How To Sell A House in a Trust in California: A Complete Guide

How To Sell A House in a Trust in California: A Complete Guide

Putting real estate in a trust can deliver many advantages for grantors and beneficiaries alike, not least from a tax perspective. However, selling a house in a trust in California can be quite challenging, especially if you’ve never encountered the process before.

Before selling a house in a trust in California, you must acknowledge the unique aspects of California law that affect the process and establish a clear strategy to enjoy a streamlined process that delivers the best outcomes for all parties. This guide on how to sell a house in a trust will help you understand the legal considerations surrounding the closing process and teach you how to handle the selling process in style.

a house being sold in a trust in california

Understanding Trusts and Real Estate in California

Before looking at how to sell properties held in California trusts, you must first understand the trusts in real estate fundamentals. 

In essence, a trust property is an asset that has been placed into a trust. It is affected by fiduciary duty and will be managed by the named trustees following the grantor’s death. Trustees will be tasked with managing assets as per the grantor’s wishes which are detailed in the trust’s legal documents. 

There are many reasons why people use a trust in real estate management aspects of their tax planning procedures. For starters, the grantor retains control of their estate until their death by making themself a trustee. More importantly, a trust agreement is the perfect financial tool to distribute proceeds efficiently to the intended beneficiaries.

In other words, the trust provisions protect beneficiaries and prevent potential disputes. Furthermore, it can help the family reduce various tax obligations including both inheritance tax and capital gains tax, as well as potential state taxes when selling a home in California. With many trust types, it also means avoiding probate court and the related financial impacts.  This ultimately serves the best interests of the grantor, trustees, and beneficiaries. 

While only 33% of Americans have suitable estate planning in place, California trusts may cover various types. The most frequently used solutions are;

  • Revocable trust – in a revocable trust, the trust creator retains legal ownership of all assets. This does have tax implications throughout their life, as well as for beneficiaries, but the grantor is able to change the terms of the agreement. For example, they could name a new grandchild as a future beneficiary.

  • Irrevocable trust – in this type of trust agreement, legal ownership of assets is passed to the trustees. Thai reduces the taxable portion of the person’s estate, which leads to tax benefits. However, irrevocable trusts cannot be altered, meaning beneficiaries can’t be added or removed. 

  • Living trust – in a living trust, assets may be transferred during the trust creator’s lifetime. This allows for careful asset management that can be used to support beneficiaries through ideas like paying for their college education without giving them control of the assets or income generated from them.

  • Testamentary trust – in this type of trust, assets are distributed as per the instructions held within the grantor’s last will and testament. In this case, the trust is not established until after the grantor’s death while it also does not avoid probate court in the way that the above trusts do. 

It should also be noted that when a minor is named as a beneficiary, the trust will hold assets (or the proceeds from them) until they turn 18. 

guide to selling your hosue in a trust

Step-by-Step Guide to Selling Your House in a Trust in California

While the benefits of putting a property in a trust are clear, selling real estate in a trust can be a little testing. Therefore, careful planning is required to sell assets efficiently and promote a smooth closing process that allows your family to enjoy the tax advantages and full proceeds of the sale. 

If you want to sell an inherited property in a trust or just need to sell a property in a trust you didn’t create, there are options.  The process of selling a house in a trust may seem daunting, but the following steps should lead you to a successful sale.

Gain trustee approval

Trustee approval will make the process of selling trust property far less stressful as it’ll help you avoid disputes and delays caused by miscommunication. While single trustees are possible, most trusts name multiple people. If you have three or more people, ensuring that all parties are on the same page should be the first item on your checklist.

It is an emotionally charged time in which past disputes between relatives could make this process difficult. However, Premier Property Buyers can help by facilitating clear communication by all parties. Arranging a consultation to discuss everything from fiduciary duties to estate taxes and the options for selling a house should lead to an agreement. When all trustees feel suitably informed and prepared for the process ahead, things should fall into place.

Understand different trust implications

As well as gaining the necessary approvals from each trustee, you must consider how trust home sales are impacted by the type of trust that the asset is placed in:

Revocable trust

As the grantor retains control, another trustee cannot sell the property until after the grantor passes. When selling a property in this manner, the trustee or trustees must satisfy the grantor’s intentions as per the latest version of the trust document.

Irrevocable trust

The terms of how funds should be distributed are already finalized. This may even set out the method of how the trust property should be sold, although not always. Crucially, the payouts to beneficiaries are predetermined. 

Testamentary trust

The trust provisions will set out the conditions, such as all beneficiaries (or guardians of minors) having to agree on a sale. As long as a trustee approval agreement is made, home sales can occur in any method. 

Prepare the home for sale

Preparing for trust sales of real estate assets may look a little different depending on which route you take. In either scenario, though, you will have to obtain the necessary legal documents. The relevant info when selling trust property in California is detailed below. 

When opting for real estate agents, you will need to consider the necessary repairs before it can be listed on the property market. If the repairs are significant, it may be better to look at the prospect of a cash sale. Aside from saving time and hassle, this is often the best option from a financial perspective in this situation.

Contact a real estate agent or experts

When selling real estate in a trust, you will also need to call an expert. A real estate agent will help with marketing the property if this route is taken. However, you can also sell trust property assets through a cash home buyer service, who can also take care of issues like using the right escrow company. While 350,000+ properties are sold in California from Long Beach to Anaheim annually, the direct route is often preferred in this situation. 

California requires careful planning, especially when you want to sell property effectively while serving the best interests of all relevant parties. Whichever route you take, it’s important to contact a team that will offer a professional appraisal and a transparent service.

legal way to sell a house in a trust in CA

Legal Requirements for Selling a Trust Property in California

The legal requirements for selling a trust property demand a lot of attention, especially as you will be inexperienced in this type of sale. You must ensure compliance with California’s legal authority if you want the sale to be finalized and beneficiaries to receive their sale proceeds. 

In California, the following legal documentation and compliance requirements must be addressed depending on the sale process used:

Selling With the Trustee

The legal requirements for selling a trust property are easier with a trustee than without. The property is sold to a third party with the funds being added to the overall trust, which can then be distributed as per the specific instructions of the trust document.

Most courts allow trustees to sell properties unless the trust states that the asset should not be sold. When selling with the trustee, you will need;

  • The trust document to confirm that you have the right to sell the property. A trust certification in California can also be handed to a third party who works in good faith that trustees are operating as per the trust agreement. 

  • The trust certification in California, signed by a trust attorney.

  • A California deed of trust, which is essentially the mortgage that must be cleared with the sales proceeds.

  • The grantor’s death certificate.

  • The trustee’s tax ID number.

As well as verified documents, you will need to work with an expert capable of providing professional guidance in reaching an agreement for all parties. The sale proceeds will then be added to the trust funds, which are distributed as per the trust instructions.

Selling Without the Trustee

Although a little complicated, selling without the trustee is an option available for California trust real estate sales, especially if the asset is intended for a single beneficiary. In this instance, you will need;

The trust documents to confirm that the legal title can be transferred.

Agreement from the trust, in writing.

A deed form from the trustee, which will then be filed to officially transfer the title.

Once this has been finalized, the beneficiary will be free to sell the asset with a real estate agent or direct cash home buyer. They can subsequently use the funds as desired, either for themselves or shared with others.

solutions for selling a house inherited in a trust

Challenges and Solutions When Selling

Many sellers experience challenges selling a house in a trust, and not only because of the legal challenges mentioned above. Here are some of the most common problems when selling a house in California that is a trust asset:

Beneficiary disagreements

Beneficiary disagreements are most likely with a testamentary trust but you could experience these or trustee disagreements at other times. Having an impartial agent speak with all parties to lay out the possible solutions should allow everyone to find their way back to the same page. 

Property valuation disagreements

Disputes on the property value are another potential issue, especially as potential buyers often want to negotiate offers through their real estate agent. A professional appraisal and valuation service allows you to determine the value. A quick house sale will give you a fair price based on this while also helping you avoid fees like marketing. 

Legal document issues

As stated above, it is imperative that you have all documents ranging from a death certificate to trust certification. Given the emotions and stress experienced at this time, mistakes can easily happen. Working closely with an experienced team who can use their experience and remove the emotional attachment is advised. 


Delays in property sales aren’t limited to selling a house in a trust. Potential buyers may be waiting on the sale of their properties. Similarly, California Civil Code 1102 means you have to disclose potential issues with the property while any repairs or curb appeal updates could hold you back further. A quick sale within seven days will remove those problems.

showing the easiest way to sell a house in a trust

Conclusion: Selling Trust Property with Premier Property Buyers

Selling property in a trust in California is a process that requires professional guidance if you wish to enjoy a streamlined process. From checking the necessary documentation to factoring in any special considerations, there are several steps involved as you look to achieve the best result for the named trust beneficiaries while simultaneously respecting the dearly departed’s wishes. 

However, you’ll also want a convenient process with a fair sales price. Frankly, selling property without the need for a real estate agent is the preferred solution as it allows you to draw a line under the process without waiting months for a sale or using open houses in an attempt to sell your house in a trust quickly.

For a better solution, it’s best to work closely with a local cash buyer like Premier Property Buyers. You are guaranteed a quick and convenient sale at a fair price while our experienced professionals can help you navigate the legal minefield of selling property in trust agreements. Crucially, our local knowledge of California law will serve your best interest whether the asset is in Anaheim, Long Beach, Hollywood Hills, or any other part of Southern California.

For a free no-obligation offer and a stress-free sale process, contact Premier Property Buyers now. Your trust property could be sold within 7 days!

Property Tax Assessed Value vs Market Value Difference Explained

Property Tax Assessed Value vs Market Value: The Difference Explained

Indeed, your property’s tax-assessed value is likely to be higher than the market value for reasons that will be explained in detail below. To find out more about this disparity, how it can impact your financial well-being, and how you can gain a more accurate valuation read on.

Appraised value vs market value in california

What Is The Difference Between Market Value In California And Assessed Value?

In California, as in other states, the market value of your property is not the same as the assessed value.

This is because the assessed value is a figure set by local California county government tax assessor-collectors to calculate property tax. However, the market value of your property is based on a range of different factors such as the demand for properties like yours in your specific Californian location, current interest rates in California, and the state of the property market and economy overall.

The Assessed Value Of A Property

The purpose of the assessed value of your property is to make sure you are paying a fair tax rate compared to others in your location. It is separate from the market value of your property in that it is used solely for this purpose.

However, in states such as California, there can be a link between the assessed value and market value in that they take the purchase price and then add 2% each year.

The assessed value of your property is based on aspects such as where it is located, how good a condition it’s in, and what other comparable properties are selling for in your area.

The major issue with the assessed value that many property owners find is that it’s in the government’s interest to inflate it as much as possible. The reason for this is that with higher assessed values, governments can charge inflated property taxes and generate more revenue.

Sadly, this can cause some distinct problems for the homeowner including issues such as:

  • Leading them to sell their property at the wrong time
  • Leading them to overprice their home – which can result in more sales taxes as well as slower sales
  • Disappointment when it comes to market valuation amount

The good news is that if you are looking for a fast, fair offer on your California property with minimal costs, working with a property buying service can help. Find out more about property buying services in California here.

The Market Value Of A Property

The market value of a property represents how much a buyer is prepared to pay to buy it. Having an accurate idea about the market value of your property is crucial because it allows you to make savvy financial decisions. For example, if you know that the market value of your property is high, you may consider selling and making a good profit. In contrast, if you notice your market value is lower than other properties in your area, you could consider adding improvements to raise it and provide a better return on your investment.

Elements that are integral to establishing your property’s market value include how healthy the economy is overall, how in-demand your type and condition of the property are, and what the current interest rates are like.

Why Is Knowing The Difference Between Market Value And Assessed Value Important?

Understanding these differences is vitally important for the property owner because if they base their financial decision on the wrong value, they can end up losing a significant amount of money.

For example, if you use your market value to predict the amount of property tax you will owe, you may budget less than you will need. Similarly, if you use your tax-assessed property value to estimate how much to sell your home for, you may end up pricing it too high and miss out on valuable viewings and sales. Indeed, market value and assessed value can be closely linked with the latter actually impacting the former. This is because high assessed values may lead property owners to price their homes high and so drive down interest and market value. negatively impacting the true value of their home.

How To Find Out The Market Value Of Your Property?

While knowing the factors on which the market value of your property is based is useful, you cannot accurately estimate on your own. Instead, you will usually need to work with a licensed real estate professional.

how to find the market value of your california property

The Purpose Of Tax-Assessed Value vs Market Value

The two property values are different not only because they are used for different purposes. The assessed value of a property is used to establish the amount the owner owes in property taxes. Whereas the market value is used as guidance for how much the owner should set as the selling price, as well as the amount they could get if they refinanced.

Indeed, assessed value and market value are not the same things. But they can impact each other. That is why it’s so crucial that any property owner has an understanding of both and what they mean.

Criteria for Market Value vs Assessed Value Determination

Not only are market value and assessed value designed for different purposes, but they are also based on different criteria, and determined by different professionals. Market value can be determined by a real estate professional, and is based on factors such as the current property market, and what people are likely to pay for a specific property in that area. Of course, these things will also be influenced by the economic market overall. For example, if the economy is in recession then market values will be down because fewer people in employment means fewer people can move and so the demand for homes is reduced.

When it comes to the assessed value, a qualified tax assessor values property, not a real estate agent. A tax assessor will consider things like the location of a property, with nicer areas usually being charged higher, as well as the condition of the property and how much similar homes are being sold for in the area. Again, homes that are sold for more and that demonstrate higher quality are likely to be assigned a higher assessed value.

Calculating Your Own Property Tax Assessment vs Market Value

While it is possible to get an idea of your property’s assessed value and market value without engaging professionals to do it for you, it can be complicated and so is not usually advised.

However, if you want to establish an estimate for your property’s assessed value then you can use a comparative market analysis or CMA for this purpose. A CMA will allow you to get an idea of the assessed value of your property by comparing it to the other assessed values of properties in your area. When doing this you must remember to account for things such as your location, the condition of the property, and the value of comparable properties in the area.

To establish an estimate of the market value of your property without consulting a real estate agent ( although it’s often better to consult 2 or 3 real estate and then take a mean calculation), you can use an online calculator tool such as this one.

However, do remember that it will be an estimation and nothing more than calculating a property’s market value is a very complex, and often ever-changing process and there can even be fluctuations even when professional real estate agents do it.

Comparing Property Tax Assessment vs Market Value

Knowing your property tax assessment value and your market value will allow you to make sounder decisions when it comes to financial planning including when to sell, or renovate your home, as well as how much to budget for your tax bill.

You can also compare both values to one another to establish whether the profits if you choose to sell your property will be optimized. For this, your market value needs to be higher than your assessed value. However, because every home and location is impacted by multiple factors, such a calculation is more of a guide than a guarantee.

The Assessed Value Of Your Property And New Construction And Improvements

New Construction or Improvements

Adding new construction or improving your property can add value in terms of tax assessment. However, replacements or repairs that are structural will not be included in this calculation. New construction and improvements’ appraised values need to be determined by a certified inspector.

Property Improvements Are Assessed Separately

Additionally, when it comes to the assessed value and improvements it’s important to note that the value for the improvements will be assessed separately to the value of the pre-existing property. Indeed areas that have not been improved will be valued in line with the initial sales price, plus the two percent increase every year.

Implications Of Buying Or Selling A House Below Market Value

f the assessed value of a property is lower than its market value, it may lead you to sell or buy for less. However, there are tax implications for this as you will discover, below. 

What Are The Tax Implications Of Selling A House Below Market Value?

If you choose to sell a property under the market value, some of the value of the property that you are giving away is considered a gift. This means you could be vulnerable to paying federal taxes on it and so it could end up costing you a great deal.

Is Buying A House From A Family Member Below The Market Value A Good Idea?

Similarly, if you are on the other side of the deal when someone such as a family member sells you a property at below-market value you will still be liable for any tax consequences. The current limit for these equity investments is set at $50,000 by the IRS. This means if you go above this you will need to pay tax on the equity.

Conclusion: How Does Market Value vs. Assessed Value Impact On Property & Financial Decisions

While it is confusing to have to deal with two different types of home value, it is crucial to have a clear idea of the two often different values of your property, as it can help you make sound financial decisions.

Knowing the market value of your property is crucial because it will provide you with information you need to know before you consider selling or renovating your property. Knowing your assessed value will help you better plan for your property taxes, and ensure there is no shortfall when the time comes to pay them.

However, in states where assessed value is inflated, property owners need to be mindful that there can be a significant difference in these two values. This is particularly important when it comes to selling their home because they can expect more than is reasonable and this may negatively impact their finances in several ways including disappointment in the true market valuation of their home.

Market Value In California Vs Assessed Value FAQs

knowing the difference between assessed property value and market value

Are Assessed Value And Market Value The Same Thing?

No! Tax-assessed values and market values are not the same things. They are assessed by different officials and have different purposes.

How Much Difference Is There Between Market Value & Assessed Value?

Market value and assessed tax value usually differ up to 20%. Market value tends to be higher, but property owners should watch out for assessed values inflated by the government which can confuse matters. Indeed, it is important to remember here that assessed value is used solely to determine property taxes and does not reflect the true value of a home.

Does Tax Assessment Impact Property Value?

Yes, while assessed value does not typically reflect the true market value of a home, it can influence it. For instance, properties with lower tax-assessed value may encourage more buyers. This can drive the market value up and lead to more profits.

However, when a property has a high tax assessment rate it can discourage buyers. This can decrease the demand, and so drive the market value down, and negatively impact the owner.

On the other hand, properties with lower taxes have the potential to attract more interested parties. buyers. This can drive up the market value of a property and so positively impact the owner. 

How Much Are Closing Costs When Selling a House for Cash in California?

How Much Are Closing Costs When Selling a House for Cash in California?

Closing costs are a major consideration in most home sales in California. They usually cost around 2% to 5% of the sale price, with sellers picking up most of the tab. In recent times, that has meant an average cost of $7,953 in California.

But the good news is that when selling a house for cash, these closing costs don’t apply. You read that right – closing costs are zero when you sell a house for cash. Why is that the case, and what other costs could you save by selling a house for cash?

Let’s explore the answer together.

how much are closing costs in california

Closing Costs When Selling a House for Cash

Selling a house for cash could sound like a strange decision. After all, California is known as a seller’s market that enables people to get top dollar for their homes. This sounds great, but there are lots of hidden costs to factor in.

For example, if you sell using a regular realtor, you will have the following costs to pay:

  • Closing costs are often around 2% of the sale price
  • Commission and fees can amount to 6%
  • The national average cost for appraisals is $500

The difference when you sell a house for cash is that the company buying it simplifies everything for you. There is no need for an appraisal — they buy the home as-is. They will also pay all the closing costs.

What this means for you is that the price they offer is the price you pay. This is true regardless of whether your house is worth a million dollars or somewhere south of that.

Closing Cost Breakdown

It’s easy to bandy about the term “closing costs,” but what exactly are they? A quick breakdown will help you see how much you save when selling a house for cash.

Commission Fees

California realtors do not come cheap. Fees vary, but you can usually expect to pay 5% to 6% of the sale value of your home in commission alone. 

Title Insurance

Most buyers will ask for transfer insurance to protect themselves if there are issues with the title. This may cost as little as a few hundred dollars but can quickly reach the $1,000 mark.

You can save yourself these costs when you sell a home for cash, as the buyers take it as-is.

Transfer Tax

Currently, California property owners must pay a tax to transfer ownership of the property. This tax could run to around 0.11% of the sale price. It is not as costly as other closing expenses but will add to your burden.

Recording Fees

Recording fees are charged by the city or county where your house is located to record the real estate transaction. These fees are usually relatively low, often costing around $200.

These are just headline fees; depending on your home’s location and value, there may be others.

who pays closing costs in california

The Benefits of Selling a House for Cash

Most of the time, we probably want to sell our homes the hard way. It’s time-consuming and stressful, but it may give us the best chance of securing a high price for our homes. However, there are times when it’s just not the best option.

Selling a house for cash can save you a lot more than just the closing costs.

Get Your Cash Fast

You may be in the process of divorcing and want to move on with your life. You might have inherited a home that is now a burden rather than an asset. These and many other scenarios may lead you to decide it’s best to cash out your house as quickly as possible.

When you work with a property-buying service, you can get an offer within a day. After that, you can close in around a week or choose another date that works for you. Because there is no financing to arrange for the buyer, there is less pressure to close within their timescale.

That means that within one week, you could bring an end to:

  • Mortgage repayments
  • Property taxes
  • Utility bills
  • Insurance payments

You may be able to use the cash to settle outstanding debts or start a new life elsewhere. It’s up to you what you do with the money.

No Need to Carry Out Repairs

Home repairs can be costly. You may have bought your home and planned to fix it, but that’s no longer realistic due to a change in circumstances. Or you may have gotten older and can’t face the stress of fixing it up again.

You may know that before an appraisal, your home would need serious work.

Whatever your reasons, they will take care of everything when you sell your home to a cash-for-home service. As soon as the sale is completed, their crew will assess the property and make any needed repairs. Once it has been fixed up, they will relist it.

No Stress

Sometimes, you just need a stress-free way to sell your home. It’s tough to relax when you sell your home using the conventional route. You have to keep your home looking its best day in and day out, just in case someone wants to view it.

You will have to clear out when the realtor wants to show someone around. Then, you might get involved in protracted negotiations and have to wait for surveys. Many buyers drive a hard bargain; if you back out, you’re back to square one.

Selling a house for cash may not be the best way to get the most money for your home, but the pros can outweigh the cons in many situations.

selling house for cash to reduce closing costs

Sell Your Home to Premier Property Buyers

We understand that selling a house for cash is a huge decision. However, the closing costs and other expenses soon mount up and eat into your profit. When you sell a home for cash, you have zero hassle and can get your cash fast.

At Premier Property Buyers, we will give you cash for your piece of California real estate and close within just 7 days. You’ll be able to move on with your life without lifting a finger in repairs or paying a penny in closing costs.

First, Compare the costs, second, check out all the areas we buy houses for cash then, contact us for a cash offer for your home today.

How Much is California State Tax on Selling a House?

How Much is California State Tax on Selling a House?

The average sale price of a home in California is expected to hit a staggering $860,300 in 2024. That’s a lot of dough, and if you’re fortunate enough to own a piece of California real estate, then selling a house could lead to a big payday. That may sound exciting, but that’s before both the Golden State and Uncle Sam take a bit out of your profits.

Along with closing fees, realtor costs, and the cost of getting your home shipshape, the state government could also hit you where it hurts. However, it is important to take a closer look at California state tax before you decide that a property sale is more hassle than it’s worth. 

We’re going to take a closer look at the biggie – capital gains tax – plus the smaller documentary transfer tax. We’ll see how each affects California homeowners looking to move on.

california real estate taxes

Capital Gains Tax in California

Anyone who profits when they sell a home in California may have to pay the state some capital gains tax. Capital gain refers to the difference between the purchase and sale price of a home. You will never have to pay capital gains tax on the full sale price of your home.

For example, if you bought your home for $100,000 back in 2002 and decide to sell it for $300,000 in 2024, you would have a capital gain of $200,000. 

Like the IRS, California allows you to exclude a certain amount of the capital gain if the home was your principal residence. To qualify as such, you must have owned the home for at least two years. Additionally, you must have lived in it for at least two of those years.

When You Do Not Have to Declare Your Gain

California allows for an exclusion if your gain is below a set threshold and meets other criteria. In addition, there are different reporting rules for individuals and married couples/registered domestic partners (RDPs).

Individuals do not have to pay capital gains tax on the sale of California real estate when all of the following criteria apply:

  • Your gain (not the sale price) was less than $250,000
  • You can not have used the exclusion in the previous two years
  • You have owned and lived in the home for a minimum of two years

If any one of these does not apply, you will have to pay capital gains tax.

Married couples and RDPs can benefit from an exclusion if the following applies:

  • The gain was below $500,000
  • The couple filed a joint return for the year of the sale
  • Either spouse/RDP fulfills the two-out-of-five-year ownership requirement
  • Both spouses/RDPs meet the two-out-of-five-year occupancy requirement
  • Neither spouse/RDP used an exclusion from the sale of another home in the last two years

If you do not meet any of these criteria, you may have to pay capital gains tax.

Reducing Your Capital Gains Tax Bill

A capital gains tax bill can leave you in tax shock. However, there are some strategies to reduce or eliminate your tax liability. 

One is a 1031 exchange. This may allow you to sell an investment property and buy another of equal or greater value without paying capital gains tax. A Deferred Sales Trust (DST) may be another option.

Federal Capital Gains Tax

In this article, we’re only focusing on California state tax. But it’s important to factor in federal capital gains taxes as well. In many cases, you may be able to benefit from principal residence and other exclusions and not have to pay any tax.

If you do, there are three levels of federal capital gains tax: 0%, 15%, and 20%. These levels vary depending on your taxable income. Crunch the numbers and talk to a tax professional for specific advice on your situation.

california capital gains tax when selling a house

California Documentary Transfer Tax

Counties and cities in California impose a Documentary Transfer Tax on documents that convey real property. Simply put, to transfer your home to another party, you have to pay tax.

This is made up of two parts:

  • County rate: Set at $1.10 per $1,000 of the sales price
  • City rate: This varies from nil to several dollars per $1,000 or a percentage rate based on the sale price

While this is usually a relatively low tax compared to other closing costs, it’s still an important consideration. If you decide to sell a home for cash, talk to the homebuying service about who will pay these costs.

Paying Taxes on an Inherited Home

If a loved one is kind enough to leave you their home in their will, there’s a strong possibility you’ll be looking to sell it. Selling a house for cash is a hassle-free way to get your money fast. However, it raises the question of whether you will have to pay estate taxes or any other taxes on these funds.

The good news is that the federal government does not charge estate taxes on most estates. As of 2024, the exclusion stands at $13,610,000. We’re guessing that this will apply to most people reading this!

Estate Taxes in California

There are no estate taxes in the State of California, which just leaves the question of capital gains tax. This will only be charged on any increase in value from the date you inherited the house until the date you sell it. For example, if the house was worth $250,000 when you inherited it and $270,000 when you sold it, the taxable gain would be $20,000.

Whether you pay capital gains tax on this and how much would depend on how long you have owned it, the exclusions mentioned above, and your personal tax rate.

california state tax on real estate sales

Selling a House Just Got Easier

Selling a house for cash may not eliminate your tax burden, but it can reduce practically every other cost. Sell your home to Premier Property Buyers, and you will pay no commissions, closing fees, inspection, appraisal costs, or appraisal-required repairs. You will get an immediate guaranteed cash offer and could close within a week!

We realize that selling a house is a bit of a decision. That’s why we’re upfront about our offer, giving you time to crunch the numbers to see if they work for you. If not, you can walk away with absolutely no obligation.

Why not find out how much you could get for your home? Learn more and fill out our online form for a fair offer today!

Can I Sell a House With Unpermitted Work or Open Permits in California?

Can I Sell a House With Unpermitted Work or Open Permits in California?

Have you recently received an offer on your California home only to have the deal fall through due to unpermitted work?

This usually happens during a buyer’s home inspection when the inspector discovers work that isn’t up to code or hasn’t been signed off by a licensed home inspector.

You can sell a home with unpermitted work in California, but the process takes longer and is more complicated than usual. Read on to discover the implications of selling a home with this particular problem.

selling house with open permits in california

Defining Open Permits and Unpermitted Work in California

California has strict building codes to ensure the safety and well-being of homebuyers. These laws extend to home improvements, too.

When you perform significant upgrades to your California home, you must get a building permit before you commence. Once you’ve completed the renovation, a certified home inspector must confirm that the work complies with the relevant building code.

There are three main instances where home sellers might end up in a situation where they are trying to sell a house with unpermitted work:

  • The owner did unpermitted DIY work on the home
  • A contractor did unpermitted work on the home
  • The work was done to code, but regulations have since changed

What Is an Open Permit?

A permit is considered ‘open’ until an inspector approves the work. Each city has different time limits for this, depending on the work in question. 

Open permits usually result from one of the following issues:

  • The contractor never closed the permit
  • The contractor did not complete the inspection process correctly
  • The city did not mark the permit as closed on the system

Sometimes the seller might be unaware of these problems until they try to sell their home.

can i sell a house with unpermitted work in california

Risks and Challenges

If you’re aware of any permitting issues with your home and don’t want to resolve them, you can sell it as-is. You must reveal any permitting issues in the sellers’ disclosure, so the buyer has the information they need to decide whether they want to proceed with the sale or not.

Inevitably, unpermitted work will decrease your property value, and buyers will likely have difficulty convincing a lender to give them a mortgage.

To avoid this, you can obtain a permit for completed projects from your city retroactively. This can be a costly affair and may lead to fines for a code violation.

It usually involves hiring a contractor to bring the improvement up to code so a building inspector can close the permit.

Failure to disclose unpermitted work or open permits when selling your home is fraud. As such, the buyer could sue you for all the costs involved in rectifying any issues with the property.

It can be challenging to find buyers who are willing to take on the time and effort to bring a house up to code. 

Market Perceptions

Apart from the effort and cost involved in buying a home with unpermitted work, safety concerns can affect buyer decisions.

Buyers are hesitant to commit to a house that doesn’t comply with current building codes due to concerns for the safety of their family. After all, these standards exist to ensure that buildings are habitable and safe.

In this light, buyers might regard you as untrustworthy if you’re selling a home with unpermitted work.

Selling Solutions

Lenders always insist on home inspections before granting a mortgage to any buyer, and homes with unpermitted work or open permits won’t pass these inspections. That means you won’t be able to sell your home to a traditional buyer until you’ve rectified these permitting issues.

Private cash buyers might consider buying a home as-is with unpermitted work, but you can expect them to make you a low offer to make up for their anticipated costs.

Your final option is to sell your home to cash home buyers in California. These property investors buy homes in any condition, repair them, and sell them at a profit.

They don’t need a mortgage and, thus, don’t require a home inspection.

Cash Buyers vs. Traditional Home Sales

The major difference between selling your home to a cash buyer instead of via traditional means is time. Cash home buyers have the resources to take your unwanted home off your hands immediately and deal with the red tape later.

When you sell your home via conventional means, you can expect to encounter long delays and much red tape while trying to bring your permitting paperwork up to date.

In some cases, you might need to hire a contractor to demolish the unpermitted renovations and rebuild them. This will cost you a lot of money, even if you do manage to avoid paying any fines.

If you decide to sell the home as-is, you can expect to wait a long time before you find someone willing to buy a home with unpermitted work, and you can expect several rounds of negotiations before you settle on a price.

When you sell a home to a cash home buyer, the process is simple, transparent, and quick. They make an offer on your home, and if you’re amenable, they can close in just a few days.

You’ll still get an offer that is below market value for your home, but you’ll save on the time and cost involved in resolving permitting issues before the sale.

Premier Property Buyers

Premier Property Buyers is a reputable cash investor willing to offer you a hassle-free sales process. We can help you achieve a quick sale by avoiding the need for repairs, permits, and inspections. 

Our fast cash offers and flexible closing dates ensure you experience a smooth sales process with no stress or worries. Find out more about how it works or call us at (714) 475-7526 to discuss your needs and receive an off

selling my house as-is with no permits

Premier Property Buyers Can Help You

While attempting to sell a house with open permits or unpermitted work in California, you’re bound to come across significant obstacles. These include hesitant buyers, reduced property value, extra costs, and potential legal challenges.

If you need to sell your house fast in California and you’re encountering any of these difficulties, there is a solution.

Premier Property Buyers offers a reliable and stress-free alternative to traditional sales. Reach out today for a no-obligation offer on your California home.

Navigating Squatters Rights in California & Selling Your Property As-Is

Navigating Squatters Rights in California & Selling Your Property As-Is

Property owners in California expect protection under the law. However, when squatters move into their homes (or those of their loved ones), that belief can disappear. Adverse possession laws and squatters rights mean that lawful owners can sometimes find it challenging to get rid of people on their properties there illegally.

Worse still, going through the legal process to evict squatters is challenging. Many homeowners are successful, but it can take months.

Therefore, many property owners exercise the option to sell as-is to cash home buyers when dealing with squatters. This approach releases capital immediately and avoids the nightmare of having to deal with California’s unfair property laws.

This blog begins with a section explaining squatters rights in California and how they can claim adverse possession. We discuss the legal protection the state offers the original property owner before moving on to how to deal with squatters on your property. Finally, we look at how you can sell your property to a cash property-buying company to exit your investment fast and free up your money.

squatters rights in california

Understanding Squatters Rights in California

Squatting is against the law in California. However, the government still affords some squatters rights, much to the distress of property owners.

The law defines squatting as when someone occupies an abandoned, uninhabited, or vacant property they don’t own or live in without the owner’s permission. The crime combines trespassing with residing in someone else’s property illegally.

Even so, squatters have rights in California via adverse possession claims. These allow them to gain legal ownership of property if they meet the state’s criteria. Squatters can use legal methods to transfer property ownership away from you.

Fortunately, the state puts up some barriers to prevent squatters from exercising their legal rights immediately. Illegal occupants must fulfill various criteria before the state will let them claim legal ownership.

First, a squatter in California must prove continuous possession for five consecutive years. Failing to show a full history undermines their case.

Second, they must show exclusive possession. This means that they must be the sole occupant, not be in a rental agreement, and not share with legitimate tenants.

Third, the squatter must pay property taxes during their stay. The state requires them to behave like a conventional California property owner to gain ownership.

Finally, squatters can help their case by improving the property in some way. For example, if they improve rental properties as holdover tenants, that might bolster their case.

Meeting these requirements set out in real estate law lets squatters make an adverse possession claim. If the courts agree to the claim, they may transfer the title from the actual property owner (you) to the squatters.

In summary, here are some of the specific continuous possession requirements over five years:

  • Hostile possession – the squatters must not pay rent or own the property and live there without the owner’s consent
  • Actual possession – the squatters must physically reside in the property
  • Exclusive possession – the squatters must not share the property with renters or use the property as a rental property
  • Continuous possession – the squatters must remain living in the property continuously for five consecutive years
  • Open possession – the squatters must not try to hide that they are living on the property (sometimes called notorious possession)

Identifying Squatters and Legal Responses

Finding squatters in your home or discovering an adverse possession claim against you can be distressing. However, you can take action to protect your property rights.

The first step is to identify whether you have squatters on your property. This process can be surprisingly challenging as many unauthorized inhabitants try to conceal their occupancy and blend in.

Start by inspecting your property for unauthorized entry. Check broken windows, damaged doors, and evidence of people bypassing security measures. If you use a property management company, ask them if they have seen anything untoward. (The best management companies secure your vacant property and check it periodically for squatter-related issues).

Sometimes squatters set up properties as informal addresses. Therefore, look for evidence of mail in the mailbox (if there is one), trash outside, and furniture you don’t recognize.

Check utility usage at the property. High water, gas, and electric bills would indicate squatters are inside.

Finally, look for people you don’t recognize going to and leaving the property. Vacant properties are a prime target for potential squatters, even if you have rightful ownership.

If you believe you have squatters on your property, don’t confront them directly. Unfortunately, squatter’s rights in California could mean you are breaking the law if you try to evict them. Instead, try a softly-softly approach at first, backed up with legal action if necessary.

Here are some things you could try:

selling a house with squatters in los angeles county

Talk To The Squatters

The first step is to talk to the squatters and offer them something in return for leaving. Many property owners bite the bullet and simply pay them to leave, which they sometimes will.

This approach seems like capitulation, but it is often the most effective. It reduces stress and cost, helping you reclaim your property ownership faster.

Before you pay any money, seek legal counsel. Find out which strategies work best and how to prevent disaster when squatters claim adverse possession. Check you don’t break any squatter’s rights that could cause legal headaches.

Transition The Squatter To A Tenant

Another option is to transition the squatter to a tenant. This approach can reduce the risk of a hostile claim and help you get paid simultaneously.

But be careful. Squatters in California are unlikely to pay rent consistently (if at all). Furthermore, you might set a precedent. Other squatters might try to move into your properties if they believe they will become tenants.

If you have holdover tenants in the property, you could extend their tenancy agreement, particularly if they paid you in the past. Even if they don’t have the legal right to stay according to your contract, getting them to continue making payments can help you maintain the profitability of your rental property.

Serve An Eviction Notice

If the gently-gently approach fails, serve the squatters an eviction notice with proper notice. This legal document tells them when and how they should leave.

If they don’t leave, you can take the eviction process further by going to court. Judges will evaluate the situation regarding your property and hand it back to you, using force if necessary.

Initiate An Unlawful Detainer Lawsuit

Another approach is to initiate an unlawful detainer lawsuit. This legal mechanism gives squatters in California three days to vacate a property before being evicted by hand.

Filing an unlawful detainer suit with the court is something you can do to evict people living on your property unlawfully. However, always use an attorney to guarantee you follow the proper legal procedures.

It is also costly. Following all your legal obligations when dealing with adverse possession often means paying thousands of dollars to a legal professional, which doesn’t seem fair if you are the actual owner.

Selling a Property As-Is with Squatters

Another option most people don’t consider is selling a property with squatters as-is to companies like Premier Property Buyers. Taking this approach lets you bypass adverse possession claims and squatter’s rights in California, and get out of the asset fast.

Here are some additional benefits:

  • Avoid the eviction process. Removing a squatter claiming adverse possession can be challenging at the best of times, particularly if they don’t want to leave. The eviction process can be lengthy and expensive, reducing the value of your investment (and sometimes your capital). But when you sell to companies like Premier Property Buyers, you avoid all the hassle. Any evictions become the third party’s responsibility.
  • Reduced renovation burden. You also avoid the burden of renovating the property once you evict the squatters under California property law. You don’t have to fix the plumbing, remove the trash, or wash the carpets. It’s no longer your responsibility.
  • Stop paying property taxes. Finally, once you transfer the property to a third party, you no longer have to pay property taxes, including municipal taxes. That becomes the responsibility of the new formal owner.

Of course, you don’t have to sell your property. As the property owner, you are within your legal rights to fight squatters taking advantage of adverse possession laws. However, that can be challenging and selling is an excellent way to quickly exit your property investment and use the funds for something else.

The price a property-buying company offers for your property will be lower than the market price because they will need to deal with the squatter issue. However, you will still get back most of your capital (which you can then use for more profitable investments).

Property-buying companies assess properties affected by adverse possession in California by considering factors that affect valuation. These include the strength of the adverse possession claim and whether squatters are using the property exclusively, the damage done to the property, the cost of maintaining California squatters rights, and the length of the eviction process. The lower these costs are, the more money you will receive.

The Process of Selling Your Home As-Is to a Cash Buyer

The process companies use to assess properties with squatters in California follows several steps:

Step 1: Contact the property-buying company

The first step is to contact the property-buying company. Providing them with ample information about your adverse possession case will help them determine whether they can purchase the property and speed up how fast you get back the capital tied up in the building.

Step 2: Get A Property assessment

The next step is to assess the property’s market value without squatters present.

Valuers start by considering comparable properties in the area in a similar condition. This assessment gives them a baseline for what the property is worth without squatters in it.

Next, they consider the squatter situation. Where the adverse possession claim is weak, the risk is lower and the value of the property is higher. However, if squatters have been there for a long time without lawful permission and pay their property taxes on time, then the value of the property will be lower because they may have a valid adverse possession claim.

At the same time, third-party property-buying companies consider eviction costs. Considering squatting laws and adverse possession rights helps them determine how long getting rid of the squatters will take and the expenses involved. Fortunately, third-party property-buying companies know the law and understand the process better than most California property owners. That means that they can remove squatters faster, potentially saving existing property owners money, even if they offer a lower amount for the house.

Finally, cash property-buying companies must consider estimates for repairing the property, if damaged. Squatters can wreck interiors, forcing high clean-up costs. Again, this damage will reduce the cash offer for the property you receive.

Step 3: Get An Offer

The third step is to make you an offer, considering the adverse possession claim, any property taxes paid, and squatters rights. Usually, you will receive a discounted price below market value. The size of the discount will depend on the squatter issue.

Step 4: Close The Deal

Finally, you will close the deal. The goal of the property-buying company is to provide you with cash upfront to get out of your property investment fast. Getting a quick sale lets you move on with your life and forget about the squatters altogether.

evicting squatters from a house in california

Preventative Measures Against Squatters

While selling your property for cash is an option, the best approach is always to prevent squatters from residing in your property in the first place. To do this as a legal owner, you need to protect your home. You can do this by:

  • Making your buildings look live-in
  • Securing the property with robust locks
  • Addressing any weak points, such as broken windows
  • Getting neighbors to call you and report any suspicious activity immediately

Even simple actions can discourage squatters and force them to look elsewhere.

Case Study: Squatters Move Into Family Home

A man from San Diego inherited his mother’s home after she died. Since he didn’t need it, he planned on selling it.

However, California squatters took actual possession of the property while he was on vacation. When he returned from overseas, he tried to remove them, but the police and courts would not act quickly.

Consequently, he called a property-buying company. They gave him cash for the residence, helping him liquidate his mother’s estate and leave the squatter problem to professionals.


Now that you have read this blog, you should have a better understanding of how straightforward it is to sell a home as-is, even with squatters in it. Cash property-buying companies, like Premier Property Buyers, can help you cash out of challenging circumstances where dealing with people illegally on your property is too much stress and hassle. They have expertise in removing squatters and dealing with adverse possession in California, helping property owners like you reduce stress and worry, and get on with life.

Selling a House After a Loan Modification in California

Selling a House After a Loan Modification in California

In 2023, $13.6 billion over 441 loans we modified. Selling a house can be a stressful process, especially if you’re a part of the $13.4 billion selling a house with a loan modification in California. The mortgage crisis and market volatility have made it difficult for homeowners to sell their properties through traditional financing options.

However, there is an alternative approach that can help you sell your home fast and avoid the complications associated with traditional financing. We will explore the benefits of selling your house as-is for cash after a loan modification in California and see how cash home buyers will help you.

selling house after loan modifcation

Speedy Sale Process: Sell Home Fast California

After a loan modification, one of the key advantages of selling a house as-is for cash is the speed at which the sale can be completed. Unlike the traditional home selling process, which involves appraisals, inspections, and lengthy negotiations, selling for cash allows you to bypass these time-consuming steps.

Cash home buyers in California are experienced in fast transactions, enabling you to sell your property quickly and move on with your life. This is a huge perk after the stress of a loan modification. Especially if you’re in financial trouble.

Avoiding the Hassle of Appraisals With a Mortgage Modification Home Sale

Appraisals are an integral part of the traditional home-selling process. However, selling as-is for cash eliminates the need for appraisals. After a loan modification, it’s essential to sell without one.  

When you sell your house for cash, the buyers are not concerned about obtaining an official appraisal because they are purchasing the property in its current condition. This means that any repairs or updates required by an appraiser can be avoided, saving you time, effort, and potentially costly expenses.

You don’t have to worry if your house appraises for less. A cash investor takes this all into account. We have the end goal of buying your home quickly.

Flexibility With California Real Estate Market Volatility

The California real estate market is known for its volatility. Market fluctuations can greatly affect the value of your property and your chances of finding a buyer. By selling your house as-is for cash, you can bypass the uncertainties of market fluctuations.

Cash home investors have a clear understanding of the real estate market in California. They are willing to purchase properties regardless of market conditions. This flexibility ensures that you can sell your house for a fair price, even during turbulent times.

selling house

Simplified Process After a Loan Modification

If you have recently gone through a loan modification possibly to avoid a foreclosure, the last thing you want is to deal with complex financing options. Selling your house for cash ensures a simplified process.

Cash home buyers are not interested in reviewing financial documents, credit scores, or loan history. They are primarily focused on the property itself, allowing you to sell your house without any complications associated with loan modifications.

No Need for Repairs With Cash Home Buyers

With an as-is cash sale, there is no need to make costly repairs. You don’t have to spend the time and money on repairing things you would during a traditional sale. This takes off a lot of stress after a loan modification.

With a traditional sale, you’d often go around and make repairs or updates to help your home show better. This means anything from fixing leaks to changing broken light fixtures. You will also have to do this process again after an inspection if repairs come up.

Repairs cost a lot of money and buyers expect the best when they are looking for a new home. This is why selling to a cash buyer, in an as-is sale saves you a lot on repairs. There is no need to coordinate a contractor and live in a construction zone.

Save Time and Money Without Traditional Financing

Selling a home traditionally means getting your home ready for sale, marketing, home tours, lender delays, and more. Traditional sales take months. Even for a new construction home, there are always hurdles.

On a home that needs repairs or a home under financial distress, there are even more delays. When you want to save money and time, an as-is cash sale is your best bet. After an already stressful loan modification and financial hardship, you want peace of mind.

With a sale to a cash buyer, you’ll save a ton of time. You won’t have to deal with buyers coming into your home for weeks on end. You won’t always have to wait for lender approvals and hurdles.

Move on to Your Next Chapter Sooner

After the stress of a loan modification, you’re likely eager to sell. Whether you’re going through a divorce, a death, or a financial hardship, an as-is cash sale lets you move on sooner.

You’ll sell your home quickly and have the cash you need in less time. Give yourself a break and make the sale with a professional cash buyer. We understand that you’re ready to sell and move on to your next chapter.

With the cash from your sale, you can buy or rent your next home and move on with your life. Save yourself stress and time and move with ease. You’ve been through enough financial stress.

sell house cash after loan modification

Call Today to Learn More About Selling House Loan Modification in California

Selling a house with a loan modification in California for cash will provide numerous benefits to homeowners. From the speedy sale process to avoiding appraisals and market volatility, cash home buyers offer a hassle-free alternative to traditional financing. If you’re looking to sell your home fast and avoid the complexities of the real estate market, selling as-is for cash is undoubtedly worth considering.

Premier Property Buyers has years of local California real estate experience. We have real estate professionals ready to evaluate your home even after a loan modification. To learn more and to see what your home is worth in a cash offer, click here to fill out our contact form to get in touch. Let our experts buy your home quickly and with less stress, hassle, and time.

Can You Sell a House With a Reverse Mortgage in California?

Can You Sell a House With a Reverse Mortgage in California?

You can turn to a reverse mortgage if you’re over 62 and need cash. A reverse mortgage provides cash from your home’s equity and doesn’t require monthly payments.

But what if you decide you want to move? Can you sell a house with a reverse mortgage in California? 

Yes. You can sell a house, but you’ll need to learn a few things first. 

Continue reading this guide as we discuss selling a house with a reverse mortgage.

can i sell my house with a reverse mortgage

Basics of Reverse Mortgages

A reverse mortgage is unique in one primary way. You do not repay it through monthly payments. 

Instead, it’s a loan you only repay if one of these apply:

  • You die
  • Sell the house

Reverse loans are only available to older individuals. The primary purpose of a reverse loan is to give a person some cash without inheriting a monthly debt.

You may turn to one if you live on a fixed income and need supplemental income. Acquiring cash from your home’s equity provides a solution to this problem.

It’s also beneficial because you do not repay the money. Reverse loan lenders do not expect the money back until you sell the home. 

How to Sell a House With a Reverse Mortgage in California

The good news is that you can sell a house with a reverse mortgage. You can sell your house anytime. This includes your personal residence or an inherited home with a reverse mortgage.

You must begin by proving ownership if you inherit a home with a reverse mortgage. You can do this through an affidavit of heirship. You’ll already have proof of ownership if the home is your primary residence.

In either case, you may want to begin by evaluating the home’s value. You can look at a recent appraisal or estimated value to see how much it’s worth. Next, look at the reverse loan balance.

Comparing these amounts helps you determine the approximate equity in the house. You must repay the loan balance when selling a house with a reverse mortgage.

reverse loan is a lien. Liens provide legal rights to lenders. Homeowners must satisfy these liens when selling their homes.

The next step is finding a buyer. Unfortunately, many homeowners wait for weeks or months to find a buyer. Once you find one, you’ll spend time negotiating the details.

The buyer may ask you to repair parts of the home. They may ask you to pay for some of their closing costs. You’ll also pay for some closing costs, including the realtor’s commission. 

Then, of course, you’ll have to wait for the buyer and their lender to complete all the necessary steps. After finding a buyer, you’ll likely close the deal approximately five or six weeks later. 

how to sell a house with a reverse mortgage

Considerations for a Reverse Mortgage Home Sale

Before selling a home with a reverse mortgage balance, it’s helpful to consider a few implications. Here are several:

Equity and Profit

As mentioned, you must consider the home equity and profitability of the house. Look at the home’s current value, then consider all the costs you must pay.

First, you must repay the reverse mortgage balance. Next, you may have to pay for repairs, commissions, and inspections. 

After subtracting these costs, you’ll see the amount you’ll receive from the home sale. There is a cost of selling a house through a traditional sale, often more than you might expect. 

Home Condition and Contingencies

The second consideration is the home’s condition. A traditional buyer might not take the house as-is. Instead, they’ll insert contingencies into the purchase offer.

Contingencies require you to do something. In many cases, they require repairs, which cost money. These repairs affect your bottom line. 

Unpermitted Work

Also, consider if the home has unpermitted work. Unpermitted work refers to projects completed on the house without the proper work permits. 

Selling a house with unpermitted work can lead to roadblocks. Unfortunately, you may be responsible for paying the costs of fixing the issues. 

Options for Selling With a Reverse Mortgage

As described already, you can sell the house through a traditional sale. This process involves hiring a real estate agent to assist. However, there is a simpler option: Sell to a cash buyer.

Cash home buyers in California purchase all types of homes. They pay cash for the properties and can buy houses with reverse mortgages. 

This method is the best option if you want to sell a home fast in California. Here are some reasons people choose this method:

No Extra Costs

While you must repay your liens, which include a reverse mortgage, you won’t pay for anything else. You’ll receive a check for the difference between the offer amount and your loan balance amount.

There are no additional costs involved with a home sale to a cash buyer. 

No Work Required

Secondly, the buyer won’t give you a list of things to do to the property. They’ll take the house in its current state, problems and all. This leads to ease in selling a property that needs work or with unpermitted work. 

It's Fast

Additionally, this method offers a fast sale. Cash buyers don’t need mortgage lenders. Therefore, they won’t require an appraisal, inspections, or title insurance. 

The result is a fast sale. In many cases, you’ll close the transaction within a few weeks of requesting an offer from a cash buyer.

cash buyer for a reverse mortgage house

Learn More About Selling to Cash Home Buyers

You can sell a house with a reverse mortgage in California. The first method is through a traditional sale. However, this method takes time and can be costly.

A simpler option is to sell it to a cash home buyer in California. As you can see, selling to a cash home buyer negates many steps.

As a result, cash home sales are often the best solution to selling a home with a reverse mortgage. 

Premier Property Buyers makes the process simple. We offer no-obligation consultations, providing a hassle-free approach to selling a home with a reverse mortgage.

Reach out today to learn more about the process.

What Repairs Are Required for an Appraisal in California?

What Repairs Are Required for an Appraisal in California?

Life is full of unexpected twists and turns. Some of these are great and offer fulfillment or success. However, others leave you feeling overwhelmed and burdened.

Some situations can even lead to the need to sell your home. It may be an unexpected death in the family, a divorce, or financial issues.

One step to take before a bank will lend to a buyer when you’re selling is getting a home appraisal in California. Unfortunately, this step can be tricky if your home needs significant work.

You may wonder what home repairs will be required after the appraisal. You may wonder if there are any alternatives. 

We’ll be discussing these things in this guide. Continue reading to learn more. 

what repairs are required on an appraisal in california

The Basics of Appraisals in California

Appraising a house is a major step in the home-selling process for most homeowners. A licensed appraiser in the area conducts this service. The appraiser is an expert in home values and must be local.

Local appraisers understand the area and can determine accurate home values in a particular city or neighborhood.

The process begins by when the buyer’s lender hires an appraiser. Next, the appraiser visits the home to conduct an evaluation.

Appraisers are thorough. They analyze all the key components to determine a home’s condition. One of the primary things they look for is if a home has good bones.

Good bones refer to a home’s structural integrity. Is the home built well? Does it have structural issues? 

Your home appraisal will reveal these things. That’s why making repairs is necessary before hiring an appraiser.

But do you need an appraisal to sell your home? The answer is not always, but appraisals do serve several vital roles:

Appraisals Help Understand Home Value

An appraisal is the only bank-approved way to find a home’s value. You can speculate about values by comparing your home to others. Unfortunately, every home is unique, and many factors affect its value. 

An appraisal is helpful if you want to sell your home for an accurate amount. If you don’t make repairs beforehand, an appraisal might require you to make the repairs as a condition of the appraised value. Selling a house that needs work is difficult when using a realtor and the buyer is using a bank loan.

Lending Reasons for Appraisals

Appraisals are also necessary for lending reasons. When buying a home, buyers want to pay the right price. Additionally, lenders want to ensure they make wise loans. 

When refinancing, lenders measure risk levels through appraisals. 

lender required appraisal repairs

Repairs You May Need to Complete

An appraisal is also helpful for determining how to proceed with a home sale. However, should you make home repairs for the appraisal? 

The answer is yes. The home appraisal affects your ability to sell and the price you get. 

But what repairs should you complete? It depends on your home’s condition. Here are some repairs you’ll need to do if your home needs them:

Roof Repairs

An appraiser will look closely at your home’s roof condition. The roof protects the entire house. A roof can negatively affect your home’s condition and value if it’s bad. 


An outdated or faulty plumbing system requires immediate attention. If the plumbing system leaks, water can significantly damage a home’s structure and materials. 

Selling a home with water damage is not easy. Most home buyers avoid purchasing properties with extensive damage like this. As a result, plumbing issues are a problem you must fix before selling a house.


A bad electrical system can pose major risks to a home’s safety. Outdated electrical can lead to shorts, which may cause a fire to break out.  

These types of repairs are necessary before an appraiser. However, they’re also very extensive and costly.

Structural Repairs

Property safety also matters. Therefore, appraisers examine a home’s structure. You will need to repair your home if it’s structurally compromised

Repairs You May Need to Complete

The costs of fixing these things can cause financial strain. If you’re in a situation where you need to sell your home quickly, you might not have the necessary funds to pay the repair bills. 

Financial costs are only one challenge of fixing a home before selling it. Another challenge is timing.

Extensive repairs take time to complete. First, they require gathering quotes and hiring a contractor. Next, it takes time for the contractor to work the job in their schedule and complete the work. 

When you combine these challenges, you’re left in an emotionally stressful situation. What should you do? 

Alternative Options to Completing Lender Required Appraisal Repairs

When you find yourself in this situation, you could do what some homeowners do: turn to cash home buyers. These buyers purchase homes as-is.

Selling a house as-is completely changes the way a home sale occurs. It provides a way to sell a house fast in California without stress. It also allows you to sell without making repairs.

The process is simple. You begin by contacting a cash home buyer. Premier Property Buyers is a company in Southern California that purchases as-is homes.

When you contact us, we offer fair offers to homeowners. We don’t require repairs and updates. We won’t require an appraisal either. 

We will buy your house the way it sits. You can benefit from this in several ways:

  • It offers a solution for selling your home
  • You won’t have to invest any money 
  • You won’t have to hire contractors to fix things
  • You won’t have to pay a real estate commission
  • There is no stress involved

The other benefit is that it’s fast. You can close a home cash sale in just a few weeks, solving the problem quickly and effortlessly. 

sell house without appraisals or repairs

Consider Skipping the Home Appraisal in California

Getting a home appraisal in California is essential if you want to sell your home through a traditional sale. However, avoiding this step might be the best option if your home needs a lot of work.

Avoiding the appraisal helps you save money, and there is an alternative way to sell it. 

Premier Property Buyers can help. We provide stress-free home sales in Southern California. This means you can avoid investing money into your home. 

Instead, you can sell your home today as-is. Contact us if you’re ready to sell your home hassle-free. We provide no-obligation cash offers. 

Do Open Houses Work When Selling A House in Southern California

Do Open Houses Work When Selling A House in Southern California

If you are looking to sell your home in Southern California, you are likely going to be looking into all of the different options, trying to determine which is best for you. One of the methods that people like to use is holding an open house. Some people have found success with this whereas others have had theirs crash in flames, so how are you supposed to know whether this is a good idea or not?

Down below, we’re going to be discussing whether open houses work when selling a house, looking at what an open house actually is, and the pros and cons of this method. If you are interested in finding out more, keep reading.

do open houses work in california

What Is An Open House?

An open house is a method of house viewing in order to help someone sell their home. The homeowner and their real estate agent invite the general public to view the property, usually within a window of 1-4 hours. While the open house is in session, the real estate agent and the homeowner will speak with anyone who comes through the door, point out features of the property, answer questions about it, and take down the details of anyone who appears to be interested.

Pros of Open Houses in Southern California

Helps Your Realtor Save Time

One of the pros of an open house is that it saves you time in a whole range of ways. Not only do you not have to worry about scrubbing your home from top to bottom multiple times, but you also don’t have to arrange multiple viewings with different potential buyers. Having everyone view the property at the same time means that you can get this all down in one swoop!

Might Encourage Fast Acting

An open house will encourage people who are interested to act fast rather than thinking about it for too long. Seeing other people take an interest in the property will force those who are interested to make an offer quickly in the hopes of beating out the competition.

Increased Exposure

You can advertise an open house on a range of different platforms such as Zillow, Facebook, and so many more, increasing exposure for your property. Make sure that you have street signs that point people towards your home so that it’s easy to find, and these will double to attract even more curious eyes. 

open houses for sale by owner

Cons of Open Houses in Southern California

High Liklihood of Unqualified Buyers

One of the biggest issues with open houses is that a lot of properties end up attracting unqualified buyers. These are people who do not have the means to purchase the home, but want to take a look around anyway. It’s a waste of your time to be talking to these people, rather than those who could genuinely afford and be interested in the house.

Unsolicited Opinions

Not only will you get unqualified buyers, but you will also get a lot of unsolicited opinions. People will say things like ‘if x was y, and if this was different…’  or they make comments about the need for specific repairs which is unhelpful and unnecessary. 

Less Time With Potential Buyers

Due to the fact that there are so many people in one place, it gives you less time to speak to anyone who is actually interested in purchasing your house. When conducting private viewings you have the opportunity to talk to people, tell them a bit about the house, and answer any questions that they may have. Sometimes private viewings allow you to give potential buyers a little nudge in the right direction, but you don’t get this personal connection with an open house.

Security Risk

With so many people in one place, you’re not going to be able to keep an eye on everyone. This is a huge security risk as it gives people the time to steal your valuable items, or even get an idea of your home so that they commit a crime there. Even hiding your valuables might not be enough to deter people from trying to steal from you during an open house. You might think that it won’t happen, but it has in the past, and it likely will again.

easy sale direct cash buyer

The Certainty of Selling Direct To A Cash Buyer

An alternative to open houses is selling directly to a cash buyer such as Premier Property Buyers. This allows you to get a fast sale, you don’t have to worry about putting on an elaborate show for a load of people, and you don’t have to pay any of the fees that you pay with a real estate agent. It’s a quick and effective solution, taking all of the hassles out of selling a property, and leaving the homeowner with the cash that they want, ready to move on with their life. 

Hopefully, you have found this article helpful, and now have a better understanding of whether or not open houses work when selling a house in Southern California.