You’ve made the decision to sell your home. Even if you’ve sold a house before, this process can be daunting because it is a major financial transaction that involves many steps from selecting a sales professional and marketing the home, to negotiating with buyers and finally receiving funds at the closing. Yet, the home-selling process doesn’t have to be intimidating if you know what to expect – and if you work with the right real estate company and sales professional. The process can usually be divided in nine steps.
Step 1: List your property with a real estate professional. Select someone who is knowledgeable, listens carefully, and with whom you feel comfortable. Interview at least three real estate professionals. Ask family, friends and neighbors for a personal referral for a real estate professional. You may end up having multiple interviews. Compare listing presentations, preparation and professionalism. Don’t base your selection solely on selling price or commission. It’s probably best to avoid working with someone who promises you the moon—in this case, an unrealistically high price—then has to make price reductions until the property sells. Instead, focus on marketing plans, the company facility and ability to maximize exposure of your property, service, technology and past results (successes).
Step 2: Establish price and time frame. Determining a fair asking price is crucial in this market. Price the property too high and it could languish on the market. Of course you could always decrease the price later, yet you’ve lost potential buyers. Your real estate professional can help you determine true market value based on a comparable market analysis, which will include recent home sale transactions as well as homes currently on the market. Supply and demand, craftsmanship, amenities, condition and any special circumstances can also impact price. For instance, a relocation move might necessitate a quick sale.
Step 3: Develop and implement a marketing strategy. To get the most exposure for your home, you should have a marketing plan with clear objectives and an outline of specific resources to be used. Most plans include a mixture of conventional and online marketing to optimize your reach to potential buyers.
Step 4: Get Your Home in Show Condition. Remember, you only get one chance to make a first impression. So make sure your home is in tip-top shape inside and out. Eliminate clutter and remove personal items. Refresh the paint, clean the carpets and make minor repairs. Keep the grass trimmed and add color to your landscape. You may also want to consider hiring a professional to stage your home. A home in move-in condition is much more attractive to buyers in a competitive market.
Step 5: An offer is submitted. With your home is on the market with a professional, it will be presented through a local or regional Multiple Listing Service and perhaps hundreds of company and agent websites. A buyer will make an offer through his/her real estate sales professional. The buyer’s sales professional will present the offer to your representative, who will promptly relay it to you and help you evaluate the offer’s merits and shortcomings.
Step 6: The negotiation process begins and eventually an offer is accepted. Typically, the most critical roles played by your real estate professional occur in the negotiation and contract phases. Negotiations over the terms of a home-purchase contract can be extremely sensitive. The process of offer and counter-offer may go on until parties arrive at an acceptable contract – including price, terms and conditions.
Step 7: Buyers submit a loan application and home inspections are scheduled. Most often, the loan approval is contingent upon (1) satisfactory appraisal and (2) credit rating and strength of the buyer. Various inspections can be scheduled, including a standard home inspection, roof, mold and radon.
Step 8: The loan is approved and the closing process begins. Frequently, the buyer’s home loan is the last condition (contingency) and when accepted by the lender, preparations begin for the closing. The closing, also referred to as settlement or close of escrow, is the final step toward completing the sales transaction between the buyer and seller. During this process, a sales professional will often funnel documents between the various parties involved in the closing. A final walk-through will be scheduled. Once the title company or escrow party completes all closing paperwork, receives the funds pertaining to the sale of the property, and records documents, the sale is closed.
Step 9: Time to move! Of course this is a simplification of what is a complex transaction. As you are going through each stage of the process, look to your real estate professional to provide guidance so that you feel comfortable every step of the way.
