I've heard stories of people who fell in love with a house at an open house and made an offer without inspection conditions. In the San Francisco market, where multiple offers come in just days after a property is listed, this choice is not uncommon. However, the consequence was that they ended up spending a lot of money on plumbing repairs after moving in.

To put it simply, an inspection is a process where a professional checks the condition of a house before the contract is signed. The median sale price in San Francisco County rose by 14.1% to $1.8 million over three months until May 2026, and the average market exposure time decreased to 15 days from 18 days last year (Redfin, 2026). In the city, the median price over the past month was $1.5 million, with an average of four offers attached.

Given the speed at which homes are selling, some buyers skip the inspection condition out of fear that their offer will be overlooked. In a city like San Francisco, which has many older homes, there are often hidden issues like foundation work, plumbing, and electrical wiring. Skipping this step means taking on that risk directly.

Looking at properties without mortgage pre-approval leads to similar problems. Pre-approval is a document that confirms the loan limit from a lender, and without it, sellers often do not take offers seriously. In a market where homes sell in 15 days, waiting to get pre-approved after finding a desirable home can be too late.

It's also common for buyers to only consult one lender when making a deal. To put it simply, even for the same loan, different lenders can have varying interest rates and fees. The CFPB recommends comparing at least three lenders, as accepting the first lender's terms can lead to tens of thousands of dollars in differences over decades.

It's important to note that school districts of interest to Korean families can vary significantly even within San Francisco. Neighborhoods with higher school ratings tend to have more competitive listings, making it easier to make decisions based on emotions rather than long-term living plans or commuting conditions. It may be better to consider resale potential as well.

Property taxes are another aspect to consider. In California, under Prop 13, the base tax rate is 1%, and with local bonds, the effective tax rate can rise between 1.1% and 1.3%. For a home priced around $1.5 million, this means annual property taxes could range from $16,500 to $19,500, so families moving from other states should calculate this burden in advance.

Underestimating closing costs means preparing money that is separate from the down payment. Calculating 2-5% of the sale price means that for a home priced around $1.5 million, you would need at least $30,000 to nearly $75,000. If all funds are allocated to the down payment and this aspect is overlooked, you could find yourself short on funds right before closing.

When budgeting, it's easy to overlook including property taxes and insurance premiums. Simply put, you need to budget monthly for property taxes, fire insurance, and earthquake insurance if you're in an area at risk for earthquakes, in addition to the mortgage principal and interest. In San Francisco, where many older wooden homes exist, missing this part can lead to actual monthly burdens being higher than expected.

Sometimes, buyers pour their reserves into the down payment out of relief that the contract has been finalized or make large expenditures that change their credit status. To put it simply, it's wise to avoid spending large amounts of money before closing and to keep a few months' worth of living expenses set aside to avoid financial difficulties after moving in.

In summary, taking care of inspections, pre-approval, lender comparisons, closing costs, reserves, and property taxes in order can help reduce decisions driven by emotions. School district boundaries change frequently, so be sure to check the assigned school for the address before purchasing, and this article is not legal or investment advice, so consulting a professional before making a contract is recommended.