San Francisco attracts buyers nationwide with its world-class dining, tech-driven economy, and iconic neighborhoods. You have plenty of homes for sale in San Francisco to choose from. But you must get preapproved, check neighborhoods, and attend open house.
With Houzeo, San Francisco’s best home buying website, managing your home search is simple. You can look through the latest listings in San Francisco, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your San Francisco home search.
At a Glance:
- Determine whether you’re purchasing a primary home, a vacation getaway, or a rental property, and choose San Francisco 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 Francisco’s fast-moving market.
- Explore FHA, VA, or USDA loans, and apply for California programs like CalHFA.
- Use platforms like Houzeo to search San Francisco 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 Proposition 19 for tax portability.
7 Steps to Buy Houses in San Francisco 🌉
Buying a home in San Francisco doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Marina District, 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 Francisco 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 Francisco, choose places that fit your lifestyle, whether it’s quaint Noe Valley or laidback Inner Sunset. For investment, consider homes in Dogpatch or Outer Richmond, where job growth and rental demand are strong.
- Short-Term or Long-Term: If you plan to live in the home for only a few years, focus on neighborhoods like Bernal Heights with high resale value and upward market trends. San Francisco homes hold equity well, especially in walkable, transit-friendly neighborhoods.
- Space Requirements: Are you looking for larger lots or big backyards? If so, consider suburban areas like Outer Sunset or Parkside. But if you prefer something easier to manage, condos in South Beach or Yerba Buena can be a smart option.
Calculate the cost of living in San Francisco to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before buying a house in San Francisco, 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 Pacific Heights, Nob Hill, or Sea Cliff.
- 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 Francisco usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
|---|---|
| FHA Loans | Require just 3.5% down and are ideal for a first time home buyer. 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 Francisco 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 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 Francisco Market
Time for the fun part—house hunting! Whether you’re looking at houses for sale in San Francisco 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 Francisco’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 Noe Valley or Bernal Heights, you might need to offer above the asking price to stand out.
- Down Payment: In San Francisco, down payments typically range from 10% to 20%. A larger down payment can make your offer more competitive in exclusive markets like Sea Cliff or Russian Hill.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like SoMa or Inner Sunset, where homes can go fast.
- Contingencies: Include protections like home inspection, financing, and wind mitigation contingencies. These safeguards protect you from potential damages.
- Concessions: Request the seller to cover some closing costs. 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, lender fees, and property taxes in San Francisco.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in California should cover:
- HVAC System: Ensures the air conditioning can handle the city’s heat and humidity. It is essential for year-round comfort.
- Plumbing: Checks for leaks, corrosion, and water pressure issues, especially in 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 Francisco during heavy rains.
- 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.
If you’re browsing homes in San Francisco, 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 Francisco 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 Homeowner’s Exemption through the San Francisco Assessor-Recorder’s Office to reduce your property taxes.
- Set Up Utilities: Get water, electric, internet, and trash service connected, often through SFPUC. And don’t forget pest control, especially in humid areas.
- Get Insurance: Homeowners insurance is required if you’re financing. You may need flood insurance if you’re buying near Ocean Beach or Islais Creek, areas identified as earthquake and flood zones.
- 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 Francisco 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 Francisco?
Absolutely! San Francisco offers incredible opportunities for homeowners, whether you’re buying properties 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 its historic charm or modern tech scene, San Francisco offers something for everyone. So if you’re on the hunt, check out our list of the best places to live in California!
