When selling a home in California, you have two choices: listing it for sale by owner (FSBO) or hiring a real estate agent. California has no rules requiring homeowners to sell their property with a real estate agent’s help. You can sell your house independently, even though a real estate agent can help you through the challenges of doing so.
Steps of Selling a House in California
The process of Selling a House in California is as follows:
Search for a California realtor
It isn’t easy to sell a house. In this high-stakes, complex transaction, achieving a good outcome requires much work and knowledge. You can search for Discount Real estate Brokers near me in your area if you want to sell your California house for the best price and experience as little stress as possible.
The top listing agents in California know local buyer preferences and how to connect with them. They will provide professional assistance, support, and advice at each stage, from the first listing through closing.
Value Your House
Pricing correctly is essential for FSBO sellers. Look at comparable listings in your community to obtain a decent estimate of the worth of your home. The size, building age, number of baths and bedrooms, and amenities of the comparable properties should all be comparable to your property.
Create a Listing Summary.
Write a listing description that will attract purchasers once the price has been agreed upon. Mention the asking price and draw attention to any distinctive architectural elements of your home. Don’t forget to bring up the local educational systems and other advantages.
Promote your House
Place an FSBO sign in your front yard to get things started. It would be best if you did not forget to include your phone number so that interested parties can contact you for information regarding property showings. Additionally, you can use FSBO listing websites like Houzeo, Trulia, HomeFinder, FSBO.com, and Zillow to promote your house.
Considering Offers and bargaining.
Don’t assume the sale of your house is finalized as soon as you receive an offer. You are not required to accept any of the bids you receive, even if they are all for your asking price. The process involves negotiating and exchanging counteroffers back and forth.
Recognize that there are other components of the sale you may negotiate to ensure you get a better bargain, even if a buyer won’t bend on their sales price. Your realtor can advise you on whether it would be advantageous to accept an inspection contingency or make fewer repair concessions.
Paper Work
Once a buyer is identified, you can finalize the sale. The following papers are necessary when selling a home in California:
- Copy of purchase agreement and other addendums
- Signed Deed
- Closing statement
- Bill of sale
- Affidavit of title
- 2 forms of ID
- California transfer disclosure statement
- Statewide buyer and seller advisory
- Natural hazard disclosure statement/report
- Megan’s law disclosure
Legal Requirements & Required California Disclosures
According to California law, sellers must inform prospective buyers in writing of any information concerning the property that can influence their decision to acquire it or their willingness to pay for it.
Using Escrow Agent
Buyers and sellers of property typically use Escrow agents in California to facilitate the sale. The buyer and the seller will place funds and the deed in escrow. The business will retain these goods in trust until all escrow requirements are met. Then, the escrow agent will transfer the money to the seller and the deed to the buyer.
Payment of Transfer Tax
A document proving the change of ownership of real estate must be submitted to the county recorder’s office when it is transferred from a seller to a buyer. A transfer tax is charged at the time this document is recorded.
When real estate is sold, the county and potentially the city apply a transfer tax. The buyer and I will discuss who will pay for it. However, if you sell a home in Northern California, the buyer is typically required to pay the transfer tax, per industry norm. In Southern California, the seller is often responsible for payment.
Transfer Disclosure Statement
Under California’s Civil Code 1102, sellers must disclose any information about their property that might affect a buyer’s buying choice. A Transfer Sellers Disclosure Statement is used to make the disclosure.
Hazard Disclosure Statement
Also, sellers must fill out a hazard disclosure form stating whether their house is near an earthquake fault line, a community in danger of a forest fire, or a flood plain. Your local government can find information on these classifications in more depth.
Title Insurance
Home sellers in California are required to use a title company and may be required to pay for the buyer’s title insurance. When you sell your California home, a title company will do a title search and provide a preliminary title report, or “PTR.” Based on the PTR, the title insurance provider will offer title insurance to the buyer.
Costs involved in House Selling
In California, selling a home can be highly expensive. Closing costs, realtor charges, repairs, and moving expenditures combined can account for up to 10% of the sale price of an investment property.
- Preparing a home for sale (landscaping, home staging, painting, kitchen remodeling, and cleaning)
- Realtor commission fees
- Negotiations and buyer incentives
- Closing costs
The Procedure of Closing
It’s time to finalize the deal once everyone has done what they were supposed to under the purchase agreement. Before closing, the buyer can do one final inspection of the property to verify that everything is still functional and that any required repairs have been made. Requested repairs have been performed.
The Verification of Property will begin once both parties have signed the final documents. The county office receives this paperwork for filing. Both buyers and sellers will cover final closing costs at this time. If everything goes according to plan, the buyer will take possession of the house, and you’ll get paid.
Conclusion
With the aid of low commission real estate agents, selling a house in California is not too difficult. Even if you’ve never sold real estate, you can pick up the skills you need quickly and close a deal. Whether you want to work with a realtor or do it alone is up to you to decide. Learn about the costs of selling a home, the applicable laws, and due taxes.
