San Diego attracts buyers with its coastal lifestyle and thriving job market. With over 10K homes for sale in San Diego, you have plenty of options. But buying a house here can be challenging. You must get preapproved, check neighborhoods, and attend open houses.
With Houzeo, San Diego’s best home buying website, managing your home search is simple. You can look through the latest listings in America’s Finest City, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your San Diego home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property, and choose San Diego neighborhoods that match your goals.
- Set aside 30–45 days for mortgage pre-approval. Aim for a credit score of 620+ to stay competitive in San Diego’s fast-moving market.
- Explore FHA, VA, or USDA loans, and check California programs like CalHFA or the California Dream For All program.
- Use platforms like Houzeo to search San Diego homes by city, price, or must-have features like pools, waterfront access, or hurricane protection.
- Schedule inspections for the roof, HVAC, and plumbing. In coastal areas, add wind mitigation and flood risk assessments.
- Expect 2%–5% in closing costs. After purchase, file for California’s Homestead Exemption to reduce your property taxes.
7 Steps to Buy Houses in San Diego🏝️
Buying a home in San Diego doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in La Jolla, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in San Diego is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you want to buy homes in San Diego, choose places that fit your lifestyle, whether it’s vibrant Hillcrest or relaxed Ocean Beach. For investment properties, consider homes for sale in City Heights or Southcrest, where job growth and rental demand are strong.
- Short-Term or Long-Term: Also, if you’re planning to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. Also, you can check out homes for sale in North Park or Carmel Valley, where the housing market continues to grow.
- Space Requirements: Are you looking for larger lots or big backyards? If so, consider suburban areas like Poway or Scripps Ranch. But if you prefer something easier to manage, condos in places like East Village or Little Italy can be a smart option.
Calculate the cost of living in San Diego to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available for you to make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you want a home in an expensive region like La Jolla or Del Mar.
- Set Your Budget: Make sure your budget accounts for property taxes, homeowners’ insurance, especially for coastal properties where wind and flood coverage may be needed.
👉 Use a California mortgage calculator to estimate how much property you can afford in the Golden State.
2. Explore Loans and Assistance Programs
Down payments in San Diego typically range between 10% and 20%, depending on your financing option. If you’re a first-time buyer or have limited savings, Down Payment Assistance Programs can be a game-changer.
| Program | Description |
|---|---|
| FHA Loans | Require just 3.5% down and are ideal for a first time homeowner. Flexible credit and income requirements make them widely accessible. |
| VA & USDA Loans | Offer 0% down with competitive interest rates. Great for veterans, active-duty military, and buyers in rural parts of California. |
| California Housing Finance Agency (CalHFA) | Offers down payment and closing cost assistance through programs like MyHome and CalHFA Zero Interest Program for low- to moderate-income and first-time buyers. |
| Golden State Finance Authority (GSFA) | Provides grants and second mortgage assistance under programs like GSFA Platinum and OpenDoors, with options for forgivable loans. |
| Fannie Mae Sponsored Programs | Help low- and moderate-income buyers in California access affordable mortgage products tailored to their financial situation. |
Step 3: Get Pre-Approved for a Mortgage
The San Diego housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better and reduces delays in the transaction.
Shop around to find the best California mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID proof.
Step 4: Dive Into the San Diego Market
Time for the fun part—house hunting! Whether you’re looking at houses for sale in San Diego or anywhere else in the Golden State, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
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Step 5: Make a Competitive Offer
In San Diego’s competitive housing market, homes tend to sell fast. Focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value and comparable sales. In high-demand areas like North Park or Hillcrest, you might need to offer above the asking price to stand out.
- Down Payment: In San Diego, down payments usually range from 3% to 20%. In competitive coastal markets like La Jolla or Del Mar, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Pacific Beach or Mission Hills, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguards protect you from damages.
- Concessions: Request the seller to cover some closing costs. In California, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24 to 72-hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for California’s average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in California should cover:
- HVAC System: Ensures the air conditioning can handle San Diego’s heat and humidity. It is essential for year-round comfort.
- Plumbing: Checks for leaks, corrosion, and water pressure issues, especially in San Diego homes built before the 1980s. These houses are more vulnerable to damage from humidity and air.
- Electrical System: Verifies everything is up to code and can withstand storm-related power surges, which are common in San Diego.
- Roof Condition: Assesses for storm damage, missing shingles, or age-related wear.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in earthquake activity, clay-rich soil, or hillside terrain areas.
When you’re browsing homes for sale, ensure that you get a wind mitigation inspection for hurricane risk. Also, if you have a condo over 30 years old and higher than two stories, make sure you get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your San Diego Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign the dotted line and transfer the escrow—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If the home is your primary residence, apply for California’s Homeowners’ Exemption to lower your property taxes. In San Diego, this can reduce your home’s assessed value by $7,000
- Set Up Utilities: Get water, and trash service connected, often through City of San Diego Public Utilities Department, electric service with San Diego Gas & Electric (SDG&E). And don’t forget pest control, especially in humid areas.
- Get Insurance: Homeowners insurance is required if you’re financing, and flood insurance may be needed in FEMA zones. Rates are higher in coastal areas like La Jolla or Mission Beach, due to hurricane risk.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae build-up. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a Home in San Diego Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Be Buying a House in San Diego?
Absolutely! Buying property in San Diego offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in California.
Whether you’re drawn to San Diego’s coastal lifestyle, vibrant neighborhoods, and year-round sunshine, America’s Finest City has it all. So if you’re on the hunt, check out our list of the best places to live in California!
