Sticker shock at the closing table does not have to derail your move. If you are buying or selling in San Mateo, it helps to know what shows up on your settlement statement and who typically pays each item. With a clear plan, you can avoid surprises and keep your timeline on track. In this guide, you will learn what closing costs include, how local customs work in San Mateo County, and simple steps to estimate your total. Let’s dive in.
San Mateo closing costs at a glance
Closing costs are the non‑purchase‑price fees and prorations you pay at escrow closing. They cover things like lender fees, escrow and title charges, recording, prepaid taxes and insurance, inspections, and any transfer taxes. As a planning guide, buyer costs often fall around 2% to 5% of the purchase price, and seller costs (not including agent commission) often fall around 1% to 3%. In a high‑value market like San Mateo, dollar amounts are higher even when the percentages are similar. Your actual total depends on your loan, negotiated credits, HOA fees, and city or county transfer taxes.
Local practices vary across San Mateo County. Some fees are negotiable and customs can shift. Your purchase agreement and escrow instructions control who pays what, so always confirm with your escrow and title team.
Who usually pays what
Every deal is negotiated, but here is a common pattern in San Mateo County:
- Buyers typically pay lender charges, appraisal, their share of escrow fees, the lender’s title insurance policy, recording fees to take title, homeowner’s insurance, prepaid interest, and most inspections.
- Sellers typically pay real estate commissions, county or city transfer taxes where applicable, the owner’s title policy in many transactions, their share of escrow fees, payoff of existing loans or liens, and prorated property taxes.
Your agent and escrow officer will explain the current local custom for your city and price point and adjust as needed in your offer or counter.
Buyer closing costs explained
Loan and lender fees
If you finance your purchase, you will see origination, processing, and underwriting fees from your lender. Most lenders also require an appraisal. You will pay for a credit report and the lender’s title insurance policy, which protects the lender’s lien. California does not typically have a state mortgage recording tax, but you will pay county recording fees.
Your lender must provide a Loan Estimate within three business days of your application and a Closing Disclosure at least three business days before closing. These forms list your exact loan‑related charges.
Escrow and title charges
The escrow company administers the closing, holds funds, and coordinates recording. Escrow fees are usually based on price and are sometimes split 50/50, though this is negotiable. The title company does a title search and issues title insurance. There are two policies: a lender’s policy and an owner’s policy. The lender’s policy is required when you have a mortgage. The owner’s policy protects your ownership; payment responsibility varies by local custom and negotiation.
Recording and government fees
The San Mateo County Recorder charges to record your deed and any deed of trust. Recording occurs after escrow confirms funds and instructions and creates the public record of your ownership.
Prepaids and prorations
You will prepay homeowner’s insurance (often the first year) and interest from your closing date to the start of your first payment. Property taxes are prorated between buyer and seller based on the closing date. Under Proposition 13, the base tax rate is about 1% of assessed value, with possible local assessments. Some homes carry Mello‑Roos or other special assessments, which you will see on the preliminary title report or tax bill.
HOA items and inspections
If you are buying in an HOA, expect possible transfer and document fees, plus prorated dues and any assessments. Buyers typically pay for home and pest inspections and may order specialized inspections when needed.
Seller closing costs explained
Commissions
For most sellers, real estate commissions are the largest cost. Commission structures and rates are negotiable and are typically expressed as a percentage of the sale price. Your listing agreement will spell out the terms and how compensation is shared.
Transfer taxes
San Mateo County and some cities may charge documentary or transfer taxes based on the sale price. Responsibility is often negotiable, though many transactions allocate the county documentary transfer tax to the seller. Check the current county and city practices for your address and confirm the allocation in your purchase agreement.
Escrow, title, and payoffs
Sellers commonly pay for the owner’s title insurance policy in many Peninsula transactions, though practice can vary. Escrow fees are often split. Escrow will collect payoff amounts for any mortgages or liens so title can transfer free and clear.
Prorations and other items
Escrow will prorate property taxes, HOA dues, and some utilities based on the close date. If you agreed to repairs, credits, a home warranty, or termite work, those items will show on your closing statement. Tax implications, including capital gains, are handled after closing with your tax advisor.
How escrow, title, and recording work here
California is an escrow state. A licensed escrow company coordinates documents, funds, and recording. Your escrow officer issues a preliminary settlement statement that summarizes estimated debits and credits for each party. The title company issues the prelim report, clears issues, and prepares title insurance.
A typical escrow in San Mateo runs about 30 to 45 days for financed purchases, though it can be shorter or longer. Recording usually happens on the target close date once escrow receives loan funds and any buyer cash to close. After recording, escrow disburses funds to the seller and pays off liens and fees.
County and city transfer taxes
Documentary transfer taxes can be levied by the county and, in some cases, by a city within San Mateo County. Rates and who pays can vary by municipality and may change over time. Your escrow officer will calculate the exact tax for the property’s jurisdiction and the agreed allocation. If your property is in the City of San Mateo or another Peninsula city, ask early whether a city‑level tax applies.
How to estimate your closing costs
Use this simple workflow to produce a solid estimate before you write or accept an offer.
Step 1: Gather your inputs
- Price target or expected sale price.
- Loan details if buying with financing: program and loan amount.
- HOA information, including monthly dues and any transfer or document fees.
- Any known assessments such as Mello‑Roos or other special taxes.
- Planned concessions or credits, such as a seller credit toward buyer costs.
Step 2: Request local quotes early
- Ask a local title or escrow company for a fee quote for your price point, including title insurance and escrow fees.
- Buyers: request a Loan Estimate from your lender to see origination, appraisal, and prepaid items.
- Sellers: ask your agent for a net sheet that includes commission, expected transfer taxes, owner’s title policy, escrow share, payoffs, and prorations.
Step 3: Use a standard checklist
For buyers, add up:
- Lender fees, appraisal, credit report.
- Lender’s title policy and your share of escrow fees.
- Recording fees.
- Prepaids and prorations: property taxes, homeowner’s insurance, and prepaid interest.
- HOA transfer or estoppel fees and any assessments.
- Inspection costs.
For sellers, add up:
- Commission per your listing agreement.
- Owner’s title policy and your share of escrow fees.
- County and possible city transfer taxes.
- Mortgage and lien payoffs.
- Prorated property taxes and HOA dues.
- Agreed credits, repairs, termite work, or home warranty if provided.
Step 4: Convert percentages to dollars with care
Percentages are helpful for quick planning, but they are approximate. Start with buyers at about 2% to 5% of price and sellers at about 1% to 3% excluding commission. Then replace placeholders with actual quotes from your lender, escrow, and title company for a more exact number.
Ways to reduce your closing costs
You can often trim costs with a few simple steps:
- Negotiate allocation of items like escrow fees or the owner’s title policy in your offer or counter.
- Request lender credits or compare lenders to find lower origination fees.
- Compare title and escrow quotes to see how fee structures differ at your price point.
- Time optional work and avoid paying for items not required by your lender or contract.
What to gather before you request a net sheet
Having the right documents speeds up accurate estimates:
- Most recent property tax bill and any notices of special assessments.
- HOA package with dues, transfer fees, and any pending assessments.
- Loan payoff statements for current mortgages or lines of credit.
- For buyers: your Loan Estimate and preferred closing date.
- Any offer terms that affect prorations or credits.
San Mateo takeaways
- Closing costs come from several buckets: lender, escrow and title, recording, prepaids and prorations, inspections, and transfer taxes.
- Local customs in San Mateo County influence who pays specific items, and city rules may add a transfer tax.
- The fastest route to accurate numbers is to combine lender disclosures with live title and escrow quotes for your address and price point.
If you want a clear picture tailored to your home or the property you are targeting, request a personalized estimate and net sheet. As a local, full‑service agent on the Peninsula, I coordinate with lenders, title, and escrow so you have exact figures before you commit.
Ready to plan your move with confidence? Reach out to Suzanne Garcia for a custom buyer estimate or seller net sheet based on current San Mateo County practices and your timeline.
FAQs
Who pays the county documentary transfer tax in San Mateo?
- Responsibility is negotiable and often allocated to the seller, but customs vary by city and should be confirmed in your purchase agreement and with escrow.
Do buyers or sellers pay for the owner’s title insurance policy?
- The lender’s policy is a buyer expense when financing, while payment for the owner’s policy varies by local custom and is negotiable in San Mateo County.
How are property taxes prorated at closing in San Mateo County?
- Taxes are prorated based on the closing date and the county tax calendar, with Proposition 13 rules and any local assessments reflected on your closing statement.
What unexpected closing costs should I plan for in San Mateo?
- Possible HOA transfer or estoppel fees, Mello‑Roos or other special assessments, termite work, and city‑level transfer taxes in certain municipalities.
How can I estimate my closing costs before I write an offer?
- Combine your lender’s Loan Estimate with a title and escrow fee quote, then apply standard prorations and any negotiated credits to reach a realistic total.
