Want to sell your California house in 2024? You’re in luck. 41.7% of California homes sold above the list price last month, with a median home price of $784,200. From Sacramento to San Diego, home prices have increased in several markets across the Golden State.

Skyrocketing home prices also mean you pay hefty commissions. Californians spend $47,000 in commissions on an average home. Buyer agent commissions are typically 2.5% to 3% and are not very negotiable.

It’s 2024! There are high-tech home-selling platforms, like Houzeo, that help skip the 3% listing agent commission almost entirely! And with technology, you’ll also have more access to information and be in control of your transaction.

7 Steps to Selling a House in California

While selling your house in California can be a complex process, we have listed down 7 simple steps for you to navigate through your real estate transaction:

Step 1: Price Your Home Correctly

The market price at which your home will be sold is called fair market value. You can calculate this yourself using real estate comps in your neighborhood.

If you need assistance pricing your home, you can opt for a Broker’s Price Opinion or a CMA Report. Remember to account for any known defects when pricing your home.

You can also opt for a home inspection to understand what property defect might lower your profit. It will cost between $325 and $425 in California. Based on the home inspection report, you can choose which repairs to make for a lucrative sale.

Step 2: Choose the Best Way to Sell Your Home in California

There are 4 options for you to sell your home. The time it takes and the amount you receive differ based on each option.

1. List With a Discount Real Estate Broker: The best discount real estate brokers in California offer all the services that traditional Realtors do but at discounted rates. They usually charge 1.5% to 3% commissions to list your home.
2. List With a Full-Service Realtor: We do not recommend a full-service agent as they can charge you nearly 5% to 6% of the closing cost. This will run into thousands of dollars.
3. Sell to an iBuyer or Cash Buyer: A cash buyer can make a cash offer instantly and help you sell your house fast in California. iBuyers have strict purchase criteria but can make cash offers as high as 80% of the Fair Market Value.
4. List Your Home on the MLS for a Flat Fee: California Flat Fee MLS companies get you listed fast, typically within 24 to 48 hours on your local MLS. This is your best chance to get top dollar for your house.

Step 3: Stage and List Your Home on the MLS

Staging a home to sell can help you get up to $40,000 over the listing price. Additionally, professional photos help you sell your home 32% faster. You can hire a home stager and a photographer to showcase your home’s best features.

Your next step is to list on the MLS in California. If you opt for a California Realtor, they charge a 2% to 3% commission. However, with Houzeo, you can sell your house for a flat fee and skip the commissions.

Step 4: Complete Your Listing Paperwork

The paperwork would mainly consist of the listing agreement and the California seller’s disclosure.

• Listing Agreement: A listing agreement will be signed between you and your local MLS agent. It will allow them to list your property on your local California MLS.
• California Seller’s Disclosure: A California seller’s disclosure is a standard checklist form. It allows you to disclose material defects and features of the property that may negatively affect the house’s value.

Step 5: Manage Showings

Once you list on the MLS, get ready for the offers to pour in. Traditionally, agents host open houses or arrange private showings. If you are selling your house in California by owner, you can use online tools to manage showings.

Step 6: Review and Negotiate Offers

The next step would be to compare the offers. Most house sellers go with the highest bid. But, here are additional factors you must consider before settling:

• Is the buyer making a cash offer on your house?
• Has the buyer applied for a mortgage? Are they pre-approved or pre-qualified?
• Is the buyer willing to waive off some contingencies like home appraisal?
• Are buyers offering to negotiate the closing costs?

Keep these questions in mind when comparing offers. As an FSBO seller, you can use offer management tools. With Houzeo Offers you can make counter offers, call for the best offer, and more.

Step 7: Close the Sale and Celebrate

Traditionally, California title companies or real estate attorneys act as closing agents. As a guide, complete these milestones for a successful closing:

Pay Taxes and Closing Costs

You will need to pay the following taxes while selling your house:

• Transfer Tax: Transfer tax is a one-time fee (generally costs less than 1%) you pay at the time of transferring ownership.
• Property Tax: Property tax varies by county. It will be approximately 1% of the total home sale value. You can claim a rebate if you have paid your property tax a year in advance.

You and the buyer both pay separate closing costs. Seller closing costs in California consist of HOA, escrow, real estate attorney, and home warranty fees.

Sign Documents Needed to Close a Sale in California

It usually consists of signing the escrow and title documents. Additionally, you will sign the deed and the closing disclosure.

After signing all the documents, the new homeowner’s name is registered in the public record. The buyer signs a check or makes a wire transfer of the sale amount, and your home is sold.

Tips to Sell a Home in California in 2024

To ensure you sell your home faster, follow these tips to guarantee a smooth sale in 2024:

1. Improve Curb Appeal: 97% of real estate professionals believe curb appeal is important to attract buyers. You can do this by mowing the lawn or painting the exterior.
2. Use Advanced Tech Tools: Learn to manage the sale of your home using Showings Management and Offers Management tools. They will help you track your listing and stay updated on your home sale.
3. Provide Seller Concessions: With the current high mortgage rates, home buyers are reluctant to purchase homes. As a house seller, you can offer seller concessions such as title insurance or HOA fees.

Bottom Line

Selling can be daunting, but this is the best time to sell a house in California. Summer is around the corner and home buyers are back in the market. Moreover, it is better to sell FSBO, as hiring a real estate agent will cost you a 3% commission.

If you are looking to save thousands in commissions, sell your house with Houzeo.com. Houzeo is a legit tech real estate platform that gives you access to tools only real estate agents have at an affordable flat fee.

Source: houseo.com ~ By: Trupti Gaokar ~ Image: Canva Pro