Buying a Home in Carmel

Carmel, Calif., (sometimes called Carmel-by-the-Sea) is a coastal town known for its distinct character, preserved architecture, and artistic heritage. Nestled along the Monterey Peninsula, this small community blends early 20th-century cottages, modern custom homes, and ocean-view estates. Its narrow streets, tree-lined sidewalks, and absence of streetlights and mailboxes reflect planning to keep the town’s appearance consistent with its original charm.

Homes in Carmel are unlike those in typical suburban areas. Many are tucked behind fences, built on compact lots, or named instead of numbered. Buyers won’t find cookie-cutter subdivisions or uniform designs. Instead, the market is full of one-of-a-kind homes that follow strict guidelines set by the city to preserve architectural integrity and environmental balance.

This guide breaks down the key details you need to know when buying a home in Carmel and how to approach the process with confidence.

Carmel is divided into clearly defined neighborhoods, each with its appeal. Carmel-by-the-Sea, for example, offers proximity to shops, art galleries, and the beach, while neighborhoods like Carmel Woods and Hatton Fields provide more space and views of the hills or ocean.

The village-like feel of Carmel-by-the-Sea means homes are on small lots, with strict zoning rules to preserve the aesthetic. If you prefer larger homes or yards, nearby areas like Mission Fields or Carmel Point may better suit your needs.

Most homes do not have street addresses in Carmel-by-the-Sea. Instead, they’re often referred to by corner locations or custom names. This can be confusing for out-of-town buyers, but your real estate agent should be familiar with this local tradition.

Carmel has some of the strictest design restrictions in California. The city places heavy emphasis on preserving its historic and artistic character. Home modifications, exterior renovations, and even landscaping changes may require review and approval.

This impacts the type of property you may want to purchase. If you’re looking for a turnkey home, verify that recent upgrades meet city standards. If you’re interested in remodeling, expect a lengthy permitting process and scrutiny.

Certain materials, colors, and structural changes may be outright restricted. Buyers should be aware of these before making plans. It’s best to work with a local architect or contractor familiar with the approval process.

Carmel is small, and space is limited. Inventory is usually tight, especially for homes near the ocean or within walking distance to town. Because of this, well-priced homes tend to move quickly.

Buyers should be ready to make decisions quickly and have financing or proof of funds in place. It’s not uncommon for properties to receive multiple offers within days of listing. Being flexible with your expectations can help. You may not find a home that checks every box, but knowing what features you’re willing to compromise on will make your search more successful.

Water is a limited resource in Carmel, and the town enforces water credits that affect how much water a property can use. This becomes especially important when considering renovations or adding features like a bathroom or dishwasher.

Before buying, confirm how many water credits a property has. If you plan to expand the home or add modern features, you’ll need to verify whether the existing water allowance will accommodate those changes. Properties without sufficient water credits can be challenging to upgrade. A local agent or contractor can help you determine the feasibility of your plans in light of these restrictions.

Homes in Carmel-by-the-Sea often don’t have garages or driveways. Many houses were built before cars were common, so parking is frequently on the street. This can be a surprise for buyers used to traditional suburban layouts.

If off-street parking is important to you, prioritize it in your search. Not all properties will have room to build parking, and city approval for additions like driveways is not guaranteed.

Consider how guests or service vehicles will access the property. Some homes are on narrow streets that make maneuvering difficult. These are small details that can affect long-term satisfaction with a property.

Walkability is a highlight of living in Carmel, especially in the central village area. Walking to the beach, restaurants, and shops adds to the lifestyle appeal. However, not all neighborhoods offer the same convenience.

Carmel Woods and Hatton Fields, while still close to downtown, often require a short drive or longer walk. Decide how much walking you’re comfortable with and how vital immediate access to town is for your daily routine. If ocean views matter more than being steps from a café, you may want to look closer to Scenic Road or the Carmel Highlands. Trade-offs between location and views are common in this market.

Properties located near the coastline may fall under the jurisdiction of the California Coastal Commission. This means additional permitting requirements for renovations, new construction, or certain landscaping changes.

Buyers should ask early if a property is in a coastal zone. Even small changes could require significant documentation and delay. Understanding these additional regulations helps you make more informed decisions about what’s feasible. These rules are meant to protect the natural beauty of the area but can impact your ability to personalize a home. Factor this into your overall expectations and timeline.

Homes in Carmel often have unconventional layouts, hand-built details, and custom names instead of numbers. It’s part of what gives the town its charm, but it also means homes may not align with what you’re used to seeing in other markets.

Ceilings may be low in older cottages. Bedrooms might be small or located in unusual spots. Built-in features may vary in size or function. If you're drawn to the character of Carmel homes, embrace the quirks that come with them. Buying a home in Carmel means being open to individuality. Each home is truly different, and that’s part of the experience. Working with a good inspector can help you understand what’s functional and what might need attention.

When buying a home in Carmel-by-the-Sea or the surrounding Monterey Peninsula, working with a local expert makes all the difference. Stacey Scherling of Scherling Properties brings deep personal and professional roots to the community. A proud resident of Pebble Beach, Stacey knows this area inside and out. Stacey’s ties to Stevenson School and involvement in local organizations reflect an ongoing commitment to the people and places that define the Monterey Peninsula.

Clients appreciate Stacey’s honest communication, tireless effort, and grounded understanding of the market. Stacey brings a thoughtful, hands-on approach to each transaction, ensuring buyers and sellers feel supported and well-informed at every step.

Considering a move to Carmel-by-the-Sea, Pebble Beach, or anywhere along the central coast? Contact Scherling Properties to help you turn your real estate goals into reality in one of California’s most remarkable places to call home.