Close of Escrow for San Diego Sellers

You Are Almost There

If you have reached this stage, contingencies are removed, the buyer’s loan is in final underwriting, and the closing date is on the calendar. There are still a few things to handle, and understanding the financial picture of closing day helps you plan your next move with confidence.

The Final Walk-Through

The buyer will conduct a final walk-through, typically the day before or the morning of closing. This is not a full inspection — it is a verification that the property is in the same condition as when the buyer made their offer and that all agreed-upon repairs have been completed.

As the seller, make sure:

• All personal belongings are removed unless specifically included in the purchase agreement.
• The home is clean and in broom-swept condition at minimum. Many sellers do a professional cleaning as a courtesy.
• All fixtures, appliances, and items included in the sale are still in place. If the contract says the washer and dryer stay, they stay.
• Agreed-upon repairs are completed, with receipts or invoices available if the buyer requests documentation.
• All systems are functional: HVAC, water heater, garage door openers, built-in appliances.

If the buyer discovers an issue during the walk-through — a broken window, a missing appliance, a repair not completed — it can delay closing. Avoid last-minute surprises by handling everything at least 48 hours before the scheduled close.

Closing Costs for San Diego Sellers

Sellers often focus on the sale price without fully accounting for the costs that come off the top. Understanding these numbers prevents unpleasant surprises and lets you plan your net proceeds accurately.

Typical Seller Closing Costs in San Diego

• Real estate commissions. Negotiable, but typically the largest single closing cost for sellers. Commission structure is discussed and agreed upon with your listing agent before the property goes to market.
• Escrow fees. The seller’s share of escrow fees in San Diego typically runs $1,500 to $3,000, depending on the sale price. Buyer and seller customarily split the escrow fee.
• Owner’s title insurance. In California, the seller customarily pays for the owner’s title policy. On a $1 million home, this runs roughly $2,000 to $2,500.
• County transfer tax. San Diego County charges $1.10 per $1,000 of the sale price. On a $1 million sale, that is $1,100. The City of San Diego does not impose an additional city transfer tax.
• Prorated property taxes. You are responsible for property taxes through the date of closing. The escrow company calculates the proration and debits your proceeds accordingly.
• HOA transfer and document fees. If the property is in an HOA, expect transfer fees and document preparation charges of $300 to $800.
• Mortgage payoff. Your existing mortgage balance, plus any accrued interest through closing and any prepayment penalty (rare on modern loans), is paid from your proceeds.
• Repair credits or concessions. Any credits you agreed to during negotiation are deducted from your proceeds at closing.

Estimating Your Net Proceeds

Your net proceeds are the amount you walk away with after all costs are deducted from the sale price. A rough formula:

Sale Price minus (Mortgage Payoff + Commissions + Escrow Fees + Title Insurance + Transfer Tax + Prorated Taxes + Any Credits or Concessions) = Net Proceeds

Your agent should provide you with a detailed net sheet early in the process — ideally before you list — so you know exactly what you will take home at different sale price scenarios. If you want the most accurate pre-listing estimate, a professional appraisal combined with a net sheet gives you the clearest picture of your financial outcome.

How Closing Day Works in California

California closings do not typically involve a big conference table where everyone sits together. Buyer and seller usually sign their documents separately, often a day or two before the actual close date.

Here is the sequence from the seller’s side:

1. Sign closing documents. You will meet with the escrow officer or a mobile notary to sign the grant deed (transferring ownership), the settlement statement, and other required documents. Review the settlement statement line by line — it itemizes every charge and credit in the transaction.
2. Buyer funds and lender funds. The buyer wires their down payment and closing costs; the lender wires the loan amount. All funds flow into escrow.
3. Recording. Once all funds are received and documents are signed, the escrow company sends the grant deed to the San Diego County Recorder’s Office. Recording typically happens by early afternoon on business days.
4. Disbursement. After recording, escrow disburses funds. Your net proceeds are wired to your bank account (same-day in most cases) or issued as a check. If you prefer a wire, confirm your banking details with the escrow officer in advance.
5. Key handoff. Once recording is confirmed, you release all keys, garage door remotes, gate codes, and any other access items to the buyer’s agent or directly to the buyer.

After the Sale: Tax Considerations

Capital Gains Exclusion

If you have lived in the home as your primary residence for at least two of the last five years, you may qualify for the federal capital gains exclusion: up to $250,000 in gains excluded for single filers, or $500,000 for married couples filing jointly. In a market where many San Diego homeowners have seen six-figure appreciation, this exclusion is a significant tax benefit. Consult a tax professional to confirm your eligibility and calculate your gain.

1031 Exchange for Investment Properties

If you are selling a rental or investment property, a 1031 exchange allows you to defer capital gains taxes by reinvesting the proceeds into another qualifying investment property. The rules are strict: you must identify replacement properties within 45 days and close within 180 days, and the exchange must be facilitated by a qualified intermediary (you cannot touch the funds yourself).

A 1031 exchange can be a powerful tool for San Diego investors looking to trade up to a larger property or diversify into a different market. If you are not ready to buy another investment property immediately, keeping your current asset as a rental may be a better play — especially if you have a low mortgage rate. Juniper’s property management services can manage the property while you evaluate your options, and our tenant placement service can fill a vacancy quickly if you decide to hold.

Cancel Home Services and Utilities

Schedule cancellation or transfer of services effective on the closing date. Do not cancel before closing — if the deal falls through, you do not want to be without utilities.

• SDG&E (gas and electric): sdge.com or 800-411-7343
• City of San Diego Public Utilities (water and sewer): sandiego.gov/public-utilities or 619-515-3500
• Trash and recycling: City of San Diego (most areas) or EDCO (unincorporated areas, La Mesa)
• Internet and cable: Cox, AT&T Fiber, or your current provider
• Mail forwarding: USPS Change of Address
• Home security system: Cancel or transfer the monitoring contract
• Homeowner’s insurance: Cancel effective on the closing date once recording is confirmed

What Comes Next

Congratulations. You have made it through the entire selling process. If you are buying your next home in San Diego, our buyer resources cover every step of that process. If you are investing, our neighborhood guide and market analysis can help you identify your next opportunity.

Looking for the previous step? Go back to Escrow, Inspections & Appraisals.

Whether you are closing this week or just starting to think about selling, Miguel is here to help. Over 20 years of experience with San Diego sellers, from first-time condo sales to multi-unit investment exits. Reach out anytime: 619.253.3333 or miguel(at)junipersdre(dotted)com.