Reviewed by: Brandon Brown

The process of home sales involves more than a buyer handing a stack of cash to a seller equal to the purchase price. Closing a sale includes dealing with a laundry list of fees and other exchanges. One of the most misunderstood costs for buyers and sellers in California is escrow fees: how much they are, what they pay for, and how they fit into overall closing costs. Below, we look at why the cost of escrow in California varies, who’s responsible for paying it, and how selling to a cash buyer like FlipSplit can significantly reduce or erase closing expenses.

What Are Escrow Fees in California?

Escrow fees are a subset or part of closing costs in a real estate sale. They’re held by a third party (either a title company or escrow company) to facilitate the administrative aspects of a closing. The escrow fees California transactions require typically cover the costs of:

• Holding deposits in trust
• Document preparation
• Coordinating title, insurance, inspections, and lender requirements
• Notarization and administrative oversight
• Fund transfers and disbursement
• Recording services
• Ensuring both parties meet their contractual obligations

This third party serves as the primary coordinator for scheduling, hosting, and facilitating the closing process and meetings. In the Golden State, there’s a north-south split in escrow holder customs, with title insurance companies traditionally handling escrow in the north, while the south frequently uses separate escrow and title companies.¹ It’s important to note that there is another use of the term “escrow” in home sales: Most buyers provide prepaid funds to their lender to be held in escrow and disbursed appropriately for property tax, homeowners’ insurance, and private mortgage insurance costs. For the purposes of this article, we’re only looking at closing cost escrow fees.

How Escrow Fits Into California Closing Costs

Escrow fees are a relatively small portion of total closing costs. Overall, closing budgets cover:

• Escrow fees
• Title insurance
• Transfer taxes
• Recording fees
• Lender fees (except for cash sales)
• Notary fees
• Courier and wire transfer fees

You can also break closing costs down into home buyer fees and prepaid costs, lender fees, and third-party (including government) fees. The closing costs California buyers fund (not including commissions) usually total 2–5% of the home’s price.² For the November 2025 median home price of $852,680, closing costs would fall between $17,054–$42,634.

How Much Are Escrow Fees in California?

According to the California Department of Real Estate, “the escrow fee is typically commensurate with the size and complexity of the transaction, the cost of performing the services, overhead expenses, and the liability involved.”¹ In other words, you can’t definitively answer the question of “How much are escrow fees in California?” until you include a specific price and location for the house and choose an escrow holder. The most common pricing model, however, is a combination of:

1. Fixed base fee – The base fee is generally between $200 and $500
2. Variable percent-of-sale fee – The percentage of the sale price is typically 0.2%–0.5%. You can also calculate these as $2–$5 per $1,000 of sale price.

Under this model, the range for escrow fees based on the median sales price in California (as of November 2025) would be $1,905–$4,763.³ Importantly, fees vary by region, company, and complexity of the transaction. Note that:

• Some companies simply charge a percent-of-sale with no base fees
• Companies differ on rates and on categories of line items
• Company rates, price models, and the level of add-on itemization affect your total cost

Ultimately, there’s no single escrow price tag or pricing model that’s uniform across California residential real estate sales. Different escrow and title companies charge their own combination of base charge, task-specific fees, and percentage of the sale price. The only constant is that the total will increase in tandem with the home sale price.

Factors That Influence Escrow Costs

You may be able to determine whether your escrow costs will be on the high or low end by doing some homework ahead of time. In particular, consider how your escrow total will be impacted by:

• Property price
• Whether the sale involves a loan
• Local market norms (e.g. who is expected to pay for what)
• Dual escrow (buyer and seller each pay portions)
• Power-of-attorney, estate, or other issues that require more paperwork

If your estimate is looking high, there are several ways you can lower your escrow costs.

Lower Your Escrow Costs #1: Shop Around

There is no mandate in California for who selects the title or escrow company. For convenience, it often defaults to the seller’s agent in a listing sale, but both the seller and the buyer can perform due diligence and advocate for their choice. Escrow fees aren’t fixed or regulated by state law, so costs can vary widely between companies. Plan to:

• Make it clear you prefer to have a say in choosing a title and/or escrow company
• Compare prices and shop around
• Obtain a full list of fees to understand what will be itemized outside of a general fee
• Opt for a business that leverages eSign tools to cut down on paper and meetings

Lower Your Escrow Costs #2: Negotiate and Prepare

In addition to shopping around, you can also lower costs in other ways:

• Negotiate for the other party to cover escrow fees either directly or via the lender
• Understand your leverage via seller’s/buyer’s market conditions
• Clear any liens or debts against the house before starting the sale process
• Ask if there are any tasks you can handle (i.e., providing or preparing paperwork)

Lower Your Escrow Costs #3: Cash Sale

Finally, you can reduce your escrow cost by opting for a cash sale, which eliminates lender-related tasks and fees. With a cash sale, you sell to a buyer who pays the entire sale price without the involvement of a lender in the closing process. Even if the buyer has begged, borrowed, and juggled to come up with the funds behind the scenes, it’s a cash sale if they have the full amount to hand over directly from their accounts at closing. While a cash sale can occur with a private, individual homebuyer, the vast majority of traditional listing sales involve buyers’ lenders. Most often, these sales are transacted with cash buyers: companies that buy homes for investment, often with a plan to update, repair, or remodel a home for resale.

Who Pays Escrow Fees in California?

When you consider that California is larger in size than 70% of the recognized countries in the world, it’s understandable that its counties have their own laws and customs on top of state regulations, including the determination of who pays escrow fees.⁴ Depending on the county where the property resides, escrow could be paid by:

• Buyer – The buyer typically pays in Alameda, Contra Costa, Lake, Marin, Mendocino, Napa, San Francisco, San Mateo, Solano, Sonoma, and part of Yolo (only the city of Davis).⁵
• Seller – The seller typically pays in San Benito, Santa Clara, Sutter, Tulare, Ventura, and part of Yolo (all but the city of Davis).
• 50/50 – The buyer and seller typically split the cost equally in all other counties.

It’s important to note that these are customs rather than mandates. You always have the opportunity to negotiate for the other party to cover some or all of “your” escrow fees.

How Selling to a Cash Buyer Can Reduce Closing Costs

A cash buyer refers to a company that purchases homes outright. Their profit is often tied to leveraging their skills to repair and upgrade properties more economically than a private homeowner could before reselling the property at a higher price. While it’s common for cash buyers to target distressed properties, they may also purchase homes that simply need a cleaning and light upgrade or work with homeowners who want to skip the selling hassle and get cash in hand in a matter of days. Cash buyers like FlipSplit often have the capital, process, and incentive to:

• Cover escrow fees
• Eliminate lender fees, appraisal costs, and agent commissions
• Offer simplified, faster closings with fewer required services

This appeals to sellers looking to maximize net proceeds or avoid complex closing processes, in addition to cutting out escrow funding.

Understand Escrow Costs Before You Sell

There are a lot of moving parts to calculate the best sale option for you. One of the basic steps (whether you’re a seller or buyer) is understanding how escrow works in California so you can budget accurately and avoid surprises at closing. Knowing your escrow and closing expectations can also give you a leg up during price negotiations, allowing you to leverage those costs in your offer or counteroffer. Regardless of which California county or city you’re in, remember that you have the right to shop around, advocate for your choice in escrow and title companies, and negotiate who pays what. And if you want to cut out escrow along with most or all closing costs, consider a cash buyer. Compared to traditional real estate transactions, selling to a cash buyer provides clarity, speed, and fewer fees, delivering a streamlined, low-cost sale. In Southern California, reach out to FlipSplit for a fast, no-obligation offer on your home. To learn more about home sales, check out these other blog posts:

• How Long Does It Take to Close on a House?
• Are Home Improvement Loans Worth It?​
• How Much Does It Cost to Sell a House​?

Reviewed by: Brandon Brown

As a long-time Asset Manager, Investor, Real Estate Agent, and Broker/Owner of BayBrook Realty in Orange County, Brandon Brown is one of FlipSplit’s lead Real Estate experts. Having worked on over 2,000+ real estate transactions, Brandon brings a depth of knowledge that ensures clients are appropriately treated with honesty and integrity. His insights and advice have been published in numerous blogs beyond FlipSplit, and he keeps a close eye on market trends and statistics, which are updated weekly on his social media pages. Outside work, you can find him participating and serving at church, cycling, mountain biking, surfing around Orange County and beyond, and enjoying time with his wife and two daughters.

  Sources: 

1. California Department of Real Estate. Surviving the Real Estate “Escrow” Process in California: Important Things and Tips You Should Know, and Mistakes to Avoid. https://www.dre.ca.gov/files/pdf/escrow%5Finfo%5Fconsumers.pdf
2. JVM Lending, Your Guide to Closing Costs in California. https://www.newhomesource.com/learn/closing-costs-in-california/
3. California Association of Realtors. Current Sales & Price Statistics. https://www.car.org/marketdata/data/countysalesactivity
4. Eye and Pen. How Big Is California? A Detailed Look At The Size Of The Golden State. https://www.eyeandpen.com/how-big-is-california/
5. Old Republic Title. A Guide to California Closing Costs. https://www.oldrepublictitle.com/media/5572/guide-to-closing-costs-712020.pdf