Steps
10 Steps to selling your property
1. Hire the right real estate agent
Selling a home is more overwhelming than most homeowners think.
But hiring the right agent at the start can make it a whole lot easier.
So, how do you define “right?”
An experienced real estate agent who will look out for your best interests.
These are the real estate agents who will maximize your proceeds and help alleviate your stress.
But the key is choosing the right realtor.
2. Set a timeline for selling your home
Selling a house is a major undertaking that can take two to four months from start to finish — or much longer, depending on local market conditions and the level of inventory available.
As soon as you decide to sell your house, jump right into researching real estate agents to find someone with the right experience for your situation.
Set dates with your realtor for everything that needs to be done before putting your house on the market.
These tasks might include:
- Finish packing
- Inspections
- Finish repairs/improvements
- Cleaning
- Staging
- Photo shoot
Mapping a timeline of what needs to be done and by when will give you a better idea of how long it’s going to take to prepare your house for sale.
But it also gives you a target date of when your home will be listed, providing clarity toward the end goal of getting your home sold.
3. Price your home
Pricing your home right is part science, part marketing and part instinct. Ideally, you want to get the maximum price and the best terms while your home is on the market. Several factors come into play, including market conditions and interest rate, but as a general rule, sale prices are based on:
- How much similar properties in the same area have recently sold for (called "comparables").
- The supply and demand of your area, based on the local economy
- A fair market value of the home, based on an appraisal.
- Owner needs (e.g., you might want to sell quickly, so this will affect how you price your home; if you’re wondering how to sell your house fast, setting a lower price will definitely help).
4. Take high quality photos
A great photographer will take quality photos that will make your home look better than it really is.
This is important.
Why?
Because according to the National Association of Realtors, 90% of home buyers search online. This means your photos (and the home’s price) will be the first thing home buyers see.
And professional photos that can maximize your home’s appeal will get more of those buyers interested.
Most real estate agents will include professional photos in their marketing plan, so you can expect your agent to coordinate the photo shoot.
Here’s what you’ll want to do to prepare:
- Make sure your house is clean.
- Turn on all lights.
- Open all window coverings.
5. Complete your selling disclosure.
You’re required to disclose certain information about your property on specific disclosure documents.
These disclosures are meant to give potential buyers information about the property that could have a negative effect.
Here are a few examples of what you’ll be required to disclose:
- Water damage
- Environmental contamination
- Potential risk from natural disaster
- Repairs
- HOA information
Your realtor will be able to provide these disclosures to you and guide you through the process of what you need to fill out.
Keep this in mind: Do not intentionally hide anything. Doing so could bring a lawsuit from the buyer.
It’s always better to over-disclose than to under-disclose when selling your home.
6. Show your home to prospective buyers.
Showing your home to prospective buyers is a key step in the selling process.
Being flexible and making it easy for buyers to tour your home will boost your chances of getting the best offer.
Open houses
Most open houses are scheduled for two to four hours on Saturday and Sunday.
On the day of an open house, aim to keep the appearance of your house similar to what it was for the photos.
Clean.
Turn on all the lights.
Open all of your window coverings to show as much natural light as you can.
And remove anything that takes up space.
Remember, buyers will be viewing your house from a different point of view.
So even the smallest things can make a big difference.
Private showings
Sometimes buyers can’t attend an open house.
Or they want to view your home before others do.
This can be set up through a private showing.
If you’re living in the property when selling, you can tell your real estate agent to schedule these only on certain days or certain times of the day.
This will make the showing process a bit easier for you.
And keep in mind that it’s never a good idea to be at your home while potential buyers are viewing it.
Many buyers feel uncomfortable asking their real estate agents important questions as they’re viewing your property if the homeowner is present.
7. Review offers with your real estate agent.
When a buyer is ready to proceed with an offer, they’ll put it in writing on a contract, also known as a “purchase agreement.”
The offer is submitted to your realtor by the buyer’s agent.
Here are a few important things to factor in a buyer’s offer in addition to the home sale price:
Buyer’s pre-approval
Any offer from a buyer should be accompanied by a pre-approval letter and proof of funds.
The pre-approval letter doesn’t guarantee the buyer’s financing, but it’s the biggest hurdle that any buyer needs to cross when obtaining a mortgage for a purchase transaction.
The proof of funds is usually page one of the buyer’s most recent financial statements.
These verify that the buyer has enough for their:
- Down payment
- Closing costs
- Remaining assets that will be required from their lender
Deposit amount
The offer contract requires the buyer to state how much they’ll put down as a deposit into escrow.
Contingencies
The buyer has the option to include one or more contingencies in their offer.
A contingency is a condition in the real estate contract that must be met to make it binding.
The three most common contingencies from homebuyers are:
- Inspection
- Appraisal
- Loan
Making an offer contingent on the sale of a property is another contingency.
You need to know these because a contingency allows the buyer to back out of the sale (for that contingency reason) and get their deposit back.
This means that you can get an exceptional offer price, but it doesn’t mean much until the buyer removes their contingencies.
And even when they do, they can still back out of the sale.
But it’s much less likely because their deposit is at risk.
8. Negotiate with buyers
A good real estate agent is going to negotiate for you as if your money is their money.
These negotiations can happen in two different scenarios.
Negotiating before you get an offer
Your realtor might talk about price and terms without you knowing.
This happens when the buyer’s agent initiates the conversation before putting the offer in writing.
In most cases, they’re trying to see if your agent will reveal a low number while downplaying just how interested their buyer is.
But in reality, they have a buyer who wants to move forward with an offer.
The best realtors know exactly how to take advantage of this.
They swing the negotiations in your favor by knowing what to say to the buyer’s agent and when to say it.
Negotiating after you get an offer
Negotiating with the buyer after receiving an offer is done on a counteroffer form.
This is the seller’s response in writing to the buyer’s offer.
And the price isn’t the only thing you can negotiate with the buyer – you can negotiate anything the buyer included in their offer.
9. Accept an offer and start the closing process
After accepting an offer from a buyer, there are several steps that need to be completed before the sale is official.
Let’s break these down so you know what to expect.
Complete buyer inspections
The buyer can choose whether they want to have their own inspections completed, whether they included an inspection contingency or not.
But from a seller’s perspective, it mostly only impacts the sale if the buyer included an inspection contingency in their offer.
If they did, they may ask for certain items to be repaired or try to negotiate the price, depending on the outcome of the inspection report.
Appraisal
Your property will be used as collateral for the buyer’s loan.
So their lender will want to make sure that your home is worth the price the buyer is paying.
The buyer’s loan officer will start the appraisal process by ordering the appraisal (the buyer pays for it).
Your real estate agent will let you know the day and time that the appraiser will be at your property.
They usually take ~30 minutes, and there’s no need to stress about cleaning beforehand.
Release buyer contingencies
Having a buyer release their contingencies is the biggest hurdle for a home seller.
Why?
Because the buyer’s deposit is at risk once their contingencies are released.
10. Close the sale
There are several important steps that need to be completed about 1-2 weeks before the scheduled closing date.
The buyer’s final walkthrough
One of the first steps of the closing process is having the buyer conduct a final walkthrough of the property.
They’ll do this with their real estate agent several days before the closing date.
This walkthrough is not a contingency.
The purpose is for the buyer to acknowledge that the property is in the same condition as when they first saw it.
Sign the final documents
You’ll sign the closing documents with a notary and will need to bring the following with you:
- Legal photo ID
- Account and routing numbers of where you want your funds wired to
Get ready for closing
There will probably be ~2-5 days between the time you sign and the day that the sale of your home is official.
You can use this time to do the following:
- Remove everything from your home that is not included in the sale
- Get the house cleaned
- Schedule the utilities out of your name after the closing date
- Cancel your homeowner’s insurance and HOA auto payment
- Update your mailing address
Funding the buyer’s loan
If it all looks good, the lender will wire the buyer’s loan amount to escrow.
This is called “funding.”
Once escrow has all of the funds (buyer’s initial deposit + remaining down payment + loan amount), they prepare for their final step — closing.
Time to make the sale official
The sale of your home will be official once the grant deed is recorded in the county where your property resides.
The escrow company will take care of this and notify your real estate agent once it’s official.
There are two ways to collect your proceeds:
- A check
- Wire transfer
Conclusion
Selling your house involves numerous steps that can be overwhelming. Especially if it’s your first time.
But the process can seem more daunting than it really is.
The key to an easier and more profitable home sale will be the real estate agent you decide to sell with.
The right person can take the weight off your shoulders and will sell your home as if it’s theirs.
Follow these steps when selling your house with a realtor and boost your chances of having the most successful home sale.
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