6. List and market your houseStepping into the spotlight, it’s time to showcase your California home to eager buyers. To ensure your listing stands out in the crowded marketplace, collaborate closely with your real estate agent. They’ll get your property details listed on the
multiple listing service (MLS), making sure it radiates the quintessential California charm.
Crafting an impactful listing goes beyond dry details. You’re setting up a story so buyers can envision what it would be like to live in the home. Don’t just list; narrate. Bedrooms, bathrooms, and square footage are basics. Dive into the soul of your home.
“We want to take professional photos, videos, great descriptions, run social media ads, put them on all the portals, and really get as much visibility as possible,” Agarwal says.
Your standout listing should include:
- Property specifics: Type (single-family, condo, townhouse), bedroom and bathroom count, square footage, lot size, and year built.
- The California dream: Highlight proximity to beaches, schools, hiking trails, or other Golden State perks.
- Unique attributes: Spotlight features like fireplaces, hardwood floors, or sun-soaked patios.
- Essentials: Include appliances, parking arrangements, and any HOA fees.
- Visual allure: Add professional photographs and virtual tours, emphasizing California’s ethereal light and ambiance.
To cast a wide net, your agent will magnify your property’s presence across key real estate platforms, harnessing the power of social media and their professional network.
As inquiries pour in, brace yourself for a flurry of showings, even
10-25 appointments. Flexibility is key; more accessibility can lead to a quicker sale. Remember, some homes might spark a bidding war after a single showing, while others might bask a bit longer in the limelight.
Feedback is gold. Your agent will gather insights from visiting buyers. If the consensus points to certain tweaks – be it a decor change or a price adjustment – heed the market’s pulse. After all, in the world of real estate, adaptability can make all the difference.
Climate concernsWhen it comes to marketing a home in some regions of California, Agarwal points out that: “The higher risk climate areas are definitely a concern for many people. Insurance [providers] are having challenges getting insurance to those places. So I think marketing the home when it’s a higher risk area compared to not, the marketing needs to be the same…and just expect to have a really unique buyer who wants the home regardless of insurance costs.”
7. Review offers and negotiate with buyersAs offers are presented, you might instinctively zoom in on the dollar signs. But remember, the best deals aren’t always about the highest bid. When you’re nestled between the Pacific coastline and the Sierra Nevada, property values can indeed vary, but it’s the finer details that can seal a deal worth its weight in gold.
Here are some things to consider as you review offers:
- Align with timelines: Confirm the offer aligns with your timeline. As you ride the Californian sunset, you want to ensure the proposed closing gives you ample space to move out and comfortably transition to your next dreamy destination.
- Look beyond the price tag: Californian real estate can fetch hefty prices, but dig deeper. A seemingly attractive offer might have strings attached, such as lower down payments or added contingencies. Harness the art of negotiation to highlight the perks that resonate with your priorities.
- Financial clarity is key: Unsure about a buyer’s financial standing? Whisper your concerns to your agent. Their expertise will illuminate the financial landscape, ensuring your sail is smooth and clear of icebergs.
Agarwal notes: “The sellers need to be really educated — and I’m sure that they are from living in the area — but the sellers need to be educated on the challenges that buyers are having.” This understanding can be especially helpful when it comes time to
negotiate the offer price.
Once a golden offer strikes the right chord, collaborate with your agent to finalize the
purchase agreement, setting you on the path of fruitful settlement.
8. Complete the inspection and appraisalOnce you accept an offer on your home, the buyer will have the opportunity to investigate and verify the condition of your property before finalizing the deal.
The buyer will typically conduct inspections and perform other necessary research to ensure that the property meets their needs and expectations. Part of this process will involve reviewing your property disclosures, which we’ll address in step #9 shortly.
If the buyer discovers any issues or concerns during this period, they have the opportunity to negotiate with you for repairs or
credits, or to back out of the sale altogether. As a seller, you should be prepared for a few steps, including:
- Home Inspection: With approximately 78% of buyers opting for an inspection before sealing the deal, anticipate a detailed look into your home. If issues emerge, lean on your agent. Whether you opt for repairs, discuss price adjustments, or credit the buyer, ensure the path forward benefits both parties.
- Home Appraisal: About 80% of buyers will set an appraisal contingency, a crucial step for their lender’s peace of mind. Factors that can sway your home’s appraisal include fresh renovations, local Californian market vibes, and sales of nearby comparable homes. If your appraisal comes in low, stay calm. Options include challenging the appraisal, adjusting the asking price, or having a chat with the buyer about covering the difference.
- Californian specificities: Some California cities and neighborhoods have specific municipal inspections required before a property sale. Long Beach, for instance, has mapped out a “parking impacted area.” Homeowners selling single-family homes in that area must schedule an appointment with a city parking inspector “to come out and sign off that there is ample parking at the property,” Shea says.
9. Provide all required disclosuresWhen planning the sale of a Californian home, it’s vital to understand that the state has uniquely intricate requirements regarding seller disclosures. While you might find yourself amidst inspections and appraisals, sellers also have to face the formidable task of disclosures.
The California Association of Realtors Residential Purchase Agreement emphasizes that all necessary disclosures be provided within
seven days following the acceptance of the purchase agreement.
This timeline for seller disclosures fortifies a buyer’s protection, ushering in the termination clause. Essentially, this real estate clause gives the buyer the prerogative to pull the plug on the deal after receiving the California disclosure documents. Generally, the buyer retains this right for about three to five days post-disclosure.
Key aspects of California’s complex disclosure mandates
Given the intricacies of the California disclosure form, sellers might feel a pinch of anxiety, fearing potential heavy expenses arising from listed disclosure elements. This is where a seasoned California real estate agent can be invaluable.
“We educate our sellers by sitting down and walking through [the disclosures] line by line, making sure that they have a great understanding,” Agarwal says. “We read it with them and explain, ‘Do you understand these kind of things need to be done to protect the sellers?’”
To paint a clearer picture, here’s an overview of some of the California home seller disclosures:
- Natural Hazards: Your area’s risk of natural hazards, such as a flood hazard zone, seismic hazard zone, or high fire hazard severity zone.
- Proximity to Operations: Whether there is an airport, farm, ranch, abandoned well, gas pipeline, or mining operation nearby.
- Health and Safety Concerns: Any material facts or defects that could pose a risk to buyers’ health or safety or negatively impact the home’s value.
- Past Incidents: Report of any deaths on the property within the past three years.
- Legal Complexities: Any legal, zoning, annexations, or use compliance issues with the property.
Furthermore, California sellers face a barrage of other disclosure forms and required statements, everything from the presence of window security bars and mold to the location of nearby sex offenders.
There’s even a disclosure requirement imposed on your real estate agent. “We have to disclose that we’re working with more than one buyer or seller — it’s on both the purchase contract and the listing contract,” Shea explains. “I kind of chuckle when I go over it with [clients], and I end it with, ‘I certainly hope that I am, if I want to stay in business.’”
Be educated and transparent about disclosures
Agarwal underscores the magnitude of
California’s disclosures. “I think that sellers should be completely educated on the entire purchase agreement. The portions about disclosures are important. Like you have to disclose the material facts that you know, the portions about arbitration and mediation, so they know the different chances that could happen.”
He stresses: “We tell sellers, ‘Look, disclose, disclose, disclose.’ You want to paint a full picture of every material they may know about the property and make sure that they’re aware of what can happen if they don’t.”
10. Close the saleClosing the sale of your home is the culmination of all your hard work, preparations, and negotiations. It represents the official transfer of ownership, but before you get there, it’s essential to understand the intricacies of the final processes to avoid unexpected bumps along the way.
Wrapping up the financial detailsUpon passing the inspection and appraisal hurdles and completing disclosures, you will be presented with a
settlement statement. This document provides an itemized list, detailing all the financial elements of the transaction – from fees to credits. With potentially significant amounts in play, it’s paramount to be well-acquainted with every line item.
Working hand in hand with your real estate agent is crucial at this juncture. This collaboration ensures clarity about selling costs and your final proceeds. Unanticipated costs can throw off many sellers, often leading to last-minute chaos. To avoid such pitfalls, make it a point to discuss all potential
closing costs and fees with your agent well in advance.
For a clearer picture, consider this: seller closing costs in California typically hover around 9%-10% of the sale price. This could encompass various expenses like the real estate agent’s commission, transfer taxes, title fees, and escrow fees.
While California does not mandate the
involvement of a real estate attorney during closing, certain selling situations might warrant a legal review of your purchase agreement. In such cases, your agent might recommend consulting an attorney.
Final walkthrough and move outThe final walkthrough is the buyer’s last opportunity to ensure everything is as they expect. Typically scheduled 24-48 hours before closing, this step ensures that there are no last-minute surprises or oversights when they take possession.
Remember, in most cases, buyers assume possession on the day of closing. But this isn’t a strict rule. The exact timeline for handing over the keys could be a product of negotiations you’ve had with the buyer earlier in the process. Always refer back to your contract to confirm any specific agreements.
In essence, while closing the sale might seem like the finish line, paying attention to these details can ensure a smooth end to your home-selling journey in California.
Get started with selling your California house todayEmbarking on the journey of selling a house is no small feat, but with the right roadmap, the process becomes significantly smoother.
While this guide gives you a foundational understanding of the home-selling process, remember that the nuances of selling vary based on your property’s specific location and its current condition within California. The urgency of the sale and the budget for preparations are other pivotal factors that shape the experience.
Whenever you’re ready to get started,
HomeLight can connect you with a top real estate agent in your California market. We’ll help you find the best agent equipped with the expertise to create a selling strategy perfectly tailored to your unique home and aspirations, whether you’re selling an inherited home or relocating for your next adventure in a new place.
Your Californian dream sale is just around the corner. Let’s make it a reality together
Writer Valerie Kalfrin contributed to this story.