IOW, justification by faith is our LEGAL POSITION before God based solely on Christ's finished work on the cross of Calvary. Then because we are justified by faith, we are regenerated unto good works (Eph. 2:10; Titus 3:5).
Isn't a sacrament a "work" that imparts some type of grace to the one doing it? Basically sacramental salvation is "works salvation"...correct?
Correct! It is the repudiation that Christ satisfied all of God's demands against sin by his own personal obedience but rather we must complete them by our own participation with Christ in our own body by our own obedience. Thus an outright objection that Christ "finished" it Himself "for us."
A sacrament is an external means that conveys actual grace. Hence, Rome believes that the actual grace of justification and rengeration are conveyed in the act of water baptism.
However, baptism is a "good work" (not an bad work) because it is something that both you and others participate in.
In contrast, Justification by faith is something no fallen human being can participate in because:
1. The satisfaction required - sinless perfection
2. Christ satisified it in his own body in his own life and on the cross without our participation but for us.
3. Faith simply embraces His obedience as the complete satisfaction for us and rests its hope entirely upon his finished work in our behalf.
Baptism as a "good work" is the product of regeneration rather than the cause of regeneration as we are "created" in Chrsit Jesus "UNTO good works."
In context the description "for we are his workmanship created in Christ Jesus" (v. 10) is a further expanded explanation of the previous phrase "for by grace are ye saved through faith" (v. 8) which is descriptive of a previous phrase "You hath he quickened" (v. 5).
Hence, baptism is the consequence of progressive sanctification or the outworking of spiritual life created in the believer rather than the sacramental means to obtain spiritual life/regeneration or justification.