Selling a house in California requires preparing the property, pricing it competitively, complying with strict disclosure laws, and opening escrow before the transaction can close. The California median home price is $858,600, homes spend an average of 31 days on the market, and total selling costs average 12.84% of the sale price (roughly $110,244 on the median) before capital gains taxes apply.
California’s state capital gains tax rate tops out at 13.3%, the highest in the country. Most primary residence sellers owe nothing because the federal Section 121 exclusion shields up to $250,000 for single filers and $500,000 for married couples filing jointly. Understanding how to sell a house in California means knowing your cost exposure, your tax liability, and which selling method keeps the most proceeds in your pocket.
This guide covers the full 7-step selling process, required California home seller disclosures, a line-by-line cost breakdown with worked dollar figures on the $858,600 median, capital gains tax rules and avoidance strategies, 2026 timeline data, and a three-way comparison of agent, FSBO, and cash buyer options for selling a home in California.
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Selling in California
- What happens when you sell a house in California?
- California seller disclosure requirements
- How much does it cost to sell a house in California?
- How much tax do you pay when selling in California?
- How to avoid capital gains tax when selling in California
- How long does it take to sell a house in California?
- Selling options in California: agent, FSBO, or cash buyer
- Mistakes to avoid when selling a house in California
- Find cash buyers in your California city
- Frequently asked questions about selling a house in California
What happens when you sell a house in California?
Selling a house in California involves accurately pricing the home, completing required disclosure documents, managing escrow, and clearing final paperwork before proceeds transfer. The total timeline for selling a home in California runs 60 to 80 days for a traditional financed transaction. The seven steps below trace the full process from preparation to close.
How to Sell a House in California
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Prepare Your Home for Sale
Declutter, deep-clean, and complete minor repairs, such as fixing dripping faucets, repainting scuffed surfaces, and replacing damaged flooring. Professional staging costs $1,500 to $3,000 in California and often pays for itself because curb appeal and indoor-outdoor flow drive first impressions in this market.
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Price Your Home With a CMA
A comparative market analysis compares your home to recently sold properties in your neighborhood to establish an accurate listing price. Overpricing can lead to extended days on market and price reductions that net you less than a correctly priced listing would have.
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List Your Home and Market It
List on the MLS through a full-service agent or a flat-fee service. Professional photography, 3D tours, and targeted digital marketing are standard in California. See our guide on California MLS listing for the mechanics of getting your property maximum exposure.
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Review Offers and Negotiate
Evaluate offers on price, financing type, down payment size, contingencies, and proposed closing timeline. Require official proof of funds or verified lender pre-approval before accepting any cash offer or offer with waived financing contingencies.
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Open Escrow and Deliver Disclosures
After accepting an offer, a licensed escrow company opens an account to hold the buyer’s earnest money deposit. You must deliver your Transfer Disclosure Statement, Seller Property Questionnaire, and Natural Hazard Disclosure Statement during this period.
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Navigate Inspections and Appraisals
The buyer orders a home inspection and, for financed transactions, a lender-required appraisal. Sellers can negotiate repair credits or price adjustments based on inspection findings instead of completing the repairs themselves.
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Sign Closing Documents and Collect Proceeds
You sign the final transfer deeds and closing documents at or before the closing date. Standard seller closing costs include escrow fees, title insurance, prorated property taxes, and county recording fees. The remaining balance transfers to you after all deductions.
California seller disclosure requirements
California has some of the strictest property disclosure laws in the country. Per California seller requirements, sellers must deliver written disclosures before or during escrow. California home seller disclosures are a legal obligation, not an optional courtesy. Failure to comply exposes you to post-close rescission claims and financial damages.
Transfer Disclosure Statement (TDS)
Transfer Disclosure Statement (TDS), California’s primary required disclosure form, in which sellers document all known material defects, property conditions, past repairs, and anything that could affect the home’s value or a buyer’s decision to purchase.
The TDS is mandated by California Civil Code Section 1102 for nearly all residential property sales. It covers physical conditions, structural defects, water intrusion history, roof issues, unpermitted work, and neighborhood nuisances. Delivering the TDS late or incompletely is the most common source of post-close seller liability in California.
Seller Property Questionnaire (SPQ)
Seller Property Questionnaire (SPQ), a supplemental California form delivered alongside the TDS, requiring sellers to answer structured yes/no and narrative questions about the property’s history, systems, HOA status, insurance claims, and known conditions.
The SPQ addresses topics not covered in the TDS’s open narrative format. Together, the TDS and SPQ form the core of California’s written disclosure package that buyers rely on for due diligence.
Natural Hazard Disclosure Statement (NHDS)
Natural Hazard Disclosure Statement (NHDS), a California-required report disclosing whether the property sits in a designated flood zone, fire hazard severity zone, earthquake fault zone, seismic hazard zone, or other state-mapped natural hazard area.
Most sellers order the NHDS from a third-party disclosure company at a cost of $100 to $150. Properties in fire hazard zones, which make up a significant share of California’s housing inventory, must specifically disclose that designation.
Additional disclosures California requires
California home seller disclosures extend beyond the three primary documents. Additional required forms include:
- Smoke detector and carbon monoxide detector compliance statement
- Water heater bracing compliance statement
- Lead-based paint disclosure (for homes built before 1978)
- Mello-Roos and special tax district disclosure (if applicable)
- HOA documents and financial disclosures (if the property is in an HOA)
- Local hazard disclosures required by specific counties or cities
Per California home seller legal guide, FSBO sellers are responsible for sourcing and delivering all required disclosures without agent assistance. Non-disclosure of known material facts after closing can expose sellers to rescission and damages under California law.
How much does it cost to sell a house in California?
The cost to sell a house in California averages 12.84% of the sale price, according to California selling cost data. On the $858,600 median, that totals approximately $110,244. Selling a home in California involves costs across several categories, and knowing each one lets you project your net proceeds before you list.
Real estate agent commissions
Real estate commission is the single largest cost of selling a house in California, typically 5 to 6% of the final sale price. On the $858,600 median, that’s $43,000 to $51,516. Following the NAR settlement effective August 2024, buyer-agent commission is now negotiated separately. Sellers are no longer automatically responsible for the buyer’s agent fee, though many California sellers still offer a buyer-agent incentive to attract offers. Verify current local norms before assuming the full 5 to 6% applies to your transaction.
Seller closing costs in California
Seller closing costs in California typically run 1 to 3% of the sale price. That covers escrow fees, the seller’s share of title insurance, prorated property taxes through the closing date, county recording fees, and county transfer tax. On the $858,600 median, that’s $8,586 to $25,758.
For a detailed breakdown of what title insurance costs by county, see our guide on California title insurance costs.
Home preparation and staging costs
Pre-listing cleaning, repairs, and professional staging typically run $1,500 to $3,000 for a California home sale. Full kitchen remodels and pool installations rarely recover their cost in the final sale price. Prioritize cosmetic improvements and deferred maintenance that could flag on an inspection or appraisal instead.
Moving costs
Moving costs range from $1,000 to $3,000 for a local California move and can exceed $5,000 for long-distance relocations, depending on volume and service level.
Your estimated net proceeds
| Cost Item | Typical Range | On $858,600 Median |
|---|---|---|
| Agent commission | 5 to 6% | $43,000 to $51,516 |
| Escrow fees | ~1% | ~$8,586 |
| Owner’s title insurance | Varies by county | $1,500 to $3,000 (est.) |
| County transfer tax | $1.10 per $1,000 (most counties) | ~$944 |
| Prorated property taxes | Varies by close date | Varies |
| Recording fees | $150 to $250 | $150 to $250 |
| Home prep and staging | $1,500 to $3,000 | $1,500 to $3,000 |
| Moving costs | $1,000 to $5,000+ | $1,000 to $5,000+ |
| Total estimated costs | 10 to 12.84% | $85,860 to $110,244 |
Based on listwithclever.com cost data and current public rate sources, 2026. Costs vary by county, transaction terms, and negotiation. Verify current rates before transacting.
A seller on the $858,600 median paying 6% commission and 2% in closing costs walks away with roughly $689,000 to $724,000 before capital gains taxes. See the section below for how the Section 121 exclusion changes your after-tax proceeds.
How much tax do you pay when selling in California?
Most California sellers owe zero capital gains tax, the federal Section 121 exclusion shields up to $250,000 of profit for single filers and $500,000 for married couples filing jointly, but gains above those thresholds face both federal and California state tax. Your capital gains tax California home sale liability depends on how long you owned the property, whether it was your primary residence, and your total taxable income.
Federal capital gains tax on home sales
Federal capital gains tax on a home sale depends on your holding period and total income. Long-term gains (property held more than one year) are taxed at 0%, 15%, or 20% depending on income. Short-term gains (one year or less) are taxed at your ordinary income rate. After applying the Section 121 exclusion, only the gain above the exclusion threshold is taxable at the federal level.
California state capital gains tax rate
California taxes capital gains as ordinary income with no preferential lower rate for long-term gains, per FTB home sale guidance from the California Franchise Tax Board. The top California income tax rate is 13.3%, making the combined federal-plus-California capital gains tax California home sale burden one of the highest in the country for high-income sellers. California conforms to the federal Section 121 exclusion, so any gain excluded from federal tax is also excluded from California state income tax.
Transfer taxes when selling in California
Most California counties charge a county transfer tax of $1.10 per $1,000 of sale price, adding roughly $944 on the $858,600 median. Some cities levy additional local transfer taxes above the county base rate. San Francisco and Los Angeles both charge higher municipal transfer taxes that can add meaningfully to your costs on higher-priced properties. Check your county assessor’s office for current rates before calculating net proceeds.
California capital gains tax overview:
| Tax Type | Who It Applies To | Rate | When You Pay It |
|---|---|---|---|
| Federal long-term capital gains | Sellers with taxable gain after Section 121 exclusion | 0%, 15%, or 20% (income-dependent) | Federal tax return |
| Federal short-term capital gains | Sellers who owned property 1 year or less | Ordinary income rate | Federal tax return |
| California state income tax on gain | All sellers with taxable gain | Up to 13.3% | California state return |
| County transfer tax | All sellers (most California counties) | $1.10 per $1,000 of sale price | Paid at closing |
Rates current as of 2026. Verify with IRS and California Franchise Tax Board before transacting.
Estimated tax by scenario:
| Scenario | Taxable Gain After Exclusion | Estimated Combined Tax |
|---|---|---|
| Single filer, $858,600 median, primary residence 3+ years ($250K exclusion applied) | $0 to ~$110,000 (depending on original purchase price) | $0 to ~$25,000 federal plus state |
| Married couple, same home ($500K exclusion applied) | $0 for most typical purchase scenarios | $0 |
| Investor, no primary residence exclusion, $200K taxable gain | $200,000 | ~$30,000 federal plus ~$26,600 California |
Illustrative estimates only. Actual tax owed depends on your cost basis, capital improvements, depreciation recapture, filing status, and total income. Consult a tax professional before transacting.
How to avoid capital gains tax when selling in California
The capital gains tax California home sale liability for most sellers is zero because the Section 121 primary residence exclusion eliminates the taxable gain entirely. Understanding exactly how to qualify, and which strategies apply when you don’t, puts more money in your pocket at closing.
The primary residence exclusion (Section 121)
$250,000 (single filers) or $500,000 (married couples filing jointly) of your profit can be excluded from both federal and California state income tax if you qualify for the Section 121 exclusion.
California conforms to the federal Section 121 exclusion. Any gain shielded from federal tax is also shielded from California income tax. No separate California form is required; the exclusion flows through your federal return automatically.
How the 2-of-5-year rule works
To qualify for the Section 121 exclusion, you must have owned and lived in the home as your primary residence for at least 24 months of the 60 months before the sale date, per Section 121 eligibility requirements. The 2-of-5-year rule is the threshold most commonly cited as the primary eligibility test for this exclusion.
The 24 months of use and 24 months of ownership do not need to be consecutive, and they do not need to be the same two years within the five-year window. The exclusion may be used once every two years. Sellers who sell before meeting the full 2-year test due to a job change, health issue, or unforeseen circumstance may qualify for a proportional partial exclusion.
1031 exchange for investment properties
A 1031 exchange defers capital gains tax by rolling the sale proceeds from an investment property into a like-kind replacement property. Sellers have 45 days to identify a replacement property and 180 days to close on it.
The 1031 exchange is not available for primary residences. It applies only to investment or business-use properties. Some sellers convert a rental property to a primary residence to eventually qualify for Section 121, but specific ownership timing, use period, and depreciation recapture rules apply. Consult a tax professional before attempting this strategy.
Other ways to reduce your California tax bill
Each strategy below can reduce your capital gains tax California home sale obligation by lowering your adjusted gain or spreading recognition across multiple years:
- Add qualifying capital improvements to your cost basis. Roof replacements, additions, and major system upgrades increase your adjusted basis and reduce taxable gain dollar for dollar.
- Deduct selling costs from your realized gain. Agent commissions, title fees, and county transfer tax reduce the gain you report on your return.
- Consider an installment sale. Seller financing that spreads gain recognition across multiple tax years can reduce annual bracket exposure, particularly on the California state side.
- Request a partial exclusion for hardship. If you sell before the 2-year mark due to a job change, health issue, or unforeseen circumstances, a proportional Section 121 exclusion may still apply.
How long does it take to sell a house in California?
California homes spend an average of 31 days on market before an accepted offer, according to California market conditions from Arbre Real Estate (January 2026). Add 30 to 45 days in escrow and you are looking at a total timeline of 60 to 80 days from listing to close for a traditional financed transaction.
Average days on market in California
The 31-day statewide average covers all property types and price points. Well-priced homes in competitive California submarkets move faster. Overpriced listings that require price reductions can sit 60 to 90 days or more, and they typically close below what a correctly priced listing would have achieved from day one.
California home values are down 1.12% year over year as of mid-2026, with a projected additional 1.54% decline. In a softening market, pricing accuracy on day one is more valuable than testing a higher number.
Escrow and closing timeline
California is an escrow state, not an attorney state. A licensed escrow company manages fund transfers and document exchanges through closing. After an accepted offer, a financed transaction typically spends 30 to 45 days in escrow, covering:
- Appraisal ordering and review: 10 to 14 days
- Inspection period and any renegotiation: 7 to 14 days
- Loan underwriting and final approval: 10 to 21 days
- Title clearance and final document preparation: concurrent with the above
How to sell faster in California
Selling to a cash buyer or iBuyer reduces the total timeline to 7 to 30 days by bypassing appraisal contingencies and mortgage underwriting. Pricing correctly from day one, completing a pre-listing inspection, and pre-packaging your disclosure documents for immediate delivery also shorten the time you spend in escrow.
Selling options in California: agent, FSBO, or cash buyer
California home sellers have three primary options, each with a different cost structure, timeline, and level of effort. Knowing how to sell a house in California through each path helps you choose the right method for your situation.
Working with a traditional real estate agent
A full-service agent handles pricing, marketing, staging coordination, showings, offer review, negotiation, and escrow management. The cost is 5 to 6% in real estate commission on the final sale price, or $43,000 to $51,516 on the $858,600 California median. For sellers who want full service and are not under time pressure, the agent route provides the broadest buyer access and the strongest negotiation support.
Selling your house FSBO in California
FSBO California sellers avoid the listing agent commission but take on all pricing, marketing, disclosure delivery, and negotiation responsibilities themselves. You must still complete and deliver the Transfer Disclosure Statement, Seller Property Questionnaire, and Natural Hazard Disclosure Statement. Most FSBO sellers hire a title company to manage escrow and ensure a secure transfer of proceeds.
California does not require a real estate attorney. Escrow companies handle the legal transfer of ownership. FSBO sellers can access the California MLS through flat-fee listing services without paying full-service commission. For the complete California FSBO process, see our guide on sell without a realtor.
Selling to a cash buyer or iBuyer
Selling to a cash buyer or iBuyer eliminates agent commission, skips most contingencies, and closes in 7 to 30 days. The cash offer may come in below full market value, but the savings on real estate commission (5 to 6%) and carrying costs during a longer listing period often narrow that gap.
Receiving competing cash offers through a marketplace lets you compare multiple terms side by side rather than guessing at market value from a single offer. For vetted companies operating across California, see cash buyers across California.
Selling options comparison:
| Agent | FSBO | Cash Buyer | |
|---|---|---|---|
| Timeline to close | 60 to 80 days | 60 to 90 days | 7 to 30 days |
| Cost as % of sale price | 5 to 6% commission + 1 to 3% closing | 1 to 3% closing only | 0% commission |
| Cost on $858,600 median | $68,688 to $77,274 | $8,586 to $25,758 | $0 to ~$8,586 |
| Repairs required | Usually | Seller’s choice | No |
| Disclosure help | Agent assists | Seller handles | Handled by buyer |
| Negotiation | Agent negotiates | Seller negotiates | Buyer presents offer |
| Best for | Most sellers | Experienced sellers | Speed, simplicity |
Listing agent commission only, post-NAR settlement. Buyer-agent compensation is separately negotiated. Verify local market norms before listing.
Mistakes to avoid when selling a house in California
Reviewing home seller mistakes before you list prevents the most expensive errors California sellers make.
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Don’t overprice your home. In California’s current market (values down 1.12% year over year as of mid-2026), an overpriced listing stalls quickly. Homes sitting more than 30 days begin attracting lowball offers as buyers assume something is wrong.
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Don’t skip or delay required disclosures. Failing to deliver the Transfer Disclosure Statement and Seller Property Questionnaire on time violates California Civil Code Section 1102. It exposes you to rescission and post-close financial damages even after the sale completes.
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Don’t over-invest in low-ROI renovations. Full kitchen remodels and pool installations rarely recover their cost in the California sale price. Focus on cosmetic improvements, deferred maintenance, and anything that could flag on an inspection.
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Don’t accept an offer without verifying proof of funds. If a buyer waives financing contingencies or makes a cash offer, require official proof of funds or a verified lender pre-approval first. Unverified offers can collapse in escrow and cost you weeks.
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Don’t neglect curb appeal. First impressions drive California buyer decisions. A home that photographs well and presents a clean exterior attracts more showings and stronger opening offers.
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Don’t let emotion drive pricing. A comparative market analysis gives you data based on recent comparable sales, not what you spent on improvements or what the home means to you personally.
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Don’t make unpermitted improvements without disclosure. Converted garages, unpermitted additions, or structural changes that were never permitted must be disclosed on the TDS and SPQ. Concealing known unpermitted work exposes you to rescission and post-close damages.
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Don’t restrict buyer access. California’s competitive submarkets move quickly. Limiting showings to narrow windows reduces your buyer pool and costs you the competing offers that push the final price higher.
Find cash buyers in your California city
Cash buyer availability and offer ranges vary by city. Select your city below for local options.
If paying 5 to 6% in agent commissions on a California home sale doesn’t work for you, there are options beyond listing on the MLS. iBuyer.com connects California home sellers with multiple vetted cash buyers who compete for your property, so you see real offers side by side rather than guessing at market value. No repairs required, no open houses, no obligation to accept. Most sellers receive initial offers within 24 to 48 hours after submitting their address and basic property details. Get competing cash offers on your California home.
California Sellers: Get Competing Cash Offers Close in 7 to 30 days without paying 5 to 6% in agent commissions
Multiple buyers, real competition, zero obligation.
Frequently asked questions about selling a house in California
Selling a house in California involves preparing the property, pricing it competitively, opening escrow, delivering mandatory disclosures, and closing. The full process runs approximately 60 to 80 days for a traditional financed transaction. California’s escrow system requires a licensed escrow company to hold funds until all contract conditions are met. The seller must provide the Transfer Disclosure Statement and Seller Property Questionnaire before or during escrow.
The cost to sell a house in California averages 12.84% of the sale price, covering agent commissions, closing costs, and preparation expenses. On California’s $858,600 median home price, that totals approximately $110,244. Agent commissions account for 5 to 6% and seller closing costs for another 1 to 3%. Sellers who use a cash buyer eliminate the commission from this total.
California taxes capital gains from a home sale as ordinary income at rates up to 13.3%, plus federal capital gains tax of 0 to 20% on any gain above your exclusion amount. Most primary residence sellers owe zero tax because the Section 121 exclusion shields up to $250,000 for single filers and $500,000 for married couples filing jointly. Any gain above those thresholds is subject to both federal and California state income tax. Unlike federal law, California offers no preferential lower rate for long-term capital gains.
You can exclude up to $250,000 (or $500,000 if married filing jointly) of profit from capital gains tax by qualifying for the Section 121 primary residence exclusion. To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the 5 years before the sale. California conforms to this federal exclusion, so qualifying gains are excluded from both federal and California state tax. The exclusion may be used once every two years.
A Transfer Disclosure Statement (TDS) is a California-required document in which sellers disclose all known material defects and property conditions to the buyer in writing. The TDS is legally mandated by California Civil Code Section 1102 for nearly all residential property sales. Failure to provide a TDS exposes the seller to legal liability and potential post-close rescission claims. The document covers physical conditions, known defects, past repairs, neighborhood nuisances, and anything that could affect the property’s value.
California does not require a real estate attorney to sell a house; the state uses licensed escrow companies and title companies to close transactions instead. California is an escrow state, not an attorney state. FSBO sellers handling complicated title situations may want to consult an attorney, but it is not a legal requirement. You will still need a title company to handle the ownership transfer regardless of how you sell.
California homes spend an average of 31 days on the market, and escrow adds another 30 to 45 days, making the typical total timeline 60 to 80 days from listing to close. Cash buyer sales can close in 7 to 30 days by bypassing appraisal contingencies and mortgage underwriting delays. Correctly priced homes in competitive submarkets sell faster than the statewide average.
Yes, you can sell a house FSBO in California without a real estate agent, but you must complete and deliver all required disclosures, including the TDS, SPQ, and Natural Hazard Disclosure Statement. FSBO California sellers can access the state MLS through flat-fee listing services without paying full-service commission. Most FSBO sellers hire a title company to handle escrow and the secure transfer of proceeds.
Selling to a cash buyer is the fastest way to sell a house in California, with closings in as few as 7 to 30 days compared to 60 to 80 days for financed sales. Cash buyers skip mortgage approval and typically waive inspection and appraisal contingencies, removing the main sources of closing delays. Receiving competing cash offers lets you compare terms side by side rather than evaluating a single offer in isolation.
Sellers in California typically pay 1 to 3% of the sale price in closing costs, covering escrow fees, title insurance, prorated property taxes, and county recording fees. California does not mandate a universal closing cost split, responsibility is negotiable between buyer and seller. In practice, sellers pay escrow fees, the seller’s share of title insurance, county transfer taxes, and property taxes prorated through the closing date.
Avoid overpricing, skipping required disclosures, over-renovating for low ROI, hiding known defects, and restricting buyer access in California’s softening market. In California’s current market (values down 1.12% year over year as of mid-2026), overpricing is the most common and costly mistake. Failing to deliver the Transfer Disclosure Statement is a legal violation with post-close liability. Low-ROI renovations rarely recover their cost in the final sale price.
The 2-of-5-year rule requires you to have owned and lived in your home as a primary residence for at least 24 months of the 60 months before the sale to qualify for the Section 121 exclusion. The two years of ownership and use do not need to be continuous or the same two years within the five-year window. California conforms to this federal rule, so the exclusion applies to both federal and California state income tax on the gain.
A 1031 exchange is not available for primary residences in California; it applies only to investment or business-use properties held for productive use. Primary residence sellers should use the Section 121 exclusion rather than attempting a 1031. Some sellers convert a rental to a primary residence to eventually qualify for Section 121, but specific ownership timing, use period, and depreciation recapture rules apply. Consult a tax professional before attempting this strategy.
Yes, California sellers must disclose all known past repairs and material improvements on the Transfer Disclosure Statement and Seller Property Questionnaire. “Material” means anything that could influence a buyer’s decision to purchase or the price they would pay. Required disclosures include roof repairs, foundation work, water intrusion remediation, HVAC replacements, and any permitted or unpermitted additions or alterations. Non-disclosure of known material facts after closing can expose sellers to rescission and damages under California law.
Reilly Dzurick is a licensed real estate agent with over six years of experience and a member of the iBuyer.com Market Insights Team, covering national trends in home selling and the evolving iBuyer landscape. Her firsthand experience working with buyers and sellers gives her a practical perspective on how these platforms impact real homeowners. She holds a degree in Public Relations, Advertising, and Applied Communication.
