Selling your SoMa condo and wondering what you’ll actually walk away with at closing? You’re not alone. Between transfer taxes, HOA paperwork, escrow fees, and proration math, the true net can feel murky. This guide breaks down typical seller closing costs in San Francisco, how they work for SoMa condos, and a simple way to estimate your proceeds. Let’s dive in.
What seller closing costs include
You’ll see most of your expenses fall into a few clear buckets. Here are the common line items for SoMa condo sellers:
- Broker commissions: Usually the largest cost. Common Bay Area total is 5% to 6% of the sale price, split between listing and buyer brokers, and negotiable.
- Transfer taxes: City and county documentary transfer taxes paid when ownership changes.
- Escrow and title: Escrow processing, owner’s title policy (who pays can vary), recording fees.
- HOA resale fees and docs: Estoppel/resale certificate, governing documents, and any HOA transfer or admin fees.
- Staging, repairs, inspections: Pre-list improvements to maximize presentation and price.
- Prorations: Property taxes, HOA dues, utilities, and any special assessments, prorated to closing.
- Mortgage payoff: Remaining loan balance, per-diem interest, and lender reconveyance or demand fees.
- Withholding and reporting: FIRPTA and California nonresident withholding can apply in some cases.
- Miscellaneous: Notary, courier, recording incidentals, and any negotiated seller credits.
Actual amounts depend on your contract terms, building, and chosen escrow/title provider.
San Francisco transfer taxes
San Francisco uses a tiered city transfer tax schedule that increases with higher sale prices. Larger SoMa condo sales can fall into higher tiers and add a meaningful cost to your closing. Exact amounts and any exemptions are set by the City and should be confirmed with the San Francisco Treasurer & Tax Collector and the Assessor-Recorder before you finalize your net sheet.
Key tip: Ask your agent or escrow officer to estimate your city transfer tax early. It can materially affect your proceeds at higher price points.
Escrow, title, and recording fees
Escrow companies charge a fee to manage the closing. Title insurance protects ownership; a lender’s policy is typically a buyer cost if the buyer has a loan, while the owner’s policy and escrow fee splits vary by local custom and negotiation.
- Escrow processing: Often about $1,000 to $3,000, scaling with price and provider.
- Owner’s title policy: Typically in the low thousands for higher-priced condos; tied to sale price and rate tables.
- Recording fees: Usually a small, fixed amount for items like the deed and reconveyance.
In California, many of these costs are negotiable. Your preliminary settlement statement will list exact figures.
HOA resale documents and move fees
Condos require HOA paperwork at resale. Expect an estoppel or resale certificate, governing documents, financials, and required disclosures.
- Typical HOA doc fees: Often $150 to $500, more if expedited or if multiple reports are needed.
- Timing: Many management companies need 7 to 21 business days. Order early to avoid listing delays.
- Other HOA charges: Some buildings charge transfer or admin fees and require move-in/move-out deposits. Confirm amounts and policies with your HOA.
Staging, repairs, and inspections
Presentation matters in SoMa’s competitive condo market. Sellers often invest in targeted improvements to boost appeal and reduce days on market.
- Staging and photography: About $500 to $7,000 depending on scope and duration.
- Repairs: Cosmetic tune-ups can range from $500 to $10,000+ based on condition and scope.
- Inspections: Optional pre-list inspections help you price accurately and anticipate buyer requests.
If you prefer not to pay upfront, Compass Concierge can fund approved pre-sale improvements with no payment due until closing. This can help you get to market faster with a stronger presentation.
Prorations and payoff basics
- Property taxes: Prorated to the closing date based on the current annual assessment and any voter-approved bonds or assessments.
- HOA dues and utilities: Prorated to closing. You pay for the period you own; the buyer pays thereafter.
- Mortgage payoff: Your lender will provide a payoff statement that includes principal, per-diem interest to a specific date, and any reconveyance or demand fees. Request the payoff 7 to 10 business days before closing.
Withholding and reporting to know
- FIRPTA: If the seller is a non-U.S. person, the buyer may be required to withhold a percentage of the sale price unless an exemption applies.
- California nonresident withholding: The state may require withholding if the seller is a nonresident of California. Consult the California Franchise Tax Board and your CPA.
- 1099-S: Real estate sales are reported to the IRS. Discuss tax implications and potential capital gains with your tax advisor.
Flag any nonresident, foreign, or trust ownership early so escrow can guide you on required forms and timing.
Illustrative net sheet examples
These examples are for illustration only. Your actual numbers will vary based on negotiated terms, transfer tax tier, escrow/title provider, HOA, and your payoff.
Example 1: $900,000 SoMa condo
- Commission at 5%: $45,000
- Escrow/title/recording: ~$2,000
- HOA docs: $300
- Staging/repairs: $2,000
- Transfer tax: tiered by the City; confirm exact amount
- Prorations/payoff/withholding: variable
- Total estimated closing costs (excluding mortgage payoff): roughly $49,000 to $60,000+
Example 2: $2,500,000 SoMa condo
- Commission at 5%: $125,000
- City transfer tax: likely a higher tier; can be several thousand to tens of thousands depending on the schedule
- Escrow/title: higher in absolute dollars at this price
- Staging/repairs: scales with scope
- Total non-payoff closing costs can reach six figures; confirm with escrow and your agent
Build your own net sheet
Inputs to gather
- Expected sale price
- Remaining mortgage balance and per-diem interest (from payoff statement)
- Commission rate (start with 5% to 6%, adjust as negotiated)
- Estimated city and county transfer taxes (ask escrow/agent to confirm current tier)
- Escrow and title fees (get a quote or use a range)
- HOA resale/estoppel and any transfer fees
- Staging, photography, and repair budgets
- Prorations for property taxes and HOA dues (annual amounts and closing date)
- Any seller credits or concessions to the buyer
Simple formula
Estimated Net Proceeds = Sale Price
- (Sale Price × Commission Rate)
- Transfer Taxes (City + County/Documentary)
- Escrow & Title Fees
- HOA Resale/Estoppel Fees
- Staging/Repairs/Inspections
- Seller Credits to Buyer (if any)
- Seller Portion of Prorations (Taxes/HOA/Utilities)
- Other Seller Costs (e.g., reconveyance)
- Mortgage Payoff Amount (incl. per-diem interest) = Estimated Cash to Seller at Closing
What’s excluded from this estimate
- Capital gains taxes and personal tax outcomes
- Potential FIRPTA or California nonresident withholding
- Moving, storage, or post-closing costs
- Escrow holdbacks and any post-closing obligations
Pro tips for smooth execution
- Order HOA resale documents early; allow 7 to 21 business days.
- Request a mortgage payoff statement 7 to 10 business days before closing.
- Confirm your city transfer tax tier with your agent and escrow.
- Align staging and photography with your pricing strategy and launch week.
- If you are a nonresident or foreign seller, speak with your CPA about withholding.
Pre-listing checklist for SoMa sellers
- Get a personalized net sheet with transfer tax estimates and fee quotes.
- Confirm who pays for the owner’s title policy and how escrow fees are split.
- Order HOA resale docs and ask about any move deposits or admin fees.
- Line up staging, photography, and minor repairs; consider Concierge if preferred.
- Gather permits and documentation for any past unit alterations.
- Share any special assessments or upcoming HOA votes with your agent.
The bottom line
Most SoMa condo sellers can expect closing costs to include commission, San Francisco’s tiered transfer tax, escrow/title, HOA resale fees, staging or repairs, prorations, and the mortgage payoff. The exact numbers depend on your price point, transfer tax tier, building fees, and negotiated terms. A precise net requires current quotes and your lender payoff.
Ready to get a clear, personalized net sheet for your condo? Contact Eric Turner for a focused review of your HOA, transfer tax tier, and payoff details, plus premium listing prep. Get your instant home valuation.
FAQs
What are typical seller closing costs for a SoMa condo?
- Expect commission, San Francisco transfer tax, escrow/title, HOA resale fees, staging/repairs, prorations, and your loan payoff; exact amounts vary by price and terms.
How do San Francisco’s transfer taxes affect my net?
- The City uses a tiered schedule that increases with higher sale prices; confirm your tier with escrow because the amount can materially change your proceeds.
Who usually pays for the owner’s title policy in San Francisco?
- It varies by local custom and negotiation; ask your agent and title company to confirm who pays on your transaction.
How much time should I allow for HOA resale documents?
- Many SoMa HOAs need 7 to 21 business days; expedited processing may be available for an added fee.
Are property taxes and HOA dues prorated at closing?
- Yes. You pay your share up to the closing date, and the buyer pays after; the exact amount depends on timing and annual assessments.
What if I’m a nonresident or foreign seller?
- FIRPTA and California nonresident withholding may apply; speak with your CPA early to understand paperwork, exemptions, and cash impact.
When should I request my mortgage payoff statement?
- Request it 7 to 10 business days before closing so escrow can include accurate per-diem interest and any lender fees in your final numbers.
