How the San Francisco Home Buying Process Really Works

Buying a home in San Francisco can feel intense. Competitive offers, unique property types, and fast timelines all play a part. You want a clear plan that reduces risk and keeps you confident from offer to closing. In this guide, you will learn the step‑by‑step process, typical timelines, contingency options, and the differences between condos, TICs, and multi‑unit properties in San Francisco. Let’s dive in.

Your San Francisco home buying roadmap

You will typically move through these stages: financing and pre‑approval, home search and offer, opening escrow, contingency periods, loan underwriting and title review, final walkthrough, then closing and recording. Most financed purchases close in about 30 to 45 days after an accepted offer. All‑cash deals can close faster, often within 7 to 21 days. Possession follows the contract terms, which can vary.

The timing depends on your lender, appraisal scheduling, property type, and the contingencies you include or waive. In more competitive moments, buyers often shorten or waive contingencies, which raises risk. In slower markets, you can negotiate longer review periods.

Get pre‑approval and plan funding

Pre‑approval is stronger than pre‑qualification. Your lender verifies income, assets, credit, and issues a written letter you can submit with your offer. This improves your position with sellers and helps you set a clear budget.

Gather key documents early. Plan to share recent pay stubs, W‑2s or 1099s, recent tax returns, bank and asset statements, ID, and details of any debts. Discuss down payment options, loan products, and appraisal requirements with your lender. Ask your lender about underwriting timelines so you can set realistic contingency dates.

Shopping, disclosures, and making an offer

When you find the right home, your offer is written on a standard California Residential Purchase Agreement. It sets the price, initial deposit, contingency timelines, closing date, and who pays which fees. In San Francisco, your deposit is commonly 1 to 3 percent of the purchase price, placed into escrow after acceptance.

Sellers must provide disclosures that cover known defects and material facts. You will often see a Transfer Disclosure Statement, a Natural Hazard Disclosure, and for older homes, lead‑based paint disclosures. For condos and other common interest properties, you have the right to review association documents such as budgets, CC&Rs, insurance details, reserve studies, and meeting minutes. Use these to evaluate building health and future costs.

Understand contingencies and timelines

Contingencies give you time to verify the property and your financing. Typical ranges in San Francisco include:

• Inspection contingency: about 7 to 17 days.
• Loan contingency: about 17 to 21 days.
• Appraisal contingency: timeline depends on lender and scheduling.
• HOA and condo document review: about 5 to 14 days.
• Title review: confirm timeline in your contract and with escrow.

Shortening or waiving contingencies makes an offer more competitive, but it increases risk. If you waive an inspection contingency, for example, you lose a key exit if significant defects appear. If you waive appraisal, you may need extra cash if the appraisal comes in low. Work with your agent and lender to set realistic deadlines, and use calendar reminders to track each removal date.

Escalation clauses and as‑is terms

Escalation clauses can automatically raise your offer up to a cap if there are competing bids. These must be drafted carefully so the terms are clear. As‑is offers limit a seller’s repair obligations, but they do not remove required disclosures. You usually still have inspection rights unless the contract limits them. Make sure you understand your options before you sign.

Open escrow and stay on track

Once your offer is accepted, escrow opens with a neutral third party who handles deposits, document exchange, loan funding, and recording. You will wire your deposit, order inspections, and begin loan underwriting and appraisal. Expect a Preliminary Title Report early in escrow. Review it promptly and raise any concerns.

Your lender must provide a Closing Disclosure at least three business days before you sign final loan papers. Ask your escrow officer for a closing statement that shows all buyer and seller costs, including prorations. Keep an eye on your contingency removal dates, appraisal timing, insurance setup, and any HOA questionnaire your lender needs for condo financing.

Title insurance, taxes, and closing day

Lenders require a lender’s title policy. You will typically purchase an owner’s title policy to protect your interest against covered title defects. The deed records with the county at closing. In San Francisco, transfer taxes apply, and the allocation of this tax is negotiable in the contract. Confirm how fees are split with your agent and escrow team.

Plan your final walkthrough about 24 to 72 hours before closing to confirm property condition and that agreed items remain. After recording, keys and possession follow the contract.

Condo, TIC, and multi‑unit specifics

Condos require extra review. Read the CC&Rs, bylaws, meeting minutes, budgets, reserve studies, and insurance certificates. Lenders often review the project’s eligibility, including occupancy ratios and reserves. HOA dues and any special assessments affect your monthly costs and your loan approval.

Tenancy‑in‑Common properties are common in San Francisco and operate differently than condos. You own a fractional interest in the building with other co‑owners and may share a master mortgage or use a specialized TIC loan. Not all lenders finance TICs. TIC agreements can affect resale, refinancing, and how payment defaults are handled. Review the TIC agreement in detail and coordinate early with your lender.

For multi‑unit or tenant‑occupied buildings, San Francisco rent control and eviction protections may apply. You should obtain rent rolls, review leases, and confirm registration with the San Francisco Rent Board. Understand your obligations and how tenant laws affect future plans.

Inspections and risk checks to prioritize

Inspection priorities depend on the property’s age and condition, but common options include general home inspections and pest or wood‑destroying organism inspections. You may add specialty inspections such as roof, HVAC, sewer scope, or seismic assessments.

Unpermitted work is common in San Francisco. Check the Department of Building Inspection permit history and ask for contractor documentation where possible. For buildings with tuck‑under parking or similar conditions, confirm status under local soft‑story retrofit programs. Earthquake insurance is separate from homeowners insurance, and while lenders do not require it, many buyers choose to obtain coverage.

How underwriting and appraisal fit together

Your lender orders the appraisal to confirm the value supports the loan amount. If the appraisal is lower than your contract price and you have an appraisal contingency, you can renegotiate, bring in more cash, or cancel within the allowed period. Underwriting reviews your finances and the property details. Delays can occur if documents are missing or the property is complex, such as a multi‑unit, TIC, or a home with unpermitted work. Build a little buffer into your timeline.

Who pays what at closing

Closing costs include escrow and title fees, lender fees, transfer taxes, recording fees, and prorations for property taxes and HOA dues. In San Francisco, who pays which items is set by the contract and local custom, and transfer tax allocation is negotiable. Ask your escrow officer to walk you through the settlement statement so you know where every dollar goes.

Early steps checklist

• Talk to a local lender and get a written pre‑approval letter.
• Choose a buyer’s agent with San Francisco experience and a clear plan for contingencies and inspections.
• Prepare funds for your deposit, inspections, and estimated closing costs.
• For condos and TICs, request HOA or TIC documents early and confirm lender eligibility.
• Order inspections quickly after acceptance: general, pest, and any needed specialty inspections.
• Verify permit history with the San Francisco Department of Building Inspection and check for outstanding violations or retrofit needs.
• Set up homeowners insurance early. Consider earthquake coverage, and confirm the condo master policy if applicable.

Final thoughts

Buying in San Francisco rewards a prepared, methodical approach. When you line up pre‑approval, set realistic contingencies, and complete focused inspections, you reduce surprises and protect your investment. If you are considering a condo, TIC, or multi‑unit, allow extra time for documents, lending requirements, and local compliance checks.

You do not have to navigate it alone. If you want a strategy that blends market expertise with construction‑savvy insight on permits, seismic work, or value‑add potential, connect with an advisor who does this every day. When you are ready to take the next step, reach out to Kia Amini for a clear, confident plan from offer to closing.

FAQs

How long does a financed San Francisco purchase take?

• Most financed purchases close in about 30 to 45 days after offer acceptance, depending on underwriting speed, appraisal timing, and property complexity.

What contingencies should I expect when buying in San Francisco?

• Common contingencies include inspection, appraisal, loan, HOA document review for condos, and title review, with typical windows ranging from about 5 to 21 days.

Should I waive contingencies to be more competitive in San Francisco?

• Only if you fully understand the risks. You may offer stronger terms by shortening timelines or using an escalation clause, but you reduce protections if issues arise.

What extra diligence should I do on San Francisco properties?

• Check permit history with the Department of Building Inspection, confirm soft‑story retrofit status where relevant, and verify rent control and registration for multi‑unit properties.

How do condos and TICs change the process in San Francisco?

• Condos require HOA document review and lender project approval. TICs need specialized financing and careful review of the TIC agreement, which can affect resale and obligations.

Who pays San Francisco transfer tax and other closing costs?

• It is negotiable in the contract and varies by deal. Confirm the allocation with your agent and escrow officer early in the process.