Closing Costs: What Are They and Who Pays?
When you are buying or selling a home in Redlands or the Inland Empire, the price you see on the contract isn't the final number you'll see at the end. There are "closing costs"—the various fees and expenses required to officially transfer a property from one person to another.
Understanding these costs is essential for your budget. While most fees are paid at the very end, some happen right at the beginning.
The "Upfront" Costs: Inspection and Appraisal
If you are on the buy side of a transaction, there are two major costs that occur almost immediately after your offer is accepted. Unlike the rest of your closing costs, these are usually paid out of pocket and are non-refundable, even if the deal falls through.
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Home Inspection: A professional inspector checks the home's structure, roof, plumbing, and electrical systems. In California, a standard home inspection typically ranges from $350 to $650, depending on the size and age of the home.
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Appraisal: Your lender requires an unbiased estimate of the home's value to ensure the loan amount is justified. For 2025-2026, a standard home appraisal in California typically costs between $450 and $700.
Because these professionals perform their work during the "due diligence" period, their fees are earned regardless of whether you ultimately close on the house.
Title vs. Escrow: What's the Difference?
These two terms are often grouped together, but they represent two very different and necessary services.
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Escrow Fees: Think of the Escrow company as the "neutral referee." They hold the money and the legal documents until every condition of the contract is met. In Southern California, it is customary for the buyer and seller to split the escrow fee 50/50. These fees typically range from $1,000 to $2,500, or roughly 0.2% to 0.5% of the purchase price.
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Title Fees: Title insurance protects the buyer (and the lender) against any future claims to the property (like old liens or ownership disputes). Typically, the seller pays for the Owner's Title Policy, while the buyer pays for the Lender's Title Policy. Title insurance costs generally range from $1,000 to $4,000 depending on the home's value.
By the Numbers: Total Closing Costs
According to data from the California Association of REALTORS® (C.A.R.) and industry trackers:
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For Buyers: Total closing costs usually range from 1% to 3% of the purchase price. On a $650,000 Inland Empire home, a buyer should budget between $6,500 and $19,500 (separate from the down payment).
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For Sellers: Total closing costs (including commissions and transfer taxes) typically range from 5% to 8% of the sales price.
The vast majority of these fees—including title, escrow, and transfer taxes—are "settled" at the closing table. This means they are simply deducted from the seller's proceeds or added to the buyer's final check at the end of the transaction.
Why Experience Matters
Patrick Edgett understands that these numbers can feel overwhelming. As a "girl dad" to four daughters and a local Redlands resident for years, Patrick knows that every dollar counts when a family is planning their future.
Having served on the Board of Directors for the California Association of REALTORS® and TIGAR, Patrick Edgett has seen how even small mistakes in the closing process can lead to big delays. He works to ensure his clients have a clear "Estimated Net Sheet" early in the process, so there are no surprises on closing day.
Want a clear breakdown of the costs for your specific home? Contact Patrick Edgett today. He will walk you through the numbers over a cup of coffee (or a glass of wine) and help you plan your next move with confidence.