The California Home-Buying Process: Your Step-by-Step Checklist

Ask your agent for a comparative market analysis showing what similar nearby homes have actually sold for in the last 3-6 months. This is the foundation of your offer price — listed prices and Zillow estimates aren't the same as real sold prices. Look at days on market too, since a stale listing usually has more room to negotiate.

Cost: $0

Your agent fills out the RPA-CA, the standard purchase contract used in almost every California home sale. It sets your offer price, deposit, contingency timelines (the default is 17 days for inspections, 21 for the loan), and the close-of-escrow date. Read every line before you sign — you can negotiate any term, not just price.

Cost: $0

The deposit (often called good-faith money) is typically 1-3% of the offer price and shows the seller you're serious. In California, residential contracts cap liquidated damages on owner-occupied homes at 3% of the purchase price, which is why 3% is the common ceiling. The money is held by escrow, not the seller, and applies toward your down payment at closing.

Cost: 1-3% of purchase price

Your BRBC says what your agent earns; the question now is who pays it. The seller may offer to cover it through CAR's Seller Payment to Buyer Broker (SPBB) addendum, or you may pay out of pocket, or you may ask the seller for a closing-cost credit you apply to it. Your agent will tell you what the listing side is offering before you finalize the offer.

Cost: varies

Your agent sends the signed offer package to the listing agent. The seller can accept, reject, or counter — counters usually come back on price, close date, or which contingencies stay in. Decide your top price and your walk-away terms before negotiations start so you don't get talked into something you'll regret.

Cost: $0

Wire or deliver your deposit to the neutral escrow holder named in the contract. California rules require the broker to place a deposit into escrow (or a broker trust account) within 3 business days of receipt unless you instructed otherwise in writing. Confirm the wire instructions by phone with escrow — wire-fraud scams target this exact step.

Cost: 1-3% of purchase price (deposit, not a fee)

Escrow is a neutral third party that holds your money and the deed until both sides have done what the contract requires. You'll get an escrow number, contact info for the officer handling your file, and a list of what they need from you. Save these contacts — you'll be emailing and calling them constantly for the next month.

Cost: $0 (escrow fees paid at closing)

The TDS is California's required seller disclosure form. The seller answers questions about known defects, past repairs, environmental issues, and anything else affecting the home's value or desirability. You have 3 days to rescind if it's delivered to you in person, or 5 days if it arrives by mail, so don't put off reading it.

Cost: $0

The NHD tells you whether the home sits in a flood zone, a high-fire severity zone, an earthquake fault zone, a dam-inundation area, or other state-mapped hazard zones. Most sellers buy a third-party NHD report and pass it through. If anything is flagged, ask your insurance agent how it affects premiums before your contingencies expire.

Cost: $0 (seller pays)

California law requires the listing agent (and your agent) to do a visual walk-through of the accessible parts of the home and disclose anything material they notice. The AVID is the form that captures what they saw. Read it alongside the seller's TDS — sometimes the agent catches things the seller didn't mention.

Cost: $0

If you're buying a condo, townhouse, or planned-development home, the seller has to deliver an HOA disclosure package under California's Davis-Stirling Act. Look at the current budget, reserves, pending litigation, special assessments, monthly dues, and the rules (CC&Rs). Reserve shortfalls and pending special assessments are the most common surprises buyers miss.

Cost: $0 (seller pays)

If the home sits inside a Community Facilities District (common in newer subdivisions), the seller has to give you a notice describing a special tax that funds local schools, roads, or utilities. The notice shows the maximum yearly amount and when it ends. This tax is on top of regular property taxes, so factor it into your real monthly cost.

Cost: $0 (seller pays)

Pick an independent inspector — ideally one your agent has worked with but who doesn't depend on the deal closing. They'll spend 2-4 hours checking the roof, structure, plumbing, electrical, HVAC, and appliances and send you a detailed report with photos. Book this fast; in California the default inspection contingency is only 17 days from acceptance.

Cost: $400-700 typical

Show up at the end of the inspection, or for the whole thing if you can. The written report is useful, but watching the inspector walk you through the issues — and seeing the home empty, without staging — tells you far more. Bring a notebook and ask about any item you don't understand, especially anything labeled 'major' or 'safety.'

Cost: $0

If the general inspector flags something — sewer line, roof, chimney, pool, foundation, mold, pest — bring in a specialist for that system. Sewer scopes and pest (termite) inspections are common in California. Each adds a few hundred dollars but can catch a five-figure problem the general inspector can only describe from the outside.

Cost: $150-500 each

California requires sellers of residential property to certify in writing that working smoke alarms are installed in every sleeping room, in the hallway outside sleeping rooms, and on every story. Carbon-monoxide alarms are required on every level and outside every sleeping area. Make sure the seller's compliance statement is in the file before you remove your inspection contingency.

Cost: $0

California seismic code requires every water heater to be braced with two straps — one in the upper third and one in the lower third of the tank — anchored into wall studs. The seller has to certify compliance in writing on transfer. Your inspector will check this; if it isn't strapped, ask the seller to fix it before close.

Cost: $0 (verification) / $50-150 if seller must install

After you've reviewed every inspection report, you have three choices: ask the seller to fix items or give you a credit, accept the home as-is, or cancel the contract and get your deposit back. In California, contingency removal is active — you must sign a written removal form; the clock doesn't run out on its own. Default deadline under the RPA-CA is 17 days from acceptance.

Cost: $0

After acceptance, you formally pick one lender and start the full underwriting process. Expect to send updated pay stubs, bank statements, and the signed purchase contract. Underwriting will ask follow-up questions for weeks — respond same day, because every delay on your end pushes your closing date.

Cost: $0 upfront (loan fees paid at closing)

Once you're under contract and your closing date is set, ask your lender to lock the rate. A lock is usually free for 30-45 days and protects you if rates rise. If you think rates may drop, you can lock with a 'float-down' option, but that often costs extra. Confirm the lock in writing.

Cost: $0 (or small fee for float-down)

Your lender hires a state-licensed appraiser to confirm the home is worth what you're paying. The seller gives the appraiser access; you don't attend. If the appraised value comes in below your offer price, you can ask the seller to drop price, pay the difference yourself, or use your appraisal contingency to cancel.

Cost: $500-900 (added to loan fees)

Underwriting will keep coming back with 'conditions' — explain this large deposit, send a paystub from this week, source these funds. Don't open new credit cards, change jobs, or make big purchases until after closing; underwriting re-checks your credit and debt right before funding. Treat every email from the lender as same-day.

Cost: $0

Under the RPA-CA the default appraisal contingency is 17 days from acceptance. Once the appraisal is in and you're comfortable with the value (or you've negotiated around any shortfall), your agent will have you sign a written contingency removal. As with inspections, the contingency doesn't expire automatically — you have to actively remove it.

Cost: $0

The loan contingency is your protection if underwriting falls apart. Default under the RPA-CA is 21 days from acceptance. Don't remove it until your lender confirms clear-to-close in writing — removing it early and then losing financing can cost you your deposit. Your agent will prepare the written removal form when it's safe.

Cost: $0

Your lender requires proof of insurance before they'll fund the loan. Shop at least 2-3 carriers; California fire-risk areas and homes near the coast can be harder to insure than you'd guess. Have the policy effective on your close date and send the binder and paid-receipt to your lender and escrow.

Cost: $1,000-3,000/yr typical (paid at closing)

Federal rules require your lender to send you the final Closing Disclosure at least 3 business days before signing. Check it line by line: loan amount, interest rate, monthly payment, total cash to close, all fees. Compare it to your most recent Loan Estimate — challenge anything that jumped without explanation.

Cost: $0

Usually scheduled the day before signing, the walk-through lets you confirm the home is in the same condition as when you wrote the offer, that any seller-agreed repairs were completed, and that nothing got damaged during the move-out. Bring your inspection report. Anything wrong here is much easier to resolve before the deed records than after.

Cost: $0

California requires every residential sale contract to include a notice pointing you to the state's public registered sex offender database. The notice is built into CAR's standard purchase agreement. The state doesn't expect your agent to research the database for you — but it does expect you to know it exists.

Cost: $0

Escrow will tell you the exact dollar amount and where to wire it, usually 1-2 days before signing. Call escrow to verbally confirm the wire instructions before you send the money — wire-fraud emails imitating escrow are one of the most common scams in real estate. Never trust wire info that arrives only by email.

Cost: Down payment + closing costs (varies)

You'll sit with a notary (often arranged by escrow) and sign the promissory note, deed of trust, and a stack of disclosures. Bring a valid government ID. Read what you sign — ask the notary or escrow officer to explain anything unfamiliar. Wet signatures are still the norm in most California closings.

Cost: $0 (notary fee is part of closing costs)

Once the lender wires the loan funds to escrow and the county recorder records the new deed in your name, the home is officially yours. Your escrow officer or agent will call or text to confirm 'recorded.' Save the email confirmation — this is the moment legal ownership transfers.

Cost: $0

After recording, the seller's side releases the keys, garage remotes, mailbox keys, gate fobs, and any smart-lock or alarm codes. Your agent usually meets you at the property to hand them over. Re-key the front door soon after move-in — you don't know who has copies from the previous owner.

Cost: $150-250 typical to re-key

Escrow will send you a final closing statement (the Closing Disclosure plus settlement statement) and copies of everything you signed. Keep digital and paper copies for as long as you own the home, plus several years after you sell. You'll need these for tax basis when you eventually sell.

Cost: $0

Set the start date for electric, gas, water, trash, internet, and any HOA portal access to match your close date so you don't lose service. If the seller's accounts simply turn off (and they often do), you don't want to find that out at 9 p.m. on move-in night. Most utilities can be scheduled a week in advance online.

Cost: $0-300 in setup deposits

If you took a credit instead of seller repairs, line up your contractors now while the move-in chaos is fresh. Locks, smoke and CO alarms (replace batteries even if the seller certified), HVAC service, and any safety items go first. Cosmetic stuff can wait.

Cost: varies