The Real Estate Selling Process

There is a lot that goes into selling a house.  It is important to know the steps before you put your house up for sale.  This step-by-step guide will walk you through the real estate selling process.

Step 1:  Financial Preparation

It is important to be ready financially to sell your home.  While in some cases the sale of your house will finance these costs, that is not always the case.  If there is any chance that it will not, you should be sure you are aware of the costs you will need to cover.  We are going to assume from here that you are using a realtor.

The costs you will need to be prepared for include the realtor commissions (seller pays both buyers and sellers), closing costs, excise taxes, property taxes, and homeowner association fees.  You will also need to set aside money for any needed repairs you will choose to make before putting your house on the market and any possible ones a buyer may request you make after a home inspection.  Your realtor should be able to help you determine an approximate amount of money you will need to have on hand.

Step 2:  Fix It Up

It is important when selling your house that you take care of major repairs.  This will put a potential buyer’s mind at ease when they first look at the house knowing it is not stuff they will need to worry about.  It also will help you to get a fair offer and could possibly help to sell it faster.  It is important to remember to make needed repairs but not to spend money on home improvements that will not increase the value of your home.  Your realtor will be able to help you determine what repairs you should consider making at this stage.  For more information on inexpensive ways to increase your home’s value please go to the selling section of our website and check out the article “Ideas to Inexpensively Increase the Value of Your Home”.

Step 3:  Choosing Your Price and Going on the Market

You will now want to sit down with your realtor and discuss what is a fair asking price for your home given the current market conditions.  There are many factors that will determine what price you should list your house for.  These include the condition of the home, the market conditions, the location, and much more.  Your realtor will let you know what they think you should list it at and will be able to explain why based on the factors used to make the determination. 

Once you and your realtor have determined at what price the house will list the realtor will go ahead and put it on the market.  There are some important things to remember when your house is on the market.  Potential buyers could want to see your home at any time so it is crucial that you keep your home always looking its best.  This means keeping the inside clean and clutter free, the outside lawn mowed, and much more.  For more information on staging your house to sell please go to the selling section of our website and check out the article “Staging Your House to Sell”.  You will also want to remember that potential buyers prefer to look at your home without you there.  You will need to be prepared to leave your home at times so potential buyers can look.  It may make it easier if you prepare a list of ideas of things you can do during these times.

Step 4:  Accepting an Offer

At some point you will get a call from your agent letting you know an offer has been made on your house.  This offer will either come in under your list price or at your list price.  Your agent will explain the details of the offer to you and help you decide if you should accept it, decline it, or make a counter offer.  Try to remember that the agent is giving you their advice based on their professional knowledge even if it is not the advice you want to hear.  The decision on what to do with the offer is ultimately yours.  Once you accept an offer a contract will be written-up and signed by all appropriate parties. 

Step 5:  Settlement

A settlement date will be reached between yourself and the buyer.  You will need to be out of the house by the settlement date and have the house ready for the new owners unless a rent-back agreement was part of the contract.  At the settlement you will sign all the papers to change the deed from your name to the new owner’s.  You will need to arrive at the settlement with a cashier’s check(s) to cover your closing costs, fees, and any other costs that may be incurred.  And, of course bring all sets of keys to the house to hand-over to the new owners so they can move-in.

Conclusion

This has hopefully provided you with an overview of the home selling process and gives you a little more of an understanding of what exactly is involved.  Remember, that your agent is the professional and should be able to answer any additional questions you may have.