Top 5 Mistakes Homebuyers Make in California (And How to Avoid Them)

Published: June 2025
By Military Mutual

Buying a home in California is exciting—but it’s also one of the most competitive and complex real estate markets in the U.S. From bidding wars to wildfire zones, it’s easy to misstep if you're not prepared.

Here are the top 5 mistakes California homebuyers make—and how to avoid them like a pro.

❌ 1. Not Getting Pre-Approved Before Shopping

Why it’s a mistake:

In California’s fast-moving market, serious buyers need mortgage pre-approval in hand before touring homes. Without it, you risk losing out to better-prepared buyers.

How to avoid it:

• Get pre-approved through a trusted lender before house hunting

• Know your exact budget, interest rate, and down payment options

• Consider VA, FHA, or CalHFA programs if you're eligible

💡 Pre-approval shows sellers you're serious—and speeds up closing.

❌ 2. Underestimating Total Costs

Why it’s a mistake:

California homes often come with high property taxes, HOA fees, and insurance costs (especially in wildfire or earthquake zones). First-time buyers often budget for the home price—but not the extras.

How to avoid it:

• Ask for a full cost breakdown: taxes, insurance, utilities, HOA fees

• Consider earthquake and wildfire insurance

• Use a mortgage calculator with taxes and insurance included

📊 Plan for 1–2% of the purchase price annually for maintenance and fees.

❌ 3. Skipping the Home Inspection

Why it’s a mistake:

In hot markets, buyers are tempted to waive inspections to make stronger offers. But skipping an inspection can lead to expensive repairs or safety issues down the line.

How to avoid it:

• Always include an inspection contingency (or at least conduct one privately)

• Hire a licensed, local inspector familiar with CA building codes

• Prioritize roof, plumbing, electrical, and foundation reviews

🔎 Even new homes can hide costly issues.

❌ 4. Ignoring Location Red Flags

Why it’s a mistake:

A beautiful home in the wrong location—bad schools, long commutes, or wildfire-prone areas—can lead to regret. Many buyers focus only on the house, not the neighborhood or region.

How to avoid it:

• Research crime rates, commute times, school ratings, and environmental risks

• Visit the area at different times of day

• Use tools like Cal Fire maps, Niche.com, and local zoning sites

📍 In California, location is everything—don’t compromise on it.

❌ 5. Not Being Ready to Act Fast

Why it’s a mistake:

California homes can receive multiple offers within days—or hours. Hesitation can cost you your dream home.

How to avoid it:

• Have your lender, agent, and documents ready to go

• Know your top criteria so you can make confident decisions

• Be prepared to write a competitive offer—sometimes above asking

⚡ The best homes don’t wait for indecision.

✅ Final Thoughts: Buy Smart, Stay Ready

California offers amazing opportunities—but only if you approach the market with preparation and strategy. By avoiding these common mistakes, you can secure the right home with less stress and more confidence.