Whether you are selling for sale by owner as a FSBO or hiring alisting agent, the home selling process is identical. It may vary slightly from state to state, but since California tends to set the standard for much of the country, this format will address how homes are sold in California.
The main differences for you may be whether you hire a real estate lawyer and whether buyers submit intent offers prior to executing apurchase contract, but the basic procedures remain the same.
Here are the steps for selling a home:
1) Choose a Listing Agent
- A listing agent will represent you and have a fiduciary responsibility to look out for your best interests.
- Interview agents and meet with at least threeneighborhood specialists.
- Negotiate your listing agreement, including term.
2) Get Home Ready for Sale
- Prepare your home for sale by cleaning, decluttering and improving curb appeal.
- Hire a professional stager to stage your home, or ask your real estate agent for help in staging.
- Make repairs before selling.
- Protect your privacy while your home is on the market.
- If you’re selling a home where pets live, make alternate plans for your pets.
3) Figure Out How Much Your Home is Worth
- A seller’s biggest mistake is to overprice.
- Price your home in line with sold homes identified in a comparative market analysis report.
- Consider whether your market is hot, cold or neutral, and price according to the market temperature.
4) Market Your Home
- You or your agent should identify the sizzling selling points and choose advertising wordsto sell.
- Approve your agent’s marketing campaign or figure out how to advertise your house for sale yourself.
- Follow the top 10 home marketing tips for selling your home.
- Hire a virtual tour company to take quality photographs and put a 360-degree virtual tour online.
- Tweak marketing to increase traffic and showings.
- Post internet listings online. Your agent or you should saturate the internet with photographs and description of your home.
5) Show Your Home
- If you’re wondering about lockbox vs. appointments, you’ll get more showings if you let agents use a lockbox.
- Your home will show better if you are selling in spring than selling in winter.
- Selling during the holidays will likely result in a lower sales price, regardless of what agents tell you.
- Follow the top 10 home showing tips. You’ve got only one chance — and sometimes only 3 seconds — to make a good first impression.
- Prepare for an open house and use the approach sparingly.
- Ask for buyer feedback so you can adjust your price, condition or marketing campaigns accordingly.
6) Receive Purchase Offers and Negotiate
- Make certain that buyers use the right form for writing a purchase offer.
- Even if you receive a lowball offer, negotiate by issuing a counter offer. Don’t ignore offers.
- Ask for a kickout clause or first right of refusal if the buyer’s offer is contingent on selling a home.
- Consider making a counter offer contingent on buying a home, if market conditions warrant.
- Don’t be afraid to make a full-price counter offer, if you are priced competitively.
- If you are priced right, prepare yourself for multiple offers.
7) Open Escrow / Order Title
- Your agent or transaction coordinator will open escrow and order a title policy.
- Write down the contact information for the closing agent.
- Select a date to close based on when the buyer’s loan will fund.
- Ask for a receipt for the buyer’s earnest money deposit.
8) Schedule Appraiser Appointment
- Clean the house the day before the appraiser arrives.
- If you receive a low appraisal, ask your agent about alternatives.
- You are not entitled to receive a copy of the appraisal because you did not pay for it.
- If the buyer decides to cancel the contract based on an appraisal, ask your agent or lawyer about your rights.
9) Cooperate with Home Inspection
- Get ready for the home inspector.
- Ask your agent to provide you with a home inspection checklist so you will know which items an inspector will want to see.
- Expect that the inspector will want access for an attic inspection and will look for a wet basement; prepare those areas for inspection.
- Prepare as well for the final walk-through inspection.
