Selling a home in California has identical processes with other states; nevertheless, California has unique real estate laws and local practices. On this note, you must get familiar with the rules guiding selling a home and the processes we will discuss in this article.
The Process of Selling a Home in California
1. Find a Realtor
Your home is a valuable asset, and seeking a trustworthy real estate agent who will pursue your best interest should be at the top of your list when selling your home.
If you’re looking for an easy way to sell your house and get a fast cash with no commission or fees, you need to find a realtor who knows how the market works.
Expert California realtors know what local buyers are looking for and how to contact them. Realtors also provide advice, support, and guidance in all stages of selling a home.
2. Decide on When to Sell
Timing is crucial when selling a home because delaying just a month to list can get more thousands for your home.
The month of listing your property can determine how long it will spend in the market, although the days it stays on the market are separate from how long it takes before closing. You can check the best time to sell a house in California here.
3. Determine Your Home’s Value
After deciding when to sell your home, the next step is to determine what price you will sell it. Your pricing decisions need to be backed up by data. With your realtor’s help, you can maximize your earning potential using comparative market analysis.
Also, your realtor will provide comprehensive data on recent and pending sales, along with other listed houses in your area. Your realtor will help you conclude on a fast-selling listing price using comps.
4. Preparing and Marketing Your Home
Besides placing a “For Sale” note on your property, listing your home requires more effort to ensure many buyers see your listing. Below are pro tips to ensure buyers see your listing.
Stage your home
Staging your home is essential as it addresses your local California market. Irrespective of what a buyer wants, depersonalizing a home is an integral part of home staging. Depersonalizing a home involves removing personal items like family photos from your house.
Create an accurate and engaging listing description
Creating an appealing home listing description helps to be distinct from the competition. Constantly market to a local audience when writing your listing, telling them the unique features of your house and the location.
Include details like the number of boutiques, restaurants, or parks in the neighborhood. In addition, take professional photos of your home and, along with your realtor, select the images that will make your home attractive to buyers.
Also, use a bullet list to point out your home’s beautiful features in the written description.
5. Fielding Offers and Negotiations
After receiving an order or multiple offers, you will have to negotiate with counteroffers. Besides the sales price, there are other sales aspects you can negotiate on to get a better deal.
In this stage, your realtor will inform you if accepting an inspection contingency or making fewer repair concessions is beneficial. After sorting out all the details, you will sign a purchase agreement with the buyer.
6. Pick a Closing Date
After both parties have signed the purchase agreement, the next step is to close the deal. The buyer can carry out a final check on the house’s condition and see if the seller made repairs during closing.
Afterward, the seller and buyer will sign the final forms, leading to the Verification of Property. Once the buyers and sellers pay the closing cost, the deed will be recorded with the county, and the buyer will take ownership of the property while you will receive your money.
The Laws for Selling a Home in California
Several laws guide selling a home in California. Some of these laws are mentioned below.
1. Home Sellers in California Must Disclose Any Property Defect
California real estate laws require sellers to disclose any property defect to the buyers. Failure to disclose anything that could affect the property’s desirability by the seller may attract severe penalties or fines.
Most sellers in California must fill a Transfer Disclosure Statement (TDS) which questions you on various parts of your home.
2. Using a Title Company
Home sales in California legally require the involvement of a title company. After searching for the home’s title history, the title company produces a Preliminary Title Report (PTR). The buyer and seller then reach an agreement on who pays for the title insurance that follows.
3. Presentation of Important Documents
California has laws that require all real estate transactions to be in writing.
You will need to find a realtor that will guide you through the process of selling your property. To sell your property, you are also required to present essential documents such as HOA documents, Original sales contract, and your TDS (Transfer Disclosure Statement).
4. Using an Escrow Company
Home sellers in California must use an escrow company. An escrow company is a neutral party that speeds up the title transfer from the seller to the buyer and money transfer from the buyer to the seller.
An escrow company typically carries out escrow functions in Southern California.
The process of selling a home could pose difficulty without the help of a realtor, although you can also sell your home without a realtor. Trading without a realtor is known as listing For Sale By Owner (FSBO).
Nevertheless, selling your own home in California has risks and usually takes longer to sell. PropertyEscape offers the best way to sell your house fast for cash, with no sneaky commission fees.
In California, laws are guiding the selling of property in the state. Some of these laws include using a title company, presenting essential documents, using an escrow company, and disclosing any property defect.
You can read up on why to choose a real estate agent over a “For Sale By Owner” here.