Buying a home in California can feel like you need a survival guide, especially if you're moving here from out of state. Whether you're considering buying a home in Redding or eyeing property elsewhere in Shasta County, it helps to know what to expect upfront, not just the costs, but the process.
There are protections in place to help you feel confident during the journey, but understanding how it all works from the start is key to avoiding surprise fees or worse, losing your deposit. Let's walk through what really goes down once your offer is accepted, and how you can move forward without regretting your decision.
Buying a Home in Redding, CA: What You Need to Know
Every state has its quirks when it comes to real estate, and California is no exception. The way we do things here leans heavily in the buyer's favor, but only if you understand your rights and responsibilities. From deposits to inspections and closing costs, here's what you need to wrap your head around before making your big move.
Good Faith Deposit: Your First Financial Step
This is where it all starts. Once your offer is accepted, you're expected to put down a "good faith deposit." In Shasta County, this is often around 1% of the purchase price, so for a $400,000 home, you're probably looking at $3,000 to $3,500. This deposit is sent to the title company within three business days and held in escrow. If all goes well and you close the deal, it goes toward your down payment or closing costs. If something goes wrong and you back out within the contract protections, you get it back.
Contingency Periods: Your Safety Net
From the day your offer is accepted, the clock starts ticking on your contingency periods, usually 17 days to handle inspections, appraisals, and financing.
Home Inspections: Start Smart, Then Dig Deeper
You'll want to begin with general home and pest inspections, which typically run $500 to $550. These give you an overview of the property's condition. If something concerning pops up, say, an aging HVAC system, you can schedule additional inspections to dig deeper. The point is to feel comfortable with your purchase, not just guess and hope for the best.
Appraisal: How Much Is the Home Really Worth?
Unless you're paying cash, your lender will require an appraisal. This independent check confirms the home is worth what you're offering. Appraisals usually cost between $500 and $750. If it comes in lower than the sale price, you and the seller need to renegotiate. If the appraisal is higher, great, you just earned instant equity.
Loan Approval: Play It Safe
Once your lender has all the necessary info, they move forward with underwriting. The key here is to keep things stable: don’t switch jobs or buy a new car right in the middle of escrow. The smallest change in your debt-to-income ratio could derail your loan.
Insurance and Seller Disclosures: Know What You're Signing Up For
Here's a newer but critical step: insurance is now part of the inspection contingency. If you find out insurance is unaffordable or unavailable, that can be a valid reason to back out. You also have seven days to review seller disclosures. These documents cover everything the seller knows about the home, from repairs to neighborhood noise. It's all part of helping you make an informed choice.
The Closing Costs Breakdown: What You're Actually Paying For
So, you made it past the contingency period, and you're ready to close. Now let's talk about the rest of the costs.
Typical Closing Costs: Expect 3% to 4% of the Purchase Price
These include loan fees, taxes, insurance, title charges, and other transaction costs. In areas with higher insurance rates (like rural Shasta County), these numbers climb a little higher. For a $400,000 home, expect to pay around $12,000 to $16,000 total.
Covering Closing Costs
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Out of pocket: You bring the cash to the table.
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Seller credit: Negotiate with the seller to cover some or all closing costs. For instance, offer full price in exchange for a $10,000 credit.
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Roll it into the loan: Offer a slightly higher purchase price and ask the seller to credit the difference. It helps with upfront costs, but it depends on the appraisal.
Buyer's Agent Service Fee: What Changed and What It Means
Since August 2024, buyers must sign a representation agreement with their agent before viewing homes. That agreement will outline whether your agent gets paid by you or through the seller. In Redding, most sellers are still covering this fee. But if they don’t, it becomes your responsibility. This fee is negotiable, and your agent should be transparent about how it works.
What Happens If You Back Out?
Let's say something goes wrong: the inspection uncovers serious issues, or the loan doesn’t come through. As long as you cancel during your contingency period, you get your good-faith deposit back. The only money you lose is what you've already spent on inspections and appraisals. If you back out after removing contingencies, your deposit could be at risk.
The takeaway? Don’t rush. Use that 17-day window to really make sure the home is right for you.
Protect Your Investment and Buy Smart
Buying a home in Redding doesn't have to feel overwhelming. Yes, there are a lot of moving parts: deposits, inspections, loan approvals, agent agreements, but every step is there to protect you. The biggest thing is to walk through the process with eyes wide open and a trusted guide by your side.
And that’s where we come in.
At The Barrett Team, we help buyers understand not just the what, but the why. We're here to walk you through each stage, from navigating inspections to negotiating seller credits that can save you thousands. Whether you're relocating to Redding or making your first purchase in Shasta County, we’d love to be your go-to resource.
Got questions about what it takes to buy here in California? Reach out anytime. We are your local guide to real estate and everything Redding. Let's make this journey one you feel good about, from start to finish.
