5 Home Buying Tips for California

California is one of the most sought-after places to live with jaw-dropping coastlines and a diverse, eclectic culture–but if you’re looking to buy a home in the Golden State, there are factors to consider beforehand. The local economy, housing market, and your personal financial situation will impact your buying experience.

Here’s some key home buying tips to help you navigate one of the most complex and competitive real estate markets in the U.S. to make the whole process easier–and smarter:

1. Consider Your Budget and Income

The median home price in California sits at $884,400 as of March 2025, a 3.5% increase over the previous year and cements it as one of the most expensive markets to live in if you’re relocating to certain areas. However, the sticker price is only the tip of the iceberg. As a buyer, you will need to take into account the closing costs, ownership costs, and down payment that comes with buying a home.

While many buyers only consider the mortgage payment, the cost of living in California will also need to be factored in. If you’d like to see a snapshot of the monthly cost breakdown, use an online mortgage calculator to get an idea of what you’re working with.

2. Find the Right California Neighborhood

Not all neighborhoods are created equal, and the area you choose in California is just as vital as the house when it comes to the daily commute, resale value, and overall quality of life. Take some time out to research home values, crime rates, noise levels, and school ratings through GreatSchools when looking for a home.

The right neighborhood can impact your lifestyle, and the past home value trends of the neighborhood will matter in the event that you choose to sell your house.

3. Choose the Right Real Estate Agent

In California, where homes can sell within days (or faster)–and often with multiple offers turning into bidding wars–working with the right Realtor isn’t just a smart move, it’s crucial! Look for an agent with years of experience in your chosen area who can negotiate through competitive bidding with an understanding of how state laws like Prop 19/SB9 can come into play.

An experienced Realtor will have inside knowledge on home value trends and neighborhoods to help guide you through the process with expert care and attention to detail.

4. Get Pre-Approved for a Mortgage

California’s market is as fast-paced as it is competitive, and getting a mortgage pre-approval will give you a definite edge. Many sellers, in fact, won’t consider offers from buyers without a pre-approval letter, since it gives the seller more confidence that you’re not only serious about the home buying process, but it also confirms that you’ve set a clear budget and that your financial qualifications are in place.

Even while handling preliminary legwork like a pre-approval letter, don’t lose sight that when purchasing a home, especially in California, you’re ultimately building long-term wealth, too. Home sales on average are on a modest rise through 2026, and if you buy a home in a developing area, you’re looking at only an increase in equity down the line.

5. Understand the Lifestyle Change

Living in California isn’t just a zip code change, it’s a different state of mind, particularly if moving from the east coast to the west. California is very different from other states in terms of social climate and even food! 

From Southern California’s ultra laid-back coastal towns to the Bay Area’s techno innovation hubs, there’s a distinct flavor to every region–although some of the traffic you encounter may age you emotionally, there’s definite lifestyle changes to keep in mind before making the move to the Golden State.

Make Your California Dream a Reality Today

When it comes to buying a home in California, every step from budgeting to long-term planning makes all the difference. The good news is you don’t have to do it all alone! Contact Realtor Linda Moore now if you’d like to find a home in Encinitas to make your California dream a reality–but even dreams come with fine print, and Linda has the experience and expertise to guide you every step of the way!