Most Los Angeles sellers spend roughly 6% to 9% of the sale price to sell, including agent commissions, transfer taxes, escrow and title, and preparing the home for market. Where your home sits matters more than you might think: homes inside City of Los Angeles limits pay a city transfer tax that homes in Burbank, Glendale or the San Gabriel Valley don’t.
Here’s the full breakdown so you can estimate what you’ll walk away with.
Real estate commissions
Commissions are the largest selling cost and are always negotiable. Since the 2024 National Association of REALTORS® settlement, how buyer agents are paid has changed: buyers now sign a written agreement with their agent before touring homes, and sellers decide whether to offer compensation to the buyer’s agent or credit the buyer toward their costs. Many LA sellers still choose to offer buyer agent compensation because it widens the pool of buyers who can afford to make an offer.
Your listing agent should explain the options, the trade-offs, and exactly what services you’re getting for the fee.
What your listing agent’s fee should cover
When you compare agents, compare what’s included, not just the percentage. A full-service listing should cover a detailed pricing analysis, professional photography and video, staging guidance, marketing across the MLS, major home search sites and social media, open houses, handling showings, negotiating offers and repair requests, and managing escrow through closing. In a market where buyers have time to compare, presentation and negotiation can easily make a bigger difference to your bottom line than a small change in the fee.
Questions to ask about commissions
- What is your listing fee, and what exactly is included?
- Do you recommend offering compensation to buyer’s agents for my home, and why?
- How will you market the home to reach the most qualified buyers?
- What happens if I need to cancel the listing?
Transfer taxes: where you live matters
In Los Angeles County, the seller customarily pays transfer tax when the deed is recorded.
- LA County documentary transfer tax: $1.10 per $1,000 of the price (0.11%). Applies everywhere in the county.
- City of Los Angeles transfer tax: an extra 0.45% for homes inside city limits. That includes Chatsworth, Porter Ranch, Northridge, Granada Hills, Mission Hills, North Hills, Arleta, North Hollywood, Sherman Oaks, Studio City, Reseda and Winnetka.
- Measure ULA (the “mansion tax”): inside City of LA, sales above $5.4 million pay an additional 4%, and sales of $10.9 million or more pay an additional 5.5% (thresholds for sales closing after June 30, 2026).
How the ULA “mansion tax” really works
Voters approved Measure ULA in November 2022, and it took effect April 1, 2023. Despite the nickname, it isn’t limited to mansions. It applies to any property type, including homes, condos, apartment buildings and commercial property, sold inside City of LA limits above the threshold. The thresholds adjust every year for inflation. The detail that surprises sellers most: the tax applies to the entire sale price, not just the amount over the threshold. That creates a steep “cliff” right at the line.
|
Sale price (City of LA, closing after 6/30/26) |
City tax rate |
City transfer tax |
|
$5,350,000 |
0.45% |
$24,075 |
|
$5,450,000 |
4.45% |
$242,525 |
A $100,000 higher price triggers roughly $218,000 more in city tax. If your home is likely to sell near the threshold, pricing strategy matters a lot. Talk it through with your agent and a tax professional before you list. Burbank, Glendale, San Fernando, Monrovia, Azusa, Glendora, Arcadia, Covina and West Covina are separate cities and do not charge the City of LA transfer tax. Montrose follows Glendale and LA County rules depending on the address.
A statewide measure on the November 3, 2026 ballot could affect local transfer taxes such as ULA. We’ll update this post once results are final.
Escrow, title and other closing fees
- Escrow fee: customarily split 50/50 with the buyer in LA County.
- Owner’s title insurance policy: customarily paid by the seller in LA County.
- Natural Hazard Disclosure (NHD) report and other required disclosures.
- HOA documents and transfer fees for condos and townhomes (often negotiated in the contract).
- Prorated property taxes and HOA dues through the day you close.
- Your mortgage payoff and any liens, plus interest through closing.
Getting the home ready
This is the most flexible category. Some sellers spend a few hundred dollars on cleaning and touch-up paint; others invest more in staging, landscaping, repairs or a pre-listing inspection. Smart, targeted prep usually pays for itself in a higher price and fewer requests for credits later. Also budget for repair credits that may come up after the buyer’s inspection, and your moving costs.
Situations that add costs
Some sales come with extra steps and expenses. If any of these apply to you, plan for them early:
- Condos and townhomes: HOA document packages, transfer fees and any special assessments can add hundreds to a few thousand dollars.
- Leased solar panels: the buyer has to qualify to take over the lease, or you may need to buy it out.
- Unpermitted work: you may offer a credit or price adjustment rather than legalizing it, but it should be disclosed and planned for.
- Tenant-occupied homes: relocation requirements and timelines can apply, especially inside City of LA under its rent and tenant protection rules.
- Probate and trust sales: court or trustee requirements can add attorney fees and time. • Liens or judgments: any liens on the property are paid off from your proceeds at closing.
Example: selling a $1.2 million home
Here’s how the transfer tax alone differs between two similar homes, one in Northridge (City of LA) and one in Burbank:
|
Cost |
Northridge (City of LA) |
Burbank |
|
LA County transfer tax (0.11%) |
$1,320 |
$1,320 |
|
City of LA transfer tax (0.45%) |
$5,400 |
$0 |
|
Total transfer tax |
$6,720 |
$1,320 |
|
Cost |
Estimated amount |
|
Agent commissions (shown at 5% for illustration; negotiable) |
$60,000 |
|
County and City of LA transfer tax |
$6,720 |
|
Seller’s half of escrow |
$2,000 – $3,000 |
|
Owner’s title insurance policy |
$2,500 – $3,500 |
|
Natural Hazard Disclosure report |
$100 – $150 |
|
Prep: cleaning, paint, staging, landscaping |
$3,000 – $10,000 |
|
Repair credits after inspection |
$0 – $10,000 |
|
Estimated total |
About $74,000 – $93,000 (6.2% – 7.8%) |
Illustration only. Doesn’t include your mortgage payoff or prorated property taxes, which come out of your proceeds but aren’t selling costs. In Burbank, the transfer tax line would drop to $1,320.
When each cost is paid
Most selling costs never come out of your pocket upfront. They’re deducted from your proceeds at closing. Here’s the typical order:
- Before listing: prep work such as cleaning, painting, repairs and staging, plus a pre-listing inspection if you choose one. These are paid as you go.
- During escrow: disclosure reports, HOA documents and any agreed repairs are ordered. Some are paid directly; many are billed through escrow.
- At closing: commissions, transfer taxes, your share of escrow, the owner’s title policy, prorations, any credits to the buyer, and your mortgage payoff are deducted from the sale price. Escrow then sends you the remaining proceeds, usually by wire within a day or two of recording.
Escrow will send you an estimated settlement statement before closing. Review it line by line with your agent so there are no surprises.
Don’t forget about taxes on your profit
If the home has been your primary residence for at least two of the last five years, you may be able to exclude up to $250,000 of profit from capital gains tax ($500,000 for married couples filing jointly). Anything above that may be taxable. Talk with a CPA before you list, especially if you’ve owned for a long time.
A few points sellers often miss: you can add the cost of qualifying home improvements you’ve made over the years to your cost basis, which lowers your taxable gain, so dig up those receipts for the new roof, remodeled kitchen or added bathroom. If you inherited the home, your cost basis may be “stepped up” to its value at the time of inheritance. And California taxes capital gains as ordinary income, so the state portion can be significant for long-time owners.
If you’re 55 or older and buying another home in California, Prop 19 may also let you keep your low property tax base on your next home.
Frequently asked questions
Who pays closing costs when selling a house in Los Angeles?
Both parties pay some. By LA County custom, sellers pay transfer taxes, the owner’s title policy and half of escrow; buyers pay loan costs and the other half of escrow. All of it is negotiable.
Does Burbank or Glendale have a transfer tax?
They don’t charge the City of LA transfer tax. Sellers there pay the LA County documentary transfer tax of $1.10 per $1,000.
Does Measure ULA apply to my home?
Only if your home is inside City of Los Angeles limits and sells above the threshold, currently $5.4 million for sales closing after June 30, 2026.
Do sellers still pay the buyer’s agent?
It’s now a choice and a negotiation. Many sellers still offer compensation or a credit because it helps attract more buyers.
How much will I walk away with after selling my house?
Start with your sale price and subtract your mortgage payoff, selling costs (often around 6% to 9% in LA), and any credits or prorations. A seller net sheet from your agent puts real numbers to it.
Can I deduct selling costs from my capital gains?
Generally, many selling expenses such as commissions and certain closing costs can reduce your taxable gain. Confirm what applies to you with a CPA.
Are transfer taxes based on my profit or the sale price?
The sale price. Both the county and City of LA transfer taxes, including ULA, are calculated on the price, not your profit.
Want to know what you’d walk away with? Holly will prepare a free seller net sheet with your home’s estimated value and every cost laid out, so there are no surprises. Call or text 818-521-0323 or request yours at https://yourhomegirlholly.com.
This article is for general information and isn’t legal or tax advice. Consult a CPA or attorney about your situation. [Holly Patterson, REALTOR® | DRE #01991142 | Keller Williams Realty]