How it really works.
Plain-language guides to buying and selling a home in California. No jargon. If something here doesn't answer your question, ask me.
Buying a home, step by step
1. Get pre-approved first
A lender reviews your income, credit, and savings, then gives you a letter that says how much you can borrow. Most sellers won't take an offer seriously without one.
Pre-approval also tells you your real monthly payment, including taxes and insurance. That number matters more than the price.
2. Sign a buyer representation agreement
California law requires a written agreement between a buyer and their agent. It says what the agent does for you, how long the agreement lasts, and how the agent is paid. For most buyers, it can last no longer than three months at a time, and it can be renewed.
Read it and ask questions. How your agent gets paid is negotiable, and it should be clear to you before you tour homes.
3. Tour homes and make an offer
Your offer is more than a price. It includes your deposit, your loan type, how long you need for inspections, and when you want to close. A clean offer with realistic timelines often beats a higher offer that looks shaky.
4. Escrow: the time between "accepted" and "keys"
Escrow is a neutral company that holds the money and paperwork until everyone has done what they promised. A typical escrow with a loan runs about 30 days. Here's what usually happens:
- Deposit. Your earnest money deposit goes to escrow, usually within 3 business days.
- Inspections. You hire inspectors and review the seller's disclosures. The standard California contract gives you 17 days by default, and that number is negotiable.
- Appraisal and loan. The lender orders an appraisal and finishes approving your loan.
- Removing contingencies. In California you remove each contingency in writing. Until you do, you generally still have your way out. After you do, your deposit may be at risk if you cancel.
- Final walk-through and signing. You check the home one more time, sign loan documents, and wire your funds.
- Recording. The county records the deed. That's the moment the home is yours.
What does it cost to buy?
Besides your down payment, plan for closing costs. They vary by loan and price, but buyers commonly see somewhere around 2% to 3% of the purchase price. Your lender must give you a written Loan Estimate, so you'll see real numbers early.
| Cost | What it is |
|---|---|
| Inspections | Home, pest, roof, sewer, and others as needed. Paid when the work is done, not at closing. |
| Appraisal | Ordered by your lender to confirm the home's value. |
| Lender fees | Origination, underwriting, and any points you choose to buy. |
| Title and escrow | Lender's title insurance and your share of the escrow fee. |
| Prepaids | Your first year of homeowner's insurance, plus property tax and interest set-asides. |
Selling a home, step by step
1. Find your price
Online estimates are a starting point. A real pricing review looks at recent nearby sales, your home's condition, and what you're competing against right now. Pricing right from day one usually nets more than starting high and cutting later.
2. Prep: fix what matters, skip what doesn't
Most homes need cleaning, paint touch-ups, yard work, and small repairs. Big remodels rarely pay for themselves. We'll walk the house together and make a short list. Need someone for the work? See the vendor list.
3. Disclosures: tell buyers what you know
California sellers fill out disclosure forms about the home's condition and history, including the Transfer Disclosure Statement and a Natural Hazard Disclosure report. The rule of thumb: if you know about it, disclose it. Full disclosure protects you after the sale.
4. List, show, and review offers
Professional photos, the MLS, and the major home search sites. When offers come in, I lay them out side by side: price, loan type, deposit, contingency timelines, closing date, and any requests. The highest price isn't always the best offer.
5. Escrow to closing
The buyer inspects, their lender appraises, and you may get a request for repairs or a credit. You sign your closing documents with escrow, often with a mobile notary. When the deed records, the sale is final and your money is sent by wire or check.
What does it cost to sell?
These are the usual seller costs in the Sacramento region. Who pays what is set by local custom and is negotiable in the contract. Your escrow officer will give you an estimated closing statement with real numbers.
| Cost | What it is |
|---|---|
| Broker compensation | What you agree to pay your listing broker. It's negotiable and not set by law. Whether you offer anything toward the buyer's broker is your choice too. |
| Title and escrow | Commonly the owner's title insurance policy and your share of the escrow fee. |
| Transfer tax | County documentary transfer tax is $1.10 per $1,000 of price. Some cities add their own. |
| Reports and repairs | Natural Hazard Disclosure report, any inspections you order up front, and repairs or credits you agree to. |
| Loan payoff | Your remaining mortgage balance, plus any HOA transfer fees if you have an HOA. |
Taxes on a sale depend on your situation. Talk to a tax professional before you list.
Common questions
How long does it take to close on a house in California?
With a loan, a typical escrow runs about 30 days from the day your offer is accepted. Cash purchases can close faster. The exact closing date is whatever you and the seller agree to in the contract.
Do I have to sign an agreement with a buyer's agent in California?
Yes. California law requires a written buyer representation agreement between a buyer and their agent. It says what the agent will do, how long the agreement lasts, and how the agent is paid. For most buyers it can last no more than three months at a time, and it can be renewed.
How much are closing costs for a home buyer in California?
Besides the down payment, buyers commonly see closing costs of around 2% to 3% of the purchase price. That covers lender fees, the appraisal, title and escrow, and prepaid insurance and taxes. Your lender must give you a written Loan Estimate with real numbers early on.
What does a seller pay at closing in the Sacramento area?
Sellers usually pay their listing broker's compensation, the owner's title insurance policy and their share of the escrow fee, the county transfer tax, the Natural Hazard Disclosure report, any repairs or credits they agree to, and their loan payoff. Who pays what follows local custom and is negotiable in the contract.
What is the transfer tax in Sacramento, Placer, and El Dorado counties?
The county documentary transfer tax is $1.10 for every $1,000 of the sale price. Some cities charge their own transfer tax on top of that. Your escrow officer will show the exact amount on your estimated closing statement.
What is a contingency, and when is my deposit at risk?
A contingency is a condition in the contract, such as inspection, appraisal, or loan, that lets a buyer cancel and keep their deposit. In California you remove each contingency in writing. Once you remove them, your deposit may be at risk if you cancel.
Is an online home value estimate accurate?
It's a starting point, not an appraisal. An automated estimate can't see your kitchen, your lot, or the work you've done. A real pricing review looks at recent nearby sales, your home's condition, and what you would be competing against right now.
What areas does Felicia Nevin serve?
Felicia Nevin is a licensed California real estate agent (CA DRE #01961050) with eXp Realty of California, Inc. She works Sacramento, Placer, and El Dorado counties directly, including Sacramento, Roseville, Rocklin, Lincoln, Folsom, El Dorado Hills, Elk Grove, and Auburn, and works with trusted partner agents across the rest of California.
What does it cost to talk to Felicia?
Nothing. Reaching out is free and there is no obligation. Sending a form does not make her your agent. That only happens when you both sign a written representation agreement.
Glossary
| Word | What it means |
|---|---|
| Contingency | A condition in the contract that lets the buyer cancel and keep their deposit, such as inspection, appraisal, or loan. |
| Earnest money deposit | Money the buyer puts into escrow to show they're serious. It goes toward the purchase at closing. |
| Escrow | A neutral company that holds money and documents until both sides have done what the contract requires. |
| Preliminary title report | A report showing who owns the property and what loans, liens, or easements are attached to it. |
| Appraisal | A licensed appraiser's opinion of value, ordered by the buyer's lender. |
| Close of escrow | The day the deed records with the county and ownership changes hands. |
| Home warranty | An optional one-year service plan that covers certain repairs to systems and appliances. |
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