Should I Sell My House in California Now or Wait?

If you can pay cash for your next home

California is an architecture lover’s dream. Let’s say you’re relocating from a Victorian home in San Francisco to a brick-and-stone spread in Napa or a Spanish-inspired home in Santa Barbara, complete with archways and red-tile roofing. If you have the financial means to pay cash for your next home, you’ll avoid any worry about fluctuating interest rates.

If you can’t afford to keep your California home

Because of changes in your income or other financial setbacks, selling your California home now may be the only way you can avoid potential foreclosure.

“Let’s say you have to move, you’re relocating for work, and you absolutely need more space, and you can’t hold on to your property because you truly need the equity out of that property,” Arendsen says.

“Frankly, in a market that’s shifting like it is right now, you’ll be in a better situation than if you were trying to sell at the peak of the market.”

However, some circumstances make waiting to sell your home a more viable option. Read on.

When to consider waiting to sell your California home

Waiting to sell your California home could be your best option depending on a variety of circumstances that can create unfavorable selling scenarios. The times to consider waiting might include:

If mortgage interest rates are going up

When interest rates go up, home values and offer prices can come down. That doesn’t necessarily mean it’s a bad time to sell, it just means you will want to evaluate carefully your selling objectives and consider if you might benefit from waiting.

If you’re upsizing for non-crucial reasons

Yes, upsizing can be on both the California “sell now” and the “wait to sell” lists. Is your desire to upsize based on a crucial need, or just because you think it would be nice to have the extra space? The cost of buying a larger home now may become a burden, especially if other factors will add additional costs, such as higher interest rates or a lack of equity.

If your California home hasn’t built much equity

Similar to evaluating your home equity when you’re considering trading up — if you have not lived in the home long enough to build sufficient equity, you may want to consider waiting to sell your California home.

If California housing inventory is high

When supply is high and demand is low, selling your home may not be as profitable as you would like. Statewide, California inventory is rising. All but six counties experienced an increase in the number of properties on the market in December compared to the previous year. CAR forecasts an increase in inventory in 2025, as mortgage rates stabilize.

If your California home has unfinished major repairs or renovations

A home that needs a lot of work can turn away potential buyers looking for a turnkey property. “People are always looking for move-in ready, renovated properties where they don’t have to do big remodels,” Arendsen says.

Typically, to get top dollar for your California home, you are better off completing any remodeling projects before placing your house on the market. If your home is in poor condition or has incomplete renovations, you’re better off waiting.

If you’re happy with your current California home

If you are content with your existing California home, and it fits your needs and budget, waiting to sell might be the best decision.

If you recently refinanced your California home

Because mortgage rates hit record lows during the pandemic, many people opted to refinance their higher mortgage rates instead of opting to buy a new home. If your monthly payment based on refinancing is lower than what you’d pay when buying a new home, you might be wise to stay put.

If you can’t afford to move

The recent rise in home prices can be a double-edged sword. While it’s great when you’re on the sell side, you might not be in the best financial position to make your next home purchase. If the cost of transitional housing is beyond your current reach, now may not be the best time to sell your California home.

If you’ll face steep capital gains taxes

Capital gains taxes are another consideration. If you can avoid paying capital gains taxes, you may be in a good position to sell. Otherwise, consider postponing the transaction.

You may be able to avoid paying capital gains taxes on your California home sale if:

• You’ve owned the home for at least two of the past five years
• You’ve used it as your primary residence for at least two of the past five years
• You haven’t taken advantage of the capital gains exclusion on another home in the past two years

In addition, the State of California and several municipalities charge a real estate transfer tax or a fee for the property transfer. In San Francisco, where the median sale price is about $1.6 million, sellers must pay $3.75 per $500 of value or about $12,000.

Talk with your California real estate agent or a tax professional for more details about your particular situation.

If you have no clear game plan or objective

Moving is a big decision. It’s even bigger when it involves selling what is likely the largest financial asset you have. However, top agents say that some sellers get so wrapped up in what they’ll walk away with at closing that they don’t think of the basics, such as where they’ll live once the deal’s done.

If they sold in the first quarter of this year, where were they going to move to? We saw people try to utilize great programs like the HomeLight Buy Before You Sell Program, but even then … there was so little inventory that a lot of clients were settling, trying to get into a property, and we didn’t have options out there. So they were taking whatever was offered. In [a] market with elevated inventory, they’re able to get out there and find a property they love that fits them.

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  Joseph Arendsen Real Estate Agent

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  Joseph Arendsen Real Estate Agent at True Local Realty Group | COMPASS

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  Currently accepting new clients

  • Years of Experience 18
  • Transactions 350
  • Average Price Point $816k
  • Single Family Homes 187

If you’re determined to sell your home, make sure you’ve got a solid plan for your next move. Look into your options, get pre-approved for financing if needed, and keep an eye on market conditions. Having a clear strategy will make the whole process way smoother and less stressful.

If you aren’t mentally ready to sell your California home

Even if you keep pace with up-to-date information about the housing market and your equity situation, deciding whether to sell your California home now or wait often comes down to a battle between your heart and mind.

“We get this question all the time: Is now the right time to sell? And my answer is typically no — because I want to help people build wealth in real estate and turn what is their primary residence into an investment that will pay them in the future. So my advice is always — when you buy a piece of real estate — is to hold onto it as long as possible. It’s not timing the market; it’s time in the market, as they say,” Arendsen notes.

He also advises homeowners to keep an eye on interest rates and their potential profit. “Typically in a healthy market, we’re seeing 5% appreciation,” he says. Prices saw a modest annual growth of 5.1% in the third quarter of 2024 compared to the same period the previous year.

“If you can do anything to hold on to that property and maybe turn it into a rental, I highly recommend you do — especially if you have an interest rate of 2%-3%. We’re probably not going to see those rates for a long time.”

What’s the best time of year to sell a house in California?

This depends on local nuances, as well as whether you’re interested in selling for the most money or selling your home fast. For instance, data from HomeLight’s Best Time To Sell Calculator shows that if you list your Los Angeles home in August, you could sell your house for 2.51% more than the yearly average by November.

March happens to be the best time to list your home when you’re in a hurry, with homes selling four days sooner than any other month. Check your hometown in our free online Best Time To Sell Calculator to estimate your best listing time.

7 tips to help sell your California home

Here are a few of our expert tips to jump-start your home sale.

1. Price your home right

Pricing your home correctly is one of the toughest hurdles for a seller. Agents surveyed in our End of Year report suggest adjusting the listing price when a home is overpriced to improve its chances of selling.

Take a look at HomeLight’s Home Value Estimator for a ballpark idea of where you stand in the current housing market, then consult with a top agent for more insights.

2. Deep clean and declutter

Cleaning your home and ditching the clutter helps your home sell fast. Plus, it costs next to nothing and can add an additional $11,706 in proceeds, top agents say.

3. Work with a top-performing agent

Agents like Arendsen, who has almost two decades of real estate experience, have weathered the highs and lows of the market before and can provide expert advice on prepping your home and negotiating a great price. Find a top-performing agent near you for free in minutes using HomeLight’s Agent Match.

4. Stage a home office

38% of agents believe home offices are a strong selling point in their market in 2024. Arendsen agrees, especially if you have a room or convertible office space on the first level.

5. Boost your home’s curb appeal

Usable outdoor space is another valuable asset for a home. “A good-sized, renovated backyard with an actual area to entertain outside is crucial in today’s market,” Arendsen says. In fact, 48% of agents believe that enhanced curb appeal, outdoor areas, and garden spaces play a key role in selling a home.

6. Focus on repairs before renovations

If you have the time and the budget to finish a basement or open up a floor plan, you could add to your home’s value. But even modest fixes such as touching up or redoing exterior paint, oiling door hinges, and tending to an aging roof can yield fewer headaches and a better price.

7. Highlight what local buyers want most

With interest rates hovering at the upper 6% range, Arendsen says one of the biggest current selling points is having a way to subsidize mortgage payments through a rental unit, such as from an accessory dwelling unit (ADU), a mother-in-law suite, or a multifamily property.

“Those are probably the highest in demand because people purchasing with a 6.5% interest rate today can offset that cost by having a rental unit,” he says. “To add to that, we have the Baby Boomer generation needing housing, and we’re seeing a lot of families bring their parents along with them.”

Should I sell my California home myself (FSBO)?

Some California homeowners may be considering the “For Sale By Owner” (FSBO) route. According to the National Association of Realtors (NAR), only 6% of recent home sales were FSBO, with sellers noting among their reasons that they “did not want to pay a commission or a fee.”

However, 2024 data from the NAR shows that FSBO homes sold for less: a median of $380,000 compared to the median of agent-assisted homes at $435,000. Of those who went the FSBO route, 38% already knew the buyer, the NAR says.

“We’re seeing less and less FSBOs because this market is harder to sell in,” Arendsen says, adding that his company offers “hands-free selling” that helps with staging and fronting the capital for necessary renovations.

It also offers the type of online marketing with photos and virtual tour videos that FSBO properties can’t match. “A true professional who can help you prep the property, price the property, and market the property is more important now than ever.”

What if I need to sell my California house fast?

For homeowners who value speed, certainty, and simplicity, HomeLight created Simple Sale, a platform that provides you with a full cash offer on your California home whenever you’re ready to sell. If you choose this route, you’ll be connected to one of the largest networks of cash buyers in the U.S.

Answer a few quick questions about your home and timeline, and you’ll receive a no-obligation cash offer in 24 hours, allowing you to close the sale in as few as 10 days.

If you’re facing a life change that requires a fast home sale, or you don’t have the time or money to make needed repairs, a cash offer may be the solution you are looking for. Simple Sale provides cash offers for homes in almost any condition in California. You can skip the repairs and showings and move forward with your life plans.

Bottom line: Should I sell my California house now?

Life and financial circumstances play a huge role in any decision about selling your home. But we hope that these expert insights help you as a California homeowner feel more empowered and knowledgeable about your next steps.

A top agent in your area in California can help guide you through the shifting tides of a changing housing market. Find one at no charge through our Agent Match service specifically designed for Californians trying to decide if they should sell their homes now.

Writer Max Efrein contributed to this story.

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