Buying a home in California, from pre-approval to keys
| Item | Fact (as of September 2026) |
|---|---|
| First step | Loan pre-approval (not pre-qualification) |
| Closing costs | About 2–5% of price |
| Offer to keys | Typically 30–45 days financed |
| Default contingencies | Commonly 17 days in the standard California contract, negotiable |
| Earnest money | Typically 1–3%, held in escrow |
| Property tax | Prop 13: 1% of price base, effective 1.1–1.25% |
| Buyer's agent fee | Usually paid by the seller; written agreement since August 2024 |
How much cash do I need beyond the down payment?
Buyers should generally budget roughly 2%–5% of the purchase price for closing costs — escrow and title fees, lender fees, recording, prepaid taxes and insurance. Inspection costs are separate and typically a few hundred dollars each. Foreign national purchases start at 30% down; other programs vary by borrower profile.
How long does it take from accepted offer to keys?
With financing, escrow typically runs about 30–45 days. All-cash purchases can often close in roughly 14–21 days. Timelines move with lender turn time, appraisal scheduling and any repair negotiation — we set expectations against your specific loan and property at the offer stage.
How do you win in a multiple-offer situation without simply overpaying?
Price is only one lever. Shortening or removing contingencies where the risk is genuinely acceptable, matching the seller's preferred close date, offering a rent-back, demonstrating clean and verified funds, and having a lender who will pick up the phone for the listing agent all move offers up the stack. We assess which levers are safe for you before advising.
What are typical property taxes in California?
Under Proposition 13, the base rate is 1% of assessed value, and with local voter-approved assessments the effective rate is commonly around 1.1%–1.25% depending on the district. The assessed value generally resets to the purchase price when you buy. Mello-Roos districts, common in newer developments, add more.
Do I have to pay you to buy or rent a home?
In most transactions a buyer does not pay us — the buyer agent's compensation is customarily covered from the seller's side. Since the industry rule change that took effect on 17 August 2024, two things are formally required: an agent must sign a written buyer representation agreement with you before showing you the first home, stating the compensation amount or how it is calculated; and offers of compensation are no longer published on the MLS, so they are negotiated outside it. Compensation is therefore negotiable rather than fixed. We settle this with you in writing before any showing, and if a particular seller will not cover it we tell you before you view the property. No hidden fees. If you are renting, any fee for our help is explained before we start.
What is a pre-approval letter, and why do I need it before viewing homes?
A pre-approval is a lender's letter, issued after reviewing your income, assets and credit, stating how much you can borrow. Sellers in Southern California almost always require it with an offer; without one, even a strong offer is not taken seriously. It also sets your budget so you do not spend weeks touring homes you cannot buy. Our lending partner Treasure Mortgage usually issues one within 24 hours, including for foreign nationals and the self-employed.
What does a home inspection cover, and what does it cost?
A general inspection covers the structure, roof, plumbing, electrical, heating and cooling, drainage and exterior, takes two to three hours, and costs a few hundred dollars depending on the size of the home. Depending on the property you may add a termite inspection, a sewer camera, a foundation or roof specialist, or a pool inspection. The buyer pays for inspections, and it is the best money spent in the whole purchase. When the report comes in we help you separate what must be negotiated from normal wear.
How much is the earnest money deposit, and when can I lose it?
In Southern California the deposit is commonly 1% to 3% of the price, wired to escrow within a few days of acceptance and applied to your down payment at closing. As long as you cancel within the contract's contingency periods because of inspection, appraisal or financing issues, the deposit is returned. You only lose it if you back out after removing all contingencies, or miss a contractual deadline. We mark every deadline and remind you ahead of time.
What are contingencies, and can I waive them?
Contingencies are your rights to cancel written into the contract: inspection, appraisal and financing are the three common ones, and if a problem appears within the stated days you can walk away with your deposit. In a bidding war some buyers shorten or waive contingencies to make an offer more attractive. It works, but the risk is entirely yours: waiving inspection means buying the home with whatever is wrong with it, and waiving appraisal means covering any shortfall in cash. We advise which to keep and which to shorten based on the property and what you can absorb.
Do I need an agent to buy a new home from a builder?
Yes, and bring your agent, or register the agent's name, on your very first visit to the sales office; many builders will not allow an agent in afterwards. The sales representative works for the builder, not for you. Your agent compares pricing across communities and releases, negotiates upgrades and closing-cost credits, reads the Mello-Roos and HOA terms in the contract, and manages the walkthrough before delivery. Builders usually pay the agent's fee themselves.
What is an HOA, and what should I check when buying a condo or townhouse?
The HOA is the homeowners association that runs the shared parts of a community and charges monthly dues. Before you buy, read the HOA documents: financial health, any large repairs being funded, lawsuits, rental restrictions, and pet and remodelling rules. High dues are not automatically bad; what matters is where the money goes and whether the reserves are adequate. A community with thin reserves may levy a special assessment later. We go through this with you during the inspection period.
What is the process for buying a home in the US, and what should I watch for?
Six steps: get pre-approved or prepare proof of funds, tour, make and negotiate an offer, open escrow and complete inspection, appraisal and loan approval, sign closing documents, get the keys. Financed buyers usually close 30 to 45 days after acceptance; cash buyers in 7 to 14. The things that matter most: arrange your funds path early, get pre-approved before touring, budget the annual cost of owning, verify schools by address, never waive inspection, and confirm wire instructions by phone. We wrote up the ten most common pitfalls: Ten things to know before buying in Southern California.
Who pays the agent's commission when buying a home in the US?
Commissions are set by contract, not by law. Since August 2024, buyers sign a written representation agreement with their agent stating the services and compensation; that compensation can be paid by the seller (many sellers agree, to attract offers), by the buyer, or shared, and it is negotiated in the offer. So the answer is: it depends on the negotiation, and you should read that clause before signing. Our fees are competitive and put in writing before we start.
Which websites should I use to search for homes? How is the MLS different from Zillow?
The MLS is the database agents share; nearly every active listing in Southern California is in it, with the fastest updates and the most accurate status. Portals like Zillow, Redfin and Realtor.com syndicate from the MLS and are convenient to browse, but their status can lag a day or two. Listings on this site come straight from the MLS, refreshed daily, in both languages, with filters by city, price and type. Send us the address of any home you like and we will reply with comparable sales and background.
How much are closing costs when buying a home in the US?
Buyer closing costs usually run 2 to 3 percent of the price: lender fees and the appraisal, the title policy, escrow fees, prepaid property tax and insurance, and the inspection and termite reports. Cash buyers avoid the loan-related items and typically pay around 1 percent. This is on top of the down payment and is wired to escrow a few days before closing; escrow provides an itemized estimate in advance.
Is there a property certificate in the US? What do I receive after closing?
There is no government-issued ownership certificate like China's. Ownership is the deed recorded with the county; after closing, the recorded deed is mailed to you within a few weeks, and anyone can look up the owner of an address at the county recorder. Title insurance accompanies the deed and protects you against undisclosed liens and claims. Losing the paper deed does not affect ownership; the county issues copies.
Do I need homeowners insurance? Is it mandatory?
With a mortgage, yes: the lender requires a policy in place before closing. For cash buyers it is not legally required, but an uninsured home leaves fire, water damage and liability entirely on you. California's insurance market is tight in 2026, quotes for the same home vary widely between carriers, and some older homes or high-fire-risk addresses can only get the state's FAIR Plan at a higher cost. Get quotes as soon as you open escrow, within your inspection period.
How much does a home cost in the US? What does a Los Angeles home cost in RMB?
In September 2026 the median asking price in the City of Los Angeles is 899,000 dollars, about 6.03 million RMB at 6.7 to the dollar; Arcadia is about 1,328,000 dollars, Irvine 1,780,000 and San Marino 3,880,000. Per square meter, the City of Los Angeles is roughly 43,000 RMB and Irvine about 60,000. The full list of 21 cities is here: median prices for 21 Los Angeles-area cities, in RMB and per square meter.
Step by step
Pre-approval; a search that starts about a month out; an offer with price, deposit, down payment, contingency days and closing date as levers; escrow opens; the contingency period (inspection, title report, HOA documents, appraisal, final loan approval — commonly 17 days by default); removal of contingencies puts the deposit at risk; final walk-through, signing, funding, recording, keys.
What escrow is
A neutral third party holding money and documents until every condition is met. It represents no one, inspects nothing and values nothing. Southern California is an escrow state; ordinary purchases need no lawyer.
Winning without only raising the price
Shorter contingencies, larger deposit and down payment, flexible closing date, fewer repair requests, pre-approval and proof of funds attached, an appraisal-gap guarantee where needed — each with a real cost, especially waiving inspection.
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Shirley Tang Team (雪梨汤) · 888 Realty · DRE #01845722
19811 Colima Rd. #230, Walnut, CA 91789 · (626) 202-9573 · shirleytangrealtor@gmail.com
Have something specific to check? Contact us in English or Chinese — even if you end up working with someone else.
General information, not legal, tax or lending advice. Consult a licensed professional about your situation. 'As of' dates mark when facts were checked.