.jpg)
If you're selling your home by owner in California, one of the most common questions you'll run into is:
Who pays the closing costs in a FSBO sale?
The short answer: both the buyer and the seller share the costs — but exactly how they split them can vary depending on local norms and negotiation.
Let’s break down what closing costs actually are, what sellers are responsible for in California, and how FSBO sellers can save money without cutting corners.
What Are Closing Costs?
Closing costs are the expenses that come due when a home sale is finalized. These cover services like:
- Escrow
- Title insurance
- County transfer taxes
- Recording fees
- Prorated property taxes
- Loan-related fees (for buyers)
- Optional professional support (attorneys, transaction coordinators)
In most cases, closing costs do not include mortgage payoff, commissions, or repair credits — those are handled separately.
How Much Are Closing Costs in California?
On average, California sellers pay around 1% to 3% of the home’s sale price in closing costs — not including any commissions.
Buyers, meanwhile, usually cover 2% to 5% of the purchase price in loan fees, insurance, and escrow charges.
But here’s the key: in a traditional sale, sellers often also pay 5% to 6% in commission (split between the listing and buyer’s agent).
If you're selling FSBO with a service like ListLean, you can avoid most or all of that.
Who Typically Pays What in a California FSBO Deal?
Let’s look at a standard split — keeping in mind everything here is negotiable in FSBO:
What the Seller Typically Pays:
- County transfer tax (e.g., $1.10 per $1,000 of sale price)
- Owner’s title insurance (protects buyer’s ownership)
- Escrow fee (often split)
- Recording fees
- Prorated property taxes
- Any agreed-upon repairs or concessions
- Buyer agent commission (if offered)
What the Buyer Typically Pays:
- Loan origination fees
- Appraisal and inspection
- Lender’s title insurance
- Recording and notary fees
- Home insurance and property taxes
- Escrow fee (often split)
In a FSBO deal, there’s more flexibility to negotiate — especially when there are no listing agents involved.
Do FSBO Sellers Still Pay Buyer Agent Commissions?
Sometimes yes — but not always.
In California, there’s no legal obligation for a seller to pay a buyer agent commission. However, many FSBO sellers still offer 2% to 2.5% to make the home attractive to represented buyers.
But with recent changes to real estate commission rules, some buyers may now be paying their own agents directly — and sellers are starting to push back on covering that fee.
You can read more about this trend in our blog: Are Sellers Still Paying Buyer Agent Fees?
How FSBO Sellers Can Reduce Closing Costs
Here are some smart ways to cut costs without hurting your sale:
1. Use a Flat-Fee MLS Service
Services like ListLean let you list your home for a low one-time fee — and avoid thousands in commission.
Instead of paying 2.5% or 3% to a listing agent, you pay as little as $95 to get your home online, in front of buyers, and legally compliant.
2. Compare Escrow and Title Companies
Fees can vary significantly between providers. In a FSBO deal, you choose who handles escrow and title — so shop around.
3. Skip Buyer Concessions
In slower markets, buyers may ask for help with closing costs. In FSBO, you can say no — or negotiate on price instead.
4. Manage the Sale Yourself
If you're confident with contracts and disclosures, you can avoid paying extra for a transaction coordinator or attorney.
If not, ListLean lets you add on affordable support only when you need it.
FSBO = More Control Over Costs
One of the biggest benefits of FSBO is flexibility. You don’t have to accept the “standard” cost breakdown used by agents.
You decide:
- Whether to offer a buyer’s agent commission
- Which vendors to use
- Whether to pay for any buyer credits
- What disclosures or compliance help you want to pay for
This is why more California homeowners are selling through ListLean — a flat-fee platform built for FSBO sellers who want to save money and stay in control.
Final Thoughts
So who pays the closing costs in a FSBO sale in California?
Typically, both sides do — but the beauty of FSBO is that everything is negotiable, and you’re not locked into expensive defaults.
By avoiding listing agent commissions, choosing your own escrow services, and staying compliant with the help of ListLean, you can save thousands and still have a smooth, professional sale.
Want to list your home the smart way — without the traditional fees?
Explore ListLean’s pricing plans and get your California home listed for as little as $95.
.svg)
.svg)