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✍️ Editor's Note: Houzeo is America's most advanced For Sale By Owner platform. Almost $3.5 billion worth of properties have been listed by home owners on Houzeo.com so far in 2021. This guide summarizes the steps for selling your house as owner (without a realtor) in California based on our expertise.

As per Zillow, the home values in California have spiked by 20.3% in the last 1 year. Also, the average real estate commission in California is nearly 5-6%. This means that if you sell your property for $800,000, then you are in to fish out approximately $39,200 to the realtor(s). It is no small amount and therefore you need to assess various factors before selling your house in California.

Selling a house in California with the help of a realtor brings with it other limitations like relinquishing control over the selling process as that would be taken up by the selling agent. Also, the time span for taking up and closing the deal is time-consuming owing to the fact that two realtors (selling and buyer agent) are involved in the process. It is these agents that will take up the majority of the selling and buying tasks like discussions, negotiations, closure, etc.

Thankfully, in 2022, there are advanced platforms like Houzeo that allow you to sell your home as For Sale By Owner in California, without having to worry about hefty commissions. Such platforms have a pre-defined selling process which makes it easier for the sellers to list their home as For Sale By Owner or FSBO.
" In this guide, we'll cover:
Before moving ahead, let us see what is the difference between selling a property via an agent and via Flat-Fee MLS by owner. This comparison will help understand which is the best way to sell a home.

How To Sell a House in California By Owner

If you are eager to know about how to sell a house in California by owner, we have put together a set of pointers to make your job easier. You will need to take care of these in order to speed up the selling process and close it as soon as possible. Some of the points are generic (not state-specific) and should be followed if you are to sell a house by owner.

1. Understand The Benefits & Risks of Selling a House By Owner in California

California, being one of the largest states, is also one of the most popular ones for selling a house by owner. The paperwork requirements are a bit complicated but can be typically handled by any competent escrow company. Also, in our experience, buyer agents in California are not at all averse to the idea of working with owners that go via For Sale By Owner (FSBO) route to sell their property.

The key thing to watch out for in California is that a lot of FSBO companies doing business there will reel you in with low listing prices, but with a catch of hidden fees.

Let's move ahead!

Key Benefits of Selling A House For Sale By Owner in California

Key Risks of Selling A House For Sale By Owner in California

Poor Customer Service
FSBO can become a very expensive alternative if you don't get proper assistance. It is recommended to read authentic reviews to know how an FSBO site's customer service is.

⭐ Houzeo is rated 4.9 stars on Google & Trustpilot.

" More: Best FSBO & Flat Fee MLS Companies in California with No Hidden Fees!

Understanding California's real estate laws and processes can be tiring and exhausting. Scrutinizing and understanding every step can help make an FSBO sale simpler and quick. Before checking the next steps of selling a house by owner in California, let's take a look at some typical processes:

California FSBO Overview

You may want to go through the following table that briefly answers a few parts of the question - how to sell a house in California by owner?

2. Get Your Home Ready

Whether it is California or any other state, you need to take care of certain things if you are thinking of selling your house by yourself. Here is what you need to do:

Declutter & Depersonalize: Make sure you eliminate anything that may bring a feeling of personalization from your perspective i.e. you need to make the buyers imagine as if it is their home. This means removing your personal belongings, etc. before the showing.

Make Repairs: If your home requires any necessary repairs, make sure it is done before you start the process of selling. This may help later when the inspection is done.

Repaint Neutral: You can attract higher number of customers when you paint your home with neutral colors.

Improve Curb Appeal: Go for clear landscape, fresh flowers, or exquisite paintings because the first impression is everything!

Implement statging: Hire a professional who can help you with setting up your home like arranging furniture to make the home look spacious and tidy.

▶️ Case Study: Daniel Woodrum in Panama City Beach, FL saved $8,000 by selling his house FSBO

3. Disclosures

While selling your house in California, you will come across multiple disclosures that need to be furnished. California has seller disclosure requirements that need thorough understanding as part of the purchase process. It is a basic rule there that a seller needs to disclose any information in writing about the property that may affect his/her desire to purchase the property or pay a particular price for it. Failing to do so may attract penalties for the home sellers. Also, the disclosure should happen in the early stages of the purchase. In a way, the disclosure laws are pretty strict in California.

Many of the sellers in California prepare the disclosures, inspections, and other important paperwork before even listing the property to avoid any challenges later. As a rule, a buyer can terminate the purchase deal if the owner is not able to furnish the disclosure before signing the purchase agreement.

Here are some of the disclosures needed in the state of California for selling a house by owner:

" More: Seller Disclosure Requirements in California

4. Price Your Home Competitively

If you want to list your home in the market, you will have to make sure that the pricing is done more or less accurately and as per the market trends. Of course, this could vary in different states including California. The thing to note is that overpricing the property can delay the selling process and make it stale while pricing it low can incur a loss. The single most important factor that determines whether your home sells quickly or not is its listing price. Whether you are taking the help of a realtor or not, pricing is the key to starting the sale process and attracting a pool of buyers.
REMEMBER! The purpose of the LIST PRICE is to ATTRACT BUYERS to your listing. It's not your SALE PRICE!!!
What happens if you under-price or over-price your listing?

You need to be on top of things. If you have to choose, then setting the list price lower than the market price works better as it attracts a lot of buyers. There's no wrong approach, but generally, pricing a little below, generating competition, and getting multiple bids works much better.

Real estate agents create what's called a Comparative Market Analysis (CMA) to determine what's an ideal listing price for a property. But, it is not rocket science. With Zillow and Redfin, you can easily create your own CMA and understand how selling a house in California or any other state works.
" More: How to Price Your Home For Sale in 6 Steps
5. Market Your Home

95% of home buyers search and review homes online. So getting maximum online exposure is your #1 priority. Also, highlighting the best-selling attributes of your home can help buyers envision their lives in your house. More buyers would be interested in touring your home if it involves a correct marketing strategy.

1.
List on the MLS

Homes listed on the MLS sell faster and for 17% more. This doesn't mean you need to hire a listing agent and pay that extra commission. Crafty listings surely entice potential buyers. Use a for sale by owner website to list your home and offer a competitive buyer agent commission. This will help in getting top dollar for your property.

✍️ Pro Tip: Research the best For Sale By Owner websites before picking one

2.
Get a Yard Sign
Do not get a "FOR SALE BY OWNER" yard sign. FSBO yard signs have a negative association. Additionally, they will limit your options because MLS' will not allow them. Instead get a "FOR SALE" yard sign, preferably with your phone number on it. Houzeo custom yard sign is available for $49 only and comes FREE with a selfie!

✍️ Pro Tip: If you secure a buyer from a yard sign, chances are you'll save on the buyer agent commission as well. In a nutshell, it is worth the $49 investment.

3.
Share Your Listing on Social Media
Share your property listing on social media. This will include your contact info apart from the listing details. If you share your listing on Zillow or Redfin, all the leads your listing generates will be sold to buyer agents who'll demand a competitive buyer agent commission. Houzeo, on the other hand, doesn't sell your information or leads. All buyer leads see your contact info, so you might save on the buyer agent commission.

✍️ Pro Tip: If you secure a buyer from social sharing, chances are you'll save on the buyer agent commission as well.

Here's what you need to do if you are in for selling a house in California or any other state:

▶️ Case Study: Paige Zukowski saved $11,000 selling through FSBO

6. Use a Showing Management Tool

1.
Home Sellers Can Set Their Showing Calendar
Buyers and buyer agents should only be shown times when the property is available for showing. This saves time for all the concerned parties.

2.
Buyers & Buyer Agents Can Request & Reschedule Showings
It's critical that buyers and buyer agents can request showings at available times. In addition, they should be able to reschedule and cancel on an ad-hoc basis.

3.
Buyers & Buyer Agents Can Provide Feedback on the Listing
Feedback from buyers and buyer agents is critical for home sellers because it allows them to assess their property (priced too high, the backyard needs fencing, rooms need whitewashing, and more). Where the feedback is actionable, small remedies can go a long way in improving showings and attracting top dollar for your property.

Once your property is ready for showings, it is critical to manage the showings effectively. Online showing tools provide home buyers and buyer agents with a frictionless way to request and schedule showings. Instilled with cutting-edge technology, Houzeo Showings, also feature ways for buyers and buyer agents to provide feedback on your listing.

🗓️ Houzeo Showings has all the required features and is available on the Houzeo mobile app!

View yourlisting

Review and compare offers

Counter an offer

NEW! Buyers can now search your property and save it in "Favorites"

Introducing the Houzeo Mobile App!

Start Your FREE Listing NOW!

7. Negotiate Offers

You are selling a house without a realtor. The basics of what to do when you get offers remain the same though - Accept, Decline, or Ignore the offers (not recommended). We suggest you review the offers on all their merits, and never ignore an offer. Even if it's a low-ball offer, you should counter with what you would accept. Where you are sure you don't want to counter or accept, just politely decline.

There are two advanced tactics in every real estate agent's arsenal i.e. countering an offer, or calling for the highest & best offers. When you sell a house by owner, you need to learn these 2 tactics.

1.
Counter an Offer
Single or Multiple Offer Situation

Your best offer is not just the highest one but is also competitive across several parameters: deposit, financing, inspection contingency, closing timeline, etc. When you want to counter an offer, you can request any of the mentioned parameters updated as per your preferences.

▶️ Learn more: How to counter an offer on Houzeo.com

2.
Request Highest & Best Offers
Multiple Offer Situation

If you have multiple offers and a timeline by which you'd like to pick an offer, you can call for Highest & Best offer from all the interested parties.

▶️ Learn more: How to request Highest & Best offer on Houzeo.com

Most companies will give you complex forms to counter an offer, or to request the highest & best. Houzeo has digitized these, so you can counter or ask for the highest & best with just a few clicks! That's selling a house by owner made easy.

Negotiating offers during a home sale is inevitable. With the slightest change comes the massive paperwork update, signatures, due diligence, and much more. This is where Houzeo can be useful. Being a 100% online platform, Houzeo updates the changes across the paperwork seamlessly and digitally, cutting back on efforts and saving time in every update.

💰 Incredible Technology, Incredible Savings

Houzeo's technology makes FSBO easy by giving you access to tools only agents have

8. Handle The Closing Like A Pro
" More: Paperwork for Selling a House Without a Realtor
Selling a house by owner means you'll need to be prepared when it comes to paperwork and legalities. Even though your closing attorney or title agent will handle most of the legal work involved in a property transfer, you do have several obligations. Here's how to prepare for your closing day.

The HUD-1 or Closing Disclosure
When homes are purchased with a mortgage, you'll summarize the detailed costs in the Closing Disclosure.
If your sale is all cash, you may get the HUD-1, which is less common. These documents detail amounts you're charged for, your loan payoffs if any, and the net proceeds you will take to the bank. Depending upon how much equity you have in the property, you may need to bring a check (or send a wire) on the closing date. Also, ensure there are no typos in your name, address, property address, bank info, and other details. Then review every amount and the totals to ensure there are no mathematical errors or inadvertent costs.

Review Your Closing Documents in Advance

Closing documents should generally be available to you in advance of the scheduled closing date. Review these documents at length and understand their provisions. Here are some key documents you'll likely sign at closing:

The below table showcases some more documents that are required in selling a house in California.

Ask Questions

If you have decided about selling a house by owner in California or any other state, you can schedule an appointment with the closing agent before the date of the closing. Also, prior to that, do your research and clarify your doubts in the meeting. If you are already prepared for how to sell your house by owner, it will make a huge difference.

Bring TWO Forms of Official ID

There will likely be a licensed notary involved in the closing process who'll require you to swear on your identity. You would be required to furnish identity proof (like passport, driving license, or any other authorized document) during the process. However, the closing process might also require you to produce secondary identity proof.

Closing documents are legally binding agreements, so ensure you keep the paperwork error-free. Also, any errors can derail your sale and you may be forced to re-list your house. Not only this, if you are stuck with wrong paperwork, it can also severely impact the closing cost.

By now you would have embraced the fact that selling a house in California can be expensive. This is because in addition to the upfront fees there are many hidden fees involved. For a new seller, you might not know what are the actual costs that need to be taken care of.

Escrow fee
An Escrow agent/company handles the closing process in California. Therefore, an Escrow agent is important for the transfer of title, and other important tasks. Escrow agents generally hold the concerned property in trust till all the negotiations, inspections, legal work, and closing processes are not completed. The escrow fee is thus to compensate the Escrow agent for the services provided.

Read Escrow Timeline in California for more information.

Closing cost concession
Some buyers may ask the sellers to cover their closing costs. If it is accepted by the seller, the cost can vary between 1-3% of the sale price.

Moreover, it is estimated that a seller gives 6-10% of the sale price as hidden costs while selling a house in California.

Here are some hidden costs that you might have to bear while selling your house. These exclude the buyer agent's commission and listing fees to list your property on the MLS.

Bottom-line: Selling a House in California By Owner Requires a Good Understanding

Here is what the picture looks like for a seller selling a house in California:

So, summarizing the answer to the question - how to sell a house in California by owner?

Selling a house in California by owner is a bit tough and complicated than in other states. A seller will need to be aware of a lot of processes and documents that form a part of the process. In fact, for most of the new sellers, the extra bucks incurred come at a cost. Ultimately, you will have to be on top of many things in order to close the deal and may require professional help.

This is where Houzeo can help. With Houzeo, you have the option to list your property as an owner and enable a smooth closing process. You do not have to worry about complex processes as the platform is 100% online. It will help in listing your property on the MLS at a flat rate and take care of other tasks that otherwise would require manual intervention. Another big point is that due to platforms like Houzeo, the real estate agent's commissions are declining. This is because of the Flat Fee MLS structure that Houzeo provides.

Check out some of the Houzeo reviews and how it has helped customers around the US.

Frequently Asked Questions

What's FSBO?

Is MLS needed to sell For Sale By Owner?

Is California minimum service state?

What is the average realtor commission rate in California?

What are some of the Required State Disclosures in California?

What are the steps to get my home ready for sale in California?

How do I list my home for sale in local MLS in California?

How long does it take to get my listing on the MLS in California?

What are the necessary documents in closing your home?

What do I need to bring during closing?

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Selling a House in California By Owner (2022 Update) - Houzeo Blog

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As per Zillow, the home values in California have spiked by 20.3% in the last 1 year. Also, the average real estate commission in California is nearly 5-6%. This means that if you sell your property for $800,000, then you are in to fish out approximately $39,200 to the realtor(s).