Selling a House Cost + Calculator | California

We all know that buying a house is a costly activity, but selling one also comes with some considerable cost. Regardless of its asking price on the market, a homeowner is unlikely to pocket the full amount for their property. With the typical home value of a house in California standing at $758,360, the actual amount a seller will receive for their home will be reduced after taking into account repairs, closing costs, real estate commissions and other related expenses.

In this article, we’ll uncover the associated costs of selling a house in California giving you a clearer picture of how much equity you can expect to walk away with.

Costs of Preparing for a Sale

Before you put your home on the market you need to make sure it is presentable and in good condition. This can involve minor repairs to major home improvements as well as cleaning and home staging costs. You may have to invest in the exterior of your home to improve its curb appeal by tending to structural issues, landscaping and general upkeep of your property.  This may simply involve hiring a handyman or more costly professionals such as roofers, landscape designers or builders.

According to a report from the National Association of Realtors (NAR), the average amount spent when hiring a staging service in 2021 was $1,500 which resulted in an increase of 1% to 5% in the value of their home.

The costs of preparing your home for sale will vary depending on the level of maintenance and repair it has received over the years. It is difficult to sell a property that needs major repair work, fortunately, psbuyshouses.com will buy houses for cash no matter their condition.

Real Estate Commissions

One of the largest costs of selling your California home will be paying your real estate agent. There is no set fee in California although commissions are typically between 5% to 6%. 

This is another expense, but the benefits of selling your home through a realtor will afford you their local expertise, negotiation skills and advice on how to price and present your home for maximum results.

A home sale calculator can help you estimate the costs and the net proceeds of sale that you could receive from the sale of your California house.

Closing Costs

Closing costs include all of the fees and expenses incurred by both parties and are paid at the closing of their property transaction. There are many closing costs associated with selling a home in California and these are subtracted from the total profit from the sale of your house. Typical closing costs are around 3% and include the following items:

• Lawyer’s fees
• California documentary transfer tax
• Title search
• Property taxes
• Pest inspection

Paying Off the Mortgage

If you have not fully repaid your mortgage, your sale proceeds will be reduced by the amount of your outstanding balance, including any fees and penalties.

The amount left after you have paid off your mortgage and deducted all of the associated home selling costs is known as the  “net proceeds” from the sale.

These are just some of the costs you can expect to incur when selling your Californian home.