How buying a home works in California, step by step

Last checked: September 2026. This is how a typical purchase works in California. Every deal is a little different, so your agent will walk you through the specifics of yours.

If you've never bought a home, the process can feel like a black box. It's really a series of steps, and most of them happen in the same order every time. This chapter walks through all of them. The chapters before and after this one go deeper on the parts that need it.

Who's on your team

You'll work with a handful of people along the way. It helps to know who does what:

• Your agent guides you through the search, the offer, and escrow, and keeps everyone on track.
• Your lender handles your loan, from pre-approval to funding.
• Escrow and title. Escrow is a neutral third party that holds the money and documents until everything is done. The title company makes sure the seller can legally transfer the home to you and provides title insurance. In Monterey County, escrow is usually handled through a title company, so you'll often hear them talked about together.
• Your inspectors look at the home's condition during escrow.
• Your insurance agent or broker gets you a homeowners policy before closing.

Step 1: Get pre-approved

Before you start looking, talk to a lender. You'll share your income, assets, and credit, and they'll tell you what you can borrow. You'll get a pre-approval letter, which sellers expect to see with your offer.

This comes first for a reason. You'll know your real price range before you fall for a house, and when you find the right one, you'll be ready to write an offer right away. Chapter 4 covers financing in detail, including the mistakes that keep people from qualifying.

Step 2: Meet with your agent

This is a conversation about what you want, what you can afford, your timeline, and how the process will work. It's a good time to ask every question you have.

You'll also sign a buyer representation agreement. It spells out what your agent will do for you and how they'll be paid. Expect to sign one before an agent shows you any homes. That includes a video walk-through, whether it's live or recorded. California law requires the agreement in writing, and state regulations and industry rules expect it to be signed before any showing. Open houses are the exception, since you can walk into those on your own.

Before my clients sign, I go through the agreement with them page by page. I don't want anyone signing something they haven't had explained to them. Whoever you work with, read it carefully and ask about anything that's unclear before you sign.

Step 3: Search for homes

You and your agent set your criteria, like price, location, size, and must-haves. From there, you'll get alerts when new listings come up that match, and you can save the homes you like. A local agent can also tell you what's coming on the market soon and how prices compare between neighborhoods.

If you're new to the area, Chapter 2 gives an overview of the different parts of Monterey County.

Step 4: Tour homes

There are two ways to see homes:

• Open houses. Anyone can walk in, with no commitment.
• Private showings. Scheduled with your agent, after you've signed a buyer representation agreement. The same goes for video tours of a home.

While you're touring, pay attention to more than looks. Think about condition, layout, location, and what you'd want to change. If you'd want to add a bathroom or an ADU, or rent the home out, Chapter 6 covers local rules worth knowing before you get attached.

Step 5: Make an offer

When you find the one, you and your agent review any disclosures and reports that are available, look at recent sales, and decide on your price and terms. Your offer is written on California's standard Residential Purchase Agreement. It covers the price, your deposit, your contingencies, your closing date, and who pays for what.

It's a long contract, and you'll be bound by it. I go through it with my clients page by page before they sign anything, and I think every buyer should expect that from their agent. Either way, read it carefully and ask questions before you sign. Chapter 8 explains the key parts, including deposits, contingencies, and the liquidated damages section.

Step 6: Negotiate

The seller can accept your offer, reject it, or send a counteroffer. Counteroffers can go back and forth a few times until you both agree on the price and terms, or decide to walk away. Once both sides sign the final version, you're in contract.

Step 7: Open escrow

Once your offer is accepted, escrow opens, and the clock starts on your deadlines. Your deposit, often called earnest money, usually goes to escrow within 3 business days. A typical escrow here takes around 30 days, though it can be shorter or longer depending on what's in your contract.

This is usually the first money you'll wire, so it's the first place wire fraud can happen. Scammers send fake emails with wiring instructions that look real. Before you send your deposit, call your escrow officer at a phone number you already know is real, not one from the email, and confirm the instructions. Do the same every time you send money during escrow.

Escrow will also ask you to fill out a short form called a Statement of Information. It asks for details like your past addresses, and it helps the title company tell you apart from anyone with a similar name.

Step 8: Inspections and due diligence

This is your chance to learn everything you can about the home. You'll:

• Review the seller's disclosures and any reports that come through escrow.
• Do your inspections, usually a general home inspection and a pest inspection, plus any specialists you need.
• Get insurance quotes. In California right now, this is worth starting on day one, as covered in Chapter 7.

Some cities here also require their own reports before a sale can close, which are covered in Chapter 6. If the inspections turn up problems, you can ask the seller for repairs or a credit.

Step 9: Loan and appraisal

While you're doing your inspections, your lender is working on your loan. They'll order an appraisal to confirm the home is worth what you're paying, and an underwriter will take a detailed look at your finances before giving final approval.

Answer your lender's requests quickly, and don't take on new debt, open new credit, or change jobs during this time.

Step 10: Remove contingencies

Your contingencies are what let you cancel and get your deposit back if something goes wrong. The main ones are for your inspections, the appraisal, your loan, and insurance, and they're 17 days by default in the standard contract.

When you're satisfied with each one, you remove it in writing. After that, your deposit is at risk if you back out without a valid reason under the contract. Don't remove a contingency until you're comfortable, and for the loan, until your lender has told you clearly that it's ready. Chapter 8 goes into more detail.

Step 11: Close and get your keys

In the last week or so before closing:

• Sign your loan documents with a notary, usually a few days before closing. Bring your photo ID and anything escrow asks for.
• Send your funds to escrow for the rest of your down payment and closing costs, usually by wire or cashier's check. If you're wiring, confirm the instructions by phone with your escrow officer again, just like you did for your deposit.
• Do your final walk-through to confirm the home is in the condition you agreed to.

Then your lender funds the loan, escrow records the deed with the county, and the home is officially yours. You'll usually get your keys once the sale records.

A few things are easy to forget in the excitement: book your movers, set up or transfer your utilities, and update your address with the post office, your bank, and anyone else who sends you mail.

How long does it all take?

The search can take anywhere from a few weeks to many months, depending on the market, your budget, and how specific you are. Once your offer is accepted, escrow usually takes about 30 days. Being pre-approved and having your documents ready is the best way to keep things moving.

Where to focus your own research

• Before anything else: Get pre-approved.
• Before you sign anything: Read your buyer representation agreement and your purchase contract, and ask questions.
• Once you're in escrow: Know your deadlines, read your reports, and start on insurance right away.

If you'd like a printable version of these steps, in English or Spanish, reach out and I'll send it over.

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This is general information, not legal advice. Your contracts control your rights and deadlines, and every transaction is different. Ask your agent to explain anything you're unsure about, and talk to a real estate attorney for legal questions. I'm a real estate agent, not a lawyer.