How to Buy a House in San Diego - 2025 Buyer’s Guide
By Alex Mikoulianitch on January 01, 2025
Promises of a year-round summer at some of the world's most iconic beaches are just the tip of the iceberg for aspiring San Diego homebuyers.
America’s Finest City also has some of the finest neighborhoods in Southern California, and its wealth of housing options is equally appealing.
But buying a house in one of the most desirable cities in SoCal can be challenging. Coveted inventory is in high demand, and mortgage rates continue to pose a headwind for homebuyers.
Below, the Prevu team outlines a step-by-step guide to help you navigate those challenges as you prepare to buy a house in San Diego.
Buying a House in San Diego
- Get pre-approved for a mortgage
- Work with a buyer’s agent
- Use commission rebates to save
- Prepare an effective budget
- Choose the right neighborhood
- Conduct thorough due diligence
Get pre-approved for a mortgage
A mortgage pre-approval is a must in San Diego’s market.
Sellers will expect offers from qualified buyers, and a mortgage pre-approval is proof that you fit the bill. It guarantees that your financing is in order and that you won’t back out of the contract because you couldn’t secure a loan.
To secure a mortgage pre-approval, you'll need to provide documentation of your income, assets, debts, and credit score, so get those organized before you start your home search.
The pre-approved amount can paint a clearer picture of your budget and how much you can afford to spend. You’ll have an estimate of your monthly payment, helping you structure your finances accordingly and set savings goals to make the home purchase possible.
Work with a buyer’s agent
Working with the right buyer’s agent in San Diego gives you two primary benefits: a wealth of local expertise and saving money when you buy a home.
Buyer's agents can streamline your property search by accessing the Multiple Listing Service (MLS) and off-market listings, information most buyers don’t have access to.
The MLS allows agents to evaluate properties, helping them analyze comparable sales and market data to develop a negotiation strategy tailored to a buyer’s circumstances.
Their assistance with due diligence is equally invaluable, as they advise on obtaining a property report, scheduling a home inspection, and reviewing HOA documents. They can also connect you with trusted professionals, such as home inspectors and real estate attorneys, to ensure all the purchase steps are handled competently.
If you plan to work with an agent, take the time to explore multiple options. Be sure to ask about the agent’s years of experience, the price points they’ve handled in the past, and how they communicate with their clients (and how often).
Most importantly, interview agents that offer commission rebates.
Use commission rebates to save
For many San Diego homebuyers, the biggest challenge is affordability; one of the best ways to overcome that challenge is by utilizing commission rebates.
Simply put, a commission rebate is a portion of a broker’s commission fee passed on as savings to a buyer after closing on a home.
Rebates are legal in 40 states, including California, yet many traditional brokerages don’t offer this tool for San Diego buyers.
Prevu’s investment in a digital homebuying platform and salaried agents helps buyers take advantage of rebates to help navigate an expensive housing market. Prevu currently offers the largest rebate in California, allowing buyers to receive up to 1% of a home’s purchase price via the company’s Smart Buyer Rebate.
For instance, if you work with a Prevu agent to purchase a house in North Park for $1,250,000, you can potentially receive up to $12,500 cash back after closing.
That extra cash can help San Diego buyers handle costs that challenge affordability, such as closing costs, renovations, and unforeseen expenses.
Prepare an effective budget
Your budget will be a compass for exploring San Diego’s neighborhoods and beach towns.
Having a pre-approval and partnering with a buyer’s agent who offers commission rebates can make budget planning much more efficient.
You can start by determining your price range based on your mortgage pre-approval. Be sure to factor in closing fees, title insurance, and property taxes, as these add up to a significant portion of your overall expenses.
Next, work with your agent to break down your future costs of homeownership. Calculate your estimated monthly mortgage payment and account for property taxes, homeowner's insurance, and private mortgage insurance (if applicable). It also doesn’t hurt to budget for routine maintenance and repairs, as these expenses can strain your savings if not prepared.
Utilities like electricity, gas, water, and trash services also factor into your budget.
Depending on your property's location and size, these costs can vary significantly. Your agent can help you research local utility rates to ensure you clearly understand your upcoming monthly expenses.
Choose the right neighborhood
The neighborhood you choose to live in plays a huge role in your day-to-day life and expenses.
You’ll have a significant upper hand – and an easier search – by partnering with a buyer’s agent.
Giving yourself the time you need to properly research and explore potential neighborhoods is imperative. Evaluate your commute time, identify points of interest that can make your weekend plans more enjoyable, and determine what perks are important.
Do you want to live near Balboa Park, one of San Diego’s most prominent attractions? Your agent might point you to North and South Park. Are you set on a beachfront lifestyle minus the extravagant luxury that sometimes comes with it? Skip La Jolla and explore Pacific Beach or Coronado.
Luckily, San Diego offers a unique living experience, regardless of its proximity to beaches. But it’s essential to take the time to explore so you don’t face buyer’s remorse when it’s finally time to buy a house.
Conduct thorough due diligence
Due diligence will be key as you near the end of your San Diego homebuying journey.
Thorough due diligence is essential in making an informed decision when purchasing a property in San Diego.
You must work with a professional home inspector to assess the property's overall condition and examine its structure, foundation, plumbing, and electrical systems. The inspector's findings can help you negotiate for repairs or a price reduction if anything seems out of place.
It’s also a good idea to obtain a property report to uncover any liens, encumbrances, or easements that could impact your ownership, as this will help you avoid future legal disputes.
Natural hazards specific to San Diego, such as wildfires, earthquakes, and flooding, should also be every buyer’s top priority.
Ask your agent to help you get a Natural Hazard Disclosure Report, as it will help identify risks associated with the property, allowing you to assess any need for additional insurance coverage.
Interested in buying a home in San Diego? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.
