A Guide to Home Buyer Closing Costs in Contra Costa County, CA

Our company is based in Contra Costa County, California. Pleasant Hill, to be precise. So from time to time, we like to share real estate and mortgage-related information geared toward local home buyers within the county.

Today, we’ll be addressing a common question among buyers:

How Closing Costs Work in Contra Costa County

When you buy a home, you’ll have to pay certain costs on the day you close or “settle” the transaction. These are aptly referred to as closing costs. That’s a collective term for all of the fees, charges, and taxes that buyers and sellers pay when they close the deal.

Some of these costs relate to the mortgage loan, if one is being used. For example, a buyer might encounter mortgage processing fees, underwriting fees, and (in some cases) discount points paid by the buyer.

There are also “non-lender” closing costs, like title and escrow fees, government taxes, etc.

Contra Costa County home buyers tend to have more closing costs than sellers do. That’s because the buyer is the one taking ownership of the property. So most of the services are performed on their behalf.

But sellers have their own closing-related costs to pay as well, and we’ll cover those in a moment.

Who Pays What, Between the Buyer and Seller?

In Contra Costa County, it’s customary for buyers and sellers to pay their own individual closing costs. But this can also be negotiated as part of the real estate deal.

In some cases, the seller might agree to pay for a portion of the buyer’s closing costs as an added enticement. This strategy is more common in a slower market, where sellers have to go above and beyond to attract buyers. In a more active market, sellers are generally less likely pay the buyer’s closing costs.

As mentioned earlier, both the buyer and seller have their own individual costs they’re responsible for paying on closing day.

In Contra Costa County, California, it works like this:

• Mortgage-related fees: These costs are usually paid by the home buyer, since it’s their mortgage loan. The buyer typically pays for these loan-related charges on the day they close, via cashier’s check or wire transfer.
• Escrow charges: Home buyers in Contra Costa County typically pay their escrow-related fees as part of closing costs. These fees are paid to the title or escrow company that handles the closing, to cover paperwork, processing, and the exchange of funds.
• Title fees: This is another common closing cost in Contra Costa County, and it’s usually the home buyer who covers it. These fees pay for specialized insurance policies that can protect the lender and the buyer from title-related claims against the property.
• County transfer tax: This is a standard tax charged by Contra Costa County when a person sells a home to someone else. It’s basically a tax on the transfer of property, hence the name. The seller usually pays for the county transfer tax. The base transfer tax in Contra Costa and other California counties is $1.10 for every $1,000 of the home’s value. (Example: On a $500,000 home, the transfer tax would be 500 x 1.10 for a total of $550.)
• City transfer tax: In addition to the county tax, the buyer and seller might also have to pay for a real estate transfer tax assigned by the city. In Contra Costa County, it’s customary for the buyer and seller to split the city transfer tax. Some cities in California don’t even charge a transfer tax. It varies quite a bit.

As you can see, some closing costs in Contra Costa County are paid by the home buyer, while others are paid by the seller. And some can be split between the two parties.

How Much Do Buyers Typically Pay?

In California, closing costs for home buyers typically range from 1.5% to 5% of the home’s purchase price. This is true for Contra Costa as well, though your costs could fall outside of this range.

As of 2024, the median home price in Contra Costa county was around $829,000. This means a buyer’s closing costs might range from $12,435 – $41,450, based on the range shown above.

As you can see, these costs can add up to a pretty substantial sum. And that’s in addition to the down payment, which could also amount to tens of thousands of dollars. So the sooner you start saving for them, the better.

Asking the Seller to Contribute to Your Costs

When buying a home in Contra Costa County, you have the option to ask the seller for a contribution toward your closing costs. Also referred to as a “seller concession,” this is a common point of negotiating during real estate transactions.

With this strategy, the seller contributes some of their profits/proceeds to help the buyer cover their closing costs. Sellers offer such concessions in order to attract more offers from buyers, or to retain a buyer they already have.

Here are the basic steps involved in asking for a seller concessions:

• Research and understand current market conditions in Contra Costa County, as these conditions can change over time.
• Find out if it’s a buyer’s or seller’s market, based on local supply and demand.
• Estimate your total closing costs, using information provided by your lender.
• Determine how much you want to ask the seller to cover.
• Use market data and your agent’s advice to make a competitive offer.
• Include a clause in the offer requesting the seller to contribute a specific amount toward your closing costs.
• Be prepared to negotiate with the seller on the amount of the concession and other specifics.
• Set realistic expectations based on the market conditions and the seller’s motivations.

Home buyers should also know that such requests can be risky in a highly competitive market. If the seller receives multiple offers, but only one asks for a seller concession, they might choose one of the other offers. Sellers tend to favor offers with the fewest “strings attached.”

In a slower real estate market, on the other hand, a home buyer might have more bargaining power when it comes to seller concessions. Seek your agent’s advice on these matters.

Standard Documents and Disclosures

Home buyers who use mortgage loans to finance their purchases will receive an estimate of their closing costs up front.

They also receive a finalized “Closing Disclosure” a few days before closing. This disclosure shows the actual amount you’ll have to pay when you close.

So, as a home buyer, you shouldn’t encounter any surprises on closing day. The best thing to do is stay in touch with your loan officer and escrow company point-of-contact, to make sure everything is on track.

In Contra Costa County, the closing process for home buyers and sellers usually runs smoothly. But on occasion, issues might arise with the paperwork, fees, or something else related to the closing. These obstacles can typically be resolved in a timely fashion, to avoid unwanted delays.

Remember, all parties involved are working toward the same goal — the successful sale and transfer of the property. And with proper planning and good communication, that goal can be achieved in almost all home-buying scenarios.

Have mortgage questions? Bridgepoint Funding has been serving the mortgage needs of Bay Area home buyers and homeowners for nearly 20 years. Please contact us if you have any mortgage-related questions, or if you’d like to receive a loan estimate.