How is home buying in Silicon Valley different from other places?

by Mary Pope-Handy | Jan 12, 2026 | Buying Tips, Finances

If you want to buy a Silicon Valley home and you’re coming from outside of the area, you will likely notice that a few things are done differently here. Rather than give a lengthy explanation, I’ll just provide a quick list of some of the ways in which our market practices are different from other parts of California, the U.S. or around the world.

10 Home Buying and Selling Practices in Silicon Valley that Might Surprise You

1.) The escrow account, where money is held and disbursed by a neutral third party, is ordinarily with a title company in Silicon Valley and the San Francisco Bay Area generally. In CA it’s legal for real estate brokers to have the escrow account, but that is not the custom here. By contrast, in southern Calif., there are separate companies which often do the escrow work or a real estate broker may handle the funds, called trust funds.

2.) Santa Clara County is a “seller pay county” by tradition when it comes to the escrow fee and who pays the owner’s policy of title insurance. (Most of California is either buyer pay or split 50/50. Also, Santa Clara County is where San Jose and the bulk of Silicon Valley is located.)

3.) Because it’s a “seller pay” county, the seller or the listing agent (the seller’s real estate agent) typically chooses the title company. Most of the time, the home owners do not have a preference and don’t know anyone working at the nearby title companies, so usually the listing agent suggests one which they have had good experience with. But not everything paid in escrow is paid by the seller. For instance, if you purchase the property with a loan, you will need to buy lender’s insurance, too – and that’s a buyer cost.

4.) While in many east coast states an attorney is involved with the home buying and selling process, here lawyers are seldom involved with real estate sales – unless there is a big problem.

5.) Surveys are not usually part of the transaction here, with exceptions if there are serious doubts about the property boundaries.

6.) Buyers are provided information on natural hazards, and usually also known environmental hazards and area tax liabilities, in most cases via a professional disclosure company such as JCP Disclosures. Things such as 100 year flood plains, liquifaction zones, earthquake fault lines, underground water contamination will be revealed, if known, in most cases.

7.) Most sellers provide inspection reports upfront. Most sellers get inspections prior to listing and provide these to buyers upfront with their disclosure packet. That also means it’s less common to see offers with contingencies in our market (at least not inspection contingencies). Pest and property inspections are expected by Silicon Valley buyers, as are roof inspections unless it is a condo or has a very new roof. Additional inspections may also be provided based on additional property features, or worrisome defects (i.e. a pool inspection for a home with a pool, a well inspection for homes on well water, or if there is a large crack in the fireplace then a chimney inspection might be done).

8.) In some parts of the world, buyers do not have their own real estate professionals for guidance and advocacy, but here they do. Most of the time, in the San Jose and Peninsula area buyers have their own real estate agent working on their behalf, just as sellers have their own agent. Usually the buyers’ agents are paid by the sellers (a term that’s negotiated in the purchase contract), but they do not represent the sellers.

Note: Dual agency is legal in California as long as it is disclosed (and dual agency can mean either the same person or brokerage). Also, purchasing a home as an unrepresented buyer (no professional working on their behalf), is legal, but uncommon and generally not advisable.Shorten with AI

9.) It has become the norm to get pre-approved with a lender or bank prior to writing a purchase offer on a house, condo or other home. (If you meet with a Realtor, getting you set up with a reputable lender will be one of the first things he or she asks you to do.) Also buyers have to provide “proof of funds” to demonstrate that they have the down payment available. Sometimes our international clients are surprised at the documentation required here, so it’s good if you are aware of it upfront.

10.) It usually takes about 30 days to close escrow on a property here (from the time the sellers accept your contract to the time you actually own it).

Finally, it should be noted that the cost of housing in Silicon Valley is truly exorbitant. Most people know that Silicon Valley houses are very expensive, but until they get out and see what things cost, they really don’t understand how extreme it is. Often I tell people to expect to pay twice as much and to get half as much. Unless you are coming from a pricey locale, such as London, Tokyo, Paris, Manhattan or Boston, you may still find yourself in “sticker shock.”

One and a half million dollars buys a fairly small, modest home here, in an average area. Two million dollars is better – you can get into a better area and better house. The “luxury market” starts somewhere between $3.5 and $4.5 million, depending on which area you’re considering.

There are pros and cons to the way the market works here compared to other areas, but going in prepared and knowing what to expect will help you find a great home and have a smooth purchase as you relocate to Silicon Valley!