Are you wondering how much you will actually pay to close on a home in Folsom? Whether you are buying or selling, the final numbers can feel confusing. You want a clear, local breakdown that helps you plan with confidence and avoid surprises. In this guide, you will learn what closing costs usually include, who typically pays what in California, ballpark amounts to budget, and local tips specific to Folsom and Sacramento County. Let’s dive in.
What closing costs cover
Closing costs are all the fees and charges you need to complete a home sale beyond the purchase price. These include title and escrow services, loan and appraisal fees, government charges like recording and transfer taxes, and prorations for items such as property taxes and HOA dues. Exact amounts and who pays each item are set by local custom and your purchase agreement, so your final allocation may differ based on negotiation and provider.
Who typically pays what in California
Customs vary by region and are negotiable. The list below reflects common practice in many Northern California transactions.
Title, escrow, and recording
- Owner’s title insurance policy: customarily paid by the seller in many California markets.
- Lender’s title insurance policy: usually paid by the buyer when there is a mortgage.
- Escrow fees: often split 50-50 between buyer and seller, though this can be negotiated.
- Recording fees: buyers usually pay to record the deed and loan documents. Sellers may pay to record reconveyances or lien releases.
Lender and loan costs
- Origination, processing, underwriting, credit report, and funding: typically paid by the buyer.
- Appraisal and lender-ordered inspections: typically paid by the buyer.
- Prepaid interest and initial escrow impounds for taxes and insurance: paid by the buyer when required by the lender.
Government charges and transfer taxes
- County or city transfer taxes: who pays can vary by county, city, and contract. In many California counties, the seller pays the county transfer tax, but the parties can negotiate a different split. Confirm what applies for your Folsom transaction before you open escrow.
- Recording fees: buyer typically pays for deed and deed of trust recordings. Seller may pay for any reconveyance recordings.
Prorations and recurring items
- Property taxes: prorated between buyer and seller based on the closing date. The seller usually pays through the date of close, and the buyer is responsible after closing.
- HOA dues and assessments: prorated at closing based on the billing cycle.
- Utilities and services: prorated if agreed by the parties.
Seller-specific costs
- Real estate broker commissions: most sellers pay the commission, which is the largest single cost in many sales.
- Owner’s title policy: customarily paid by the seller.
- Mortgage payoff and related fees: seller pays any outstanding loan balances and payoff costs.
- Concessions, credits, or rate buy-downs: optional and negotiated with the buyer.
Buyer-specific costs
- Inspections such as home, pest, septic, or sewer: typically paid by the buyer.
- Loan-related prepaids and mortgage insurance premiums: buyer pays as required.
- HOA transfer and resale fees: may be charged to buyer or seller depending on the HOA and contract.
How much to budget in Folsom
Actual costs depend on your loan, escrow and title provider, contract terms, and timing. As a general planning range:
- Buyers with a mortgage: plan for about 2 to 5 percent of the purchase price for closing costs, including prepaids and impounds.
- All-cash buyers: often see lower totals, around 0.5 to 2 percent, since there are no loan-related fees.
- Sellers: non-commission closing costs commonly fall around 1 to 3 percent of the sale price. When you include brokerage commission, the total out-of-pocket is often around 6 to 9 percent in many California markets.
These ranges are broad. For buyers, loan fees and required reserves create most of the variation. For sellers, commission is usually the biggest factor.
Illustrative estimate for a $700,000 Folsom home
Below is a simple example to show how the numbers can add up. This is illustrative only. Your actual fees will be set by your lender, title and escrow company, county or city charges, and your contract.
Assumptions: purchase price $700,000, 20 percent down, loan amount $560,000, seller pays owner’s title policy, escrow fee split 50-50.
Buyer example costs
- Lender fees and origination: $2,500
- Appraisal: $600
- Credit report and processing: $75
- Lender’s title policy: $1,300
- Buyer’s share of escrow fee: $900
- Recording fees for deed and loan: $150
- Prepaid interest, taxes, and insurance for impounds: $3,000
- HOA transfer or resale documents, if applicable: $300
- Inspections, such as home and pest: $800
Estimated buyer total: about $9,825, which is roughly 1.4 percent of $700,000. With different lender fees or higher prepaids, many buyers see 2 to 4 percent.
Seller example costs
- Broker commissions: variable and typically the largest seller expense
- Owner’s title policy: $2,200
- Seller’s share of escrow fee: $900
- Transfer tax and recording to verify: variable based on county or city rules
- Prorated property taxes: depends on the closing date
- Optional home warranty: about $500
Estimated seller total excluding commission: roughly $4,600 to $6,600, or about 0.7 to 0.9 percent of the sale price, plus any commissions.
Folsom and Sacramento County specifics
Transfer taxes and recording
City and county transfer tax rules differ across California. Some cities add a local transfer tax on top of a county tax. The City of Folsom has not historically charged a separate city transfer tax, but policies can change. Always confirm current transfer tax and recording fees with Sacramento County and the City of Folsom before you finalize your estimate.
Property taxes and special assessments
Sacramento County generally collects base property tax that is about 1 percent of the assessed value, plus voter-approved assessments and any parcel taxes. In and around Folsom, some newer communities include Community Facilities District special taxes, also known as Mello-Roos. These are listed on the property’s tax bill and disclosed in escrow, and they are prorated at closing. If you are buying, review the preliminary title report, tax bill, and HOA disclosures to confirm whether any special assessments apply and how much they cost annually.
Title insurance and escrow fees
Title insurance premiums in California are based on state-filed rate schedules. The premiums vary by purchase price and loan size, and by who pays for each policy. Escrow fee structures differ by company. Ask your title and escrow team for a written fee worksheet tailored to your price, loan amount, and closing date so you have an accurate estimate early in escrow.
Smart steps to cut surprises
- Request a Loan Estimate from your lender as soon as your offer is accepted, then update it if your rate, loan program, or close date changes.
- Ask your title and escrow provider for an itemized fee quote before or at the start of escrow, including how escrow fees will be split.
- Review the preliminary title report, the current tax bill, and any HOA documents to identify special assessments, Mello-Roos, and HOA transfer fees.
- Confirm whether the contract allocates transfer tax to the buyer, the seller, or splits it. Align this with local custom and your negotiation strategy.
- Ask your lender if you will need impounds for property taxes and insurance, and how much you will deposit at closing.
- If you are a buyer, consider negotiating a seller credit to offset closing costs. If you are a seller, consider offer terms that keep your net strong while staying competitive.
For sellers: plan your net with clarity
Your commission is usually the largest closing line item. Beyond commission, most seller costs are modest and predictable, including the owner’s title policy, half of escrow in many cases, recording to clear liens, and prorated taxes. If you want to reduce surprises, get an itemized estimate early, verify any transfer tax, and review your payoff statements. A skilled listing team can model your net sheet under different scenarios so you choose the best path to market.
Our team’s process-driven listing approach helps you focus on strategy, not paperwork. From staging and photography to contract terms and closing coordination, our systems are built to protect your timeline, your price, and your peace of mind.
For buyers: budget and win the house
Buyers who plan early reduce stress later. Start by setting aside funds for both the down payment and closing costs. Expect to fund prepaids and initial impounds if your lender requires them. If you are comparing loan programs, look at total cost of funds, not just the rate. You can ask about lender credits to offset fees, or, if the market allows, request a seller credit for closing costs.
When you are ready to write an offer, include a plan for inspections and timelines. Fast, clean documentation and proactive communication from your agent and lender make your closing smoother and more predictable.
Ready for a clear, local estimate tailored to your address and contract terms? Connect with our team at Turner DeMarco Group - VIP for help planning your costs and next steps.
FAQs
How much should a Folsom buyer budget for closing costs?
- If you are financing, plan for about 2 to 5 percent of the purchase price, including prepaids and impounds. Cash buyers often see 0.5 to 2 percent.
In California, who usually pays for title insurance policies?
- It is customary in many markets for the seller to pay the owner’s policy, and for the buyer to pay the lender’s policy when there is a mortgage. This is negotiable.
Are transfer taxes charged on Folsom home sales?
- Transfer taxes can apply at the county or city level and are set by local rules and your contract. Confirm current Sacramento County and City of Folsom requirements before closing.
Are property taxes and Mello-Roos prorated at closing in Sacramento County?
- Yes. Property taxes, HOA dues, and any special assessments listed on the tax bill are typically prorated based on the closing date.
Who pays escrow fees in a typical Northern California transaction?
- Escrow fees are often split 50-50 between buyer and seller, though your purchase agreement can allocate them differently.
What is the biggest closing cost for sellers in Folsom?
- Commission is usually the largest single cost for sellers. Other line items such as title, escrow, recording, and prorated taxes are typically much smaller by comparison.
