Buying a home in Santa Monica is exciting, but the final wire can feel like a black box. How much will you actually pay at closing, and why do some buyers pay more than others? If you want a clear, local view of buyer closing costs before you make an offer, you’re in the right place. In this guide, you’ll learn what typical fees cover, what’s unique to Santa Monica, how much to budget at different price points, and simple steps to avoid last‑minute surprises. Let’s dive in.
What closing costs cover
Plan for buyer closing costs to land around 2% to 5% of the purchase price, not including your down payment. The percentage varies because some fees are flat, while others scale with price or loan amount. Optional loan choices, like discount points, can also move the needle.
Because Santa Monica prices are higher than many markets, your dollar total will likely be larger even if the percentage is similar. For planning purposes only:
- Around $800,000: roughly $16,000 to $40,000
- Around $2,500,000: roughly $50,000 to $125,000
- Around $5,000,000: roughly $100,000 to $250,000
Your exact numbers will come from your lender’s Loan Estimate and the title and escrow company’s fee quotes.
Typical closing costs, line by line
Escrow fees
Escrow manages the transaction, funds, and documents. In many California deals, escrow fees are split, but it is negotiable and set by contract. Expect about $1,000 to $4,000 based on the price and the escrow company’s fee schedule.
Title insurance and title services
If you finance the purchase, the lender will require a lender’s title policy. An owner’s title policy protects your ownership. In California, buyers typically pay the lender’s policy and sellers often pay the owner’s policy, but this can be negotiated. Title insurance and related services usually total several hundred to a few thousand dollars depending on loan and purchase amounts.
Lender fees and loan charges
Your loan may include an origination, underwriting, processing, and smaller items like a credit report or tax service. Plan for about 0.5% to 1.5% of the loan amount for routine lender fees, not counting optional discount points. Flat items like an appraisal or credit report usually add a few hundred to around $1,500 each.
Appraisal and inspections
Most lenders require an appraisal. Common buyer inspections include general home, pest, roof, or sewer scope. Budget roughly $500 to $1,500 for an appraisal and $300 to $1,500 or more for inspections, depending on the home and how deep you go.
Prepaid items and prorations
You will prepay certain items at closing, such as your first year of homeowner’s insurance, prepaid interest on the new loan, and prorated property taxes. California’s base property tax is about 1% of assessed value, plus any local assessments and bonds. The exact prepaid interest depends on your rate and the number of days from funding to your first payment.
Recording and transfer-related fees
The county charges to record the deed and loan documents. Recording fees are usually modest, often in the hundreds. Documentary transfer taxes are common in California. By custom, sellers often pay these, but it is negotiable and set by contract. Always confirm the exact city and county rules that apply to your property.
HOA fees, estoppel, and move-in items
For condos and some townhomes, expect HOA administration costs, such as transfer fees, package or document fees, and move-in deposits or elevator booking fees. Who pays each item varies by building and contract. Plan for $100 to $1,000 or more, depending on the HOA.
Special assessments and liens
Some properties carry ongoing special taxes or HOA assessments. In Santa Monica, many buildings are older and may have planned capital projects. Review the preliminary title report, HOA documents, and seller disclosures for any current or upcoming assessments. These can affect prorations or your future expenses.
Earnest money and final funds
In competitive Westside markets, earnest money often ranges from about 1% to 3% of the purchase price, though it varies by deal. This deposit applies to your final funds at closing. Confirm wiring instructions with escrow by phone using a trusted number.
Optional earthquake and flood insurance
Lenders require flood insurance if the property is in a designated flood zone. Earthquake insurance is optional, but many California buyers consider it. Premiums vary with coverage, building type, and location. Get quotes early so you can plan for your first year’s insurance payment at closing.
Santa Monica factors that change totals
Price levels and condo mix
Santa Monica has a mix of higher-value single-family homes and many condos and townhomes. Higher purchase prices can increase dollar-based closing costs tied to the loan or price. For condos, HOA-related line items like transfer or move-in fees are common.
City and county transfer taxes
Los Angeles County and some cities impose transfer taxes. In many California sales, sellers pay these by custom, but the contract governs. Always verify the specific city and county charges and who will pay them during negotiations.
Insurance near the coast
Coastal proximity can influence hazard insurance pricing. Lenders will require proof of homeowner’s insurance before closing, and flood insurance is required if the home is in a flood zone. Request quotes early to avoid delays and to budget accurately.
Property tax and assessments
Your closing will reflect prorated property taxes based on the current assessed value and any local assessments. California rules like Proposition 13 affect long-term taxation, but at closing you will mainly see prorations and possibly supplemental bills later. Ask the escrow or title company to outline current taxes and any assessments on the property.
Wire fraud vigilance
Large Westside transactions can attract wire fraud attempts. Use strict verification. Call your escrow or title officer at a known phone number to confirm wiring instructions. Do not rely only on email.
How much to budget: local examples
These examples are planning tools. Always confirm with your lender and escrow/title teams.
Example: $800,000 condo
- Estimated total closing costs: about $16,000 to $40,000
- Escrow, title, and lender-related: $3,000 to $8,000
- Appraisal and inspections: $1,000 to $2,500
- Prepaid taxes, insurance, interest: $3,000 to $6,000
- HOA transfer or move-in items: $200 to $1,000
- Recording and other fees: $200 to $800
- Optional points: varies by rate strategy
Example: $2,500,000 single-family home
- Estimated total closing costs: about $50,000 to $125,000
- Escrow, title, and lender-related: $6,000 to $15,000
- Appraisal and inspections: $1,500 to $4,000
- Prepaid taxes, insurance, interest: $12,500 or more
- HOA or special assessments if applicable: $0 to $10,000 or more
- Recording and other fees: $300 to $1,200
- Optional points and loan choices: varies by plan
If you are shopping in the $5,000,000 range, use the same 2% to 5% guidance to plan roughly $100,000 to $250,000, then refine the numbers with your lender and escrow team.
Smart timeline and checklist
Before you write an offer
- Ask a local lender and a Santa Monica escrow or title officer for a ballpark closing-cost estimate and fee schedule.
- Request a summary of HOA documents and any known special assessments for condos and townhomes.
- Line up inspection options and get early homeowner’s and earthquake insurance quotes.
Once you are under contract
- Review seller disclosures, HOA documents, and the preliminary title report for liens, easements, and assessments.
- Use your lender’s Loan Estimate to understand all loan-related charges. Three days before closing, review your Closing Disclosure line by line.
- Confirm city and county transfer taxes and who will pay them per the contract.
Negotiation levers to consider
- Request a seller credit toward your closing costs. Feasibility depends on market conditions.
- Decide whether to pay discount points to lower your interest rate. This increases upfront costs but may reduce monthly payments.
- Negotiate who pays certain title or escrow fees. Local custom often splits these, but the contract can change the split.
Timing of payments
- Earnest money is due early in escrow and applies to your final funds.
- Appraisal and most inspections are paid as you order them.
- Final funds to close must be wired or delivered as certified funds. Call escrow to verify wiring instructions.
Pro tips to avoid surprises
Get itemized quotes early. Your lender’s Loan Estimate and the escrow/title fee schedules are your best planning tools.
Build a small cushion. Budget an extra 0.25% to 0.5% of the purchase price for add-ons like optional points or additional inspections.
Read every page. Use the Closing Disclosure to verify that prorations, fees, and credits match what you agreed to.
Ask about HOA timelines. For condo resales, HOA document delivery can take time. Start early to keep closing on track.
Plan for insurance. Have homeowner’s insurance bound before closing and consider earthquake coverage based on your risk tolerance.
The bottom line
In Santa Monica, plan for about 2% to 5% of the purchase price for buyer closing costs, with higher dollar amounts at luxury price points and potential extras for condos and HOAs. Your exact numbers depend on your loan choices, property type, and negotiated credits. The most reliable way to dial it in is to pair a strong local lender with an experienced escrow and title team, then study the Loan Estimate and Closing Disclosure together.
If you want a clear, local plan for closing costs and a smooth path from offer to keys, our Westside team can help you compare estimates, negotiate credits, and keep every step moving. Connect with the Bellet/Grakal/Glick Real Estate Group to get personalized guidance for your Santa Monica purchase.
FAQs
What are typical buyer closing costs in Santa Monica?
- Plan for about 2% to 5% of the purchase price, with higher dollar totals at Santa Monica price points and possible extras for condos and HOAs.
How are closing costs different from the down payment?
- Your down payment reduces the loan amount, while closing costs pay third-party fees, lender charges, prepaids, and taxes needed to finalize the purchase.
Which buyer closing costs are negotiable?
- You can negotiate seller credits and who pays certain title or escrow fees; rate buydowns via discount points are your choice and affect upfront costs.
Do Santa Monica buyers pay transfer taxes?
- Many California deals customarily have the seller pay transfer taxes, but responsibilities vary by city and contract, so confirm the allocation in writing.
How do HOA fees impact condo closing costs?
- Expect HOA transfer, document, or move-in fees; amounts vary by building and may be assigned to buyer or seller based on contract terms.
When will I see my final closing numbers?
- You should receive a Closing Disclosure at least three days before closing that lists final fees, credits, and the exact amount you need to bring.
Should I buy earthquake insurance as a Santa Monica buyer?
- It is optional but common to consider in coastal Los Angeles; get quotes early so you can plan for your first year premium at closing.
How can I avoid wire fraud when sending funds?
- Call your escrow or title officer using a trusted phone number to verify instructions, and never rely only on email for wire details.
