Coastal San Diego · Buyer guides · Paying for a home

Buying a home with stocks or other assets in San Diego

Short answer: A lot of buyers have wealth that isn’t sitting in a checking account. A seller and escrow (the neutral company that holds the money) still need cash on the day the sale is final. So the job is to plan how and when your other assets turn into money you can wire, and to show proof along the way.

Buyers in La Jolla and around coastal San Diego often hold stocks, funds or other holdings instead of cash. That is common. It just takes a plan.

This guide is about steps and timing. It does not tell you what to sell or how to invest. That is a talk for your financial advisor and tax pro.

I’m Weston Clark, Founding Member of the Dickinson-Clark Team at Compass. I help buyers in coastal San Diego line up their paperwork so the money is ready when the seller needs it. You can talk about fees with Weston directly. This form does not give a commission quote.

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Related: Cash offers · Jumbo loans · Tax on a gain · Wire fraud · Guides · Proof of funds · Earnest money deposit

Why the seller cares

Escrow (the neutral company that holds the money and papers) can only close with funds that have landed. Stock in an account is not yet money in escrow.

So a seller will ask two things. Do you have it? And can you move it in time? A clear plan answers both.

Selling holdings to raise cash

If you sell stocks or funds, the money takes time to settle and then time to wire. Ask your brokerage how long each step takes before we set dates in an offer.

Selling can also bring a tax bill on any gain. My capital gains guide explains the basics. Your tax pro can tell you what it means for you.

Borrowing against holdings

Some buyers borrow against their investments instead of selling. FINRA, the group that oversees brokers, describes one such loan: “Set up as a revolving line of credit, an SBLOC allows you to borrow money using securities held in your investment accounts as collateral.”

It also warns about the risk: “The firm might sell your securities if for example, the value of your securities declines sufficiently relative to the amount that you’ve borrowed.”

In plain words, if the market drops, the lender can ask for more or sell for you. Talk that through with your advisor first.

What to show the seller

• A recent statement for each account that holds the money.
• A short note from you or your advisor on how and when the funds will move.
• A loan letter, if part of the price is borrowed. My jumbo loan guide covers larger loans.

If the plan is to pay all cash, my cash offer guide covers the rest.

Moving the money

Big wires draw scammers. Confirm wire steps by phone, using a number you already trust. My wire fraud guide lists the steps.

General information only

This guide explains process. It is not legal, tax, lending, investment or financial advice. Ask your own advisors before you sell or borrow.

More on sandiego.homes

• Cash offers: paying without a loan
• Jumbo loans: larger home loans
• Capital gains: tax on a gain
• Wire fraud: moving money with care

• More: All guides · La Jolla · Real estate terms

Talk with Weston about paying for your home

Tell me where your money sits today. I’ll help you plan offer dates that give it time to move.

Or call (858) 997-8998 · weston@sandiego.homes · Search on Compass

Free tools: What is my home worth? · What would I take home? · Real estate words in plain English

Have another question? Quick answers to common questions

Sources

• FINRA — Securities-Backed Lines of Credit Explained
• sandiego.homes — Cash offers
• sandiego.homes — Capital gains
• sandiego.homes — Wire fraud