learnseller playbookcalifornia process, silicon valley practice
The Silicon Valley seller playbook
How a California home sale works, from the first pricing conversation to the wire: what to do at each step, a disclosure builder for your home, and where Compass programs fit.
- listing formC.A.R. RLArevised December 2025
- disclosures due7 daysafter acceptance, by default
- home sale exclusion$250K / $500Kof gain, single / joint, if you qualify
- state withholding3⅓%of the price, unless exempt
the timeline
From first call to closing
Prep and marketing run on your schedule; once you accept an offer, the purchase agreement’s clock takes over.
Deadlines after acceptance are the defaults in C.A.R. purchase agreement guides; the dates in your contract control.
disclosure builder
Build your disclosure checklist
California requires sellers of 1-4 unit homes to disclose what they know. Check what applies to your home to see the full list.
8 items for your home
every sale of a 1-4 unit home
- Transfer Disclosure Statement (TDS)The state form for what you know about the home’s condition (Civil Code 1102).
- Seller Property Questionnaire (SPQ)C.A.R.’s follow-up questions on past repairs, insurance claims and neighborhood issues; revised December 2025.
- Natural Hazard Disclosure (NHD)Flood, dam inundation, fire, fault and seismic hazard zones, usually from a third-party report.
- Smoke, carbon monoxide and water heater statementYou certify that detectors and water heater bracing meet state law.
- Megan’s Law noticeA required notice in the purchase contract about the state’s public database (Civil Code 2079.10a).
- Earthquake safety bookletThe state Homeowner’s Guide to Earthquake Safety, given to buyers of 1-4 unit homes.
- Agent visual inspections (AVID)Each agent reports what they saw in the accessible areas of the home.
- Statewide Buyer and Seller AdvisoryC.A.R.’s advisory on common issues buyers should check and sellers should disclose.
because of your answers
- Lead-based paint disclosure and pamphletFederal rule for homes built before 1978: disclose known lead paint and reports; buyers get 10 days to test unless the contract changes it.
- HOA document packageGoverning documents, budget disclosures, assessments owed, violation notices, rental limits and more (Civil Code 4525).
- Mello-Roos special tax noticeA good-faith effort to get the district’s notice of the special tax for the buyer.
- Defensible-space documentationProof the home meets defensible-space rules, or an agreement that the buyer will comply within a year.
- Home-hardening noticeWildfire-vulnerable features and how to fix them, including the State Fire Marshal’s low-cost retrofit list (required since July 1, 2025).
- Former military ordnance disclosureRequired when you know the home is within one mile of a former military training area that may contain live ammunition.
Nothing extra yet. Check the boxes that apply.
A starting point, not legal advice. Your agent, the NHD report and your escrow officer confirm the full list for your home, and local rules can add items.
step by step
Seven steps to a Silicon Valley sale
- step01
Know your numbers
Start with what the home is likely to sell for and what you’d keep after costs and taxes.
- A comparative market analysis from the sales most like your home, plus the live competition in Market Pulse
- The seller net sheet: price minus commission, your share of transfer tax, escrow and title, prep and your loan payoff
- Federal tax: if you owned and lived in the home 2 of the last 5 years, up to $250,000 of gain ($500,000 married filing jointly) can be excluded
- California withholding: escrow holds back 3⅓% of the price for the state unless an exemption applies, such as selling your principal residence
property nerd tipMoving and 55 or older? Proposition 19 can let you carry your current tax base to a replacement home anywhere in California if you buy within 2 years. - step02
Choose your agent and the listing agreement
The listing agreement (C.A.R.’s Residential Listing Agreement, revised December 2025) sets the price, term, marketing plan and compensation.
- Ask how the home will be priced, prepared, marketed and shown, and who handles each part
- Decide whether to start with Compass pre-marketing or go straight to the MLS
- Every listing agreement states that commissions aren’t fixed by law and may be negotiable
property nerd tipCommissions are negotiable, and we offer bundled services, so ask us what’s included. - step03
Prepare the home
Target the work buyers and their inspectors will notice, and present the space well.
- Pre-listing inspections (home and pest) put known issues on the table before buyers write offers
- Compass Concierge can pay up front for staging, painting, repairs and more, repaid at closing; fees or interest may apply depending on the state
- State law requires compliant smoke detectors, carbon monoxide detectors where needed and a braced water heater, and you certify them in writing
- In a High or Very High Fire Hazard Severity Zone, plan for the wildfire disclosures: defensible-space documentation and, for homes built before 2010, a home-hardening notice
property nerd tipBook prep work before you set a launch date; vendor availability sets the timeline. - step04
Complete your disclosures
California requires sellers of 1-4 unit homes to disclose what they know. Sharing the package before offers lets buyers write with fewer contingencies.
- Transfer Disclosure Statement and C.A.R.’s Seller Property Questionnaire
- Natural Hazard Disclosure, usually from a third-party report
- Lead paint for homes built before 1978, HOA documents, Mello-Roos and wildfire items where they apply
- Both agents complete a visual inspection of the accessible areas (AVID)
property nerd tipWhen in doubt, disclose. If the TDS reaches a buyer after they sign, they get 3 days (5 if mailed) to cancel. - step05
Launch and market
Choose how the home reaches buyers: a private start inside Compass’s network, a public Coming Soon on Compass.com, or straight to the MLS.
- Phase 1, Private Exclusive: shared with agents in Compass’s network and their buyers, with feedback before the home is public
- Phase 2, Coming Soon: public on Compass.com without days on market or price-drop history
- Phase 3, the MLS: every agent and every site that shows MLS listings
- Before pre-marketing begins, Compass requires a signed seller disclosure: off-MLS phases can mean fewer buyers, showings and offers
property nerd tipWatch new listings and price cuts in Market Pulse during the first weeks; they show the competition buyers are comparing you with. - step06
Review offers and negotiate
Compare offers on more than price: the loan, the contingencies, the deposit, the close date and any rent-back.
- A counter offer changes the terms and rejects the original; the buyer can accept, reject or counter again
- Shorter contingencies and a larger deposit can lower the risk of the deal falling apart
- A rent-back lets you stay after closing for an agreed time, on a separate addendum
- Check the buyer’s pre-approval and the lender behind it
property nerd tipAsk for proof of funds for the down payment along with the pre-approval. - step07
Escrow to closing
After acceptance, the buyer’s contingency clock runs and escrow pulls the pieces together.
- Deliver disclosures and reports within 7 days by default
- Respond to any Request for Repair: agree, refuse or counter
- If the buyer misses a contingency deadline, a Notice to Buyer to Perform gives them 2 days before you can cancel
- At closing, escrow pays off your loan, prorates taxes and HOA dues, handles state withholding (Form 593) and sends your proceeds; your agent confirms the final sale price in writing within a month
property nerd tipConfirm wiring instructions with escrow by phone at a number you already know, and never act on emailed changes.
questions
Questions we hear
What do I have to disclose when I sell?
Sellers of 1-4 unit homes in California complete the Transfer Disclosure Statement and Natural Hazard Disclosure and must share what they know about the property’s condition. Depending on the home, that also includes lead paint (before 1978), HOA documents, Mello-Roos and wildfire items. The disclosure builder above shows the list for your home.
Will escrow withhold California tax?
Escrow withholds 3⅓% of the price for the Franchise Tax Board unless an exemption applies. Common exemptions include selling your principal residence and a price of $100,000 or less; you claim them on Form 593.
How much of my gain is taxable?
If you owned and lived in the home as your main home for 2 of the last 5 years, you can generally exclude up to $250,000 of gain, or $500,000 if married filing jointly. Ask a tax advisor about your situation.
Should I do a pre-listing inspection?
It puts known issues on the table before buyers write offers, which can mean fewer surprises in escrow and offers with fewer contingencies. We’ll help decide which inspections make sense for your home.
Is Compass pre-marketing right for my home?
It can test the price and gather feedback before the home is public, but off-MLS phases reach fewer buyers. Compass requires a signed disclosure first, and we’ll go through the trade-offs for your home.
more to learn
Keep going
- Buyer playbookThe same walk-through from the buyer’s side, with a contract clock.
- Seller net sheetWhat you’d keep after commission, taxes and payoff.
- Compass + Boyenga toolkitConcierge, pre-marketing and pricing tools.
- Market PulseLive listings and 12 months of sale prices for every city we cover.
- Proposition 19Keeping your tax base when you move.
- Real estate glossaryEvery term in this playbook, defined.
General information about California practice, not legal or tax advice. Default deadlines come from C.A.R. purchase agreement guides; your signed contract controls. Checked October 15, 2026.
talk to a property nerd
Thinking about selling?
We’ll price it from the sales that match, map out prep and marketing, and show you what you’d net. Commissions are negotiable, and we offer bundled services, so ask us what’s included.
Thinking about selling? Send us a note.
