Magnetic nanoparticles with hybrid sensing functions are in wide use for bioseparation, sensing, and in vivo imaging. Yet, nonspecific protein adsorption to the particle surface continues to present a technical challenge and diminishes the theoretical protein detection capabilities. Here, a magneto-plasmonic nanoparticle synthesis is developed that minimizes nonspecific protein adsorption. Building on the success of zwitterionic polymers, a highly stable and anergic nanomaterial, magnetic gold nanoparticles with idealized coating (MAGIC) is obtained with significantly lower serum protein adsorption compared to control nanoparticles coated with commonly used polymers (polyethylene glycol, polyethylenimine, or polyallylamine hydrochloride). MAGIC nanoparticles are able to sense specific bladder cancer biomarkers at low levels and in the presence of other proteins. This strategy may find wide spread applications for in vitro and in vivo sensing as well as isolations.