Have a home to sell in the Los Angeles area? Good news: Real estate prices here are high and rising, according to recent sales data, so you’re sitting on a valuable asset. However, the pace of sales is slowing, and high mortgage interest rates are keeping many potential buyers on the sidelines. Is it possible to not only find a qualified buyer, but speed up the usual process so that you can sell your house in Los Angeles fast as well as turning a nice profit? Read on for all the details on selling in a hurry in L.A.
How fast can you sell your house in Los Angeles?
To figure out how fast you might be able to sell, it helps to first understand a bit about the California housing market, and the sprawling L.A. region specifically.
The Golden State boasts one of the country’s priciest real estate markets, which for you as a seller is both good (larger profits) and bad (fewer buyers who can afford it). According to Redfin data for December 2023, the median sale price in L.A. was $957,000 — higher than the statewide median of $756,800, and much, much higher than the nationwide median of $382,600.
Sky-high prices might explain why it takes a while to sell a home in L.A. The median days on market, or amount of time a home takes to go into contract, is a long 49 days here, per Redfin. That means it’s around a month-and-a-half to secure a buyer, after which you typically have to wait for the buyer’s financing to be approved before you can close.
Given that spring is typically the best time of the year to sell a house, that time frame may speed up as winter fades. But in a place with year-round nice weather like L.A., seasonality may not count for as much as it does in colder-climate cities.
Need to sell faster?
If expediting the sale of your house is a priority — for example, if you need the cash quick, or if you need to relocate in a hurry for work — consider these methods to speed up the process:
- Sell as-is: An as-is listing tells the buyer that they will be acquiring the property in its current state; what they see is what they get. This can save considerable time in back-and-forth negotiations over what needs fixing, and who will pay.
- Sell to a homebuying company: Consider selling your home to a fix-and-flip company that specializes in purchasing properties in less-than-perfect condition, renovating them and then selling them for a profit. Local “we buy houses” companies pay cash and close remarkably quickly, typically in just a few weeks. But in exchange for this speed, you’ll likely earn less on the sale than you would on the open market.
- Sell to an iBuyer: Similarly, iBuyers offer a near-instant cash offer and a swift closing. However, also similarly, you’ll receive a lower offer than you likely would with a traditional sale. Opendoor, one of the biggest players in the industry, buys homes throughout the L.A. area.
Find a trusted real estate agent
If you choose the traditional selling route, having a local real estate agent by your side will enhance your chances of securing a sale at or near the top of the market. A skilled agent plays a pivotal role in connecting you with potential buyers and takes on vital responsibilities such as marketing your home and negotiating for the best deal on your behalf. Look for someone with extensive experience in your specific neighborhood of L.A. and a proven track record of successful sales. And if speed is of the essence, be sure to let them know that upfront so they can plan accordingly.
Sell your home fast for fair market value
If you want to sell the traditional way, with an agent’s help, there’s a lot to consider before listing your home on the market. Discuss these five issues together to get started:
How should you price your listing?
First things first: How much is your house worth? To expedite a prompt sale, be prepared to establish an appropriate asking price based on local market conditions. Online home-value estimators can be a useful starting point, but it’s best to have your agent research local comps — nearby homes that are similar, or comparable, to yours — to determine a fair market value. Striking the right balance is crucial: You want to price fairly, but avoid overpricing to prevent turning buyers off.
Is it worth upgrading your home before selling?
The answer here, for large renovations like a full kitchen remodel at least, is usually no. Most major projects will not recoup their full cost at resale — and they’ll also delay your sale while you wait for contractors to finish the job. Instead, consider cost-effective solutions to boost your property’s value, like enhancing the curb appeal with some refreshed landscaping, a new coat of paint on the front door and perhaps a pressure-washed driveway or front walk.
What repairs should be tackled before selling?
Obvious issues, like broken window panes or dripping faucets, will turn off buyers right away. Small things like that should be fixed, in service of making a good impression. But you don’t have to fix it all. Your agent can guide you in what issues need addressing and what not to bother with.
Should you pay to stage your home?
How inviting would your home look to a stranger? Overstuffed rooms make buyers notice the stuff cluttering up the space, rather than the space itself. If your home doesn’t allow buyers to easily envision themselves living there, investing in professional home staging can help. Services range from simple reorganization to improve the flow to a full furniture rental for an empty home you’ve already moved out of. Again, your agent can help you decide whether staging is worthwhile.
What information must you disclose to the buyer?
For most California home sellers, completing the state’s lengthy property disclosure form is mandatory. This involves providing information on any known defects that could impact the home’s value or safety. Transparently communicating issues such as past roof damage, leaks, termite damage, electrical problems and more is essential. Additionally, for properties under a homeowners association’s jurisdiction, you’ll need to gather all relevant documents, including bylaws, recent meeting minutes and financial documentation.
Closing day
On closing day, you’ll finally conclude your transaction and receive your proceeds from the sale. But not before you settle all your closing costs, which for a seller will include a hefty agent commission fee. Here are some typical closing costs for California home sellers:
- Commission fees: The commission fees for both your agent and your buyer’s agent will typically come out of your sale proceeds. This usually totals somewhere between 5 and 6 percent of a home’s sale price. For a median-priced $957,000 Los Angeles home, 5.5 percent is a very significant $52,635.
- Title insurance: Title insurance protects in case ownership issues are found with the home’s title. In many states this is paid for by the seller, or split, but California sellers are in luck: Here, it’s customary for the buyer to cover the expenses associated with title insurance.
- Transfer taxes: However, you won’t be able to skip the real estate transfer tax, or charge for transferring the property’s ownership. In Los Angeles, this involves a base tax rate of $2.25 per $500 for homes priced up to $5 million. On a median-priced home, this works out to $4,307.
- Attorney fees: Hiring a real-estate attorney is not mandatory, but having a legal professional review complex contracts provides reassurance and peace of mind, especially when there’s this much money on the line.
- Seller concessions: Any concessions you may have agreed to during negotiations, such as paying for a repair or covering a portion of the buyer’s their closing costs, will be due at closing as well.
FAQs
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Selling to an iBuyer or a cash-homebuying company is by far the fastest way to sell a home in L.A. These companies can close a deal in a matter of a few weeks or less, whereas the typical open-market listing takes 49 days just to go into contract, per Redfin. However, you will not be offered as high a price from these companies as you’re likely to get with a traditional market listing.
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Yes. If you let your agent know from the get-go that a speedy sale is your top priority, they can list and market your home with that in mind. However, even the most skillful agent likely won’t be able to close a deal as quickly as an iBuyer or cash-homebuying outfit could.