What You Need to Know About Selling Without a Realtor in Pasadena

Have you decided to sell your Pasadena, CA home? If so, you may have thoughts about selling without a realtor in Pasadena. While not impossible, selling a home without a realtor is complex. Small errors or omissions can lead to big consequences like the sale of the home being void. To avoid problems down the road, it’s best to consult an expert realtor in Pasadena, CA. 

If you wish to sell a home without a realtor in Pasadena, CA, here are some insights that will help you along the way. 

Disclose All Material Facts

According to California law, a home seller must disclose any and all facts that could affect the homebuyer’s desire to buy the property or influence how much they are willing to pay. These facts are known as “material facts”. 

Any fact that could affect the property’s value, desirability or ability to be used as intended will be considered a material fact. If you’re selling without a realtor in Pasadena, when in doubt, err on the side of disclosure. 

It’s best to disclose material facts using a “Transfer Disclosure Statement” where you can describe the condition of the property. 

Clearing Title to Your Home

Pasadena, CA home sellers must use a title company to clear title to their home. They will then write a Preliminary Title Report which will be the basis of your title insurance.

California lenders will require title insurance as a condition of funding the buyer’s mortgage. 

California law allows negotiating for who will pay for the title insurance, although typically this expense is covered by the homebuyer. Be aware that the Real Estate Settlement Procedures Act (“RESPA”) prohibits the home seller from requiring a homebuyer to use any particular title insurance company.

Set Up Your Escrow

Setting up an escrow account is a vital part of selling your home without a realtor in Pasadena, CA. 

The homebuyer will deposit funds into the escrow account while the home seller will put the property deed in escrow. Both are held by the escrow agent until the requirements of the escrow are satisfied. Once that is done, the funds will go to the home seller and the deed will go to the homebuyer.

The buyer and seller can negotiate who pays for the escrow services. However, RESPA prohibits one party from insisting on using a particular escrow holder. 

Be Prepared to Pay Transfer Tax

When the property is transferred from home seller to homebuyer, a document is filed at the county recorder’s office showing that the property has changed ownership. At that time, a transfer tax is instated. 

The homebuyer and home seller can negotiate who pays the tax, although it is customary for homebuyers in Northern California to pay the tax while home sellers in Southern California will bear the burden. 

The amount you may pay for the transfer tax depends on where in California you live. Transfer tax is charged at a county level. However, some cities like Los Angeles impose their own city tax additionally.

Get Peace of Mind When Selling Without a Realtor in Pasadena

When you use an expert realtor like the team at Your Home Sold Guaranteed Realty – Rudy Lira Kusuma Real Estate Team, you can have peace of mind that your real estate transaction is legally sound. 

To get started selling your home with us today, call us at 626-789-0159 or complete the form below.