Out-of-State Buyer’s Guide to California Real Estate

by Kai Steijn

Out-of-State Buyer’s Guide to California Real Estate

How to Buy a Home in California Remotely, Securely, and Tax-Smart

Presented by The Steijn Group
DRE# 02271922 | Broker: Kai Steijn
📍 Newport Beach & Mission Viejo
🌐 www.toursocalhomes.com | 📞 (949) 374-8847

🌴 Why Buy Real Estate in California?

Whether you're relocating, investing, or purchasing a second home, California offers world-class lifestyle, long-term appreciation, and consistent rental demand. It's a high-demand market — and fully navigable remotely.

Why out-of-state buyers choose California:

Strong job markets in tech, finance, and healthcare
Coastal lifestyle in regions like Orange County, San Diego & LA
Tight inventory = strong long-term price growth
High potential for short-term and long-term rental income

🏠 Can You Buy a California Home Remotely?

Yes — California is one of the most remote buyer–friendly states.

We help buyers from Texas, New York, Arizona, and beyond close seamlessly without stepping foot in the state.

What to expect:

Offers are written and signed digitally via licensed representation
We provide virtual tours, 3D walkthroughs, and video showings
Documents are signed via DocuSign and remote notary
Final walk-throughs and inspections can be completed on your behalf

🔐 We handle every detail so you don’t have to fly in.

📜 How the California Escrow Process Works

California uses escrow companies (neutral third parties) to manage the transaction. Here’s a typical 30-day escrow timeline:

Offer Accepted → Escrow opened, initial deposit wired (typically 1–3%)
Disclosures & Inspections (Day 1–17) → Seller delivers disclosures, buyer performs inspections
Loan & Appraisal (Day 10–21) → Your lender completes underwriting and appraisal
Contingency Removal (Day 17–21) → You formally approve or cancel based on findings
Final Walkthrough & Signing (Day 25–30) → Final walkthrough (virtual if needed) + document signing
Funding & Closing → You wire final funds and receive keys (or have a local rep pick them up)

✅ You do not need to be physically present in California to close escrow.

💰 California Property Taxes and Tax Laws for Out-of-State Buyers

1. How California Property Tax Works

Only reassessed at time of sale. Thanks to Proposition 13, your assessed property value is locked in at purchase.
In contrast to many states that reassess annually based on rising market value, California’s base can only increase up to 2% per year.
Typical annual tax: 1.1% of the purchase price, depending on county and special assessments.
Some areas include Mello-Roos/CFDs for schools, infrastructure, or public improvements.

✅ This makes California a more stable and predictable state for long-term real estate ownership.

2. Rental Income Taxes (for Investors and Second-Home Owners)

Even if you live out of state, rental income generated in California is taxable by the state.
You'll need to file a California non-resident income tax return annually.
Tip: Consider using a CPA who specializes in multi-state real estate taxation.

3. Capital Gains Taxes When You Sell

California does not provide special capital gains rates — profits are taxed as regular income.
If you are a non-resident seller, the state will withhold 3.33% of the sale price at closing unless exempted (e.g., 1031 exchange or primary residence rules).
Federal exclusions still apply: If the home was your primary residence for 2 of the last 5 years, you may exclude up to $250,000 (or $500,000 if married) of capital gains.

📍 What Makes Buying in California Unique?

As-Is Sales: Most homes are sold “as-is,” but you retain full inspection rights and the ability to negotiate repairs or credits.
Disclosure Requirements: California requires sellers to provide detailed disclosure packages (TDS, NHD, HOA docs, etc.).
Wire Security: Wire fraud prevention is serious—escrow companies provide secure wiring instructions that are double-verified.
Dual Agency Rules: If one brokerage represents both buyer and seller, full disclosure and written consent are required.

🎯 Tips for Out-of-State Buyers

✅ Work with a local buyer’s agent who understands local pricing trends, disclosure laws, and hidden costs (we do).
✅ Request live video walkthroughs or 3D tours for every property.
✅ Use a California-based lender for smoother closings — or ensure your national lender has CA experience.
✅ Budget for all ownership costs, including insurance, HOA dues, utilities, property taxes, and travel (if using as a second home).
✅ Ask about short-term rental rules if you plan to rent — each city in California is different.

🤝 How The Steijn Group Helps Remote Buyers

We specialize in helping remote and out-of-state buyers purchase real estate in Orange County and across Southern California.

Our services include:

Custom virtual home tours and property previews
Local vendor coordination (inspectors, contractors, lenders)
Digital offer writing & e-signatures
Remote closing coordination
Post-closing support (property management, resale planning)

📩 Let’s Make Your Move to California Simple

Whether you're buying a primary residence, vacation home, or investment property, we make your California purchase smooth, strategic, and fully remote.