San Francisco sellers generally have two main costs of sale: the commission and the transfer tax, both of which are traditionally covered by the selling party. Title and escrow fees, on the other hand, are usually paid by the buyer.
The amount of the transfer tax and how it’s calculated can vary from county to county. In San Francisco, the amount is $5.00 per $1,000 of value transferred for property sales up to $250,000 – but of course, in our fair city, there are very few sales that small. For sales between $250,000 and $1 million, the amount is $6.80 per $1,000 value, and for sales between $1 million and $5 million, the amount is $7.50 per $1,000.
For sales above $5 million, the amount is $15.00 per $1,000. If you’re talking that kind of property, though, that’s only one of the many expenses that’s going to be involved with it …
Generally speaking, new home developers nearly always pass the cost of transfer taxes onto the buyer and have that condition built into their contracts. Of course, that point is negotiable, along with any other terms of a purchase contract.
Compared to other towns and counties in California, the San Francisco transfer tax rate is a bit hefty. A quick perusal shows only the city of Richmond exceeding that rate.
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Dreaming of San Francisco? Cece Blase offers local advice to San Francisco buyers, sellers and owners-- and feeds the dreams of those who wish they could live in Tony Bennett's 'City by the Bay.' Call 415-577-0809 or email cblase@paragon-re.com. www.ceceblase.com
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