What will you actually pay to close on a home in Monterey? If you are buying or selling on the Peninsula, the final number can feel fuzzy until you see it itemized. You want a clear range, what drives it up or down, and which costs are normal in our area.
In this guide, you will learn typical buyer and seller closing costs in Monterey County, who usually pays each line item in California, local fees to verify, and simple, illustrative examples. You will also get a quick checklist to request a precise estimate from your lender and escrow. Let’s dive in.
Monterey closing costs at a glance
- Buyers should budget roughly 2 percent to 5 percent of the purchase price for closing costs in California. This includes lender fees, title and escrow, recording, and prepaid items like taxes and insurance. For a plain-language overview of closing costs, see the Consumer Financial Protection Bureau’s explanation of what closing costs cover.
- Sellers typically pay the brokerage commission plus additional closing items. In many California markets, commission is commonly 5 percent to 6 percent of the sale price, and other seller costs often total another 1 percent to 3 percent.
- Exact amounts depend on price, loan type, city or county transfer taxes, HOA rules, and what you negotiate.
Buyer closing costs in Monterey
Loan and lender fees
Most buyers pay lender-related charges such as origination, processing, underwriting, credit report, and discount points if chosen. In aggregate, these can range from 0.5 percent to 2.0 percent of the loan amount, depending on the program and rate you choose.
Appraisal
Lenders usually require an appraisal. Expect $500 to $1,200 depending on the property’s size and complexity.
Title and escrow
California practice often has the seller pay the owner’s title policy and the buyer pay the lender’s title policy. Escrow fees are commonly split 50-50, though this is negotiable and can vary by company and county. Combined buyer-side title and escrow charges typically fall around $1,000 to $4,000+, scaled by price and complexity. Title insurance premiums are rate regulated by the state. For background on how title insurance is priced and why, see the California Department of Insurance’s overview of title insurance in California.
Recording and document fees
Buyers typically pay to record the deed of trust or mortgage, and parties may negotiate who records the deed itself. Recording fees in Monterey County often land in the $50 to $500 range, depending on documents.
Transfer taxes
Documentary transfer taxes may apply at the county level and sometimes at the city level. In many transactions the seller pays, but this is negotiable. Because rates vary by jurisdiction, confirm the current amount with the Monterey County Assessor-County Clerk-Recorder and the city where the property is located.
Prepaid property taxes and prorations
Buyers often fund impound reserves for property taxes and reimburse the seller for taxes already paid, based on the closing date. In California, the base property tax is roughly 1 percent of assessed value plus voter-approved assessments. In Monterey County, the effective rate is often slightly above 1 percent. Verify the current tax rate and payment calendar with the Monterey County Treasurer-Tax Collector, since timing affects prorations and reserves.
Homeowner’s insurance
Your first-year premium is usually collected at closing. Typical ranges are $500 to $3,000+ annually based on coverage, home value, and location. Coastal properties or older homes can be higher.
Prepaid interest and program-specific costs
You will prepay daily interest from closing to your first payment. If your loan requires mortgage insurance or program fees such as FHA or VA upfront amounts, those will be included per your loan terms.
HOA fees and documents
If the home is in an HOA, expect transfer, estoppel, or capital contribution fees. Responsibilities vary by HOA. Ranges can be $100 to $1,500+.
Inspections and reports
Buyers typically pay for due-diligence inspections, such as general home, roof, sewer or septic, pest, and specialty checks. Combined, these can run $300 to $2,000+ depending on scope. California also requires certain disclosures, including a Natural Hazard Disclosure. Monterey-area coastal properties can require additional scrutiny for seismic, landslide, or erosion risks, so choose inspectors with local coastal experience.
Seller closing costs in Monterey
Real estate commission
The largest single line item is the brokerage commission, commonly 5 percent to 6 percent of the sale price in many California markets. This is agreed to in the listing agreement.
Owner’s title insurance policy
In many California transactions the seller pays for the owner’s title policy that protects the buyer’s ownership interest. The premium is tied to the sale price and is regulated by the state, which can amount to several thousand dollars on higher-priced properties.
Escrow fees
Escrow handles the funds, documents, and recording. The fee is often split between buyer and seller by local custom, though terms are negotiable. A seller’s share often falls around $500 to $2,000, depending on price and the split.
Transfer taxes
County and sometimes city transfer taxes may apply when ownership changes hands. In many cases the seller pays, but this can be negotiated. Always confirm current rates with the Monterey County Assessor-County Clerk-Recorder and the city.
Repairs, concessions, and home warranty
After inspections, you might agree to perform repairs or provide a credit at closing. Seller-paid credits or warranties are common tools and can range from nothing to a meaningful percentage of the price, depending on condition and negotiation.
Prorations
Property taxes, HOA dues, and certain utilities are prorated to the closing date, which adjusts the final proceeds you receive.
Monterey-specific checks you should verify
- Transfer tax rules. Ask your escrow officer to confirm any county and city transfer taxes for the specific address and who typically pays in that city. The Monterey County Assessor-County Clerk-Recorder is your source for county-level details.
- Property tax timing. Review the tax calendar and current rates with the Monterey County Treasurer-Tax Collector. Payment dates affect prorations and how much you will pre-fund in impounds.
- Title practice and escrow splits. In our region, sellers often cover the owner’s title policy, buyers cover the lender’s policy, and escrow fees are frequently split. Your title company will confirm the customary split for your transaction.
- Coastal due diligence. Properties near the coast may require added attention to hazard disclosures, insurance, and appraisal details. Choose inspectors and insurers familiar with Monterey’s coastal environment.
- HOA rules. If the home is in an HOA, request transfer fee schedules, estoppel requirements, and any capital contributions that may affect your out-of-pocket total at closing.
Illustrative cost snapshots
These examples are for scale only. Your numbers will vary based on price, program, property, and timing.
Scenario A: Monterey-area resale at $700,000
- Buyer estimate at 2 percent to 4 percent: $14,000 to $28,000
- Loan fees and origination: $3,500 to $10,000
- Appraisal: $500 to $900
- Escrow and title (buyer share): $1,000 to $3,000
- Prepaids for insurance, tax impounds, interest: $4,000 to $8,000
- Recording and misc.: $200 to $500
- Seller costs: commission $35,000 to $42,000 plus $7,000 to $14,000 in other closing items
Scenario B: Monterey County home at $1,000,000
- Buyer closing costs: $20,000 to $50,000
- Seller costs: commission $50,000 to $60,000 plus $10,000 to $30,000 in other closing items
Scenario C: Coastal property at $1,500,000
- Buyer closing costs: $30,000 to $75,000
- Seller costs: commission $75,000 to $90,000 plus $15,000 to $45,000 in other closing items
How to get a precise estimate
Provide the following to your lender and escrow, and ask for written estimates:
- Property address and whether it has an HOA, plus the HOA’s name if applicable.
- Purchase price and down payment or loan amount.
- Loan type, such as conventional, FHA, VA, or jumbo, and whether you are using a broker or direct lender.
- Target closing date, since timing affects tax and interest prorations.
Then request these items:
- A written Loan Estimate from your lender that shows your rate, payment, and closing costs.
- A preliminary title and escrow fee estimate that itemizes title premiums, escrow fees, recording fees, and which party customarily pays what in Monterey County.
- Confirmation of any county and city transfer tax and who typically pays it for that location.
- A funds-to-close summary for buyers or a seller net sheet showing estimated proceeds after costs, prorations, and credits.
Smart moves to manage cash at closing
- Compare lender quotes and fee structures to balance rate and upfront costs.
- Ask your agent to negotiate credits or timing adjustments that fit your goals and loan rules.
- Verify HOA transfer and capital contribution fees early so you are not surprised near closing.
- Plan a small buffer for last-minute prorations or corrections.
Why work with Carmel Coast Realty
Buying or selling a coastal home is not just a transaction. It is a logistics project that benefits from clear numbers and local expertise. Our boutique team pairs residential sales with in-house property management and vacation-rental operations, which helps second-home owners and investors plan not only the purchase or sale but also the ongoing costs and income strategy.
If you want a calm, precise walkthrough of your likely closing costs, we will coordinate with your lender and escrow to get accurate estimates, explain Monterey-specific fees, and help you choose the path that serves your lifestyle and financial goals. Ready to start? Schedule a local consultation with Carmel Coast Realty.
FAQs
What are typical buyer closing costs in Monterey County?
- Buyers commonly see 2 percent to 5 percent of the purchase price for closing costs, including lender fees, title and escrow, recording, and prepaid taxes and insurance.
Who usually pays the owner’s title policy in Monterey?
- In many California transactions the seller pays the owner’s title policy and the buyer pays the lender’s policy, though practices can vary by company and negotiation.
Are there county or city transfer taxes in Monterey?
- Transfer taxes apply at the county level and some cities may have additional taxes. Confirm amounts with the Monterey County Recorder and the specific city before you budget.
How much are appraisal and inspection fees for buyers?
- Appraisals often run $500 to $1,200 and combined inspections can range $300 to $2,000+, depending on scope and property.
How do property taxes affect my cash to close?
- You may reimburse the seller for prepaid taxes and fund impounds for future payments. Monterey County’s effective rate is often slightly above 1 percent of assessed value. Check the current calendar and rates with the County Treasurer-Tax Collector.
Can a seller pay some of the buyer’s closing costs?
- Yes. Seller credits are negotiated in the purchase agreement. Your loan program may cap how much the seller can contribute, so confirm limits with your lender.
