How to Buy a House in California

California is home to many beautiful residences.

According to the California Association of Realtors, the median home price in California hit $324,430 in May, 2010. Compared to the national average of $198,205, a home in California is expensive. The vast amount of regionally diverse homes in California adds to the difficult and complex task of selecting one best for you and your budget. Purchasing a home in California requires careful thought, planning and professional assistance.

Instructions

1. Take a good look at your financial status and work out a budget for purchasing your California home. Analyze what profit you will make from selling your current home, along with your savings and other financial information to determine the maximum price you can spend on your home. Decide the amount of your down payment and the mortgage payment you can afford each month.

2. Select an area in California where you would like to purchase your home. Choose between the northern and southern regions. You need to also select between metropolitan areas, desert areas with ranch-style homes and coastal areas, which are the most expensive. The location determines the value of your real estate more than any other factor. Consider the future of the area you select.

3. Develop an idea of the type of house you want according to your budget and choice of area. Sacrificing a more desirable location for one on the outskirts of your desired area will allow you to buy more house. Proximity to highways, coastlines, and lakes also determine the value of a house in California. Make a list of the things you would like your house to feature, and the things that aren’t as important to you. Consider your current space needs as well as future needs.

4. Search for a real estate agent local to your desired area to help you find a house. Try California Relocation.com to find listings, agents and area information. Aim to work with an agent who earns a commission from the selling party. Your agent will likely interview you to learn about your purchasing qualifications and desires in a home. From there she will determine the best listings to show you and assist you in finding the house that best suits your needs.

5. Consider what you like and dislike about each house you view. Determine if you like certain features enough to make up for the features the house lacks. Consider the amount of investment power in the home. Take into account location, potential appreciation, repairs needed over time and environmental concerns such as earthquakes and forest fires.

6. Work closely with your licensed real estate professional to make bids and negotiate offers on the house you chose. Your agent will determine any encumbrances, liens or deed restrictions on the house. Come to terms with your seller on purchasing price and repairs in order to purchase the house.

7. Secure financing through a mortgage company and close the purchase. Many closing agents in California will provide you with a Uniform Settlement Statement, which details your transaction.

Tips & Warnings

• If you plan to relocate to California from out of state, work with a buyer's agent who specializes in relocating clients.

• Don’t give in to persuasion to buy a house that you don't feel is the right house for you.

References

• California Association of Realtors: Market @ A Glance
• “Principals of Real Estate Practice”; Stephen Mettling and David Cusic; 2006

Resources

• California Relocation.com