{"id":23773,"date":"2021-05-12T09:42:25","date_gmt":"2021-05-12T16:42:25","guid":{"rendered":"https:\/\/www.homelight.com\/blog\/?p=23773"},"modified":"2026-03-26T10:38:26","modified_gmt":"2026-03-26T17:38:26","slug":"buyer-how-to-buy-a-house-in-palm-springs","status":"publish","type":"post","link":"https:\/\/www.homelight.com\/blog\/buyer-how-to-buy-a-house-in-palm-springs\/","title":{"rendered":"Flood Plains, High Winds, and Leased Land: How to Buy a House in Palm Springs"},"content":{"rendered":"

As a resort escape, Palm Springs is known for its year-round sunny and warm weather \u2014 even when winter is happening everywhere else! It\u2019s a hub for modern architecture, and some of the best known mid-century modern architects have built homes here. The outdoorsy among us also love Palm Springs for its abundance of hiking trails, golf courses, racquet clubs, and natural high-desert beauty.<\/p>\n

It\u2019s a hot place to buy a home almost anytime, but buying a house in Palm Springs isn\u2019t as easy as booking your next nine on the golf course. You\u2019ll have to navigate land leases, HOA requirements<\/a>, and stiff competition from other buyers set on purchasing your picture-perfect property.<\/p>\n

Fortunately, we did the legwork for you. We talked to Dan Hamilton<\/a>, a top real estate agent with 20 years experience, to get the lowdown on buying your ideal home in sunny Palm Springs<\/a>. Whether you\u2019re looking to invest in a vacation home, set up a sunny and contemporary primary home for your family, or settle into an active retired lifestyle \u2014 you\u2019re about to find out what the pros know about getting the best deal on the desert home of your dreams!<\/p>\n

\"A<\/a>
Source: (Erin Hervey \/ Unsplash)<\/figcaption><\/figure>\n

Finding your financial sweet spot in the Coachella Valley<\/h2>\n

Those beautiful modern homes don\u2019t come cheap: The median price for a house in Palm Springs as of February 2021 is $723,750<\/a>. (That\u2019s more than twice the national fourth quarter 2020 median of $346,800<\/a>.) If you\u2019re looking at condominiums in Palm Springs, you can plan to spend less, with a median of $270,000 for condos in February 2021.<\/p>\n

Part of the reason? A shortage of homes for sale. As Hamilton says, \u201cright now, our inventory is half what it was a year ago, so the number of homes available for sale is really low.\u201d<\/p>\n

He also tells us that the COVID-19 pandemic is causing a surge of buyers. \u201cCOVID is driving a lot of people to come look for less expensive areas outside of the big cities. So we\u2019ve got low inventory and strong buyer activity.\u201d<\/p>\n

Fortunately, there\u2019s hope if you want to buy a house in Palm Springs. Here are four tested tips proven to stretch your dollar and help avoid overpaying.<\/p>\n

    \n
  1. Offer to pay cash<\/a> (HomeLight can help with that<\/a>, by the way).<\/li>\n
  2. Shorten contingency periods<\/a>, so the seller knows the deal is done sooner.<\/li>\n
  3. Shorten escrow periods, so the seller pays less in monthly fees.<\/li>\n
  4. If you\u2019re paying cash, then you can skip the appraisal. (Talk to your agent about whether they think the sales price is fair; an appraisal can protect you from overpaying for a house.)<\/li>\n<\/ol>\n

    Desert styles: Housing stock in Palm Springs<\/h2>\n

    The mid-century modern aesthetic<\/a> is a big part of the appeal of living in Palm Springs. People love the clean lines and natural finishes that provide a backdrop for pops of vibrant colors, and there are a lot of beautiful homes in this style here.<\/p>\n

    In the old days of movies, stars would build their homes in Palm Springs to be within a two-hour commute of the studios. So it became a film industry hotspot full of celebrities and a magnet for developers working at the forefront of mid-century modern architecture \u2014 resulting in an abundance of homes in this style (not to mention all the celebrity presence and history!).<\/p>\n

    For buyers looking for something more low-maintenance, Palm Springs also has a number of condominium<\/a> developments that provide security, a sense of community, and minimal upkeep, with exteriors typically maintained by COAs, or condo-owners\u2019 associations.<\/p>\n

    \"The<\/a>
    Source: (Bob Osias \/ Unsplash)<\/figcaption><\/figure>\n

    Flood plains and high winds<\/h2>\n

    In California, sellers are required to provide buyers with a natural hazard disclosure report. This will tell you if the home is in an earthquake zone, fire hazard zone, high wind zone, flood zone, and so on. In Palm Springs, the two to watch out for are flood zones and high wind zones.<\/p>\n

    If the home is adjacent to the mountains, you have to be aware of runoff and potential flooding. It\u2019ll be especially important to check the home\u2019s FEMA flood zone status<\/a>. And the north side of the city has some great homes, but you\u2019ll be more susceptible to high winds there.<\/p>\n

    Get your home inspected<\/h3>\n

    Anthony Morganti<\/a>, Yelp\u2019s top-rated home inspector in the Palm Springs area, says there are certain home issues that are prevalent because of the desert climate:<\/p>\n

    \u201cDue to the high highs and low lows in temperature, it is quite common to find issues with the HVAC systems. So it can be helpful to hire a home inspector who does thermal imaging inspections, which can find leaks in air ducts and possible moisture issues within the home.\u201d<\/p>\n

    And he says it\u2019s not just the inside of the home you need to inspect thoroughly. \u201cRoofing materials can also have issues due to the summer temperatures.\u201d<\/p>\n

    Morganti recommends looking for an inspector who uses aerial drones for roof inspections. \u201cThis prevents causing damage to roofs by walking on them, while providing detailed high-resolution images for further evaluation.\u201d<\/p>\n

    Buyers in Palm Springs typically consider getting both a general inspection and a termite inspection. (Some people also get a sewer inspection, but these aren\u2019t common.)<\/p>\n

    A general inspection<\/a>, like the ones Morganti conducts, will catch most potential issues. If there are any, you\u2019ll want to bring in a specialist (like an electrician or plumber) to examine any issues further before you move forward with buying the house.<\/p>\n

    Termites aren\u2019t too common, but they do occasionally show up in this climate. Dry rot and fungus are actually more prevalent, and the general inspection should catch those.<\/p>\n

    Remember, though, that home inspectors can only identify problems if they see evidence of the problem. If you\u2019re concerned about hidden issues, it would be wise to call in a specialist<\/a>.<\/p>\n

    Patios and yards are big home improvement zones<\/h3>\n

    \u201cBecause our weather during the wintertime is so wonderful,\u201d says Hamilton, \u201cand because outdoor living here is part of the reason people come down to visit or to live, a lot of people are investing in their outdoor spaces.\u201d<\/p>\n

    Detached casitas are popular: Imagine if a three-bedroom home had a fourth bedroom, self-contained as a small separate structure on the lot, with its own entrance, its own bathroom, and a bedroom that can be used for guests or family.<\/p>\n

    Hamilton says they\u2019re also an attractive option for remote workers. \u201cEspecially now with COVID, a lot of people want to work from home. So it\u2019s become a trend over the past year for homeowners to convert existing space \u2014 or add on additional space \u2014 for home offices<\/a>.\u201d<\/p>\n

    \"a<\/a>
    Source: (Cody Board \/ Unsplash)<\/figcaption><\/figure>\n

    Buying on leased land: The ins and outs<\/h2>\n

    About 40% of homes in Palm Springs are located on leased land.<\/p>\n

    \u201cWhen you buy a home on leased land, you do not own the land \u2014 you’re buying the structure and you\u2019re leasing the land,\u201d explains Hamilton.<\/p>\n

    \u201cSome people will shy away from leased land, but some of the nicest properties in Palm Springs are on leased land.\u201d<\/p><\/blockquote>\n

    The good news for bargain-hunters is that a house on leased land will be about 20% to 25% cheaper than the same home on a lot that comes with the property would normally be.<\/p>\n

    If you\u2019re taking out a loan to buy a house on leased land, lenders will require the lease to extend five years beyond the loan\u2019s term.<\/p>\n

    For example: If the land lease is scheduled to expire 20 years from now, banks will only give you a 15-year loan on the property. If you\u2019d like a more typical 30-year mortgage loan, you\u2019ll need to make sure your land lease extends for 35 years or longer.<\/p>\n

    Leases almost always get renewed; many lenders will give you a loan for a property on leased land, and if you know the ins and outs of it, you can get a little more house for your money.<\/p>\n

    Keep in mind: The land you\u2019ll be leasing is owned by American Indian landowners \u2014 so the deal has to be approved by the Bureau of Indian Affairs.<\/p>\n

    If you buy a house on leased land, it adds an extra step to the process: Your documents for the mortgage loan, home inspections, and so on will be submitted to the Bureau of Indian Affairs, which will review and approve them. It can lengthen the process, but it\u2019s fairly simple.<\/p>\n

    After you buy, you\u2019ll also have to keep the Bureau in the loop about updates to your loan, like refinancing<\/a>.<\/p>\n

    Getting the lay of the resort landscape<\/h2>\n

    It\u2019s easy to identify the neighborhoods in Palm Springs \u2014 just list the celebrities who have lived there! From Frank Sinatra to Suzanne Somers, almost every area in Palm Springs has been home to a few stars. Historic houses abound.<\/p>\n