Is it possible selling a home in California and save a large amount of money? Definitely! Is it simple and easy? Not always. Your home is your fortress. A place of shelter after a hectic day, where you’ve made countless memories with your family and friends. There comes a time in everyone’s life when selling your beloved home becomes necessary.
For most residents in the Golden State, owning a home is one of the significant financial assets. Due to this, selling a house in this state can be a complicated process. A lot of attention is needed to make sure you do it right, in a way that benefits you the most. Although selling a home in California is the same as in other states, CA has different practices and laws. Making yourself customary with the process early on can help you avoid serious problems down the line.
This article will walk you through the inside out of selling your house in the Golden State.
1- The Best Time to Sell a Home in California
This list will help you in identifying different cities according to the best time of sale.
i- San Francisco
Listing your home between April 16th and 30th can boost your closing price by a whopping $15,000. The average selling timeframe can be 6 days.
ii- San Diego
Listing your home between April 1st and 15th can increase your closing price by $7000. The average time to sell can be 11 days.
iii- Los Angeles
If you list your home between May 16th and 31st, it can raise your closing price by $8000. You can sell 9 days faster than the yearly average during these days.
iv- Riverside
If you list your home between May 1st and 5th, it can amplify your closing price by $5000. You can sell 11 days faster than the yearly average during these days.
2- Cost Of Selling a Home in California
Although many people think of selling their home as a profitable business, it comes with related costs. Let’s break down the regular expenses home sellers can face.
i- Agent Commission
One of the most popular and traditional methods to sell your house is hiring an agent. These experts can help you with all steps of the selling process from start to end. However, these services come with a cost. These real estate agents are paid a commission depending upon the closing price. In the Golden State, it ranges between 4-8%.
ii- Escrow Fees
An escrow agent demands an escrow fee. This agent is responsible for the transfer of cash. Also, the agent is accountable for who holds the title to the property throughout the escrow process. This fee ranges between $2000 of the purchase price and an additional 200-300$ fee. Both buyer and seller are responsible for these charges and divide them equally.
iii- Title Insurance While Selling a Home in California
This insurance is for protecting any risks with flaws in the title that remained undiscovered. This way, it covers incidents that occur after the policy is released.
iv- Title Search Fee
This fee is proof that you have obtained a legal right to sell your home. Standard costs range between $250 – $800 based on the type of property you own.
v- Mortgage Balance Reward
After closing escrow, before receiving any returns, the outstanding loan amount will be paid to the lender. Also, be aware that you might have to pay a “loan payoff fee” that varies, based on your mortgage contract.
vi- Termite Inspection Fee
This inspection is a common demand in Golden state and can cost up to $100. Moreover, if any damages or infestations are found, repairs can cost around $1000.
vii- Hazard Disclosure Report
Natural hazards are abundant in Golden state, this report is requested to identify any threats. Flood zones, fault lines, earthquakes, and even noise pollution from planes are the major ones. This report costs around $125.
3- Options Of Selling a Home in California
These are the options for home-selling in Golden state:
i- For Sale by Owner
This route can be problematic, but the returns can be profitable depending upon your hard work. On a $250,000 home, one can save $15,000 as 6% of the commission. Moreover, if you handle the sale unassisted, you’ll be liable for all the legal work and finances.
ii- Selling A Home in California with a Real Estate Agent
Most California residents think about selling their homes with the help of an agent. In Golden state, you may notice real estate agents being referred to as listing agents. A real estate agent not only handles your marketing strategy but also, will assist you in the whole process. They will provide you with CMA (comparative market analysis). Furthermore, listing agents advise you regarding pricing and strategies tailored towards your goal.
The commission value is generally high in this state. The percentage can vary, with lower tiers of service normally using fewer sturdy services. Marketing expenses are handled by the agents from their pockets. Cali’s agents charge 4% to 8% as commission. This splits between the buyer and seller’s agent. Anyways, you can always negotiate!
Regentology Can Help You Sell Your Home in the Golden State
Regentology is a network where buyers and sellers are connected with the best real estate agents. We eliminate the complexities making this selling procedure easier for you. Regentology will help you in selling your home for more money and less hassle. We will connect you with the best experts in your area who will help you throughout the process. All you need to do is fill out the information form for a free consultation.