How to Buy a Condo in Downtown San Diego: Step by Step

Step 1

Talk to a Downtown buyer's specialist

Your first meeting

Start with an agent who knows the buildings, not just the neighborhood. Before you tour homes together, you'll sign a written buyer agreement, now standard practice, that sets out what your agent will do for you, for how long, and how they'll be paid.

• Tell us your budget, must-haves and timeline, and whether you'll live in the home or rent it out.
• The buyer agreement spells out your agent's services and compensation. Its terms are negotiable, and we'll walk you through every line before you sign.
• We'll shortlist buildings that fit, based on dues, rules and recent sales.

Step 2

Get pre-approved

1 to 3 days

A pre-approval tells you what you can afford and shows sellers you're serious.

• Your lender counts monthly HOA dues when working out how much you can borrow.
• Ask about first-time buyer options: some conventional loans allow 3% down, and FHA loans allow 3.5% in FHA-approved buildings.

Step 3

Choose your neighborhood and buildings

1 to 2 weeks

Downtown has six distinct districts, from the waterfront Marina District and Columbia to lively East Village, Little Italy, the Gaslamp Quarter and quieter Cortez Hill.

• Compare HOA dues, which range from under $500 to more than $2,000 a month, against what they include.
• Check pet rules, parking and storage, and the building's rental rules if you might rent the home out later. Every Downtown building has a 30-day minimum lease.
• Use our building pages for current listings, recent sales and dues for every major building.

Step 4

Tour homes

A few weekends

We'll set up showings, share new listings the day they hit the market, and tell you what each building is really like to live in.

• Look at the view, light and noise at different times of day if you can.
• Ask us what similar homes in the same building have sold for recently.

Step 5

Make an offer

1 to 3 days of negotiation

We'll price your offer from recent sales in the building and the current competition, then negotiate price, credits and terms on your behalf.

• In California, the earnest money deposit is commonly around 3% of the price, held by escrow.
• Your offer includes contingencies, typically for inspection, appraisal and loan, that protect you while you investigate.

Step 6

Inspection and HOA documents

About the first 17 days of escrow (negotiable)

This is your investigation period, and for a condo it's as much about the building as the home.

• A home inspection covers your unit: plumbing, electrical, windows, appliances and signs of water damage.
• The seller provides the HOA’s documents: CC&Rs, budget, reserve study, recent board minutes and any pending special assessments or litigation.

Step 7

Appraisal and loan approval

2 to 3 weeks, overlapping with step 6

Your lender orders an appraisal and finalizes your loan, including its review of the building. Once approved, you remove your loan contingency and line up your HO-6 insurance policy for the unit's interior.

Step 8

Final walk-through and closing

The last few days

A few days before closing, you walk through the home to confirm it's in the agreed condition. You sign your documents, the loan funds, the deed is recorded with the San Diego County Recorder, and the keys are yours.