San Diego Real Estate Deal Killers: What Every Buyer and Seller Should Know Before Escrow

Before you buy or sell a home in San Diego, there's something that can absolutely destroy the deal. And it's not always the price. It's not always the inspection, and it's not always the interest rate. A lot of the times it's the paperwork, the disclosures, the permits, the HOA documents, the insurance issues, the seller's answers, the buyer's assumptions, the tiny little details that nobody really pays attention to until suddenly a buyer wants a $40,000 credit. The seller feels blindsided, the lender has questions, escrows get delayed, or the entire deal falls apart. After more than 23 years in San Diego real estate, I can tell you this. The homes that create the most drama are not always the ugly homes. Sometimes they are the beautiful ones, the staged ones, the luxurious ones, the ones with perfect photos, the ones everyone falls in love with

online. But then you get into escrow and suddenly the truth starts coming out. unpermitted work, HOA problems, old roof questions, insurance surprises, pending assessments, neighborhood disclosures, noise issues, foundation concerns, short-term rental restrictions, flood zones, fire zones, previous leaks, old repairs, a remodel that looks gorgeous but may have not been done correctly. And here's the part nobody wants to say out loud.

Buyers can lose money by ignoring these things and sellers can lose money by hiding them. So today, I'm breaking  down the San Diego real estate deal killers that buyers and sellers need to understand before making a major move. Because whether you're buying from out of state, [music] selling a luxury home, buying a downtown condo, selling a coastal property, or trying to figure out what your next move should be, this video could save you stress, money, time, and possibly your entire escrow. Let's get into it.

This Video Is REALLY For (Buyers, Sellers, Relocation)

If this is your first time to the channel and you want to know everything there is to know about moving in or out of San Diego, then subscribe and click that bell for notifications so that you could be the first to know about the current market here in San Diego, California. My name is Victoria Sandoval and I'm with Select Premier Properties. We get calls from people just like you every single day. So whether you're looking to move in 9 days or 9 months, feel free to reach out. My contact information is on the description below and I'd be happy to help you make a smooth move in or out of San Diego. Hi, I'm Victoria Sandoval with Select Premier Properties and I help buyers, sellers, relocation clients, luxury homeowners, and San Diego families navigate one of the most unique real estate markets in the country. And today, we're not doing another full video about sunshine, beaches, restaurants, and how beautiful San Diego is. We already know San Diego is beautiful. We already know people want to live here. 

We already know the lifestyle is incredible. But what people do not talk about enough is what happens after someone falls in love with the house. Because falling in love is easy. Getting safely through escrow is where experience matters. And this video is especially important if you are buying a home in San Diego from another state, selling a San Diego home and you want the cleanest, strongest offer possible, buying a downtown condo, selling a luxury property, buying near the coast, selling an older home, buying a property with remodeled spaces, or trying to understand why some homes look amazing online but becomes a nightmare once the details come out. This is where real estate gets real, and I'm going to explain this from both sides. the buyer side and the seller side because if you understand how both sides think, you make much smarter decisions. Here is why this matters in 2026. San Diego is not a cheap market. 

According to March 2026 SDMLS market data, detached homes had a medium sales price of 1.1 million, while attached homes had a medium sales price of 670. Detached homes averaged about 37 days on the market and attached homes averaged about 45 days on the market. That means buyers are making very expensive decisions and sellers are competing for very educated buyers. This is not a market where people can afford to be casual. 

Zillow San Diego data also showed that about 32.7% of sales were over list price while about 55.2% were under list price in its reported period. That tells you something very important. Some homes are still creating urgency. Some homes are still getting strong offers, but other homes are sitting, negotiating, reducing, or selling below the original asking price. And one of the biggest differences is certainty. Buyers pay more confidently when they feel safe. Sellers negotiate better when they are prepared. Uncertainty kills momentum. Confusion kills offers. Surprises kills deals. So, if you are buying, your job is to uncover the right information before you remove contingencies. And if you're selling, your job is to reduce the buyer's fear before it becomes a negotiating weapon. That is what this video is about. The big difference between looking good and being good. 

Let's start with one of the biggest mistakes buyers make. They confuse a home that looks good with a home that is good. Those are not always the same things. A home can have beautiful staging, trendy lighting, fresh paint, a gorgeous kitchen, and perfect photography, but that does not automatically mean the roof is solid. That does not mean the electrical was upgraded properly. It does not mean that the plumbing is in good condition. It does not mean that the remodel was permitted. It does not mean the HOA is financially healthy. And it does not mean there are no insurance concerns. It also doesn't mean that there are no drainage issues. And it definitely doesn't mean the seller has disclosed everything you need to know. 

Now, sellers, I want you to listen to this because buyers today are not just looking at your countertops. They are looking for risk. They are asking, "What am I not seeing? What is this going to cost me? Why is the seller moving? Why did they price it this way? Why was this repair done? Why does this permit history not match the property? Why is the HOA fee so high? Why is there a special assessment? Why is the insurance expensive? Why has this home been on the market longer than others?" And here's the key. If you do not answer those questions proactively, buyers will answer them in their own mind and usually they will assume the worst. 

Deal killer number one, unpermitted work. The first major deal killer is unpermitted work. And this one is huge in San Diego. Now, I want to be clear, not every permit issue means a deal s dead. But unpermitted work can create serious concerns for buyers, sellers, lenders, appraisers, insurers, and future resell. The problem is that San Diego has a lot of older homes, remodeled homes, additions, garage conversions, bonus rooms, enclosed patios, second units, and properties where different owners did different things over time. Sometimes the current seller did the work. Sometimes the previous owner did the work. Sometimes the seller bought the home that way and genuinely doesn't know the full history. But the buyer still has to make a decision. Let me give you an example. A buyer walks into a home, sees an extra room, it looks great, it's staged beautifully, it has flooring, it has lighting, maybe a closet, maybe a bathroom nearby, but then the buyer starts to review the records and realizes that the square footage does not match what they thought they were buying or the garage conversion was not permitted or the addition was never finalized or the bathroom remodel had plumbing work with no permit. Now the buyer starts thinking, is it safe? Will the city care? Will the insurance care? Will my lender care? Will this affect the value? Will I be able to sell this later down the line? Am I paying full price for something that may not be legally recognized? That is when the deal gets shaky. 

For buyers, the lesson is this. Do not assume that what you see is what is legally recognized. Ask questions. Review available records. Look at permits. Look at square footage carefully. Understand what is included in the valuation and if something does not make sense, slow down and investigate.

For sellers, the lesson is different. Do not wait until escrow to figure this out. If you know there's unpermitted work, talk about strategy before you list. Maybe it needs to be disclosed. Not maybe, it does need to be disclosed. Maybe it needs to be explained. Maybe documentation needs to be gathered. Maybe repairs need to be made. Maybe you price with that issue in mind. Maybe the marketing needs to avoid making claims that cannot be supported. But hiding from it is not a strategy because if a buyer discovers it later, now you have a trust problem. And once that trust is broken in escrow, everything becomes bigger. 

Buyer side, how unpermitted work will cost you. Buyers, here's how this can cost you. Let's say you buy a home because it appears to have more usable space. Maybe there is a finished garage. Maybe there's a bonus room. Maybe there's an extra bathroom. Maybe there's a studio space. Maybe there is a converted area that looks like part of the home. If the space was not permitted or it was not done correctly, you may have several problems later. You may have safety issues. You may have trouble insuring the property. You may have trouble getting full value when you sell. You may have a future buyer asking for a credit. You may have an appraiser not value the space the way you expected. You may have city compliance issues. You may have to spend money correcting it. Or you may simply find yourself trying to explain the same problem to the next buyer when it's your turn to sell. This is why I always tell my buyers, you are not just buying today's home. You are buying tomorrow's resale story. Every issue you ignore today may become the issue your future buyer uses against you later. That does not mean you should be scared of every property. It means you need to understand what you are buying. There's a big difference between risk you understand and risk you discover late. Now seller side, how unpermitted work can cost you.

Now sellers, this is where preparation matters. If you have done work to the property, gather your documentation before you list. Permits, receipts, contractor information, warranties, invoices, plans, product information, anything that helps tell the story. If you remodel the kitchen, show what was done. If you replaced the roof, show when. If you upgraded the electrical, show documentation. If you did plumbing work, have details. If you installed windows, HVAC, flooring, appliances, solar, or anything major, gather proof. This does two things. First, it builds buyer confidence. Second, it protects your negotiating position because when a buyer asks questions and you have the answers, the deal feels safer. When a buyer asks questions and everything is vague, the buyer starts discounting. A prepared seller looks organized. An unprepared seller looks risky. And risk costs money. Sometime that cost shows up as a lower offer. Sometimes it shows up as a repair request. Sometimes it shows up as a credit. Sometimes it shows up as a cancellation. And sometimes it shows up before you even get an offer because buyers simply move on. So, if you're thinking about selling in the next 3, 6, or 12 months, this is the time to get your house in order, not after you are already in escrow before.

If this is helpful, hit that like button because this is the kind of real estate information that can help actually save you money. And if you know someone who's looking to buy or sell in San Diego, share this video with them. Not because I need another view, because somebody out there is about to fall in love with a beautiful house and completely miss the paperwork that could have changed everything. Also, subscribe to the channel if you want San Diego real estate advice that goes deeper than here are the beaches and here are the tacos. And comment the word buy if you're buying in San Diego. Sell if you are selling in San Diego. Condo if you're looking for a downtown or coastal condo. I use those comments to decide what videos to make next. Now, let's talk about one of the most underestimated parts of San Diego real estate. 

The deal killer number two, weak or incomplete disclosures. In California, disclosures are a major part of the transaction, and this is where buyers and sellers both need to be careful. California sellers are generally expected to disclose known material facts that affect the property, and real estate professionals need to understand the disclosure process carefully. The California Association of Realtors teaches that sellers are required to disclose material facts and the California Department of Real Estate publishes disclosure guidance for real estate property transactions. Now, I'm not an attorney and this video is not legal advice. But from a real estate strategy perspective, here's what you need to understand. Disclosures are not busy work. They are just forms. They are not something to rush through while you're watching TV. They are the written story of your property. And if that story is incomplete, inconsistent, vague, or surprising, it can create problems. For buyers, disclosures are one of your first windows into a property. Has there been water intrusion? Has there been roof leaks? hazard been repairs, any insurance claim,  any neighborhood disputes, any additions, defects, HOA issues, any noise issues, any drainage issues, any foundation issues, any deaths on the property that require disclosure. California even specifically addresses debts on real property. The details matter, and direct questions from buyers must be answered truthfully. 

For sellers, the goal is not to scare your buyer. The goal is to be accurate. Because here's what happens when disclosures are too thin. The buyer wonders what else is missing. The buyer asks more questions. The buyer's agent becomes cautious. The buyer may order more inspections. The buyer may request a larger credit. The buyer may cancel. The buyer may lose trust. And once the buyers feel like something was hidden, even unintentionally, they rarely become easier to work with. Seller strategies. Disclosure is not the enemy. Sellers, I want to make this clear. Disclosure is not the enemy. Bad strategy is the enemy. Some sellers think that if I disclose this, the buyer will run. Sometimes that's true. But many times what makes the buyers run is not the issue itself. It's the surprise. Let me give you an example. Imagine two sellers with the same roof issue. Seller A discloses it up front. There was a roof leak in 2022. It was repaired by a licensed contractor. Here's the invoice. Here are the photos. Here's what was done. We have not had any issues since. Now seller B says nothing. Then the inspector finds a stain on the ceiling. The buyer asks. The seller says, "Oh yes, we had a leak." Now the buyer thinks, "Well, what else are they not telling me?" That is the difference. Same issue. Completely different emotional reaction. Buyers can handle information. What they do not handle well is feeling blindsided. And from a seller strategy standpoint, strong disclosures can actually make the deal cleaner. They can reduce renegotiation. They can reduce cancellation risk. And they can make buyers more confident. They can attract stronger offers. They can help separate serious buyers from emotional buyers. And they can protect you later. Again, talk to your agent or legal advisor about your specific situation. But as a real estate strategy, clarity is powerful. 

Deal killer number three, natural hazard, local area, and neighborhood disclosure. Let's talk about something that's very specific to San Diego and California. Natural hazards and local area disclosures. California has a formal natural hazard disclosure requirement and the state natural hazard disclosure statement addresses whether a property is located in certain zones including special flood hazard areas, dam inundation areas, high fire severity zones, wildland fire areas, earthquake fault zones, and seismic hazard zones. In San Diego, local area disclosures matter most. The Pacific Southwest Association of Realtors notes that San Diego's local area disclosures are intended to educate buyers and create transparency and they are updated periodically. North San Diego County Realtors also describe that the local area disclosure also describes the local area disclosure as something intended to be reviewed by both buyer and seller in addition to other disclosures. Now, why this matters? Because buyers moving from another state may not understand what's normal here. They may not understand earthquake zones. They may not understand wildfire risk. They may not understand airport influence areas. They may not understand coastal conditions. They may not understand military aircraft noise. They may not understand flood maps. They may not understand local assessments. They may not understand that one property can have a very different risk factor than another property 5 minutes away. And sellers need to understand that the out of area buyers need education. If you're selling a home in a location with noise, traffic, military aircraft influence, coastal maintenance, slope concerns, wildfire considerations, flood considerations, restrictions. The way things are communicated matters, not hidden, not dramatized, communicated because buyer confidence comes from understanding.

Buyer side, don't skip the boring stuff. Buyers, I know this part is not glamorous. Nobody goes on Zillow dreaming about reading disclosure packages. Nobody flies to San Diego for weekends and says, "I can't wait to review the natural hazard reports." But this is where the money is protected. This is where you slow down and ask, "What does this property require from me? What risks come from this location? What insurance might I need? What maintenance should I expect? What does this neighborhood disclosure tell me? What should I ask the inspector? What should I ask the HOA? What should I ask my insurance broker? What should I ask my lender? What should I ask the city? What should I ask before removing contingencies? Because once you remove contingency, your leverage changes. And

I do not want you to learn about the property after you're emotionally and financially locked in. Especially relocation buyers. If you're buying remotely, you need to be even more careful. You may not be here to hear planes. You may not be here to experience the traffic pattern. You may not be here to see the street at night. You may not be here during rush hour. You may not be here during the weekend events. You may not even be here to notice that there's parking. You may not be here to feel the difference between one block and another. So, paperwork matters. The video matters. The local insight matters. The questions matter. And your agent needs to be willing to tell you the truth, not just sell you the dream. 

Deal killer number four, HOA documents, and condo surprises. Let's talk about condos. This is especially important in downtown San Diego, Bankers Hill, Mission Hills, coastal communities, and anywhere buyers are considering attached [music] homes. A condo can be an amazing choice. I love the right condo for the right buyer. Lock and leave lifestyle amenities. You have walkability. You have views. You have security. Less exterior maintenance. You get the urban lifestyle, the coastal lifestyle. But condos come with paperwork that buyers cannot ignore. The HOA is not just a monthly fee. The HOA is part of what you are buying. You are buying into a financial ecosystem. And you need to understand there are monthly dues. What do they cover? Are there reserves? Are there upcoming assessments? Are there lawsuits? Are there insurance issues? Are there rental restrictions? Are there pet restrictions? Are there short-term rental restrictions? Are there parking rules? Is there storage? Are there storage rules? Are there moving fees? Are there elevator rules? Are there balcony issues? Are there building envelope issues? Are there plumbing issues? Are there restrictions on flooring, windows, remodeling, or rentals? Is the pro is the building mostly owner occupied or is it investor heavy? Is there litigation that could affect financing? What is the long-term maintenance plan? What happens if dues increase? And here's the mistake buyers make. They only ask, "How much is the HOA?" That's not enough. A low HOA can be good, but it can mean the building is underfunded. A high HOA can be bad or it can mean the building is well-managed and includes meaningful services. You need context for sellers. If you are selling a condo, your HOA documents can either support your value or create doubt. So, do not wait until the last minute. Know your building. Know your HOA. Know what buyers are going to ask. And if there are up and coming projects, know if there are assessments. Know what the dues cover. Know the strengths of the building and if there are weaknesses have a strategy because a buyer who is confident about the HOA is much more likely to move forward. A buyer who is confused about the HOA starts to look for an exit. 

If you are still watching, you are exactly the kind of buyer or seller I make this channel for. So, take a second and subscribe. And if this video is helping you see the San Diego real estate market in a smarter way, hit that like button and share it with somebody who's thinking about buying or selling here. Also, comment the word paperwork if you want me to send you a separate video breaking down the exact documents buyers and sellers should review before escrow gets serious. If you're thinking about buying in San Diego, selling your San Diego home, relocating here, selling before you leave California, buying a downtown condo, or preparing a luxury property for the market, this is exactly the kind of strategy you need before you make a major decision. My information is below. Reach out if you want help understanding your options. And in San Diego real estate, those details can be the difference between a smooth closing and a very expensive mistake.

I'm Victoria Sandoval with Select Premier Properties. Thank you for watching and I'll see you in the next video. Bye.