Selling a Condo in California Right Now? SB 326 Has Changed the Game.

If you own a condominium in California, you may be feeling stuck — even if you’re ready to move on.

Over the past few years, California Senate Bill 326 (SB 326) has dramatically reshaped the condo market. While the law was created to improve safety, its ripple effects have made selling a condo significantly more complex, expensive, and emotionally taxing for many owners.

What Is SB 326 — and Why Does It Matter?

SB 326 requires condominium associations with elevated exterior components (such as balconies, decks, walkways, and stairways) to complete regular, professional structural inspections and address any identified safety issues.

In theory, this is a good thing. In practice, it has led to:

• Major repair projects

• Large, unexpected special assessments

• Deferred listings and stalled sales

• A surge in non-warrantable condo buildings

And that’s where many sellers hit a wall.

The Special Assessment Problem

For many condo owners, SB 326 inspections uncovered issues that require immediate and costly repairs. Associations often have no choice but to pass these costs on to owners through special assessments, which can range from thousands to tens of thousands of dollars per unit.

Owners frequently find themselves asking:

• Do I pay the assessment and stay?

• Do I pay it just to sell?

• Can I even sell before the work is completed?

Unfortunately, there’s no one-size-fits-all answer — and that uncertainty keeps many owners frozen in place.

Non-Warrantable Condos = Fewer Buyers

One of the biggest challenges right now is that many condo buildings affected by SB 326 are considered non-warrantable by traditional lenders.

This means:

• Buyers may not qualify for conventional, FHA, or VA financing

• The buyer pool shrinks dramatically

• Deals fall apart late in escrow

• Days on market increase

• Prices feel downward pressure

For sellers, this can feel incredibly frustrating — especially when the unit itself is beautiful and well-maintained.

“I Want to Leave, But I Feel Trapped”

This is a conversation I’m having more and more often.

Owners aren’t trying to time the market or maximize profit at all costs. Many simply want flexibility — a new home, a new city, or a new chapter — but feel stuck because the rules have changed mid-game.

That emotional reality matters, and it deserves an agent who understands both the human side and the financial mechanics of the situation.

Why Experience (and the Right Partners) Matter More Than Ever

Selling a condo impacted by SB 326 isn’t impossible — but it is highly nuanced.

It requires:

• Understanding how lenders evaluate warrantability

• Knowing which loan products can still work

• Strategically positioning special assessments in negotiations

• Coordinating with HOAs, escrow, and lenders early

• Vetting buyers far more carefully than usual

I’ve built relationships with specialized finance partners who can help buyers navigate non-warrantable buildings, alternative loan programs, and creative structures that still lead to a successful closing.

Just as importantly, I know how to set realistic expectations, protect sellers from unnecessary fallout, and keep deals together when obstacles arise.

The Bottom Line

SB 326 has made condo sales more complicated — but not impossible.

If you’re feeling stuck, overwhelmed, or unsure whether selling is even an option right now, the right guidance can make all the difference. With the right strategy, lender support, and proactive communication, many owners are still selling successfully — even in today’s challenging condo landscape.

If you’re considering a move or just want clarity on your options, I’m always happy to talk through your situation — no pressure, just honest advice.