Buying or selling a home in Los Feliz? Closing costs can surprise even seasoned Angelenos if you do not plan for them early. You want a clear, calm roadmap that tells you what you will likely pay, when it is due, and what is negotiable. In this guide, you will learn typical buyer and seller costs, Los Angeles specific fees, and practical steps to avoid last minute surprises. Let’s dive in.
What closing costs cover in Los Feliz
Closing costs are the one time fees and prepaids due at the end of your transaction. In Los Feliz, they reflect City of Los Angeles and Los Angeles County rules, plus lender, title, and escrow charges. Most items are standard, but who pays them can be negotiated in your contract. Your escrow company will itemize every charge on the final settlement statement.
Buyer closing costs: what to expect
Transaction and third party fees
You will see fees for title insurance, escrow, recording, and small administrative items. Buyers who finance typically pay the lender’s title insurance policy, while the owner’s policy is often a seller cost by local custom. Recording fees to file your deed and loan are usually modest. For exact county recording charges, check the Los Angeles County Registrar Recorder and County Clerk site through the Los Angeles County RR CC portal.
You will also pay for inspections you order. Common options include general home, wood destroying organism, sewer, roof, HVAC, and mold evaluations. For condos or homes in an HOA, budget for HOA resale documents and possible estoppel or transfer fees, which can be several hundred dollars.
Loan and lender fees
If you are financing, expect a loan origination or processing fee, appraisal, credit report, underwriting, and possibly discount points if you choose to buy down your rate. Lenders collect an escrow deposit for taxes and insurance to set up your impound account, often equal to a few months of payments. For a plain English explainer of these line items, review the CFPB guide to the Loan Estimate.
Prepaids and prorations
At closing, you prepay your first year of homeowners insurance and fund tax and insurance reserves if required by your lender. You also reimburse the seller for any property taxes or HOA dues they paid in advance, prorated to the close date. Utility and other city services may be prorated as well.
How much to budget
As a rule of thumb, buyer closing costs in Los Feliz commonly run about 2 to 5 percent of the purchase price, not including your down payment. For example, on a $1,000,000 purchase, it is reasonable to budget around $20,000 to $50,000 for fees and prepaids. Your lender will issue a Closing Disclosure at least three business days before signing with exact numbers.
Seller closing costs: line items
Major seller costs
The largest seller expense is the real estate commission. In California, total commission often ranges 5 to 6 percent of the sale price, and it is negotiable. Other common costs include the owner’s title insurance policy, City and County transfer taxes, your share of escrow fees, and payoff of any mortgages or liens. You will also see prorations for property taxes and HOA dues through the day of closing.
What sellers typically pay
In many Southern California transactions, the seller pays for the owner’s title insurance policy, while escrow fees are often split with the buyer. City and County documentary transfer taxes are commonly a seller expense in Los Angeles, but this is negotiable and should be confirmed with your escrow officer. Always verify the current tax rules with the City of Los Angeles Office of Finance and your title company before you set a net number.
How much to budget
Seller closing costs excluding commission often total 1 to 3 percent or more of the sale price. When commission is included, plan for roughly 6 to 10 percent in total costs. On a $1,000,000 sale with a 5.5 percent commission, the commission would be $55,000. Adding title, escrow, transfer taxes, and prorations, sellers often net about $60,000 to $90,000 below the sale price, depending on specifics.
Los Angeles specifics that surprise buyers and sellers
City and County transfer taxes
Because Los Feliz is inside the City of Los Angeles, documentary transfer taxes may be due to both the City and the County. Rates and thresholds can change and may have tiered structures. Confirm current rules and who will pay in your deal with the City of Los Angeles Office of Finance and your escrow officer before you budget.
Supplemental property tax bill
After a change in ownership, Los Angeles County typically issues a one time supplemental property tax bill. It adjusts for the difference between the prior assessed value and your new purchase price for the remainder of the tax year. Many first time buyers do not expect this extra bill. Learn more on the Los Angeles County Assessor site.
Title insurance: owner vs. lender
California title insurance rates are regulated and are tied to price and loan amount. By custom in much of Southern California, sellers often pay for the owner’s policy and buyers pay for the lender’s policy if there is a loan. You can review consumer information about title insurance on the California Department of Insurance website, and your escrow officer can provide a precise quote.
HOA documents and estoppels
For condominiums and properties within an HOA, the buyer and seller should plan for HOA transfer, estoppel, and document fees. These charges can be several hundred dollars and are often negotiated. Your escrow team will obtain the required package and add the fees to the closing statement.
FIRPTA withholding
If a seller is a foreign person or entity, federal FIRPTA rules may require the buyer to withhold a portion of the sale proceeds unless an exemption or reduced withholding applies. For an overview of how FIRPTA works, see the IRS FIRPTA Withholding page. Always consult tax counsel and your escrow officer for transaction specific guidance.
Timing, funds, and avoiding surprises
What you pay and when
Buyers usually deposit earnest money equal to about 1 to 3 percent of the purchase price soon after the offer is accepted. That deposit is credited toward your down payment and closing costs at settlement. Final funds to close include your down payment plus closing costs and prepaid items. Sellers receive net proceeds after paying off any mortgages, transfer taxes, and other closing costs.
Key documents that show your numbers
Financed buyers receive two key documents that explain costs. The CFPB Loan Estimate arrives early and outlines projected loan and closing charges. At least three business days before closing, you receive the CFPB Closing Disclosure with final figures. All parties also receive an escrow settlement statement that shows prorations and who pays what.
Negotiation levers
Many closing cost items are negotiable. Buyers can request a seller credit to offset closing costs, and they can shop lenders to reduce origination fees or points. Sellers can negotiate commission rates with their listing agent and can consider providing targeted credits to resolve inspections or appraisal issues. Escrow fees, title policy selection, and who pays transfer taxes are also subject to contract terms.
Quick checklist
- Ask your escrow officer for a detailed fee estimate that shows City and County transfer taxes and recording fees.
- Request a preliminary Closing Disclosure from your lender as soon as possible.
- Confirm the exact impound amounts for taxes and insurance if your loan will have an escrow account.
- If buying, budget for a supplemental property tax bill in the first year.
- For condos or HOAs, verify who will pay the HOA’s transfer and estoppel fees.
- If the seller may be foreign, discuss FIRPTA early with your agent, escrow, and tax advisor.
Close with confidence in Los Feliz
A smooth closing comes from clear expectations, early estimates, and smart negotiation. With boutique level attention and deep knowledge of Los Feliz, you can plan for every line item and protect your bottom line. If you want a private, end to end strategy for your next move, connect with Sami Housman to review your numbers and options.
FAQs
How much should I budget for closing costs in Los Feliz?
- Buyers often plan for 2 to 5 percent of the purchase price, while sellers commonly plan for 6 to 10 percent when commissions are included; ask your lender and escrow for written estimates.
Who typically pays the City of Los Angeles transfer tax?
- It is often a seller expense in Los Angeles, but payment is negotiable; verify current rules with the City’s Office of Finance and your escrow officer.
What is a supplemental property tax bill in Los Angeles County?
- After a sale, the County may issue a one time bill that captures the difference between the old and new assessed values for the remainder of the tax year.
Do sellers pay for the owner’s title insurance policy in Los Feliz?
- In many Southern California deals the seller pays for the owner’s policy and the buyer pays the lender’s policy, though it can be negotiated.
How long does escrow usually take in Los Feliz?
- Many residential escrows close in 30 to 45 days, depending on loan approval, inspections, and HOA document timelines.
What happens if the seller is a foreign owner under FIRPTA?
- Federal rules may require the buyer to withhold funds at closing unless an exemption applies; consult your escrow officer and a tax professional early in the process.
