Top Things to Know When Selling a Home in California
What do you need to know before selling your home in California?
Selling your home involves more than just putting it on the market. From required forms to taxes and disclosures, there are a few important steps to make sure your sale goes smoothly.
1. Be Honest About Your Home’s Condition
Buyers need to know about your home’s true condition. Even if you’re selling “as-is,” California requires you to share any known issues, like:
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Water leaks or past damage
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Roof or foundation problems
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Electrical or plumbing issues
Being upfront builds trust and helps you avoid delays during closing.
2. Fill Out the Required Disclosure Forms
California requires a few forms for sellers:
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Transfer Disclosure Statement (TDS): Lists what you know about your home’s condition.
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Natural Hazard Disclosure (NHD): Tells buyers if your home is in an area with risks like earthquakes, floods, or wildfires.
If your home was built before 1978, you also need to mention if it may contain lead-based paint.
3. Understand Taxes When Selling
You may need to pay taxes when you sell, but many sellers qualify for tax exemptions:
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If the home is your primary residence and you’ve lived there for at least two of the past five years, you may not pay taxes on profits up to $250,000 (or $500,000 for married couples).
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If you don’t qualify, your escrow company may withhold a small percentage of the sale price for taxes.
It’s always smart to ask your tax advisor what applies to you.
4. Share Hazard Information
If your home is in a special risk zone, you must tell buyers. This includes areas that are:
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In an earthquake fault zone
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At higher risk for wildfires
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In designated flood zones
The NHD form covers these disclosures, so you won’t miss anything.
5. Check for Transfer Fees
Some homes have transfer fees that must be paid when the property is sold. These are usually connected to developers, HOAs, or special agreements in your neighborhood. If your home has one, you’ll need to let buyers know upfront.
6. Know About Agent Commissions
In California, agent commissions are negotiable. Sellers and agents now sign a clear agreement outlining fees before the home is listed. This gives you more flexibility when choosing the right agent.
7. Extra Steps for Major Projects
For most sellers, this won’t apply. But if your sale involves new construction or major renovations, there may be additional forms and disclosures. Your real estate agent can guide you if this applies.
Quick Checklist for California Home Sellers
| Step | What You Need to Do |
|---|---|
| Disclose Issues | Be honest about known problems |
| Fill Out Forms | Complete TDS & NHD before listing |
| Understand Taxes | Check if you qualify for tax exemptions |
| Hazard Zones | Share earthquake, flood, or fire risk info |
| Transfer Fees | Disclose any extra costs tied to your home |
| Agent Commissions | Agree on fees up front—negotiable |
| Extra Steps | Only needed for major building or remodeling |
Bottom Line
Selling a home in California can be smooth and simple when you know what to expect. By filling out the right forms, being upfront about your home’s condition, and understanding taxes and fees, you’ll make the process easier for both you and the buyer.
I’ve helped many California homeowners prepare their homes for a successful sale, and I’d be happy to guide you too.
📞 Amanda Zito, Real Broker (DRE #01740063)
📱 (949) 484-9486
💬 Call or text me anytime to get started.
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