Buying a house in California: the short answer
Here is the order most California purchases follow. Each step is explained below.
- Set a budget and get preapproved for a loan.
- Choose an agent and sign a buyer-broker representation agreement (required before your first offer).
- Pick areas and check hazards, taxes and insurance before you fall for a house.
- Write an offer with a deposit, contingencies and a closing date.
- Open escrow and wire the deposit.
- Review the seller's disclosures and order inspections.
- Get the appraisal and final loan approval.
- Buy homeowners' insurance.
- Sign, fund and record the deed.
- File for the homeowners' exemption and watch for supplemental tax bills.
Prices and speed vary widely by county, so read the numbers in the next section against the area you are targeting.
What a California home costs in 2026
Statewide home prices: Zillow and Redfin
Zillow's typical home value for California was $761,538 in September 2026, up 0.6% in a year and 72% in ten years. Zillow puts the statewide peak at $777,695 in January 2025. Redfin measures something different, the median price of homes that actually sold: $752,837 statewide in September 2026, with a median of 41 days on market and homes selling at about 100.2% of list price. Redfin's latest monthly figures can be revised. See our California housing market guide for the trend.
County differences in typical home value
| County | Zillow typical home value, Sept 2026 | 1-year change |
|---|---|---|
| San Mateo | $1,579,058 | +4.4% |
| Santa Clara | $1,562,682 | +0.3% |
| Orange | $1,174,873 | +3.2% |
| San Diego | $926,979 | +0.8% |
| Los Angeles | $871,674 | +0.4% |
| Riverside | $602,790 | +0.4% |
| Sacramento | $521,128 | -0.5% |
| Fresno | $404,056 | +1.1% |
| Kern | $360,205 | 0.0% |
County and ZIP figures for all 58 counties are on our California data pages.
Step 1: budget, loan type and preapproval
Monthly payment on a typical California home
Freddie Mac's 30-year fixed average was 7.24% in the week of October 29, 2026. At that rate, here is the principal and interest on Zillow's typical California value of $761,538:
| Down payment | Cash down | Loan | Principal and interest per month |
|---|---|---|---|
| 20% | $152,308 | $609,230 | $4,152 |
| 10% | $76,154 | $685,384 | $4,671 |
| 3.5% | $26,654 | $734,884 | $5,008 |
Add property tax (the 1% Prop 13 general levy is about $635 a month on this price, before local voter-approved debt and any Mello-Roos), insurance, HOA dues and mortgage insurance on a low down payment. Our property tax guide and Mello-Roos guide explain the add-ons.
Conforming and jumbo loan limits
FHFA set the 2026 conforming loan limit at $832,750 for a one-unit home in most of the country, and the ceiling in high-cost areas at $1,249,125. Many coastal California counties sit at or near the ceiling. A loan above your county's limit is a jumbo loan, which usually needs a larger down payment and more reserves.
Preapproval before you shop
A preapproval letter means a lender has checked your income, assets and credit. Most California sellers expect one with every offer. If you have not owned a home in three years, check state help through CalHFA in our first-time buyer guide.
Step 2: the buyer-broker agreement California now requires
What Civil Code section 1670.50 requires
Since January 1, 2025, a buyer's agent in California must sign a written buyer-broker representation agreement with you no later than when you make an offer. It must state the broker's compensation, the services, when payment is due and how the contract ends. Before you sign, the agent must give you the agency disclosure form required by Civil Code section 2079.14.
Three-month limit and no automatic renewal
For individual buyers, the agreement cannot last more than three months from signing, and it cannot renew automatically. A renewal must be in writing, dated and signed, and is also capped at three months. An agreement that breaks these rules is void.
Commission is negotiable
Who pays your agent, and how much, is set in that agreement and in your offer. You can ask the seller to pay it as part of the deal. Our real estate commission guide covers how this works after the 2024 changes. Check any agent's license on the DRE public license lookup before you sign.
Step 3: check the area and the property before you offer
Fire hazard severity zones and insurance
Look up the address on CAL FIRE's fire hazard severity zone map, then get an insurance quote before you write an offer. In many high-risk areas, buyers end up on the California FAIR Plan with a separate policy for other coverage. See our guides to wildfire zones, homeowners' insurance and the FAIR Plan.
Earthquake and flood
Standard policies do not cover earthquake damage. Price a separate policy through our earthquake insurance guide, and check FEMA flood maps for the address.
HOA rules and condo inspections
If the home is in a homeowners' association, budget for dues and ask for the reserve study. Condo buildings may be due for balcony and deck inspections. Our HOA law guide and balcony inspection guide cover what to request.
Step 4: writing the offer and the deposit
Price, terms and contingencies
Your offer names the price, the deposit, the loan, the closing date and the contingencies: usually inspection, appraisal and loan. Each contingency has a deadline. If you remove a contingency and later back out for that reason, your deposit is at risk. Shorter or waived contingencies make an offer stronger and riskier.
The 3% liquidated damages rule
Civil Code section 1675 governs what a seller can keep if you default on a purchase of a one-to-four unit home you plan to live in. If the amount kept is 3% of the price or less, the provision is valid unless you show it is unreasonable. If it is more than 3%, it is invalid unless the seller proves it is reasonable. That is why California deposits often sit around 3%, though you can offer less or more.
Comparing your offer with the market
Redfin's September 2026 county figures show how much negotiating room exists. Homes in San Francisco County sold at a median 14 days on market and about 119% of list price on average, while Riverside County homes took 56 days and sold near 99%. In faster counties, offers at or over list are common; in slower ones, asking for credits is normal.
Steps 5 and 6: escrow, disclosures and inspections
Opening escrow and protecting your deposit
A neutral escrow holder or title company holds your deposit and the documents. Call the escrow officer on a number you find yourself before wiring money. Wire fraud using fake escrow emails is a common way buyers lose deposits.
Seller disclosures you should receive
For most one-to-four unit homes, the seller must give you a Real Estate Transfer Disclosure Statement under Civil Code section 1102, a Natural Hazard Disclosure Statement under section 1103.2 (flood, dam inundation, fire hazard, earthquake fault and seismic hazard zones), a notice about supplemental property tax bills under section 1102.6c, and written statements that smoke alarms and water heater bracing comply with Health and Safety Code sections 13113.8 and 19211. Older homes also come with lead paint disclosures. Our seller disclosure guide lists them all.
Your right to cancel after late disclosures
If a required disclosure is delivered after you sign the offer, Civil Code section 1102.3 gives you three days after delivery in person, or five days after delivery by mail or electronically, to terminate by written notice. Read every disclosure the day it arrives.
Home, pest and specialty inspections
Order a general home inspection right away, plus a wood-destroying pest report, a sewer line camera inspection and roof or foundation checks as needed. Use the results to ask for repairs or a credit before your inspection contingency deadline.
Steps 7 to 10: appraisal, insurance, closing and after
Appraisal and loan approval
The lender orders the appraisal. If it comes in low, you can renegotiate, pay the gap in cash or cancel if your appraisal contingency is still in place.
Closing costs and transfer tax
Buyers usually pay lender fees, title insurance for the lender, escrow fees and prepaid taxes and insurance. Who pays the county and city transfer tax depends on local custom and your contract. See our closing costs guide and transfer tax guide.
Signing, funding and recording
You sign loan documents a few days before closing. The lender funds, escrow records the deed with the county recorder, and the home is yours on recording.
The homeowners' exemption and supplemental bills
File form BOE-266 with your county assessor. The Board of Equalization says it cuts $7,000 from your home's taxable value; file by February 15 for the full exemption that year. Expect one or two supplemental tax bills after the county reassesses the home at the purchase price. They go to you, not your lender's impound account.
Common mistakes when buying a house in California
- Getting an insurance quote after the inspection period. In high fire risk areas, the cost can change whether the home is affordable.
- Removing contingencies before the reports are in. Once removed, your deposit is exposed.
- Ignoring Mello-Roos. Newer communities can carry special taxes for decades.
- Skipping the HOA documents. Low reserves can mean a special assessment soon after you move in.
- Signing an open-ended buyer agreement. State law caps it at three months for individual buyers.
- Forgetting the supplemental tax bill. It can be thousands of dollars and is due from you directly.
Selling one home to buy another? Our guide to selling a house in California covers the other side of the deal.