Closing Costs in Arcadia: What Buyers and Sellers Should Know

What will your closing costs look like in Arcadia? If you are buying or selling in the San Gabriel Valley, it helps to know what is customary in Southern California and where you can negotiate. You want clear numbers so you can plan your budget and move forward with confidence. In this guide, you will learn who typically pays which fees, realistic ranges to expect, and the steps to get exact figures for your home. Let’s dive in.

Closing costs at a glance

Closing costs are the fees and prepaid items due at the end of your transaction. In Southern California, it is common for sellers to cover the owner’s title policy and real estate commissions, while buyers cover lender-related fees, recording, and most prepaid items. Every contract is negotiable, so use these customs as a starting point rather than a rule.

Buyer pays: typical items

• Lender fees and points, including processing and underwriting.
• Appraisal and credit report.
• Lender’s title insurance policy.
• Buyer share of escrow fees (often split 50/50, but can vary).
• County recording fees for buyer documents.
• Prepaid homeowners insurance, prepaid interest, and initial impounds if required.
• Property tax proration from closing date to the next due date.
• HOA transfer fees or move-in fees where applicable.
• Home inspections and pest/termite reports.

Seller pays: typical items

• Real estate commissions, commonly the largest cost for sellers.
• Owner’s title insurance policy.
• Seller share of escrow fees (often split 50/50, but negotiable).
• Payoff of existing mortgages, liens, judgments, or assessments.
• Prorated items owed to the buyer, such as property taxes, utilities, or HOA dues.
• Any repairs or credits agreed to in the contract, and optional home warranty if offered.

Shared or negotiable items

• Escrow company fees, often split.
• Transfer taxes where applicable, based on local customs or negotiation.
• HOA-related fees and reserves, per the HOA and the purchase contract.

How much do closing costs run?

While every deal is different, you can use these ballpark ranges to plan your budget:

• Buyer closing costs: about 2% to 5% of the purchase price, not including the down payment. Cash buyers avoid lender fees and the lender’s title policy, which can lower costs.
• Seller closing costs: about 1% to 3% of the sale price excluding commissions. Including typical commissions, total seller costs often land around 6% to 10% of the sale price.

Illustrative examples (estimates only)

These examples show how ranges can scale with price. Your numbers will depend on your loan, escrow/title quotes, and negotiated terms.

• $800,000 purchase or sale:

  • Buyer: 2% to 5% = about $16,000 to $40,000.
  • Seller: excluding commission 1% to 3% = about $8,000 to $24,000.
  • If commission were 5.5% as an example, that would add about $44,000 to the seller’s total.

• $1,000,000 purchase or sale:

  • Buyer: 2% to 5% = about $20,000 to $50,000.
  • Seller: excluding commission 1% to 3% = about $10,000 to $30,000.
  • If commission were 5.5% as an example, that would add about $55,000 to the seller’s total.

• $1,500,000 purchase or sale:

  • Buyer: 2% to 5% = about $30,000 to $75,000.
  • Seller: excluding commission 1% to 3% = about $15,000 to $45,000.
  • If commission were 5.5% as an example, that would add about $82,500 to the seller’s total.

Arcadia and LA County specifics to verify

• City transfer tax: Some LA County cities add a municipal transfer tax. Confirm whether Arcadia imposes a city transfer tax for your property and who customarily pays it. Your escrow or title company and the City of Arcadia can confirm.
• County recording and documentary fees: Los Angeles County sets these fees by document. Your escrow officer will list the exact charges on your final statement.
• Property taxes and prorations: California’s base property tax is about 1% of assessed value plus parcel-specific voter-approved assessments. Proration is calculated by day based on the county tax calendar.
• HOA and local assessments: For condos and planned developments, check HOA transfer fees, reserves, and any special assessments. These can affect both your closing costs and your long-term budget.

How each fee is calculated

• Percentage-of-price items: Real estate commissions are commonly a percentage of the sale price. Title insurance premiums in California are also price-based using filed rate schedules.
• Per-document or flat fees: Appraisals, credit reports, recording, and many escrow fees follow flat or sliding schedules. In most LA County deals, escrow and title fees fall in the low-thousands range, depending on price.
• Prorations and prepaids: Property taxes, prepaid interest, and HOA dues are prorated by day. Buyers typically prepay the first year of homeowners insurance and may fund tax and insurance impounds if required by the lender.

The documents that give you exact numbers

Buyers and sellers receive clear disclosures and statements that show exact amounts once your file is in escrow and your loan is approved.

• Loan Estimate: Your lender must provide this within three business days after you apply. It shows estimated loan fees and cash to close.
• Closing Disclosure: Delivered at least three business days before closing, it shows your final buyer costs.
• Preliminary title report: Identifies liens, taxes, and title insurance costs.
• Escrow statements: Your escrow company issues fee statements, payoff figures, and the final settlement statement showing net proceeds for sellers and cash to close for buyers.
• Seller net sheet: Your agent or escrow can prepare an estimate of your proceeds based on price, fees, and payoffs.

A quick buyer checklist

• Get a Loan Estimate from your lender and compare at least two options.
• Ask your escrow company for a written escrow fee quote and title fee schedule for your price point.
• Budget for appraisal, inspections, prepaid insurance, prepaid interest, and property tax proration.
• Confirm HOA transfer fees, move-in fees, and any required reserves.
• Review your Closing Disclosure carefully at least three business days before signing.

A quick seller checklist

• Ask for a seller net sheet early, and update it once you have a signed offer.
• Confirm whether a city transfer tax applies in Arcadia and who customarily pays it.
• Review the preliminary title report for liens, HOA dues, and assessments that must be cleared.
• Verify commission, owner’s title policy, escrow split, and any credits or repairs agreed in the contract.
• Check payoff figures and reconveyance fees with your lender through escrow.

Common cost drivers and surprises

• Cash purchases: Lower buyer costs due to no lender fees and no lender’s title policy.
• Loan changes: Points, underwriting conditions, and rate-lock changes can shift totals near closing.
• Supplemental property taxes: A change of ownership can trigger supplemental tax bills after closing.
• Special assessments: Mello-Roos, local bonds, or HOA special assessments affect prorations and future carrying costs.

How to get precise Arcadia numbers

1. Ask your agent for a written seller net sheet or buyer cost estimate based on your price and timing.
2. Request an escrow and title fee quote for your property and purchase price.
3. Obtain your Loan Estimate, then review the Closing Disclosure as soon as it arrives.
4. Confirm with the City of Arcadia or your escrow officer whether a municipal transfer tax applies and who pays it.
5. Verify property tax status and any supplemental assessments through LA County offices or your escrow team.

Ready for next steps?

If you want a clear, no-pressure walk-through of your numbers, reach out for a local estimate that reflects your price, loan, HOA, and timeline. With 35+ years of San Gabriel Valley experience, I can coordinate your lender, title, and escrow teams so your Closing Disclosure and final settlement statement match your expectations. When you are ready, let’s review your costs and net proceeds together and set a plan that fits your goals.

Schedule a free market consultation with Patricia Parish.

FAQs

What are typical buyer closing costs in Arcadia?

• Expect about 2% to 5% of the purchase price, covering lender fees, appraisal, lender’s title policy, recording, escrow share, prepaids, and inspections.

Who pays for title insurance in Southern California deals?

• It is customary for sellers to pay the owner’s title policy and buyers to pay the lender’s policy, but your purchase agreement can negotiate a different split.

Does the City of Arcadia charge a local transfer tax?

• You should verify with the City of Arcadia or your escrow/title company, since some LA County cities do charge a municipal transfer tax and payment is often set by local custom.

When will I see my final closing costs as a buyer?

• Your lender delivers a Closing Disclosure at least three business days before closing, and escrow provides a final settlement statement showing your exact cash to close.

How are LA County property taxes prorated at closing?

• Taxes are prorated by day using the county tax calendar, with a base rate around 1% of assessed value plus voter-approved parcel assessments.

How long does escrow usually take in Los Angeles County?

• Many transactions close in about 30 to 45 days, though timing depends on loan approval, inspections, and negotiated contract terms.