Selling a home in Manhattan Beach? The number that matters most is what you keep after closing. In a high-price market like 90266, even standard percentages turn into big dollar figures. Here’s a clear, line-by-line look at typical seller costs, what drives them, and how to plan your net proceeds with confidence. Let’s dive in.
Quick answer: budget 6% to 10%
Most sellers in Southern California spend about 6% to 10% of the sale price on the sale. That range covers commissions, escrow and title, transfer taxes, staging and prep, inspections, and common credits. Your exact number depends on price point, property condition, and negotiated terms.
In Manhattan Beach, prices are high, so percentage-based costs add up fast. A 5.5% commission on a multi-million-dollar sale is a large check. Planning in dollars, not just percentages, will help you stay grounded.
What sellers typically pay in 90266
Real estate commissions
- Typical total: 5% to 6% of the sale price. This is usually split between the listing agent and buyer’s agent, often around 2.5% to 3% each.
- Negotiable: Commission is market-driven and negotiable. Full-service representation is common for luxury coastal listings.
Escrow, title, and recording
- Escrow fee: Often split with the buyer. For higher-priced homes, the seller’s share commonly ranges $1,500 to $6,000+, depending on price and the escrow company’s schedule.
- Owner’s title insurance: In Southern California, it is common for the seller to pay for the owner’s title policy. The premium scales with price and can be several thousand dollars.
- Recording fees: Small county fees, usually in the hundreds or less.
Documentary transfer tax
- Los Angeles County charges a documentary transfer tax that is commonly stated as about $1.10 per $1,000 of sale price.
- Manhattan Beach has historically not added a separate city transfer tax. Always confirm current rules with escrow or the city before you list.
Prorations and HOA items
- Property taxes are prorated through the close date. California’s base property tax under Prop 13 is typically around 1% of assessed value plus local assessments. Your proration will reflect timing and any special assessments.
- HOA communities may charge transfer fees and require an HOA demand or estoppel letter. Fees vary. Any unpaid dues or assessments are settled at closing.
Inspections and repairs
- Pre-list inspections are optional but helpful. A general home inspection often runs $300 to $700. A termite inspection can be $75 to $200.
- Repairs vary widely. Cosmetic touch-ups may be a few thousand dollars. Termite treatment or major items can be tens of thousands. Sellers sometimes offer repair credits that reduce net proceeds.
Staging and marketing
- Professional staging: Partial staging for an occupied home can be $1,000 to $4,000 per month. Full staging for a vacant luxury property can be $2,000 to $10,000+ per month. Setup fees may apply.
- Photography, video, drone, floor plans: Typically $300 to $2,000 based on property size and package.
- Pre-list prep: Cleaning, paint, and curb appeal updates often run $500 to $10,000+ depending on scope.
Mortgage and other payoffs
- Any existing loans, home equity lines, or judgments are paid off from proceeds at closing. Expect small payoff demand and reconveyance recording fees.
Miscellaneous fees
- Natural Hazard Disclosure report packages often cost $100 to $300.
- A one-year buyer home warranty (if offered) is often $400 to $800.
- Notary, courier, and wire fees add a few hundred dollars in total.
Taxes on your gain
- Capital gains: Federal long-term capital gains tax is 0%, 15%, or 20% depending on income, and high earners may also owe a 3.8% Net Investment Income Tax. California taxes capital gains as ordinary income, with a top marginal rate up to 13.3%.
- Primary residence exclusion: You may exclude up to $250,000 of gain if single or $500,000 if married filing jointly, if you meet IRS ownership and use tests. Investment properties are not eligible for this exclusion but may be eligible for a 1031 exchange if rules are followed. Consult a tax professional for personalized advice.
- Withholding: Sales by foreign sellers may be subject to federal and California withholding rules. Verify with your CPA or escrow.
Cost examples for Manhattan Beach sales
These examples use common ranges to help you plan. Your numbers will vary based on your price, condition, and negotiations.
Example A: Sale price $3,000,000
- Commission at 5.5%: $165,000
- Escrow, title, recording, and transfer tax at about 1.5%: $45,000
- Staging and marketing: about $5,000
- Pre-list inspections and a basic repair allowance: $3,000 to $15,000
- Prorations for property taxes or HOA: depends on timing
- Estimated total seller costs before mortgage payoff and taxes: about $218,000 to $230,000+ (about 7.3% to 7.7%)
Example B: Sale price $6,000,000
- Commission at 5.5%: $330,000
- Escrow, title, recording, and transfer tax at about 1.2% to 1.7%: $72,000 to $102,000
- Marketing and staging: $10,000 to $25,000
- Inspections, repairs, or credits: $5,000 to $50,000
- Estimated total seller costs before mortgage payoff and taxes: about $417,000 to $507,000+ (about 7% to 8.5%)
Local factors that can change your total
- Luxury marketing choices. Custom staging, more intense photo and video, or extended campaigns can increase marketing spend.
- Coastal zone and permits. Properties in coastal areas may require specific disclosures and documentation, especially if past remodeling involved permits.
- HOA or condo requirements. HOA demands, transfer fees, and pending assessments can affect your bottom line.
- Special assessments. Mello-Roos or benefit district assessments appear on your tax bill and impact prorations. Verify on the preliminary title report and tax bill.
- Timing of the close. Closing near a tax installment date changes prorations and your cash due at closing.
Seller checklist with cost touchpoints
Pre-list planning
- Meet with your listing agent to set pricing, strategy, and a net proceeds estimate.
- Order a preliminary title report to identify liens or judgments.
- Purchase required disclosure reports, including Natural Hazard Disclosure.
- Consider pre-list inspections to reduce surprises and improve negotiations.
- Budget for cosmetic fixes and possible staging.
Marketing and showings
- Approve photography, video, and floor plans.
- Decide on full staging or partial enhancements.
- Set showing logistics that fit your schedule.
Under contract and escrow
- Confirm escrow and title fee estimates and how they are split.
- Deliver California disclosure forms, including the Transfer Disclosure Statement and other required items.
- Provide HOA demand documents if applicable and address transfer or processing fees.
- Order mortgage payoff demands early to avoid delays.
At closing
- Pay agreed closing costs, including documentary transfer tax and the owner’s title policy if customary.
- Settle prorations for property taxes and HOA dues.
- Confirm final credits or repairs to the buyer.
After closing
- Organize records for capital gains reporting. Coordinate with your CPA on exclusions, withholdings, and any 1031 strategies for investment property.
Questions to ask your listing agent
- What commission will you charge, and what specific services are included?
- Who pays for the owner’s title insurance in our area, and can we confirm the expected premium early?
- What transfer taxes apply to my sale, and what is the estimated dollar amount?
- How much staging and marketing do you recommend for my property and price point?
- Should I get pre-list inspections, and which ones will help most?
- What is a realistic repair or credit budget based on my home’s condition?
Next step: model your net
You deserve a clear, tax-aware view of your proceeds before you list. If you want a confidential, CPA-reviewed seller net sheet and a tailored prep plan for your Manhattan Beach home, request a custom consultation from Lisa Bourque.
FAQs
What is the typical commission to sell a home in Manhattan Beach?
- Most sellers should plan for a total commission of 5% to 6% of the sale price, typically split between the listing and buyer’s agents.
How much is Los Angeles County documentary transfer tax on a Manhattan Beach sale?
- It is commonly stated as about $1.10 per $1,000 of sale price at the county level, and Manhattan Beach has historically not added a city tax. Confirm current rates with escrow.
Who usually pays for owner’s title insurance in Southern California?
- It is common for the seller to pay for the owner’s title policy, though all items are negotiable and should be confirmed with your title and escrow team.
What do staging and marketing typically cost for a Manhattan Beach listing?
- Partial staging often runs $1,000 to $4,000 per month, full staging can be $2,000 to $10,000+ per month, and media packages are usually $300 to $2,000.
What inspections should I consider before listing in 90266?
- Many sellers order a general home inspection and a termite inspection, with typical costs of $300 to $700 and $75 to $200, respectively, plus optional specialty checks like roof or sewer.
How are property taxes handled at closing for sellers in California?
- Property taxes are prorated through the close date based on the assessed value and any special assessments, so you will pay your share up to the day you transfer ownership.
Will I owe capital gains tax when I sell my primary residence in California?
- You may exclude up to $250,000 of gain if single or $500,000 if married filing jointly if you meet IRS rules, but remaining gains are taxable at federal and California rates. Consult a CPA for guidance.
