Buying or selling a coastal home is exciting, but the numbers at closing can feel murky. You want a clear picture of who pays what in Bodega Bay, what’s typical in Sonoma County, and which coastal factors can add cost. This guide breaks it down in plain language, with local context and simple examples so you can plan with confidence. Let’s dive in.

Closing costs at a glance

Closing costs are the fees and prepaid items due when you finalize a sale. They cover services like escrow, title insurance, recording, lender charges, inspections, and taxes or assessments that are prorated. Some costs are negotiable, and local customs can differ by county or even by transaction.

In coastal areas like Bodega Bay, you may also see specialty inspections and insurance needs. These are normal and help you protect your investment on the shoreline. The key is to get itemized estimates early so there are no surprises.

Who typically pays what

Every deal is unique, but here’s how common costs often break out in Sonoma County. Always confirm with your escrow and title team.

• Escrow fees: Charged by the escrow company and often based on price. Buyer and seller may split these or follow local custom. You can negotiate this in the contract.
• Title insurance: Lender’s policy protects the lender, owner’s policy protects the buyer. In many California sales, sellers pay for the buyer’s owner’s policy, but practices vary by county and deal. Verify locally.
• Transfer tax: Sonoma County charges a documentary transfer tax. Who pays is negotiable and may follow local custom. Confirm with your escrow or title company.
• Recording fees: County recording fees for the deed and related documents. These are typically a few hundred dollars.
• Lender fees (buyers financing): Origination, underwriting, points, and processing. Your lender’s Loan Estimate will itemize these.
• Prepaid items and reserves (buyers): Initial deposits for property taxes and homeowner’s insurance, plus prorated taxes from closing to the next tax due date.
• Property taxes and assessments: Prorated between buyer and seller at closing. California’s base rate is roughly 1 percent, plus local assessments that vary by property.
• Inspections: General home inspection, pest or termite, roof, chimney, septic and well if applicable, and sometimes geotechnical evaluations near bluffs. Buyers usually pay these up front during due diligence.
• HOA items: If there is an HOA, expect transfer or resale certificate fees, prorated dues, and any outstanding assessments to be settled.
• Seller costs: Real estate commissions, payoff of existing loans, any agreed credits or repairs, prorated taxes, and required disclosure reports such as the Natural Hazard Disclosure.

Typical cost ranges in Sonoma County

Use these ranges to plan, then get exact figures from your lender and escrow/title company.

• Buyers: About 2 to 5 percent of the purchase price in closing costs, excluding your down payment. This includes lender fees, title and recording, escrow portion, inspections, and prepaid taxes and insurance.
• Sellers: About 6 to 10 percent of the sale price, including commissions, any transfer tax, typical seller-side title or escrow costs depending on custom, and mortgage payoffs.
• Escrow fees: Commonly around $1,000 to $4,000 in total for both sides on typical California prices. Higher prices can mean higher fees.
• Title insurance: Owner and lender policies together often range from about $1,000 to several thousand dollars depending on price.
• Appraisal: Roughly $450 to $1,200 or more, based on property complexity.
• Home inspection: Usually $300 to $800 for a standard coastal home. Specialty inspections can add $300 to $2,000 depending on scope.
• Pest or termite inspection: Often $150 to $450.
• Recording and notary: Generally a few hundred dollars.
• Prepaid taxes and insurance: Buyers may need to fund several months of property taxes and insurance into an impound account at closing.

Worked examples

These scenarios are illustrative. Customs and fees vary, so ask your lender and escrow team for itemized estimates.

Buyer example at $500,000

• Down payment: Not part of closing costs, but plan separately based on your loan program.
• Estimated buyer closing costs at 2.5 percent: About $12,500, which might include lender fees, title and recording, a share of escrow, appraisal, inspections, and prepaid taxes and insurance.
• Possible add-ons: If the home is near bluffs or in a mapped flood zone, you may need specialized inspections or flood insurance that change your total.

Buyer example at $1,000,000

• Down payment (20 percent): $200,000, not a closing cost but required cash.
• Estimated buyer closing costs at about 2.5 percent: About $25,000. A typical mix could include lender fees, title and recording, escrow portion, appraisal, inspections, and several months of prepaid taxes and insurance.
• Possible add-ons: Flood insurance if required by your lender, HOA transfer fees, and any septic or well testing if applicable.

Buyer example at $1,500,000

• Down payment: Varies by loan program and second-home guidelines.
• Estimated buyer closing costs at 3 percent: About $45,000. Higher-price or complex coastal properties can drive larger escrow and title fees, plus expanded inspections.
• Possible add-ons: Geotechnical reports for bluff-adjacent homes, higher insurance premiums for coastal exposure, or additional HOA documentation if applicable.

Seller example at $1,000,000

• Commission at a common total of 6 percent: About $60,000, though commission is negotiable.
• Other seller costs and adjustments at about 1.5 percent: Around $15,000. This can include the seller’s escrow share, customary title costs, transfer tax depending on agreement, prorated taxes, recording fees, and any modest credits or repairs.
• Net proceeds: Sale price minus mortgage payoffs and total closing costs above.

Coastal factors that can add cost

Bodega Bay’s shoreline setting introduces a few extra checks that help you buy or sell with confidence.

• Natural Hazard Disclosure and coastal hazards: Properties may be in areas subject to bluff erosion, high wind, or possible tsunami inundation. Sellers provide an NHD report, and buyers near cliffs often add geotechnical or bluff-stability reviews.
• Flood zones and insurance: If FEMA maps place the home in a Special Flood Hazard Area, lenders require flood insurance. Even outside mapped zones, you may want quotes to understand risk and pricing.
• Septic systems and wells: Some properties are not on municipal services. Expect septic evaluations and well testing, plus a review of county permits and records. Repairs or replacements can be significant and may be required before a sale closes.
• Sewer laterals and connections: Rules can vary across districts. Confirm any inspection or replacement requirements before you write offers or accept one.
• Coastal permitting: Future improvements near the shore can require heightened review. Check for any past or pending permits with the county or the California Coastal Commission.
• Insurance availability and cost: Coastal exposure can mean higher premiums or fewer carrier options. Shop early to avoid delays.

How to get accurate numbers fast

The best way to remove guesswork is to gather itemized estimates early in your process.

• Ask your lender for a Loan Estimate: After you apply, your lender provides this within three business days. It outlines loan costs, prepaid items, and your initial cash to close.
• Request a preliminary closing worksheet: Your escrow or title company can produce an itemized cost breakdown for both buyer and seller tailored to the property price and contract terms.
• Confirm local custom on who pays what: Ask your escrow officer and agent how owner’s title policy, escrow splitting, and transfer tax are typically handled in Bodega Bay.
• Get inspection orders lined up: Schedule general, pest or termite, roof, chimney, and specialty inspections like septic, well, or geotechnical if needed.
• Check flood risk and insurance early: Review FEMA mapping and contact insurers for quotes so you can plan premiums and any elevation certificate needs.
• Pull county records where relevant: Sonoma County Environmental Health can provide septic and well records. The Recorder and Tax Collector can help you verify transfer tax and recording details.

Quick checklist

Use this shortlist to stay on track.

• Buyers

  • Obtain a Loan Estimate from your lender.
  • Request an itemized escrow and title estimate.
  • Order general and pest inspections, plus septic, well, roof, or geotechnical if applicable.
  • Review flood mapping and get insurance quotes.
  • Ask your agent for a cash-to-close worksheet.

• Sellers

  • Ask your agent for a seller net sheet.
  • Order required disclosures, including the Natural Hazard Disclosure.
  • Check local custom for escrow splits, owner’s title policy, and transfer tax.
  • Consider pre-listing inspections that matter for your property type, such as septic or roof.

Local insight for Bodega Bay decisions

Coastal due diligence is about clarity, not complexity. When you understand how escrow, title, taxes, inspections, and insurance fit together, you can budget well and negotiate with confidence. In Bodega Bay and greater Sonoma County, customs and coastal considerations are familiar terrain, and a local team can help you get the right numbers in the right order.

If you are weighing a purchase or planning a sale, start with your lender’s Loan Estimate or a seller net sheet, then layer in itemized estimates from escrow and title. Add the coastal-specific checks that fit your property location, and you will have a reliable roadmap to the finish line.

Ready to get tailored numbers and a plan that fits your goals on the Sonoma Coast? Reach out to CoastalAgent for clear guidance and next steps.

FAQs

What are typical buyer closing costs in Bodega Bay?

• Buyers commonly budget about 2 to 5 percent of the purchase price for closing costs, excluding the down payment, with higher totals if specialty inspections or insurance are needed.

Who usually pays Sonoma County transfer tax?

• Sonoma County’s documentary transfer tax applies in Bodega Bay, and payment is negotiable in the contract, so confirm local custom with your escrow officer and agent.

Do coastal homes require flood insurance?

• If FEMA maps show the property in a Special Flood Hazard Area, lenders require flood insurance, and buyers outside mapped zones often still seek quotes to understand risk.

Are septic or well inspections common near Bodega Bay?

• Many rural and coastal properties use septic systems or private wells, so evaluations are common and repairs can be costly, which makes checking county records a smart step.

Do sellers pay for the buyer’s owner’s title policy?

• In many California transactions sellers pay for the buyer’s owner’s title policy, but it is custom dependent, so verify the local approach with escrow and your agent.