Buying a Home in Rancho Santa Fe

Rancho Santa Fe is an affluent city located in San Diego, California. Renowned for its luxury properties, tight-knit community, and picturesque landscapes, Rancho Santa Fe is a great place to call home. However, due in part to what makes the area so attractive, the San Diego real estate market is fierce and competitive, which means having a handy guide to the local market is the best way to land the home of your dreams. Here is everything you need to know about buying a home in Rancho Santa Fe.

Southern California, in general, is known for its incredibly comfortable weather year-round. The summer months are hot, while the winter months are mild. In San Diego, daily temperatures rarely exceed 80 degrees and dip below 60 degrees. With impeccable weather throughout the year, many residents turn to outdoor activities to pass their days.

Given the impeccable weather in Southern California, many homes in Rancho Santa Fe merge indoor and outdoor living. Essentially, outdoor living spaces meld into indoor spaces seamlessly. Covered pergolas are incredibly popular in the area, which help create an elegantly structured space while still retaining the great outdoors. If fire pits, outdoor bars and kitchens, and poolside cabanas are your cup of tea, then Rancho Santa Fe is right for you.

Rancho Santa Fe is, without a doubt, one of the most exclusive places to live in the state of California. Due to the high cost of homes and rural setting, property in the area is at a premium, which means getting your foot in the market is harder than in most other places. Because of this, your home will likely appreciate at a faster rate than in other nearby cities if you’re able to secure a house.

Currently, the median home price in Rancho Santa Fe is around $4.6 million. While this number is up around 2.3% from the price in July of 2022, it’s increased about 1.9% since June of 2023. Given that the sale-to-list ratio continues to hover around 100%, buyers entering the market can expect to pay at or near the list price for houses in the area.

Closing costs are the fees and expenses associated with closing on a real estate transaction. These costs widely vary depending on several factors, such as the overall price of the home, the type of loan acquired, and the specific requirements of your area. Typically, in San Diego, the closing costs for buyers include property taxes, appraisal fees, mortgage origination fees, escrow fees, and homeowners insurance. When all is said and done, the average closing costs for buyers in the area range between 2 to 3% of the sale price.

Since property taxes are generally based on the assessed value of a property, the average homeowner in Rancho Santa Fe might pay a bit more than other areas due to the high value of the homes. It’s best to consult a local real estate agent for estimates.

Make a bigger down payment

Many real estate professionals recommend buyers put down at least 20% when making a down payment on a house. While you can put down less than 20%, doing so will result in a higher monthly payment on your mortgage. Additionally, many lenders require obtaining private mortgage insurance (PMI) if you put down less than 20%, which adds another expense to your monthly bills. Therefore, you can save a good chunk of change upfront by making a larger down payment if possible.

Your credit score is a highly important number when it comes to buying a house. Essentially, the higher your credit score, the lower your mortgage rate, which means the less you’ll pay over time on your loan. Because of this, it is incredibly important to increase your credit score as high as possible before you shop around for mortgage loans. You can increase this score in several ways, such as paying down debt or increasing your amount of available credit. Since increasing your credit score can take time, it’s better if you tackle this hurdle early on.

Working with a qualified real estate agent is one of the best ways to save money when buying a house in Rancho Santa Fe. Your agent knows the local market and can offer tips to reduce the asking price of a particular home. Additionally, your agent can help you secure a better loan and help you avoid certain closing costs when the time comes.

As shown above, Rancho Santa Fe is a wonderful place to live. From the area’s incredible weather to its access to modern amenities, there are many reasons why people keep flocking to the city. However, due to this influx of residents, the local housing market is highly competitive, which means you need a skilled real estate agent on your side.

Schoelen & Pierce is a team of Rancho Santa Fe realtors with years of experience buying homes in the area. Using their knowledge of the local market, the team knows what it takes to beat out the competition and secure great deals on properties. If you’re interested in buying a home in Rancho Santa Fe, contact the team at Schoelen & Pierce for expert guidance.