What LA Sellers Pay at Closing: Your 2026 Net Sheet
LA home sellers pay 7-10% of the sale price at closing: commissions, escrow, title insurance, transfer taxes, and Measure ULA. Here's exactly what you'll net.
What does a Los Angeles home seller pay at closing?
Los Angeles home sellers typically pay between 7% and 10% of the sale price in combined closing costs before mortgage payoff. That includes agent commissions (usually 5-6% combined), escrow fees, title insurance (seller-paid in Southern California), and the City of Los Angeles documentary transfer tax. Properties above the Measure ULA thresholds face an additional 4% or 5.5% transfer tax on top of everything else. On a $2 million sale, expect to net roughly $1.85-1.88 million before paying off any existing mortgage.
By Paul Blair | May 28, 2026
Before you sign a listing agreement, there's one question that matters more than the projected sale price.
How much will you actually keep?
The Zestimate and your neighbor's opinion don't answer that question. Your closing costs do.
In Los Angeles, selling a home involves more fee layers than almost any other market in the country. You'll pay the county, the city, an escrow company, a title insurer, and very likely two real estate agents. If your home sits above $5 million in the City of Los Angeles, Measure ULA adds a transfer tax on top of everything else that can run into the hundreds of thousands.
Here's every line item, in plain language, so you know exactly what to expect before you list.
The Largest Item: Agent Commissions
Commissions are the biggest single reduction to your net proceeds. They're also the most negotiable.
In most Los Angeles transactions, the combined cost of representation runs 5-6% of the sale price. Your listing agent typically charges 2.5-3% to market your home and manage the transaction. The buyer's agent commission is now negotiated separately under rules that took effect in August 2024 (part of the NAR settlement). In practice, most sellers in the LA luxury market still offer a buyer's concession, because limiting that concession reduces the pool of buyers willing to make an offer.
On a $2 million home, 5.5% in combined commissions = $110,000. On a $5 million home, that same rate = $275,000.
There's room to negotiate here, particularly if you're selling a desirable property in a competitive price range. But the commission conversation is best had directly with your agent before you list, not after you're already under contract.
The Transfer Tax Stack
California's transfer tax structure is already more complex than most states. Los Angeles piles on additional layers.
The Los Angeles County documentary transfer tax is $1.10 per $1,000 of sale price. That's roughly $2,200 on a $2 million sale.
If your property is within the City of Los Angeles (as opposed to unincorporated LA County or a separate incorporated city like Beverly Hills), the city adds its own documentary transfer tax of $4.50 per $1,000. On that same $2 million sale, the city portion adds another $9,000.
Then there's Measure ULA.
The City of Los Angeles Measure ULA ("mansion tax") imposes an additional transfer tax on sales above annually indexed thresholds. As of the most recent adjustment, the 4% tier applies above approximately $5.15 million, and the 5.5% tier applies above approximately $10.3 million. Critically, the tax applies to the full sale price, not just the amount above the threshold.
On a $7 million sale in the City of Los Angeles, Measure ULA costs $280,000 (4% of $7 million) on top of all other transfer taxes and commissions.
Worth knowing: Beverly Hills is separately incorporated and does not impose the City of LA transfer taxes or Measure ULA. Neither do most unincorporated LA County properties. This distinction matters a great deal if you're comparing two properties that sit on opposite sides of a city boundary.
What You Net at Different Price Points
Here's how the math works in practice. These figures assume the City of Los Angeles and a 5.5% combined commission. Your actual costs will vary.
$2,000,000 sale:
| Cost | Amount | |---|---| | Agent commissions (5.5%) | -$110,000 | | Escrow fee (seller's half, est.) | -$3,500 | | Title insurance (owner's policy) | -$2,000 | | County documentary transfer tax ($1.10/$1,000) | -$2,200 | | City of LA documentary transfer tax ($4.50/$1,000) | -$9,000 | | Measure ULA | none (below threshold) | | NHD report | -$100 | | Home warranty (if offered) | -$500 | | Property tax proration | varies | | Approximate seller costs (before mortgage payoff) | ~$127,000-$132,000 |
You net roughly 93-94% of the sale price before paying off your loan.
$7,000,000 sale:
| Cost | Amount | |---|---| | Agent commissions (5.5%) | -$385,000 | | Escrow fee (seller's half, est.) | -$8,000 | | Title insurance (owner's policy) | -$5,000 | | County documentary transfer tax | -$7,700 | | City of LA documentary transfer tax | -$31,500 | | Measure ULA (4% on full price) | -$280,000 | | NHD report | -$100 | | Home warranty (if offered) | -$500 | | Property tax proration | varies | | Approximate seller costs (before mortgage payoff) | ~$718,000-$725,000 |
You net roughly 89-90% of the sale price before paying off your loan.
The Measure ULA impact is the biggest shift above the threshold. It's why sellers in the $5-10 million range need to run a real net sheet, not a back-of-envelope calculation, before they list.
Escrow Fees in California
In California, you close through an escrow company, not through an attorney and not through a title company. Escrow holds your funds and documents, coordinates all parties, pays off existing liens, collects transfer taxes, and transfers title once every condition is met.
The escrow fee is typically split 50/50 between buyer and seller, though this is negotiable. A common formula: $250-450 base fee plus $2-3 for every $1,000 of sale price. On a $2 million sale, the total escrow fee might run $4,000-$6,500, with the seller paying half.
Title Insurance
In Southern California, the seller traditionally pays for the owner's title insurance policy. This protects the buyer (and lender) against title defects that predate the sale.
On a $1-2 million home, the owner's title insurance policy typically runs $1,500-$2,500. On higher-value properties, the cost scales with the purchase price.
The Smaller Line Items That Add Up
California requires sellers to provide a Natural Hazard Disclosure (NHD) report. This is a third-party document that maps the property against six state-tracked hazard zones: flood, wildfire, earthquake fault, seismic hazard, dam inundation, and fire hazard severity zone. The seller pays for it. Cost: $50-150.
If the property is in a homeowners association, the seller pays transfer and document fees to the HOA, usually $200-$500, and brings dues current through closing.
Sellers sometimes offer a one-year home warranty to buyers as part of negotiations. It's not required, but it's common. Budget $400-700 if you plan to offer one.
And then there's the property tax proration. California property taxes are due in two installments, and at closing, you owe taxes from your last payment date up to the day of close. That amount varies significantly based on your assessed value and when in the tax cycle you close.
Capital Gains: The Number Sellers Often Forget
Closing costs are one set of numbers. California capital gains taxes are a separate conversation.
If you've held your home for more than two years and lived in it as your primary residence, you can exclude up to $250,000 of gain (single) or $500,000 (married filing jointly) from federal and California taxes. California conforms to this federal exclusion.
But California taxes any gains above the exclusion as ordinary income, at rates up to 13.3%. On a long-hold Hollywood Hills or Bel Air estate that's appreciated by millions, the capital gains exposure is often as significant as the transfer taxes. This is worth a conversation with a tax advisor before you decide when and how to sell.
Frequently Asked Questions
Do I have to pay the buyer's agent commission when selling my LA home?
Since August 2024, you're no longer required to offer the buyer's agent compensation through the MLS. But many LA sellers still offer a concession to attract buyers who aren't paying their agent out of pocket. Whether and how much to offer depends on your price range, the current market, and how you want to position your listing. Your agent can walk you through what's competitive in your specific neighborhood right now.
Is Measure ULA the same as the Los Angeles County transfer tax?
No, they're separate. The county documentary transfer tax ($1.10 per $1,000) applies to all sales across unincorporated LA County. The City of Los Angeles adds its own city transfer tax ($4.50 per $1,000) for properties within city limits. Measure ULA is a third, separate tax imposed only within the City of Los Angeles on sales above the annually indexed thresholds (approximately $5.15M and $10.3M as of the most recent adjustment). Beverly Hills and other separately incorporated cities are not subject to the City of LA transfer taxes or Measure ULA.
Who pays escrow fees in a California home sale?
Escrow fees in California are typically split 50/50 between buyer and seller, though this is negotiable. The split is usually established in the purchase agreement and can shift based on market conditions and negotiation. Your escrow officer will provide a preliminary estimate of fees when escrow is opened.
What is title insurance and why does the seller pay it in Southern California?
Title insurance protects against defects or claims against the property title that may have existed before the current sale. In Southern California, it's a long-standing custom for the seller to pay for the owner's title insurance policy. In Northern California, the cost is more often split. The escrow company can clarify what's customary in your specific county.
How do I figure out my actual net proceeds before I list?
The most accurate way is to ask your agent to prepare a seller's net sheet before you list. It pulls together your estimated sale price, the local tax rates, commission structure, escrow fees, and your existing mortgage balance to give you a realistic picture of what you'll walk away with. That's the number to make decisions from, not an automated estimate.
If you're getting ready to sell in Los Angeles and want to know exactly what your home is worth and what you'll net at closing, start with a current home value estimate. Then let's talk through your specific situation.
Get your LA home value estimate here
Or reach out directly at greysq.com/contact. No pressure, no pitch. Just a real conversation about your property and what the market looks like for you right now.
About Paul Blair
Paul Blair is the founder and broker of Grey Square, a virtual real estate brokerage representing buyers and sellers across Dallas and Los Angeles. With 22 years in the business and more than $200 million in closed transactions, Paul works the full range of the market, from luxury homes in the Park Cities and Preston Hollow to estates in the Hollywood Hills and across the Westside. Connect with Paul and the Grey Square team at greysq.com. TX TREC #9011505. CA DRE #01792671.