What Fees Do Sellers Pay
When Selling a Home
in Murrieta?

Following recent industry changes, real estate commissions are no longer structured around a single fixed percentage. Instead, there are two separate and independently negotiated compensation agreements — one for the listing agent and one for the buyer's agent.

**Listing Agent Commission:** The compensation you pay your listing agent is negotiated directly between you and that agent. There is no standard fixed rate. The commission is based on the scope of services provided, your home's marketing strategy, the level of representation required, and the complexity of the transaction. A listing agreement spells out exactly what your agent will do — from pricing and preparation to marketing, negotiation, and closing — and what that service is worth. This is something we discuss in detail during our listing consultation so you have full clarity before signing anything.

**Buyer Agent Compensation:** Sellers may also choose whether to offer compensation to a buyer's agent. Your listing agent can make recommendations on what you might offer to compensate a buyer\'s agent, but the actual buyer agent compensation is negotiated as part of the purchase offer. The buyer and their agent submit an offer that may include a request for the seller to compensate the buyer\'s agent, and you can accept, reject, or counter that term just like any other part of the offer. This gives you full flexibility and control over the final agreement. Compensation can be structured in a variety of ways — as a flat amount, a percentage, or through other negotiated terms — and the details are always outlined in writing.

What this means for you as a seller: you have more transparency and more control than ever before over how and what you pay for real estate representation. We walk you through every option, explain the implications of each approach, and help you structure the compensation in a way that is fair, competitive, and aligned with your goals.

What you are paying for: professional pricing strategy, marketing, photography, negotiation, contract management, and guidance through every step from listing to closing. A strong listing agent protects your interests, manages the timeline, and can often help you net more than you would on your own — even after commissions.

Title insurance protects the buyer (and their lender) against any claims, liens, or defects on the title that existed before the sale. In Riverside County, it is customary — though not legally required — for the seller to pay for the owner's title insurance policy. The lender's title policy is typically paid by the buyer.

The cost of an owner's title policy varies based on the sale price, but for homes in the $600,000 to $900,000 range, you can generally expect somewhere between $1,800 and $2,500. This is a one-time premium paid at closing.

Title insurance is one of those costs that buyers rarely think about — but it is an important part of a clean closing. We coordinate with the title company to make sure everything is handled properly and that you understand what you are paying for.

The documentary transfer tax is a county-level fee charged when real property changes hands. In Riverside County, the rate is $0.55 per $500 of the sale price, which works out to $1.10 per $1,000 of value.

This tax is customarily paid by the seller in Riverside County. It is collected at closing through the escrow company and remitted to the county recorder when the deed is recorded.

The City of Murrieta does not impose an additional city-level documentary transfer tax on top of the county rate. So for a property within Murrieta city limits, the total transfer tax is simply the Riverside County rate.

This is one of the smaller costs sellers pay, but it is important to include it when calculating your expected net proceeds.

Many Murrieta communities have homeowners associations — Spencer's Crossing, Greer Ranch, Mahogany Hills, and others. If your property is in an HOA, there are several fees that typically come up during the selling process.

Common HOA-related costs include:

• HOA Document Package (Transfer Disclosure Statement, CC&Rs, bylaws, financials, etc.) — typically $200–$500

• HOA Transfer Fee — typically $200–$400, charged when the membership is transferred to the new owner

• Capital Contribution or Working Capital Fee — some HOAs charge a one-time fee of $200–$1,000+ when a unit is sold

• Demand for Payment / Status Letter — typically $50–$100

The exact fees depend on your specific HOA. We will review your CC&Rs and fee schedule as part of our listing preparation so you know exactly what to expect. If you are not sure whether your property is in an HOA, we can help you figure that out — it is one of the first things we look at.

Property taxes in California are paid in arrears, meaning the bill you receive covers a period that may extend beyond your ownership. At closing, your share of property taxes is prorated — you pay only for the portion of the year you owned the home, and the buyer picks up the rest.

In Murrieta, the base property tax rate is approximately 1.1% to 1.25% of the assessed value, though the actual amount can vary depending on the property's purchase history under Proposition 13. Some newer communities also have Mello-Roos (Community Facilities District) assessments, which add an additional annual fee that is also prorated at closing.

For a home assessed at $700,000 with a typical rate of 1.15%, the annual property tax is roughly $8,050. The prorated amount you pay depends on when in the tax cycle the sale closes. We make sure the escrow company calculates this correctly — it is a standard part of every transaction.

California law requires sellers to provide buyers with a Natural Hazard Disclosure (NHD) report. This report identifies whether the property falls within any state-mandated natural hazard zones — earthquake fault zones, flood zones, wildfire hazard areas, seismic hazard zones, and more.

The NHD report is typically prepared by a third-party disclosure company and costs between $200 and $400. In most cases, the seller pays for this report. It is ordered early in the listing process and delivered to the buyer as part of the disclosure package.

Some parts of Murrieta and the surrounding area may fall within wildfire hazard zones or other designated areas, so this disclosure is particularly important for properties on hillside or rural lots. We order this report as soon as a property is listed to keep the transaction timeline on track.

When a property is sold in California, the assessor needs to determine whether the property will be reassessed for property tax purposes under Proposition 13. The Preliminary Change of Ownership Report (PCOR) is the form that documents the details of the transaction.

The PCOR is filed with the Riverside County Assessor's Office, and it is typically prepared by the escrow company as part of the closing process. There is generally no filing fee charged to the seller for this form, though the escrow company may include its preparation as part of the escrow service.

This is one of those behind-the-scenes items that sellers rarely think about, but it is an important part of the California property tax system. We make sure it gets handled correctly so there are no issues after closing.

A home warranty is an optional service contract that covers the repair or replacement of major home systems and appliances for one year after closing. While it is not required, many sellers choose to offer a home warranty as a selling point — it gives buyers peace of mind and can help reduce the risk of post-closing repair disputes.

For a standard single-family home in the Murrieta area, a one-year home warranty plan typically costs between $600 and $900. The seller pays this premium at closing. Coverage usually includes the HVAC system, plumbing, electrical, water heater, oven/range, dishwasher, and more.

In our experience, offering a home warranty is a smart move. It shows good faith to the buyer and can make your listing more attractive, especially if your home has older systems. We can help you select a reputable home warranty provider and choose the right coverage level.

The escrow company acts as a neutral third party that manages the exchange of funds and documents between the buyer and seller. They handle the money, ensure all conditions of the sale are met, and coordinate the final recording of the deed.

Escrow fees in Riverside County are typically split between the buyer and seller, though this is always negotiable as part of the purchase agreement. The total escrow fee is usually around 1%–2% of the sale price (combined for both parties).

For a $700,000 home, total escrow fees might be in the range of $2,000–$3,000, with the seller's share typically being around $1,000–$1,500. The exact fee depends on the escrow company and what was negotiated in the contract.

We work with experienced local escrow officers who are responsive and detail-oriented. A good escrow officer is worth their weight in gold when it comes to keeping a transaction on track.

When the sale closes, the new deed and any other documents (such as a deed of trust or release of lien) need to be officially recorded with the Riverside County Recorder's Office. This creates a public record of the ownership transfer.

Recording fees are relatively small — typically ranging from $75 to $200 depending on the number of pages being recorded. In most transactions, the seller pays for the recording of the grant deed, while the buyer pays for recording their new deed of trust with the lender.

This is one of the smallest costs in the transaction, but it is a necessary step to complete the transfer of ownership.

Before a property can be sold with a clean title, any outstanding liens or judgments against the property must be paid off. The most common lien is your existing mortgage, which is paid from the sale proceeds at closing through the escrow process.

Other types of liens that may appear include:

• Home Equity Line of Credit (HELOC) or second mortgage

• Mechanic's liens (from unpaid contractor work)

• Tax liens (from unpaid property taxes or IRS liens)

• Judgment liens from court orders

All of these are handled through escrow — the title company runs a title search before closing and identifies any liens that need to be satisfied. Your mortgage payoff is not an "extra" cost; it is simply the balance you already owe being paid off from the sale proceeds. But it is important to understand that the net proceeds you walk away with are the sale price minus all of these costs and obligations.

We review your property's title status early in the listing process so there are no surprises during escrow.

During the negotiation process, a buyer may request that the seller provide a credit toward repairs identified during the inspection, or toward their closing costs. This is entirely negotiable — there is no requirement for a seller to agree to any credits.

Common scenarios include:

• Repair credits: The buyer requests a credit to handle repairs after the inspection (e.g., a roof repair, HVAC service, or plumbing issue). This is often simpler and faster than arranging the repairs yourself.

• Closing cost credits: In some market conditions, sellers may agree to contribute toward the buyer's closing costs to help keep the deal together or make the offer more competitive.

The amount of any credits is always negotiated. In a seller's market, credits are less common. In a buyer's market or when inspection issues arise, credits become a normal part of getting to closing.

We help you evaluate every credit request carefully and negotiate from a position of strength — making sure you give up as little as possible while still keeping the transaction on track.