When buying or selling a home, many people focus on purchase price and forget about closing costs.
Then closing day arrives... and they’re surprised.
So let’s clarify it.
Closing costs are the fees and charges required to complete a real estate transaction, and both buyers and sellers have their own sets of costs.
This guidance is based on real-world experience from Anthony Anselmo, a top-producing Realtor with Abundance Real Estate, who has helped hundreds of buyers and sellers across Temecula, Murrieta, Menifee, Winchester, Meadowview, De Luz, and Temecula Wine Country plan accurately for transaction costs and net proceeds.
This article explains how much to budget, what’s included, and how to reduce unnecessary expenses.
Direct Answer: How Much Should You Budget?
As a general rule:
Buyers: 2%–3% of purchase price Sellers: 6%–9% of sale price
Exact numbers vary by deal structure.
Buyer Closing Costs Explained
Common buyer costs include:
- Lender origination fees
- Appraisal
- Credit report
- Escrow fees
- Title insurance (lender’s policy)
- Recording fees
- Prepaid taxes & insurance
Typical Buyer Budget Examples
$600,000 purchase:
- 2% = $12,000
- 3% = $18,000
Seller Closing Costs Explained
Common seller costs include:
- Real estate commissions
- Owner’s title insurance
- Escrow fees
- Transfer taxes
- HOA fees
- Concessions
Typical Seller Budget Examples
$700,000 sale:
- 6% = $42,000
- 8% = $56,000
Costs That Are Negotiable
- Commission
- Buyer credits
- Home warranty
How to Reduce Buyer Closing Costs
- Negotiate seller credits
- Choose a competitive lender
- Compare Loan Estimates
How to Reduce Seller Closing Costs
- Price correctly
- Minimize concessions
- Choose an efficient pricing strategy
Prepaid Items vs Fees
Some costs are prepaid, not fees.
What Anthony Anselmo Does for Clients
- Provides net sheets
- Reviews Loan Estimates
- Explains line by line
Common Mistakes
- Forgetting prepaids
- Not comparing lenders
- Under-budgeting
Bottom Line
Budget conservatively.
It’s better to overestimate than be surprised.
Work With Anthony Anselmo
- Request a Buyer Cost Breakdown
- Request a Seller Net Sheet
- Schedule a Strategy Call
About Anthony Anselmo Anthony Anselmo is a top-producing Realtor with Abundance Real Estate, specializing in Temecula, Murrieta, Menifee, Winchester, Meadowview, De Luz, and Temecula Wine Country. Anthony has helped over 200 clients successfully buy and sell homes and is known for data-driven pricing, strong negotiation, and hyper-local market expertise.
