Buying or selling in Burlingame and wondering how much cash you’ll actually need at the closing table? You’re not alone. In the Peninsula market, prices are high and so are the absolute dollar amounts of closing costs, even when the percentage seems small. In this guide, you’ll learn what closing costs include, who typically pays what in California, Burlingame and San Mateo County specifics to watch, typical ranges for Bay Area price points, and smart ways to reduce or shift these expenses. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaid items you pay to finalize a home purchase or sale, separate from the price of the property. They cover lender charges, title and escrow services, government recording fees, transfer taxes, prorated taxes, and third-party reports. Exact amounts depend on your loan, property type, price, and what you negotiate with the other party.
For buyers, closing costs often bundle your lender’s fees, appraisal, title and escrow charges, prepaid interest, homeowners insurance, and property tax reserves. For sellers, the largest cost is usually brokerage commission, plus title and escrow fees, transfer taxes, and any negotiated credits or repairs.
Who pays what in California
Customs vary by county and are often negotiable in the Bay Area. Here is a helpful overview.
Buyer costs in Burlingame
You typically pay many of the loan and title items associated with financing the purchase:
- Loan charges such as origination, processing, underwriting, and any discount points
- Appraisal and credit report fees
- Lender’s title insurance policy when you finance
- A share of escrow and recording fees, often split between buyer and seller
- Government recording for the deed of trust
- Prepaid interest from funding to your first payment
- Homeowners insurance premium if paid at closing, and property tax escrow reserves if required
- Inspections and reports you order, such as home and pest inspections
- HOA transfer and document fees where applicable
- Natural hazard disclosure reports and any optional warranties you choose
- Supplemental property tax bills after closing, which are common in California
Buyer closing costs in the Peninsula commonly range from about 2 percent to 5 percent of the purchase price.
Seller costs in Burlingame
You typically cover the marketing and transfer side of the transaction:
- Real estate brokerage commissions, which are often the largest line item
- Owner’s title insurance policy, a common California custom
- A share of escrow fees
- County and possible city documentary transfer taxes, depending on local practice and negotiation
- Prorated property taxes through the date of closing
- Payoff of any existing loans and reconveyance fees
- Any agreed repairs, credits, or seller concessions
- HOA-related estoppel or transfer fees if applicable, plus outstanding dues
- Optional pre-sale inspections, staging, or home warranties if you choose to offer them
Commissions are commonly around 5 to 6 percent of the sale price in total, and other seller costs often add another 1 to 3 percent depending on transfer taxes and concessions.
Burlingame and San Mateo specifics
Local practices can shift your bottom line, so verify these items early with your escrow officer or title company.
Transfer taxes in San Mateo County
Documentary or transfer taxes may apply at the county level and sometimes at the city level. Who pays can be a matter of local custom or negotiation. Always confirm the current rates and payment custom with the San Mateo County Recorder and the City of Burlingame.
Property taxes and supplemental bills
California uses a base-year value system under Proposition 13. When a property changes ownership, the county reassesses it and issues a supplemental property tax bill to the buyer separate from the regular tax bill. Plan for this additional bill after closing and consult the San Mateo County Assessor for timing and payment details.
HOAs, estoppels, and special assessments
If the property is part of an HOA, expect transfer and document fees and an estoppel letter confirming the account status. These fees can be assigned to buyer or seller based on HOA rules or negotiation. Also review the preliminary title report and tax bill for Mello-Roos or other special district assessments common across Peninsula communities.
Title and escrow customs
In many California transactions the seller pays the owner’s title policy and the buyer pays the lender’s title policy when there is a mortgage. Escrow fees are often split, though practice varies by county and by deal. Ask your escrow officer for a fee quote early so you can plan.
Timeline and disclosures you can expect
Understanding the sequence helps you avoid last-minute surprises and wire confusion.
TRID milestones for buyers
Federal rules require your lender to send two key documents:
- Loan Estimate. You receive this within three business days of your loan application. It outlines estimated closing costs.
- Closing Disclosure. You must receive this at least three business days before you sign your final loan documents. Compare it to your Loan Estimate and ask questions before you authorize closing.
Escrow flow for both sides
- Escrow opens and orders the preliminary title report to identify liens or encumbrances.
- Sellers should request mortgage payoff demands early. Escrow needs these to prepare accurate net proceeds.
- Buyers and sellers receive settlement statements that show their final debits and credits. Buyers will typically see a combined loan and settlement statement.
- Escrow collects funds and documents, confirms recording, and disburses proceeds.
How much you might pay
High Peninsula prices make even small percentages add up. Here is a quick way to frame it.
- Buyer estimate. Plan for about 2 to 5 percent of the purchase price, depending on your loan type, points, and prepaid items.
- Seller estimate. Plan for total commissions around 5 to 6 percent of the sale price, plus another 1 to 3 percent for title, escrow, transfer taxes, prorations, and any concessions.
Example for a 2,000,000 purchase or sale in Burlingame:
- Buyer closing costs at 2 to 5 percent. Approximately 40,000 to 100,000 out of pocket beyond the down payment.
- Seller commissions at 5 to 6 percent. Approximately 100,000 to 120,000.
- Seller additional costs at 1 to 3 percent. Approximately 20,000 to 60,000, plus any negotiated repairs or credits.
Your exact numbers will depend on your lender’s pricing, title premium scale, escrow fees, transfer taxes, and any negotiated terms.
Ways to reduce or shift costs
A few smart moves can keep more cash in your pocket without risking your timeline.
- Compare lenders and Loan Estimates. Small differences in rate or fees can save thousands.
- Ask about seller credits. Concessions can offset some buyer closing costs, subject to loan program limits.
- Consider lender credits. Accepting a slightly higher rate can reduce your cash due at closing.
- Clarify title and escrow splits. Confirm who pays which title policy and how escrow fees are divided, then negotiate if needed.
- Focus on essential services. Decline optional add-ons you do not need, and question any unclear third-party charges.
- For sellers, prepare early. Order the preliminary title report, clear liens, and consider pre-listing inspections to reduce surprise repair credits.
- Review transfer taxes early. Confirm rates and who pays to avoid last-minute renegotiation.
Buyer checklist: Burlingame closings
- Get a Loan Estimate from each lender you’re considering and compare total costs.
- Review your Closing Disclosure at least three business days before signing.
- Ask escrow for a draft settlement statement early so you can plan your final wire.
- Confirm who pays the owner’s and lender’s title policies on your deal.
- Request and review HOA estoppel, financials, and any special assessments.
- Budget for supplemental property tax bills after you close.
- Validate wire instructions by phone with escrow before sending funds.
Seller checklist: Burlingame closings
- Request a seller net sheet at the listing stage so you understand your range of net proceeds.
- Order a preliminary title report and clear any liens or payoff issues early.
- Obtain mortgage payoff demands from your servicer as soon as you open escrow.
- Confirm local transfer tax rates and the customary split with your escrow officer.
- Decide on commission structure with your listing brokerage and confirm in writing.
- Provide HOA estoppel and required documents promptly if your property is in an association.
- Consider pre-listing inspections to reduce post-offer repair credits.
Avoid common pitfalls
- Waiting to verify transfer taxes. Confirm amounts and payment custom early to avoid delays.
- Overlooking supplemental taxes. Buyers often get surprised by this separate bill after closing.
- Ignoring HOA timelines. Associations can take time to produce estoppel and resale packages, so order early.
- Skipping the document review. Compare your Loan Estimate and Closing Disclosure line by line. Ask your lender and escrow officer to explain any differences.
Next steps for clarity and confidence
Closing costs in Burlingame and greater San Mateo County follow California norms, yet local custom and negotiation can change your bottom line. Start early, verify local taxes and HOA fees, and get written estimates from your lender and escrow. If you want a tailored plan for your property and price point in the San Francisco–Redwood City–South San Francisco area, connect with a local expert who manages these details every day.
If you’re preparing to buy or sell on the Peninsula and want a precise estimate and strategy, reach out to Allison T. Paulino for a personalized walkthrough of your closing costs and net proceeds.
FAQs
Who pays title insurance in California home sales?
- Customarily the seller pays the owner’s title policy and the buyer pays the lender’s policy when there is a mortgage, though this can be negotiated.
How do Burlingame transfer taxes work at closing?
- Transfer taxes may apply at the county and sometimes city level. Confirm current rates and who pays with San Mateo County and the City of Burlingame.
When will I know my exact buyer closing costs?
- You receive a Loan Estimate within three business days of application and a final Closing Disclosure at least three business days before signing.
Can a seller help cover a buyer’s closing costs?
- Yes. Buyers and sellers can negotiate credits, subject to loan program limits. Confirm allowable amounts with your lender.
What are supplemental property tax bills in San Mateo County?
- After a change in ownership, the county reassesses the property and issues a separate supplemental bill to the buyer in addition to the regular tax bill.
What are typical buyer closing cost percentages in the Peninsula?
- Buyers often see totals in the 2 to 5 percent range of the purchase price, driven by loan fees, title and escrow, and prepaid items.
What should San Mateo County sellers budget for besides commission?
- Plan for title and escrow fees, transfer taxes, prorated property taxes, loan payoffs, and any agreed credits or repairs, often totaling another 1 to 3 percent of price.
