Jump to 👉 How much you’ll save selling FSBO | How to sell without a realtor in California | Pros and cons | For sale by owner paperwork | Alternatives to FSBO
If you’re thinking of selling your home in California, you may be tempted to list it for sale by owner (FSBO). That’s because this non-traditional way of selling doesn’t require you to pay the typical 3% commission to a listing agent – one of the largest costs involved in selling a home.
In 2021, only 7% of sellers took on the challenge, and the majority (57%) sold their home to someone they knew. And that’s because selling FSBO is hard — especially for first time sellers.
For many sellers, FSBO involves unexpected costs and added risk. From legal paperwork to advertising your home, you’ll have a lot of work to do on your own, without the help of a realtor. That said, if you’re experienced in the process of selling a home and you have the time to commit to it, selling FSBO in California could help you save.
If you’re looking to save on commission but aren’t sure you’re ready to sell by owner, there is another low-commission option.
Our friends at Clever Real Estate connect you with top-rated local agents with a pre-negotiated listing fee of just 1.5%. If you’re selling a $400,000 home, you’d save $6,000 — just for finding your agent through Clever! There’s no obligation, so you can go back to selling your home FSBO if you so choose.
💡Find out how much you can save with Clever today! 💡
How Much Can I Save By Selling FSBO in California?
In theory, you could save around $20,000 by avoiding the seller’s agent commission. That’s based on an average California home that’s valued at $790,475.
California Selling Costs With and Without a Realtor
$20,000 in savings sounds like a big number — and it doesn’t tell the whole story. FSBO homes typically sell for about 20% less than those listed with agents, cutting significantly into your profits. Not to mention, you’ll have to cover some outstanding costs that are normally wrapped into an agent’s commission.
FSBO sellers must shoulder the expense of listing photography and posting the listing on real estate websites. Without the help of a real estate agent, homeowners must also cover other marketing costs — which can reach into the thousands of dollars — and commit hours of their personal time to showings and open houses.
Finally, FSBO sellers still typically pay a commission to the buyer’s agent – usually 2-3% of the sale price in California.
How to Sell a Home Without a Realtor in California
Step 1: Get Your House Ready to List
Start preparing your house by making it more desirable to a wide array of buyers. Think like a buyer and take a walk through your home, taking note of potential updates, deferred maintenance and personal touches that should be removed.
Consider these changes and updates as you walk through your home:
| 🏠 Damaged siding | Unsightly siding can reduce curb appeal and alter a potential buyer’s view of the home before they even enter. Patching or upgrading siding will make your home look more inviting from the get-go. |
| ☣ Mold | Mold is generally identified and addressed during the due diligence period, but it’s best to handle it up front so potential buyers don’t use it to justify a low offer. |
| 🎨 Paint | If you’ve personalized your home with bright paint colors, consider painting walls a neutral color that will appeal to more buyers. |
| 🛌 Furniture | Removing excess furniture can make the space feel larger. |
| 🌻 Personal Items | Remove items that might make it difficult for buyers to envision themselves living there. Where possible, limit the number of personal effects like photographs, collectibles, and other items that make the space feel smaller. |
This process will prepare your home for photography and tours once your home is listed.
Step 2: Photograph Your Home
Once your home is in the best shape possible, take high-quality photos to include in listings and other marketing materials.
A few tips for taking listing photos:
- Leave some areas to the imagination so buyers are more likely to schedule a tour
- Avoid excessive props and staging to keep the house from looking too busy
- Make sure toilet seats are down, TVs are turned off, and other distracting items are photo-ready
- Take time to clean the house, including light fixtures and other reflective surfaces
- Balance floor and ceiling to avoid dead space in photo composition
- Do not use a wide-angle lens if it will be misleading
If you want your photos to really stand out, consider hiring a professional photographer – just know that it will cost you. Otherwise, photos taken on a smartphone with the right lighting and angles will also work well.
Step 3: Set a Listing Price
Before setting a listing price, determine your goals:
- If you need to sell the home quickly, choose a competitive price that will attract buyers.
- If you want to maximize profit, evaluate your mortgage payoff amount and choose a price that puts cash in your pocket while aligning with comparable properties in your area.
That said, pricing your home too high can make it difficult to sell and result in a stale listing. What’s more, even if a buyer agrees to your high list price, your home appraisal could still come in low, giving the buyer an opportunity to back out of the sale.
To get an accurate understanding of your home’s value, we recommend hiring a local realtor. Not only do agents have full access to the local MLS, their years of experience give them a more comprehensive understanding of market factors that impact pricing.
Plus, most reputable agents offer a free comparative market analysis (CMA). This report evaluates how your property stacks up to others nearby.
Our friends at Clever Real Estate will connect you with a top agent who can help you sell for more money on a timeline that works for you. Interview as many agents as you’d like with no obligation to work with them.
If you’re committed to selling your home yourself but don’t know where to begin with pricing, have your home appraised by a professional. This generally costs between $300 and $400 in California, but can give you a starting point and more confidence going into negotiations.
❓What Are Comps in Real Estate?To price your home competitively, review homes that have sold recently in your area that are similar to your own — also referred to as comparables or “comps”. Relevant comparable properties include those with a similar square footage, floor plan, property size, and proximity to amenities. These factors can set your house apart from local comps:
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Step 4: Officially List and Market Your Home
Depending on your market, it may be possible to sell your house yourself quickly by posting it on Zillow or Craigslist.
However, most FSBO homeowners need to do more. Posting photos on Facebook Marketplace likely won’t be sufficient if you want to compete with listings represented by local agents. FSBO sellers are on their own and will have to leverage all the marketing strategies at their disposal to find a buyer.
Set a marketing budget, plan a strategy early, and comply with state regulations.
Write a Compelling Listing Description
Write a listing description that appeals to buyers in the area by targeting local priorities. These are some of the major features buyers in California are looking for to highlight in your description.
- Backyard amenities like shaded seating areas, pools, outdoor kitchen and dining spaces, and storage sheds
- An abundance of natural light
- An open floor plan with sufficient bedrooms and bathrooms for families
- Wildfire protection features like interior and exterior sprinklers
- Electric vehicle charging stations or an electrical panel that can support one
- Energy efficient windows and appliances
- Acreage, scenic views, and proximity to outdoor activities
» Read More: 200+ Real Estate Words for Your FSBO Listing
Experts recommend including your property disclosures in your listing. While some states don’t require disclosures until after you accept an offer, it’s wise to be up front about any significant issues with your home so buyers can’t negotiate on them or back out because of them later on.
» Learn More: The BEST Time to Provide a Property Disclosure
Online Listing Platforms
Several online listing platforms are available to help you market your home. Some are free (with upgrades at a cost), while others charge a fee for a set period of time to list.
| FSBO Website | Cost |
|---|---|
| FSBO.com | $99+ |
| Beycome | $89+ |
| Homecoin | Free |
| Zillow | Free |
| ForSaleByOwner.com | Free |
| Craigslist | Free |
| Facebook Marketplace | Free |
Many of the websites above also offer an option to list on the local multiple listing service (MLS) for a flat fee if you’re looking to reach a wider audience.
» Learn More: The 13 Best For Sale By Owner Sites in 2022
Word of Mouth
If you live in a popular neighborhood, start by telling friends and family that your home is for sale. Not only is this free, but it can be a fast way to sell your home without committing the time and energy required for other marketing strategies. Just make sure you can clearly communicate the list price and any other relevant information. Make it clear that you’re ready to sell and not just considering a future move.
Yard Signs
California allows FSBO sellers to put up temporary “For Sale” signs on their private property. You can easily find signs from popular vendors like Amazon, or get crafty and make your own.
However, you’ll have to comply with relevant state law for both temporary signs and real estate signs.
| Rules for Temporary Signs |
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| Rules for Real Estate Signs |
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Social Media
Social media can be an effective way to get your home in front of local shoppers. Standard social media posts are free and allow homeowners to post a listing description and photos to attract potential buyers. Platforms like Facebook and Instagram also let users include hashtags to increase post visibility and tailor the audience. Similarly, paid social ads can be customized so your listing gets in front of the right people.
Print Ads
If there’s room in your marketing budget, consider publishing your home listing in a print ad. This can be expensive, but may be effective for high-end homes in areas with local lifestyle magazines. To make the most of this strategy, make sure your photos are high quality and take advantage of the publisher’s design services where applicable. Also, make sure you’re complying with the state’s rules for real estate print ads.
Step 5: Schedule Open Houses and Showings
If your home is priced competitively and marketed effectively, you’ll need to schedule several showings so prospective buyers can see the property in person. If it’s part of your marketing strategy, schedule open houses so interested shoppers can quickly visit the home without a private showing.
Either way, you’ll need a calendar or scheduling system to keep your appointments in order — especially in a hot market where there are several interested buyers. This can become even more complex and time consuming if you receive multiple offers and need to schedule second showings.
Not surprisingly, this is an area where a dedicated real estate agent can be a game changer. Not only do agents manage showings and open houses, they also follow up with interested buyers to build — and capitalize on — excitement around the property.
Step 6: Negotiate a Price and Accept an Offer
It can be easy to dig in your heels on price when you’re trying to sell your home with a mortgage and want to make a profit. But it’s important to keep an open mind regarding negotiation.
If you’re not getting offers in line with your list price, it may be a sign that your home is priced too high. This is even more common with FSBO listings because accurate pricing is more difficult for homeowners who don’t have the local expertise of realtors.
Feeling nervous about navigating negotiations on your own? You’re not the only one. A recent survey by the Clever Data Center found that 46% of sellers don’t feel comfortable negotiating with buyers without a real estate agent.
Licensed real estate agents are experts in negotiating sales for the highest price possible, and hiring one can get you more profit on your sale – even with a commission. Plus, services like Clever Real Estate pre-negotiate your agent commission to just 1.5%.
Counter Offer As Needed
Iff an offer comes in under ask, don’t shy away from negotiations. Formally respond to the buyer’s offer and include your counter offer in writing. If the buyer has a preferred closing timeline or other needs, use those items as bargaining chips rather than meeting all of their price demands. And remember — real estate transactions often require compromise, so keep your mind open.
Common Seller Concessions in California
The most common seller concessions in California include:
- Paying for a home warranty
- Covering inspection and appraisal fees
- Providing repair credits based on inspection findings
- Covering closing costs typically covered by the buyer
- Paying property taxes for the year
Draft and Sign a Purchase Agreement
Once the buyer and seller come to an agreement, the seller’s real estate agent typically provides the contract. If you opt for a FSBO sale in California, you’ll have to hire a real estate attorney or draft a contract yourself.
To do so, obtain a contract template that meets all of California’s legal requirements for a real estate transaction. The document should include elements like the purchase price, down payment, closing date, payment plan, as well as disclosures and contingencies.
You can find examples online, but even templates can be difficult to use, so we recommend working with a real estate attorney. Legal mistakes can be costly and lead to litigation down the road. Hiring an attorney can also simplify the closing process, though California law does not require FSBO sellers to have legal representation.
Step 7: Close
The final step in any real estate transaction is closing. This process generally involves a title company and an escrow company.
The role of a title company is to determine whether there are issues like unpaid property taxes or liens against the property that may limit the seller’s legal right to transfer the property. It also requires title insurance to protect the buyer and lender in case there are claims against the property that did not show up in the title search.
An escrow company, on the other hand, facilitates the sale by holding the buyer’s funds and the seller’s deed until the transaction is complete. Once all of the escrow conditions are met, the escrow company transfers the funds to the seller — or their mortgage lender — and the buyer receives the deed for recording.
Sellers can conduct a title search of public records, but the buyer’s lender will require a search performed by a title report company. In Northern California, companies typically offer both title and escrow services for a single fee that’s shared by buyer and seller. In Southern California, it’s standard practice to use a separate title company and escrow company, with sellers paying for title insurance and county transfer taxes and splitting escrow fees with the buyer.
FSBO Closing Costs in California
On average, closing costs in California add up to around 8% of the final sale price – excluding agent commissions. So, a home that sells for $800,000 may come with closing costs of about $6,400.
Buyers and sellers share the costs of closing on a home in California, with each party responsible for certain line items. Be sure you understand what expenses you’re likely to shoulder as a seller.
» Learn More: How Much Are Closing Costs in California? (2022 Data)
Common Costs of Selling a Home in California
After paying for repairs, realtor commissions, closing costs, moving fees, and more, your total expenses can easily eat up 8.7% or more of your home’s final sale price. For a typical California home worth $790,475, that’s more than $68,000 to sell.
Agent commissions can substantially contribute to these costs, especially if you list with a traditional agent. Generally, the seller’s agent receives 3% of the sale price in commissions and the buyer’s agent receives 3%, for a total of 6% of the home’s sale price. Under this model, a home that sells for $800,000 would yield $48,000 in total agent commissions — all of which comes out of the seller’s profits.
While agent commissions may seem high, the fees go toward valuable services such as:
- MLS access
- Staging
- Listing photos
- Marketing materials, such as signs or brochures
Real estate agents are also compensated for their extensive local expertise and network of potential buyers that can speed up the sales process and fetch a higher sale price.
Pros and Cons of Selling For Sale By Owner in California
| ✅ Pros | ❌ Cons |
|---|---|
| Lower commission fees: By selling your home yourself, you can avoid paying the average 3% commission to a seller’s agent. | Stressful and time consuming: Between preparing your home to sell, creating marketing materials, and scheduling showings, FSBO listings require a huge time commitment. |
| Insider knowledge: Homeowners have an intimate knowledge of their home and the surrounding neighborhood, and with the FSBO sale, they’re in control of how it’s presented. | Lack of expertise: Homeowners often lack the extensive real estate experience and local expertise to sell a home quickly and at a strong price. |
| Focused attention: FSBO sellers do not compete for the attention of a realtor who has numerous clients and listings. | Limited marketing resources: FSBO sellers don’t have access to a broad range of marketing tools and in-house experts like agents do. |
| Potentially faster sale: If the market is hot and the seller has a large social network, it may be possible to sell a FSBO listing quickly. | Safety issues: Scheduling and hosting showings and open houses alone can put you at risk for burglary or other harm by strangers posing as agents or buyers. |
California House For Sale By Owner Forms
Sellers who work with a realtor don’t have to worry about navigating all of the paperwork and required disclosures involved in a real estate transaction. However, if you choose to list your home for sale by owner in California, there are a number of documents and disclosures you’ll need to handle during the sale process.
Documents Required For All California Real Estate Sales
- Two forms of identification
- Copy of the purchase agreement and addendums
- Closing statement
- Signed deed
- Bill of sale
- Affidavit of title
Additional California Documents
- Loan payoff information regarding the seller’s payoff amount and fees
- HOA forms and guidelines, including covenants, codes, fee requirements, and other restrictions
- Survey results or affidavits regarding the established property line
- Home inspection results
- Proof of repairs or renovations
- Home warranty information
- Copies of relevant wills, trusts, or power of attorney letters if you’re selling an inherited property
- Relevant affidavits, including name affidavits and non-foreign affidavit under IRC 1445
- Closing disclosure to verify the lender approved all of the seller’s concessions
- Correction statement and agreement in case of lost forms or clerical errors
California Seller Disclosure Forms
- California transfer disclosure statement detailing known problems with the home
- Megan’s Law disclosure regarding the buyer’s responsibility to search the local sex offender database
- Death disclosure of whether someone died on the property within the last three years, with certain exceptions
- Natural hazard disclosure report/statement
- Statewide buyer and seller advisory describing the rights and responsibilities of each party to the real estate contract
FSBO Alternatives
If you don’t have the time or patience to list your home for sale by owner — but want to save on realtor commissions — consider one of these alternatives.
Clever Real Estate
Our partners at Clever Real Estate connect homeowners with top-rated real estate agents and help them save thousands. Not only does Clever work with top brokerages like Keller Williams, RE/MAX, and Century 21, the platform pre-negotiates discounts on listing fees.
With Clever, you’ll pay just 1.5% in listing fees, rather than the standard 3%. The average Clever seller saves $7,000, just for finding their agent through Clever’s free, no-obligation service!
🔎 Find a local agent with Clever and save!
Discount Real Estate Services
Discount companies like Redfin and Prevu provide traditional real estate services at a lower price point. Sellers can use these platforms to save on seller’s fees but must still pay a competitive buyer’s agent commission — generally 3%. What’s more, services may be less robust than those offered by a dedicated real estate agent.
Flat-fee MLS Agents
Listing a home on the local multiple listing service (MLS) is one of the best ways to get it in front of local buyer’s agents and their clients. Flat-fee MLS agents list your home on the local MLS for just that — a flat fee (typically a couple hundred dollars in California). You’ll still have to market the home, schedule showings, and handle negotiations, though some MLS companies offer additional services like marketing and closing assistance.
Selling FSBO is hard. Saving thousands with Clever is easy.
FAQs About For Sale By Owner in California
How long is escrow in California?
Escrow usually takes between 30 and 60 days to close, though this timeline can vary greatly depending on the transaction. During contract negotiations, the buyer and seller will mutually agree to an escrow timeline for the sale. Learn more about the standard escrow process in California.
Can I sell my house without a realtor?
You can sell your house without a realtor. This type of sale is often referred to as “for sale by owner” or FSBO. Though selling FSBO is more time-consuming and risky, it can be a good way to save on commission fees for experienced sellers or those who plan to sell their home to someone they already know. Learn more about how to sell without a realtor.