Selling a home in Malibu California can be a complicated process. With so many choices and crucial information to be well versed in such as understanding the market conditions, staging, inspections, legal paperwork, and choosing the right realtor can often make selling a home in Malibu CA seem daunting. That's why we made this all inclusive and detailed list explaining every step of the home sale process so selling your home can be as easy, seemless and transparent as possible. (All photos of homes in this article are currently active and can be found here)
Preparation
- Do Market Research: Do your own research on the market. See what other comparable homes in Malibu are selling for. (You can get an agent to do a CMA but doing your own research helps you stay informed)
- Understand your competition: What other homes are on the market? Are there a lot of homes for sale in your neighborhood? Should you really be listing your home for a higher price than the home next door with a pool and an extra 1,000 square feet of space?
- Figure out the market trends: Is it a sellers or a buyers market? Will buyers or sellers have more leverage in negotiations? This could affect how you price your home.
Hiring an agent, what we suggest:
- Choose Local: working with a local real estate agent ensures insider knowledge of neighborhoods, pricing, lifestyle, amenities, and off-market opportunities, as well as valuable connections within the community.
- Consider all your options: Interview multiple agents to find one you connect with, as selling a home can be stressful and sometimes lengthy, and choosing a realtor who prioritizes service over commission ensures a smoother, more enjoyable experience for one of life’s biggest decisions.
- Consider Realtor Specialization: If you have a specific area in mind, consider working with an agent who specializes in that neighborhood, as Malibu’s different areas have unique rules, HOAs, beach access, and zoning laws that require in-depth local expertise.
- Consider specific agencies: Different real estate agencies offer varying access to buyers, marketing tools, and expertise, so choose one that aligns with your property’s target audience—whether it's a global luxury market like Sotheby’s or a locally rooted agency like Shen Realty that combines deep Malibu knowledge with high-end connections.
- Sign a listing agreement: Once you choose your agent finally sign a listing agreemant
Home Pricing:
- Sale Price should match the Market: Your listing price should match the market conditions, a home priced too high will take much longer to sell (or not sell at all!)
- Do a Comparative Market Analysis: Home prices vary by area and home type. You want to compare your homes with other homes on the market in your neighborhood of similar build and style. (Your agent can help with this)
- Choose your pricing strategy: Under pricing a home will usually get you a faster sale and could ultimately result in a higher sales price through a bidding war. Overpricing a home could net you more money but will keep the home on the market longer.
Increase Appeal:
- New Paint: A fresh coat of paint is the easiest and most cost-effective way to enhance your home's visual appeal, making it look well-maintained, modern, and inviting while covering minor imperfections and boosting curb appeal.
- Cleaning: This is pretty self explanitory but a dirty home can make the home appear much cheaper than what you can list it for. It gives the image of a poorly maintained property.
- Repairs and Maintenance: Patching drywall holes, repainting walls, fixing leaky faucets, updating cabinet hardware, replacing worn-out caulking, and ensuring all lights and fixtures work make a home look well-maintained and move-in ready, helping buyers focus on its potential rather than minor flaws.
- removal of personal items: People want to imagine themselves in the home they want to buy. It is hard to visualize yourself in a home if the sellers personal items (photos, personal art, clutter etc) are littered throughout the property.
- Staging: This is one of the best things you can do to immedietley increase appeal of your home. Fresh, non personalized furniture that matches the design of your home can make a potential buyer feel much more welcome.
- Fresh Landscaping: Cleaning up the leaves, cutting grass, trimming hedges, fixing goffer holes etc, increase the immediate appeal to your home on first impressions when walking onto the property and set the expectation for the rest of the buyers tour.
- Photo’s: Photos sell your home and get people in the door. The vast majority of buyers are looking online and if your home has unappealing photos, your home is consequentley unappealing as well.
Listing Process and Finding a Buyer:
- MLS: Register with the MLS, websites like Redfin etc scrub off the MLS and your property will automatically be distributed to the highest traffic Real Estate Websites
- Marketing:
- Newsletters: Exposure to network of Real Estate Agents and our own pool of clients.
- Social Media Ads You gain exposure, but due to Malibu’s luxury market, finding a buyer this way can be more challenging than in other markets.
- Sotheby’s Specific Effective Marketing Tools:
- Global Marketing: Malibu is a global luxury hub and requires Global Marketing
- Cascading Websites. Sotheby’s International Realty® maximizes exposure by distributing properties to top global media and real estate websites, providing detailed reports on views and inquiries, with listings receiving 140 million annual views.
- Property Distribution Partners: We distribute your home to notable, high traffic, and trustworthy partners such as Yahoo Real Estate, The Wall Street Journal, New York Times and many more.
- Open Houses: Open Houses can be a good way to get exposure but usually if someone is interested they will find your home online and inquire about the property. Often the people who come to Open houses, particularly in Malibu, are sight seers. Most homes in a luxury market are not sold at open houses, buyers in this bracket are usually not spending their time driving around open houses.
- Reality of Finding Buyers: If your home is on the market, people are looking at it. If it's not selling it’s most likely over priced. Even the worst property with bad marketing will sell immediately if priced right. The best home will take years and months to sell if over priced
Negotiation
- Review and Evaluate all offers: Sometimes you may get one or multiple offers. Consider which offer works best for you. With an all cash offer you can have your property sold and transferred within 5-7 days. Otherwise it may take longer.
- Negotiate and Prepare a Counter Offer: It’s rare you’ll accept an offer as is, you’ll need the help of an experienced agent to help negotiate the best possible offer for you.
Escrow, Inspections, and Closure
- Open Escrow: Who will be holding Escrow (an agent, a bank, an escrow company)? Buyer and seller also settle on escrow instructions.
- Earnest Money Deposit: Buyer deposits earnest money as good faith for their comittment to buy the property (this is usually between 1-3% of the homes purchase price)
- Title Search: As a seller you should do a title search on your property to verify that there are no liens or encumbrances that might impact the sale of your property.
- Inspections: Usually paid for by the buyer. These include a general home inspections, roof inspection, HVAC inspection, lead based paint inspection and many others.
- Proration and Reconciliation: Taxes, H.O.A fees, prepaid utilities are divided amongst the buyer and seller based on period of use.
- Final Walkthrough: Buyer does a final walkthrough of the property to make sure any final repairs have been done and everything is as documented on the closing disclosure.
- Closing of Escrow: Buyer and Seller agree on final price and settle on contingencies. They then sign closing documents.
- Transfer of Property: Title, deed, and keys are transferred to the buyer, money is transferred to the seller.
In Malibu’s unique luxury market, selling a home requires patience, as finding the right buyer can take time. Homes closer to cities, airports, and infrastructure tend to sell faster due to higher turnover, while those in more secluded, nature-rich areas may take longer due to commute times and a lower buyer pool. Unlike other markets where homes sell within 4-6 weeks, selling a home in Malibu, CA, typically takes 3-6 months, and higher-priced properties can remain listed for up to a year. Additionally, strict building regulations make new construction challenging, limiting inventory but also increasing the value of existing homes. While marketing efforts play a role in attracting buyers, the one key takeaway is that your listing price is your most powerful marketing tool—a well-priced home will always generate the most interest and ultimately lead to a successful and quick sale.
Selling a home in Malibu, CA, requires expert guidance, market knowledge, and the right strategy to attract the perfect buyer. Whether you're looking to maximize your home's value, navigate inspections, or market your property effectively, working with an experienced team is essential. Shen Realty, the top luxury real estate team in Malibu with over 20 years of experience, specializes in the Malibu luxury market, with a personalized approach and deep local expertise. If you're considering selling a home in Malibu, CA, contact Shen Realty today to ensure a seamless, profitable, and stress-free experience.