Learn How to Sell a House in California

Selling Houses in S. California

If you own a property in California, there are countless reasons you might decide to sell. Maybe you lost your job and want to tap into the equity you’ve built over the years. Perhaps you have been offered a job in another state and are packing for a cross-country adventure.

Or — and every landlord understands — you have had enough of your renters who “forget” to pay on time or call you at midnight because they have an emergency (and it’s just their busted lightbulb).

Whatever your nightmare or dream, one thing is for sure: you can sell. But do you know what happens when you do, and are you ready for it?

Spoiler alert: the process is not as easy as one, two, three. Learn the costs and steps now so you don’t lose out in the future.

Do You Have To Spend Money When Selling a Home in California?

Short answer: Yes.

Many first-timers assume selling houses only involves getting paid. The truth is, you are essentially running a small, one-time business deal with a lot of moving parts. And like any business transaction, there are things to pay for before you see your profit.

What Are Closing Costs for Sellers?

Closing costs are outlays paid to complete a real estate sale. You cannot officially close a deal without taking care of these figures!

Closing costs cover everything from paperwork to taxes to services you might not even know exist until someone hands you a bill for them. Here are the most common ones in California:

1. Transfer Taxes. AKA “documentary transfer tax.” The state’s rate is $1.10 per $1,000 of the sale price, but some cities impose additional costs.
2. Property Taxes. Of course, you must pay your share of property taxes up until the day you close. You’re still the owner! If you’ve already paid for the year, part of it may be credited back.
3. Title-Related Expenses. You and your buyers deserve clean titles. Neither party wants hidden claims. So, invest in title search and title insurance.
4. Escrow Fees. That neutral third party that holds funds and documents until you meet all conditions of the sale? You call it escrow. Both buyer and seller typically split the bill.
5. Attorney Fees. California does not require you to hire a lawyer when selling properties, but it is ideal to work with one.
6. HOA Fees. Is your place part of a homeowners association (HOA)? You might owe unpaid dues or transfer expenses.
7. Mortgage Payoff. If you still have a mortgage, part of your sale proceeds will go toward the balance (and possibly a penalty).
8. Concessions. You could agree to take over certain expenditures or tasks to secure a buyer. Do not offer anything you cannot afford!

There’s also the big one, which some mistake as the only closing cost: real estate agent commissions. This is the largest single charge when selling properties! In the state, the total average commission is around 5.18% of the final sale price. That is not loose change.

Finally, don’t forget California’s capital gains tax. If the house is your primary residence and you have lived there for at least two of the past five years, you may be able to exclude up to $250,000 of gains (or $500,000 for married couples filing jointly).

Anything above that? The state and federal government will ask for their cut.

How Do You Calculate Closing Costs?

Estimating closing costs is not an exact science, but you can get pretty close. It’s always smart to run the numbers! Start by looking at the average range; California sellers usually pay 6% to 10% of the sale price (including commissions, no worries).

Check local rates for title-related processes, escrow, taxes, and miscellaneous fees. Once you have them, subtract them from your expected amount. This is your net proceeds. Never move forward without having an idea.

Here’s an example: You plan to sell your San Diego house for $850,000. If you estimate 8% in total selling costs, that is about $68,000 right off the top. Roughly $44,000 might go to agent commissions, $3,000 for escrow and title, $4,500 in transfer taxes, plus prorated property taxes and any HOA dues.

Suddenly, your “big sale” feels a bit smaller.

Or imagine selling a $500,000 condo in San Bernardino. You have negotiated a slightly lower commission rate of 4.5%, saving you about $2,500. However, your HOA charges a $1,200 transfer fee, and you still have $7,000 left on your mortgage.

Adding it up in advance helps you see your actual takeaway, which might be closer to $450,000 than the full $500,000.

These calculations are not meant to scare you — they guide your expectations. Avoid heartbreaking surprises at the closing table!

Is There a Way To Save Money When Selling Properties?

Absolutely. The traditional method comes with a price tag, but selling doesn’t have to drain your wallet! Here are three tips and tricks:

1. Negotiate. You don’t have to accept what’s offered the first time. Discuss with your buyers the option to split fees with your agents and service providers to lower rates! You know your net proceeds best; fight for it.
2. Sell Without a Realtor. “For Sale By Owner” skips agents, meaning you skip commissions. That’s already a significant saving! However, without a realtor, all the responsibilities are in your hands. You will need substantial experience (and patience).
3. Sell to a Cash Homebuyer. Are you letting go of an inherited property? Land with squatters? Or houses requiring major repairs? It can be extra challenging to find buyers. Fortunately, many companies purchase as-is, making sales possible.

How Does the Traditional Real Estate Process Go?

The traditional method is expensive and lengthy. As such, sellers seek alternatives.

This route is established; most transactions succeed. But when time is of the essence and you have no dime to spare, you might want to reroute.

Step 1: Find a Real Estate Agent

You need someone experienced in your market. It’s best to search for an agent first, so you never take any step alone. These professionals are your partners, telling you what you must or must not do, managing the papers, and more. Unsurprisingly, they charge hefty fees.

Step 2: Improve Your Property

Your agent knows what the crowd is looking for. Maybe your roofing system could do better, or the colors on your walls could shine brighter. Anything that demands improvement, your partner should point out. Complete these requirements before listing!

Step 3: Determine the Value

Without a doubt, some homes have been recently sold in your area. These properties are your clues. No, you cannot just say a number based on your feelings or guesses. Agents use “comparables” to set a price, ensuring it is not too high or low.

Step 4: List and Market

Next, list your place on the MLS to let people know it is available. Include professional photos and videos, accurate descriptions, and virtual tours! Reach audiences on social media platforms, too. These advertisements should bring in schedules for open houses.

Step 5: Select the Best Deal

Once offers start flooding in, your agent will filter them for you and present the good ones. Sometimes, it’s not about the highest amount. Remember, financing, contingencies, and closing timelines matter as well.

Step 6: Complete Paperwork

Almost there! This step is where the legal side kicks in. Think about disclosures, contracts, inspections, and more. Expect lots of fine print, which lawyers can assist you with. Pro tip? No signing anything you have not read.

Step 7: Hand Over the Keys

Properties are officially sold once all papers are signed and all bills are paid. Check if the funds are already in your account, then shake hands with the new owners of your house. Lastly, give yourself a pat on the back.

Who Will Help You Save Money, Time, and Effort?

The most straightforward answer is My Home Sold. As cash homebuyers, we make sales happen in three steps: contact, receive, and close.

We buy properties in any condition, in cash, in Southern California. Since 2015, we have helped over 700 homeowners sell their homes quickly, effortlessly, and affordably! Whether you’re facing legal issues and need funds, owe back taxes, or really just want to free yourself from a certain house, our team is here to serve.

My Home Sold has been featured on major TV networks and praised for our free, no-obligation offers. Call (855) 699-6090 or request one online today! For questions and clarifications, contact us via our website or send a message to info@myhomesold.com.

California is a great place to sell. With My Home Sold, your home is sold anytime you wish.

Frequently Asked Questions

Are you still confused or hesitant? No problem. Take these answers to the most common questions about selling houses in California. Yes. In most cases, sellers in cities like San Diego or Chula Vista California are responsible for paying the bulk of closing costs, including real estate commissions, escrow fees, and title insurance.

Buyers typically cover their own set of expenditures. Still, the exact split can vary depending on local customs and what you negotiated in the contract.

How Much Does It Cost To Sell Homes in California?

Closing costs usually equal 6% to 10% of your house’s sale price in the state. These outlays include agent commissions, escrow and title fees, transfer taxes, and other miscellaneous expenses. The total will depend on your location, the final terms, and other factors.

How Do I Avoid Real Estate Taxes When Selling in California?

You cannot completely avoid taxes (unless you sell to My Home Sold), but you can reduce them.

For instance, if you have lived in the residence for at least two of the last five years, you may qualify for the capital gains tax exclusion, up to $250,000 for individuals or $500,000 for married couples.

Property and transfer taxes? Consult a professional for personalized advice.

How Do I Sell a House in California?

You have several options: list with a real estate agent, sell it yourself (FSBO), or work with a cash buyer. Each route has pros and cons, and the right one hinges on your priorities.

At My Home Sold, we guarantee you the best possible offers and timelines that focus on you. Our team promises convenience and transparency because we buy houses. Get in touch with us now!