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A step by step guide to the process of selling your home
Selling a home brings on a whole host of questions, and sometimes, anxieties: How much is your house really worth -- what if you set the price too high or too low? Should you repaint or remodel before putting the house on the market?
This article will look at what you should expect as you go through the process of selling your home.
Step One: Research Your Local Market
Hot or cold? Do some research to determine what’s going on in your local market. A "hot" market is one in which there are more buyers than sellers, so the buyers are competing with each other and driving up prices. A "cold" market is one with more sellers than buyers, so the buyers can be choosy and bid low. In a hotter market, you can price your house more aggressively than in a cold market.
Step Two: Use Comparable Houses to Set Your List Price
What is a "comp"? The best source of pricing information comes from houses directly comparable to your own. In the real estate industry, a "comparable," or "comp," is a house with similar features, preferably located near yours. When identifying comps, look for houses with the same number of bedrooms, bathrooms, and other amenities.
Check current listings. To get comps, visit open houses, read classified ads (in print and online), and check out websites containing real estate listings. Websites that publish the Multiple Listing Service (MLS) are particularly helpful, such aswww.realtor.com, by the National Association of Realtors (NAR).
Review actual selling prices. Of course, list prices don’t tell you how much houses ultimately sell for -- that's the comparable data you really need. In a hot market, houses might go for well over list price, and vice versa. This information will also help you decide which of the incoming purchase offers are realistic.
Do your own homework. You want to be educated about your house’s real value so you can work intelligently with your agent and make rational decisions when negotiating with buyers.
Step 3: Assemble Your Team of Professionals
Most sellers prefer to work with a real estate agent to help sell the house, although that is not required. Real estate agents usually charge a commission -- usually about 6% -- to be split between your agent and the buyer's agent, if any.
Additionally, you may want to work with a real estate attorney to help represent your interests in the transaction.
Despite the costs, we have found that experienced, responsible professionals can ultimately save you time, money, and aggravation. If you do choose to work with a real estate attorney when selling your home, we would love to be the attorneys you work with.
Step 4: Make Your House Look Its Best
Before putting your house on the market, make it look as attractive as possible -- your Realtor can be a big help here to help you determine what renovations would be best.
Step 5: Put Your House Up for Sale
Advertise on the MLS. If you're working with a real estate agent, the agent should help place put the property into the online Multiple Listing Service, and other online listing services. Then interested buyers can make an appointment to see the house in person and make an offer.
Step 6: Receive and Review Purchase Offers
With any luck, one or more prospective buyers will present a written offer to buy your house.
Evaluate the offer or offers. Here's where your real estate agent can play an important role, meeting with the agents who present offers and helping you decide whether a particular offer is worth accepting. If you're choosing between more than one offer, don't assume you'll want to accept the one for the most money! A high bid with shaky financing, or one made contingent on the buyer selling his or her house first, may actually drop to the bottom of your pile. You don't want to enter into negotiations only to have them fall through.
Consider a counteroffer. If none of the offers you receive are acceptable, you can counteroffer, suggesting changes in terms or even a higher price.
"Under Contract." After counteroffers have gone back and forth between you and the buyer, and you've both signed off to indicate your acceptance, you're technically "under contract" to sell your house. At that point, you're legally bound to sell your house, and can't change your mind without potentially facing a lawsuit. (The exception is if you included conditions or "contingencies" in the contract, such as the buyer furnishing you with proof of his or her financing, and these conditions aren't met.)
Step 7: Closing the Deal
The signed purchase contract will include a closing date or time limit, usually several weeks in the future. During this time, the buyer will line up financing, inspections, insurance, and more. As the seller, your main duties will include:
making your house available for inspection
negotiating with the buyer over repair issues that come up, and
moving out your possessions.
Once the closing occurs, the buyer has the right to full possession of the house. If you can't be out by that date, you may be able to negotiate a short-term post-closing occupancy agreement with the buyer.