Commissions: the rules changed in 2024
There is no “standard” commission — and since the industry settlement took effect in August 2024, that's truer than ever. What changed:
- Everything is negotiated per deal. Your listing agreement sets what you pay your own agent. Historically, total commissions ran in the 5–6% range split between the two sides; today every piece of that is on the table.
- You are not required to pay the buyer's agent. Sellers may still offer buyer-agent compensation or concessions to attract offers — it's a negotiation-by-negotiation choice, often made when the offer comes in.
- Buyers now sign written agreements with their own agents before touring homes, spelling out what that agent charges — which is why buyer-side compensation shows up in offers instead of in the listing.
In practice, national data shows buyer-side rates have moved only modestly since the change — but the leverage to negotiate is real, and a good listing agent will walk you through the trade-offs of each structure rather than quoting one number as gospel.
Seller closing costs, itemized
| Cost | Typical amount | Notes |
|---|---|---|
| County transfer tax | $1.10 per $1,000 of price | $880 on an $800k sale; the county base rate |
| City transfer tax | $0 to several $ per $1,000 | Varies widely by city — some large cities add substantial taxes, especially on high-priced sales |
| Title & escrow fees | $1,500–$4,000+ | Who pays which piece varies by county custom |
| Natural hazard report | $100–$150 | Required disclosure, ordered from a report company |
| Prorated taxes / HOA / payoffs | Varies | Settled through escrow at closing |
Preparation and concessions
Repairs, paint, landscaping, staging, and professional photos commonly run from a few hundred dollars to 1–2% of the price — and well-chosen prep usually returns more than it costs. Budget headroom for buyer-negotiated credits after inspections, too; in a balanced market some concession is normal, not a failure.
Taxes when you sell
- Federal capital gains exclusion: if the home was your principal residence for at least 2 of the last 5 years, up to $250,000 of gain is tax-free ($500,000 for married couples filing jointly). Gain beyond that is taxable — and California taxes capital gains as ordinary income.
- California escrow withholding: by default, escrow withholds 3⅓% of the sale price for the state (Form 593) as a prepayment toward your taxes — but sales of your principal residence are exempt when you certify it on the form. Not an extra tax, but a cash-flow surprise if you don't expect it on a non-exempt sale.
- Property tax proration: you pay your share of the year's property taxes through your closing date, settled in escrow.
Tax specifics depend on your situation — a tax professional's hour is cheap against a six-figure gain.
What nets you more
The number that matters is your net — price minus everything above. Pricing strategy, preparation, and negotiation move your net far more than shaving a fraction off any single fee. That's the conversation to have with a licensed agent before you commit to anything. See also: how long escrow takes and selling without an agent.