Sticker shock at closing catches many Studio City buyers. You plan for the down payment, then see a list of fees you did not expect. You are not alone. When you understand what each item is, what is typical in Los Angeles, and what you can negotiate, you can budget with confidence and avoid last‑minute stress. This guide breaks down the real costs, local norms, and smart ways to plan. Let’s dive in.
What closing costs include
Closing costs are the fees and prepaids you pay to complete your purchase, separate from your down payment. They often include escrow and title fees, lender charges, appraisal, inspections, recording and transfer charges, prorations for taxes or HOA dues, and prepaids like homeowners insurance and property tax impounds.
In higher‑price California markets like Studio City, a practical planning range is 2 to 4 percent of the purchase price. Your exact total depends on your loan type, price, property type, and any HOA or special assessments.
Typical costs in Studio City
Escrow fees
Escrow is the neutral third party that handles funds and documents. In Southern California, the buyer and seller commonly split escrow fees, but the split is negotiable. Your share in Studio City often falls around 800 to 3,000 dollars, and higher for luxury price points.
Title insurance and title services
Lenders require a lender’s title policy. California custom often has the seller pay the owner’s policy, and the buyer pay the lender’s policy, though this is negotiable. The lender policy premium is a one‑time charge typically in the rough 0.2 to 0.6 percent of the loan amount range based on published rate schedules. Extra title items like endorsements or document prep can add several hundred dollars.
Lender fees and appraisal
Expect lender charges such as origination, underwriting, processing, credit report, and flood certification. Origination can be a percentage of the loan or a flat fee. If you choose to buy discount points, each point is about 1 percent of the loan amount. Appraisals commonly run 450 to 1,200 dollars or more, depending on property type and complexity.
Inspections and reports
You choose your inspections and you typically pay for them. Typical ranges:
- General home inspection: 300 to 700 dollars
- Pest or termite inspection: 75 to 400 dollars
- Sewer scope: 150 to 400 dollars
- Condo HOA resale package: 150 to 400 dollars
Many Studio City condos and townhomes require HOA resale documents and certifications, so plan for those.
Recording and transfer taxes
Los Angeles County charges recording fees to record the deed and deed of trust. California custom often has the seller pay documentary transfer taxes and any city transfer taxes, but the contract controls and parties can negotiate. Budget a few hundred dollars for recording on the buyer side and confirm who pays transfer taxes in your contract.
Prepaids and impounds
Lenders often collect prepaids for your first year of homeowners insurance and set up an impound account for taxes and insurance. Expect:
- Homeowners insurance first‑year premium: 600 to 3,000 dollars or more
- Property tax proration based on your closing date
- An initial escrow cushion, often about two months of escrowed payments
Los Angeles County property taxes follow Proposition 13 with a base around 1 percent of assessed value plus local assessments. The exact number depends on your assessed value and any special assessments.
HOA dues and transfer items
If the property is in an HOA, you may see move‑in or transfer fees, prorated monthly dues, and document charges. At closing this can be 0 to 1,000 dollars or more, depending on the HOA’s policies. Monthly dues are separate from closing costs.
Other possible costs
You may encounter specialized inspections like structural or geological checks, natural hazard reports, or sewer compliance items. Some properties carry Mello‑Roos or special assessments that affect your annual tax bill. Review the preliminary title report and seller disclosures carefully.
Local norms and timing in L.A.
Who usually pays what
In California, it is common for sellers to pay the owner’s title policy and transfer taxes, while buyers pay their lender’s policy, lender fees, and inspections. Escrow fees are often split. These are customs, not rules, so confirm in your purchase agreement.
Taxes and assessments
Los Angeles County property taxes are set under Proposition 13. You will see prorations at closing based on your closing date. Some neighborhoods include voter‑approved assessments or Mello‑Roos. Your title report and disclosures will identify these items.
Condo and older home considerations
Studio City has a mix of condos, townhomes, and older single‑family homes. Condos often add HOA resale and move‑in fees. Older homes can lead to extra inspection scope such as plumbing, electrical, seismic, chimney, or foundation reviews. Plan some contingency for inspections and due diligence.
Federal disclosures and timeline
Your lender must provide a Loan Estimate shortly after application and a Closing Disclosure at least three business days before loan consummation. Build in time to review and ask questions, especially if changes occur close to closing.
Wire fraud safety
Wire fraud targeting real estate closings is a known risk in California. Always verify wiring instructions by calling your escrow officer at a trusted phone number, and follow the secure procedures your escrow company provides.
What you can negotiate
Items you can influence
- Seller credits and concessions. You can request the seller cover some closing costs or buy down your rate.
- Owner’s title policy. Often seller paid in California, but if it is not, you can negotiate a credit or price adjustment.
- Escrow fee split. Allocation is up to the parties and can be negotiated.
- Lender fees and points. Shop lenders and compare origination and rate options.
- Repair credits. Instead of repairs, you can ask for a closing credit after inspections.
- HOA transfer fees. Allocation can be addressed in the contract.
Items harder to shift
Costs that your lender requires for funding, like the lender’s title policy, appraisal, and credit report, are usually the borrower’s responsibility. Prepaids and initial impounds are typically paid by the buyer when required by the loan. Seller credits can still offset them if allowed by the loan program.
Seller concession limits by loan type
- FHA. Seller concessions are commonly allowed up to 6 percent of the lesser of price or appraised value for certain costs.
- VA. Concessions are limited, often up to 4 percent for specific items, with some fees not payable by the borrower. Confirm current VA rules.
- Conventional. Limits vary by down payment percentage. A common pattern is 3 percent for less than 10 percent down and higher limits with larger down payments. Confirm with your lender.
How credits show on your final statement
Seller credits appear on the Closing Disclosure and reduce your cash to close. Make sure the escrow company reflects every negotiated credit so your wire amount is correct.
Budgeting checklist
Use this quick list to plan with fewer surprises:
- Start with purchase price times 2 to 4 percent as a rough closing cost estimate.
- Ask your lender early for a Loan Estimate with line‑item costs.
- Request a written title and escrow fee quote for your price point.
- Set aside funds for inspections and any HOA resale package fees.
- Confirm in writing who pays the owner’s title policy and transfer taxes.
- Get homeowners insurance quotes to plan your first‑year premium.
- Ask your lender about impounds and the initial escrow cushion.
- Verify wire instructions directly with escrow before sending any funds.
A clear plan helps you focus on the home, not the paperwork. If you want a tailored estimate for a specific Studio City property and loan scenario, reach out to Adam Dehrey to Schedule a Private Consultation.
FAQs
What are typical buyer closing costs in Studio City?
- In higher‑price California markets like Studio City, buyers commonly plan for 2 to 4 percent of the purchase price, depending on loan type, property, and local fees.
When will I know my exact cash to close?
- Your lender issues a Loan Estimate early and a Closing Disclosure at least three business days before closing, which shows your final numbers and any seller credits.
Can I roll closing costs into my loan?
- Some lenders offer financed costs or lender credits tied to a higher rate, subject to program rules and qualification; discuss options with your lender early.
Are any closing costs tax deductible?
- Mortgage interest and property taxes may be deductible when itemizing, while many fees like title insurance or appraisal are not; consult a tax professional.
How do I avoid wire fraud during closing?
- Call your escrow officer at a known number to confirm wiring instructions and follow the secure procedures provided; never rely on unverified email instructions.