By Frederick Blum, Broker/Owner of Blum Realty Group
If you are selling a San Diego home to buy another one, the number that matters is how much money will actually be available for the next purchase. Your sale price is the starting point. The mortgage payoff, selling expenses, negotiated credits and closing adjustments determine what you keep.
That is why I like to plan the sale and the next purchase together. At Blum Realty Group, I can help you evaluate the likely sale proceeds, the homes you want to buy and the timing between them. A seller net sheet becomes much more useful when it connects to a real purchase budget.
This guide walks through the deductions, an illustrative San Diego sale, the transfer-tax calculation and the cash decisions that come next. You can use the same structure whether you are moving across the county, downsizing or buying a home with different financing.
Start with a net sheet, not a percentage of your sale price
A blanket estimate such as “selling costs are a certain percentage” is too blunt for a move involving another purchase. Two owners selling at the same price can leave escrow with very different amounts because their loan balances, negotiated terms, HOA obligations and tax situations differ.
Build your estimate in three layers:
- Property and debt: expected sale price, mortgage payoffs and any other liens or obligations that must be resolved.
- Transaction costs: agreed brokerage compensation, escrow and title charges, transfer tax, recording-related charges and other costs allocated to you in the contract.
- Closing adjustments: buyer credits, property-tax and HOA prorations, unpaid amounts, any applicable withholding and other case-specific deductions.
Ask for a low, expected and high sale-price scenario, each using the same clearly stated assumptions. Then update the sheet when you accept an offer and again when actual payoff demands and closing figures arrive. An early estimate should become more precise as the transaction moves forward.
The seller costs and deductions to review line by line
Mortgage and other loan payoffs. Your latest statement balance is a useful planning number, but the payoff demand is the closing figure. It may include interest through a specified date, fees or other amounts. Include a second mortgage or HELOC where applicable, even if it is easy to overlook because you rarely use it. Ask escrow which liens appear in the preliminary title report and how each will be cleared.
Brokerage compensation. Use the amounts you actually agreed to, including any authorized payment toward the buyer’s representation. Compensation is negotiable; there is no legally fixed standard percentage. The California Department of Real Estate explains the compensation and representation changes. Review your own agreements and accepted offer rather than relying on a familiar percentage.
Escrow, title and recording-related charges. Get an itemized estimate from the providers handling your transaction. Who pays a particular charge depends on the agreement and applicable requirements. A cost can exist without automatically being the seller’s responsibility. Read the allocation and watch for overlapping estimates when comparing preliminary worksheets.
HOA items. A condominium or planned community may involve document, transfer or other association charges. Unpaid dues and special assessments need separate attention. Confirm what is owed, what the contract assigns to you and whether an assessment will be paid off or handled another way. A regular monthly-dues estimate does not answer those questions.
Buyer credits and repair agreements. A closing-cost credit reduces what you receive. Work you agree to complete may be paid before closing instead, but it still belongs in your overall sale budget. Keep those two categories separate so your net sheet does not miss an expense or count it twice.
Prorations. Property taxes, HOA dues and other items can be divided or adjusted through the closing date. Depending on what has already been paid, a proration can be a credit or a deduction. Ask escrow to explain the period covered and the direction of the adjustment.
Income taxes and withholding. Cash released by escrow and your ultimate after-tax result are different calculations. California real estate withholding may apply unless an exemption is available; the Franchise Tax Board explains the process and Form 593. Have your tax adviser resolve the treatment early, particularly for investment property, inherited property or a trust sale. Do not commit money to the next purchase that may be needed for taxes.
How San Diego documentary transfer tax works
The San Diego County Recorder states a documentary transfer tax of $0.55 per $500, or fraction of $500, on the applicable taxable value when the requirements are met. The rule addresses the value of the real property conveyed and qualifying liens or encumbrances remaining at the time of sale.
For a straightforward illustration with $1,000,000 of taxable value, divide by $500 and multiply by $0.55: 2,000 × $0.55 = $1,100. At $1,000,100 of taxable value, the fraction rounds up to another $500 increment, making the illustration $1,100.55.
Do not automatically subtract your mortgage payoff from the sale price to calculate this tax. A loan being paid off and a qualifying lien remaining on the property are not interchangeable. Have escrow or title confirm the taxable amount, any exemption and any other applicable jurisdiction-specific charge. Your contract should also address who pays.
A worked seller net sheet
Here is a hypothetical sale, using deliberately stated assumptions rather than claimed standard fees. The $30,000 brokerage amount is an example of agreed compensation, not a recommended or customary rate.
- Sale price: $1,000,000.
- Mortgage payoff through the expected closing date: −$600,000.
- Total seller-paid brokerage compensation under the agreements: −$30,000.
- Seller-paid escrow, title, recording-related charges, HOA items and net prorations, combined for this example: −$5,000.
- Documentary transfer tax, assuming $1,000,000 taxable value and seller payment: −$1,100.
- Negotiated buyer credit: −$10,000.
- Illustrative proceeds: $353,900.
The $5,000 allowance would need to be replaced by itemized transaction-specific figures. This example assumes no additional liens, withholding or other deductions and is before any income-tax reserve. Preparation, moving and repairs paid outside escrow also need their own budget.
Now test the sensitivity. If the buyer credit rises by $8,000 and everything else stays unchanged, proceeds fall to $345,900. That change may be manageable, but it matters if your next purchase depends on every dollar. Review the effect before agreeing to a concession, not after.
Turn the proceeds into a next-home purchase budget
Using the $353,900 illustration, suppose you reserve $20,000 for moving and near-term work and want to retain $40,000 in accessible cash after buying. That leaves $293,900 before the next purchase’s down payment and closing costs.
If you then allow $18,000 for purchase closing costs, prepaid expenses and initial escrow deposits, the remaining down-payment amount is $275,900. On a hypothetical $1.1 million purchase, using that amount would leave a base loan of $824,100. Whether that loan works still depends on your financing eligibility, the property and the complete monthly payment.
All of those reserve and expense figures are examples. Your lender’s Loan Estimate, provider estimates and actual household priorities should replace them. Include any buyer-representation compensation you are responsible for paying that is not covered elsewhere. Avoid counting your earnest-money deposit twice: it generally becomes a credit toward the amount needed at closing rather than a second down payment.
At Blum Realty Group, this is where I connect the sale discussion to the next home purchase. We can work backward from your preferred areas, realistic payment range and cash reserve, then see what your sale needs to produce. My brokerage and mortgage-origination experience helps me organize the questions together while the lender and settlement providers confirm their own figures.
Make sure the money will be available when you need it
A net sheet says how much you expect. It does not tell you when the funds will be available to close the next purchase. Ask both escrow teams and the lender what must happen before sale proceeds can be used, including recording, disbursement, wire deadlines and documentation of the funds.
A same-day sale and purchase needs coordination, and a delay on one side can affect the other. Your plan may involve a purchase contingent on the sale, selling first with temporary housing, negotiated possession arrangements or financing that allows buying first. Each has its own cost and contract implications. I cover the broader choices in buying and selling at the same time.
Keep a timing cushion for moving and housing wherever possible. If someone proposes short-term financing or a later mortgage recast, get the eligibility, costs and conditions in writing before treating it as part of your plan. Independently verify wiring instructions through a trusted phone number before sending funds.
What to bring to a sale-and-purchase planning conversation
You do not need a finished spreadsheet to start. Bring your current home’s address, approximate loan balances, HOA information, known upcoming assessments, your preferred moving window and the type of home you want next. For the purchase side, think about both the payment you want and the cash you want left afterward.
I can help you organize a realistic sale range and the next-home search, then coordinate the information needed from escrow, title, your lender and tax adviser. If you are also comparing an investor offer, use the same net-sheet assumptions in the cash-offer versus open-market sale comparison.
The goal is a move you understand before you commit: a clear estimate of what you keep, a workable next-purchase budget and a closing plan that connects the two.
Frequently asked questions
How much are seller closing costs in San Diego?
There is no single amount that fits every sale. Build an itemized estimate using your actual brokerage agreements, provider charges, transfer tax, credits, HOA obligations and prorations. Subtract loan payoffs and any other required deductions separately to estimate the cash you will receive.
Can I use all my sale proceeds for the next down payment?
First set aside the next purchase’s closing costs and prepaid expenses, moving costs, any tax reserve and the cash you want to retain after closing. Then confirm when the sale funds will be available and how the lender will document them. The remaining amount is a more useful down-payment budget.
Can Blum Realty Group help coordinate my sale and next home purchase?
Yes. Frederick can help you evaluate the sale strategy, estimate proceeds, identify suitable homes and coordinate the financing and closing questions with the relevant providers. Start with your current property, approximate loan balances, preferred areas, payment range and moving timeline.