Are you trying to budget for closing and unsure what surprises might pop up at the finish line? You are not alone. Closing costs in Milpitas follow some clear local rules and customs, but there are also fees you can shop and items you can negotiate. In this guide, you will see typical buyer and seller costs, Santa Clara County taxes, and real-dollar examples at today’s Milpitas price points so you can plan with confidence. Let’s dive in.
Quick Milpitas numbers
- Milpitas median sale price example: about $1.48 million.
- Typical buyer closing costs: about 2% to 5% of the purchase price, with most lender and third-party fees on the buyer side. NerdWallet’s closing cost guide explains each fee in plain language.
- Typical seller closing costs, excluding commission: about 2% to 4% of the sale price in California. Sellers also usually pay commissions, which have historically totaled about 5% to 6%, though arrangements are negotiable and evolving.
Who pays what in Santa Clara County
Local custom often allocates key items to sellers, though everything is negotiable in your purchase contract.
- Owner’s title insurance and county documentary transfer tax are commonly paid by the seller in Santa Clara County, per regional escrow guides. These are customs, not laws, and can be negotiated. See a county-by-county overview in this escrow customs reference.
- Escrow and title fees can be split or assigned by contract. Ask your escrow officer how they allocate charges in Milpitas.
Buyer costs to expect
Most buyer costs come from the mortgage and required third-party services.
- Lender fees. Application, processing, underwriting, and any points. Often 0.5% to 1% of the loan amount or set as flat fees. See the NerdWallet guide to closing costs for typical ranges.
- Appraisal. Commonly $400 to $1,200, higher for complex homes. Paid by the buyer.
- Credit report, flood cert, and tax service. Small fixed fees tied to loan approval.
- Lender’s title insurance. Usually required by the lender. Premiums vary by insurer. California regulates title insurance, so it is smart to compare. Learn how to shop policies at the California Department of Insurance.
- Escrows and prepaids. Your first year of homeowners insurance, property tax prorations, and initial impounds. Timing and tax rates drive these amounts.
Seller costs to expect
Sellers typically see a mix of customary, negotiated, and property-specific charges.
- Real estate commissions. Historically about 5% to 6% of the sale price, paid by the seller. Commission structures are negotiable, and industry practices have been changing. See context in this overview of recent commission rule changes.
- Santa Clara County transfer tax. Customarily a seller cost. The county rate is $0.55 per $500 of consideration. Review the county page on real estate recording and taxes.
- Owner’s title policy and escrow owner-side fees. Often paid by the seller in Santa Clara County by custom. See the escrow customs reference for typical allocations.
- Prorations, payoffs, and HOA items. Remaining property taxes, mortgage or HELOC payoffs, HOA demand and transfer fees for condos and townhomes, and any agreed repairs or concessions.
Local taxes and fees in Milpitas
- County documentary transfer tax. Santa Clara County charges $0.55 per $500. On a $1,482,500 sale, that is about $1,631 at recording. Details are on the county’s real estate recording page.
- City transfer tax. Milpitas does not impose the large city transfer taxes found in some nearby cities. Always confirm with your escrow officer for your specific property.
- Recording and statutory surcharges. Recording fees, SB2 Building Homes and Jobs fee, AB 1466, and other surcharges are set by the Clerk-Recorder. See the county fee schedule for current amounts.
- Property taxes and assessments. California’s base property tax is generally 1% of assessed value under Proposition 13, plus voter-approved bonds and any parcel or special taxes. Some Milpitas neighborhoods have Mello-Roos or CFD special taxes that add to the annual bill. Ask escrow for any Notice of Special Tax if applicable and review parcel specifics. A recent court filing highlights how these CFD obligations are disclosed and enforced in practice, which is why it is important to verify them early. See this reference on Mello-Roos disclosures.
Real-dollar examples at the median price
Using a $1,482,500 sale price for illustration:
- Buyer closing costs at 2% to 5%: about $29,650 to $74,125. This is on top of your down payment. A lender’s Loan Estimate will refine the number.
- Seller closing costs, excluding commission, at 2% to 4%: about $29,650 to $59,300.
- Commission example at 5% to 6%: about $74,125 to $88,950. Actual structures are negotiable.
- County transfer tax at $0.55 per $500: about $1,631.
Compare your lender’s initial estimate to the final Closing Disclosure to confirm where your numbers land.
Timeline and how to prepare
Key documents to expect
- Loan Estimate. Your lender must give you a Loan Estimate within 3 business days of a completed application. It outlines projected closing costs. See the federal disclosure rules summarized here: Loan Estimate and Closing Disclosure timing.
- Closing Disclosure. You must receive the final Closing Disclosure at least 3 business days before closing. Compare it to your Loan Estimate and ask questions about any differences.
What you can shop and negotiate
- Lenders and points. Rates and origination fees vary. Shop lenders and compare Loan Estimates. The NerdWallet closing cost guide explains common fees.
- Title and escrow. You can often choose the provider for the lender’s title policy, and premiums vary by company. Learn how to compare filed rates at the California Department of Insurance.
- Seller credits. Buyers can request a seller credit to offset some closing costs. Allowed amounts depend on loan program and lender rules.
- Commissions. Structures and who pays are negotiable and evolving. Get clarity early. For context, review the recent commission rule changes.
Milpitas-specific checklist
- Ask your lender for a Loan Estimate early and compare two or three options.
- Request a fee quote from your title and escrow company and confirm which items are estimates versus fixed.
- If you are buying a condo or townhome, order the HOA documents early and budget for HOA demand and transfer fees.
- Ask escrow to confirm your property tax rate area and whether a Mello-Roos or CFD special tax applies. If yes, request the Notice of Special Tax.
- Review your Closing Disclosure line by line at least 3 business days before closing and resolve any discrepancies with your lender or escrow officer. See the TRID timing summary.
If you want a calm, step-by-step plan for closing costs and net proceeds, reach out. With decades of Bay Area transaction experience, Sonali Sethna will help you budget accurately, negotiate smartly, and close with confidence.
FAQs
How much are buyer closing costs in Milpitas?
- Budget about 2% to 5% of the purchase price, which is roughly $30,000 to $75,000 on a $1.48 million home, plus your down payment.
Who pays the Santa Clara County transfer tax on Milpitas homes?
- By local custom the seller pays the county documentary transfer tax, though the purchase contract can allocate it differently.
Does Milpitas add a city transfer tax on top of the county tax?
- Milpitas does not impose the large city transfer taxes some nearby cities charge, but you should confirm with escrow for your specific property.
When will I see my final closing numbers?
- Your lender must deliver the Closing Disclosure at least 3 business days before closing, which gives you time to review and ask questions.
How do Mello-Roos taxes affect my closing and monthly costs?
- If the property is in a CFD, those special taxes appear on the property tax bill and can increase impounds, so ask escrow for the Notice of Special Tax early.
Can I negotiate who pays closing costs?
- Yes, many items are negotiable and buyers often request seller credits, but allowed amounts are limited by loan program rules and must be written into the contract.
