- Property tax proration and any parcel assessments: varies with closing date
- Prepaid interest and homeowner’s insurance: $1,000 to $5,000 combined
- Inspections: structural, sewer, pest combined $1,000 to $4,000 depending on scope
Illustrative buyer cash to close, excluding down payment: roughly $35,000 to $90,000, about 1.4 to 3.6 percent of the price, driven mostly by loan costs and points.
How to get your numbers early
Here is a practical checklist to keep you on track.
- Ask your lender for a Loan Estimate early. You should receive it within 3 business days of a loan application.
- Request a preliminary escrow or settlement estimate and a title insurance quote. Ask escrow to show who is assumed to pay each item.
- For condos, order the HOA resale packet or estoppel early. Verify monthly dues, reserve levels, and any special assessments.
- Budget for inspections and complete them before contingencies expire.
- Confirm in writing whether the seller will pay the owner’s title policy and transfer taxes. Make sure the contract reflects this.
- Clarify whether your purchase may trigger a supplemental or parcel assessment and when it would bill.
- Plan wire logistics. Call escrow to verify instructions before sending funds.
Tips to manage and minimize closing costs
- Compare lenders. Even small changes in points and fees can move your cash to close by thousands of dollars.
- Consider rate versus points. Paying points can lower your monthly payment but raises cash to close. Decide based on time horizon.
- Time your closing date. Closing near month end can reduce prepaid interest, though overall timing should fit your move-in and financing timeline.
- Confirm cost-sharing. In competitive offers, sellers sometimes request buyers to share transfer tax or other fees. Know your bottom line and negotiate accordingly.
- Review HOA documents for any fees that can be waived or shared. Ask about standard versus expedited processing costs.
Local context and helpful links
Want to zoom out and choose the right block by block? Explore our neighborhood content and buyer resources.
- Browse our Union Square neighborhood guide for area insights.
- See current options on our Downtown San Francisco condos page.
- Get process clarity with our San Francisco condo buying tips.
- Learn how taxes bill with our guide to SF property taxes and assessments.
- Explore more areas in our San Francisco neighborhood guides.
For exact transfer tax brackets, check the San Francisco Treasurer and Tax Collector, and ask your escrow officer for a written calculation. Your lender must also deliver a Closing Disclosure at least 3 business days before you sign, so you can review the final numbers.
If you want one-on-one guidance tailored to your price point and building type, reach out. As a Broker Associate with deep mortgage and asset management experience, I will help you model cash to close, negotiate smart cost allocations, and move from offer to keys with confidence. Connect with Susanne Alexander to get started.
FAQs
Who pays San Francisco’s city transfer tax on a home sale?
- Under local rules the party executing the deed is responsible. By custom in San Francisco the seller usually pays city and county transfer taxes, but the contract can allocate differently. Confirm in writing.
Do buyers pay for title insurance in San Francisco?
- If you finance, you typically pay for the lender’s title insurance policy. The owner’s title policy is commonly a seller expense in California, though it is negotiable.
How much should I budget for buyer closing costs in SF?
- A conservative planning range is roughly 1 to 3 percent of the purchase price in many San Francisco transactions, excluding the down payment. High price points and jumbo loans increase the dollar amount.
Who pays escrow and recording fees in San Francisco?
- Parties often split escrow fees. Buyers usually pay loan recording fees. Always check your purchase contract and the escrow instructions.
When will I see my exact closing costs before I sign?
- You should receive a Loan Estimate within 3 business days of application and a Closing Disclosure at least 3 business days before closing. Escrow can provide a preliminary settlement summary earlier on request.
Do condos near Union Square add extra buyer costs?
- Condos can include HOA document or estoppel fees, prorated dues, and possible prepayment of upcoming dues. Review the HOA packet early and ask about any special assessments.
