Buying in Larkspur is exciting, but the pile of line items at the end can feel like a guessing game. You want to know exactly what you will owe so there are no surprises on closing day. In this guide, you will learn what typical buyer closing costs include, what is customary in California, how Larkspur and Marin specifics can impact your total, and how to budget with confidence. Let’s dive in.
What closing costs cover in Larkspur
If you are getting a mortgage, plan for buyer closing costs of about 2 to 5 percent of the purchase price. Your total depends on loan type, property specifics, and local assessments. In Larkspur, higher home values, HOA-related fees, and flood or supplemental tax factors can move the number.
Closing costs usually fall into these buckets:
- Lender fees: origination, points, appraisal, credit, flood certification
- Escrow and title: escrow/closing fee, lender’s title policy, recording and wire/notary
- Taxes and transfer items: recording, potential transfer tax, proration of property taxes, and California supplemental assessments after closing
- Property and HOA items: inspections, HOA transfer or move-in fees
- Prepaids and reserves: interest, first-year homeowner’s insurance, and any escrow buffers for taxes and insurance
Lender costs you can expect
Origination and points
Your lender may charge an origination fee and you can choose to pay discount points to lower your rate. Buyers pay these costs. As a rough guide, origination can be around 0.5 to 1 percent of the loan amount, and each discount point equals 1 percent of the loan. On larger Marin loans, the dollar amounts scale up, so request a detailed Loan Estimate early.
Appraisal, credit, and flood certification
Lenders require an appraisal to confirm value and will run credit and flood checks. Buyers pay these fees. Appraisals often range from about $500 to $1,500 or more depending on property complexity. Credit reports and flood certifications are typically tens to low hundreds of dollars. Unique or luxury properties in Larkspur can require specialized appraisals at higher cost.
Prepaids and escrow reserves
You will prepay daily interest from closing to your first payment and the first year of homeowner’s insurance. Your lender may also collect reserves for taxes and insurance. The totals vary. In Marin, insurance can be higher and lenders may collect several months of tax and insurance reserves, especially on high-value homes.
Escrow, title, and recording
Escrow or closing fee
The escrow company manages funds and documents. In many Northern California transactions this fee is split between buyer and seller, though it is negotiable and local custom can vary. Expect roughly $1,000 to $4,000 for the total fee, which often scales with price. With Larkspur’s higher price points, plan toward the higher end and ask escrow for an exact quote.
Title insurance
In California, the seller typically pays for the owner’s title policy and the buyer pays for the lender’s title policy and endorsements. This is custom, not law, and can be negotiated. Premiums are formula-based and depend on purchase and loan amounts. In Larkspur, request a written ALTA title quote so you know your exact figures.
Recording fees and transfer tax
The county charges to record your deed of trust and deed. Recording fees are usually modest, often tens to a few hundred dollars. Documentary transfer tax practices vary by county and city and payment is negotiable. Confirm current Marin County and City of Larkspur practices during escrow so no one is surprised at closing.
Taxes, prorations, and supplemental bills
California property taxes are billed in two installments. At closing, taxes are prorated so the seller pays up to the day you close and you pay from that day forward. You may also see prorations for utilities or special district assessments.
California issues a supplemental assessment when a property changes ownership. This can produce a separate bill after you close based on the difference between the prior assessed value and the new value. On higher-priced Larkspur homes, this bill can be significant. Escrow typically estimates only regular taxes, so plan for a supplemental bill later unless otherwise negotiated.
HOA and inspections
HOA transfer and move-in fees
In condos and planned communities, expect HOA transfer or estoppel fees and possible move-in deposits. The payer varies by community documents or local custom. Typical transfer or estoppel fees can run around $150 to $500, while deposits and move-in charges vary. Ask for these amounts early in your contingency period.
Inspections and reports
Buyers in Marin often order a general home inspection and a wood-destroying pest inspection. Depending on the property, you may also order roof, sewer, drain, or other specialized inspections. These are usually buyer-paid and often range from about $300 to $1,200 per inspection. Older homes or homes near creeks may call for additional due diligence.
Insurance considerations in Larkspur
Your lender will require homeowner’s insurance. Parts of Larkspur near waterways can be in FEMA flood zones, which can trigger flood insurance requirements. Earthquake insurance is optional in California but is common for risk management. Premiums vary based on coverage, location, and structure, so check early to avoid last-minute surprises.
What you need to bring to closing
Plan to bring your down payment, your closing costs, prepaid interest, your first year of insurance, and any lender-required reserves. Your earnest money deposit will be credited at closing. Your lender and escrow officer will give you final numbers, but the best practice is to over-prepare by a small margin so wire timing and bank limits do not delay funding.
Quick budgeting worksheet
Use this worksheet to estimate and then track actual costs as your numbers firm up.
| Line item | Estimated cost | Actual cost |
|---|---|---|
| Purchase price | ||
| Down payment (amount and %) | ||
| Buyer closing costs estimate | ||
| • Loan origination / points | ||
| • Appraisal | ||
| • Credit report / flood cert | ||
| • Lender’s title insurance | ||
| • Escrow fee (buyer side) | ||
| • Recording fees | ||
| • Prepaid interest | ||
| • First year homeowners insurance | ||
| • Property tax proration (buyer portion) | ||
| • HOA estoppel/transfer fee | ||
| • Inspections (home, pest) | ||
| • Misc (notary, wire, courier) | ||
| • Reserves (taxes & insurance to escrow) | ||
| Total funds needed at closing | ||
| Earnest money deposit credited |
Illustrative example only
- Purchase price: $2,000,000
- Estimated buyer closing costs: 2.5 percent of price = $50,000
- Appraisal: $900
- Loan origination: $8,000
- Lender’s title insurance: $3,500
- Escrow, recording, courier: $3,000
- Prepaids and initial escrows: $10,000
- Inspections and HOA estoppel: $1,500
- Property tax proration: $20,100
- Miscellaneous: $2,000
- Note: Property tax proration depends on assessed value and parcel taxes. Use the actual tax bill and escrow calculation for your estimate.
Smart steps to keep costs in check
- Ask your lender for a Loan Estimate within three business days of application and compare offers.
- Request an ALTA title quote and escrow fee estimate for your exact price and loan.
- Confirm who pays the owner’s title policy in your offer. In many California markets the seller pays, but it is negotiable.
- Ask if there are parcel taxes, special district fees, or city transfer taxes for the property.
- Check flood zone status early to understand any insurance requirements.
- Get inspection quotes up front and schedule quickly to stay on timeline.
- Add up funds to close: down payment, closing costs, and reserves. Confirm your bank’s wire limits and timing.
Common Marin pitfalls to avoid
- Assuming your monthly taxes at closing reflect your true future bill. A supplemental assessment can arrive after closing.
- Overlooking HOA transfer, move-in, or capital contribution fees on condo and townhome purchases.
- Estimating escrow and title fees using statewide averages. Larkspur’s higher prices can push fees higher.
- Waiting to shop insurance. Premiums and flood coverage can affect your total cash to close.
Final thoughts
Closing costs are predictable when you know what to ask and when you get written estimates early. Budget about 2 to 5 percent of the purchase price, then refine with your lender and escrow team as soon as you are in contract. That way, funding and keys go smoothly.
If you would like a local, transaction-specific walkthrough of your numbers and strategy for negotiating who pays what, connect with Eric Schmitt for discreet, data-driven guidance.
FAQs
How much should a Larkspur buyer budget for closing costs?
- Plan for about 2 to 5 percent of the purchase price when financing, then confirm with a Loan Estimate and title quote.
Who typically pays for title insurance in California purchases?
- The seller usually pays the owner’s policy and the buyer pays the lender’s policy, but it is negotiable and varies by market.
Will I get a supplemental property tax bill after closing in Larkspur?
- Yes, you may. California issues supplemental assessments after ownership changes, and buyers are generally responsible unless negotiated otherwise.
Are there local taxes or assessments unique to Marin that affect closing?
- Many parcels include local or special district assessments that are prorated at closing; confirm details for the specific property.
Do Larkspur homes require flood insurance?
- Only if the home is in a designated flood zone and your lender requires it; properties near waterways are more likely to be affected.
