Discussing the California Real Estate Process with those New to the Area
Moving to a new state is not only exciting because of all the new possibilities, but it’s also overwhelming when it’s time to buy a new home. Finding the right neighborhood is difficult with so many different variables a new California transplant must consider. Real estate agents can often help guide new California residents in the right direction, and provide an even more positive experience for their new clients by explaining the unique California real estate process.
How Real Estate Agents Can Create a Positive Home Buying Experience for New California Residents
You’d be surprised at how “the unknown” can mess with a person’s mind, causing anxiety and apprehension. One of the easiest ways to provide a positive home buying experience to potential buyers: walk them through the unique aspects of California’s real estate transaction process.
It’s a simple gesture that goes a long way. Many people moving to California have no idea just how different their home state’s real estate process is from California’s. Once they begin the home buying process, a sense of dread often takes over and many will start to feel those pangs of regret and homesickness set in. As full as California is, there’s always room to welcome new people and as a real estate agent, you’re often the welcoming arms a new resident needs.
What should you discuss with your new real estate clients to help them through a difficult transition? Let’s get into it below!
Unique Aspects to the California Real Estate Process
We can all agree, California has unique aspects to its real estate process. It’s neither more difficult nor easier than other states, but rather uniquely different from many other states. However, the differences are what new California buyers find overwhelming and frustrating. If you give them a heads up on what to expect, they’ll love you forever and sing your praises!
No Attorneys Needed
Depending on where someone is moving from, they might find it unsettling that a lawyer isn’t required to close on a home. This purchase is a huge one, so why wouldn’t an attorney be mandatory? California relies heavily on forms, and instead of requiring an attorney at closing, there is one specific form to familiarize them with: Residential Purchase Agreement and Joint Escrow Instructions.
The California Association of Realtors has taken great effort to create, update, and release multiple forms twice a year in order to protect not just home buyers, but also home sellers. It’s why attorneys aren’t required, but are always welcomed during the real estate transaction process in California. Assure your clients the forms are solid and substantial, but you’re absolutely fine with working with an attorney if that’s what makes the process easier for them.
Mello-Roos Taxes
Property taxes are a thing in every state, but in California, Mello-Roos taxes might apply to a California property. The taxes are used to allow for improvements to local infrastructure like building or improving:
streets
sewer systems
sanitation systems
police protection
fire protection
schools
parks
Make sure you let your potential clients know certain areas of California will have to fork over a yearly payment: Mello-Roos taxes.
Lots of Paperwork
Brace your clients for lots of paperwork. California Association of Realtors loves forms. Twice a year they update and create real estate forms to make the whole process easier and more beneficial for everyone involved. But there’s a lot and it can be overwhelming to home buyers from other states.
Once you explain why the forms and paperwork are in place, and how they are only for their benefit, it’s a lot easier to deal with the huge volume of it.
How the California Home Buying Process Differs from Other States
New California home buyers can come from so many other states, and every state has their own real estate processes. Not all of California’s unique real estate requirements and laws are bad, just different!
Sellers Must Provide Detailed Information
In California, home sellers are responsible for disclosing the house’s history. Most other states, finding out all the gritty details of a house’s history is up to the buyer. We’re talking the home and property’s:
physical condition
pest problems
material defects
environmental factors (such as wildfire risks)
physical features
In a state like New York, homeowners just have to give general information about the structure, mechanical and electrical conditions, along with basic environmental issues. But, if they don’t want to take on the liability wrapped up in the questionnaire laying out the general information, the homeowner can give a buyer a monetary credit at closing instead.
Closings Aren’t Personal
Another significant difference between California and other states: closings do not have to be done with the buyer and seller physically together. Quite often, buyers and sellers never even meet. Their real estate brokers or agents in conjunction with the escrow officer handles every part of the real estate transaction process. In other states, buyers and sellers attend a closing so the buyer can hand over funds for the purchase and the seller signs the house deed over to the buyer.
Technology Dominates
California relies heavily on technology. Almost all forms and documents are signed electronically. However, in other states agreements and legal documents are physically signed by both buyers and sellers. Many states haven’t caught up with the advanced real estate platforms California is using. Many new to the California real estate market will find it refreshing not having to walk around with a folder full of legal documents throughout the home buying process!
Working With Your Real Estate TC
Creating a positive experience for real estate buyers new to California real estate requires a lot of communication, and hands-on assistance. The last thing you’ll want to deal with is the paperwork! Allow your real estate TC to deal with the forms so you can focus all your time and energy on your clients.
