Understanding the Home Selling Process
Selling a home can easily become draining. You have to get your home ready for selling and move. Plus, you also have the emotional side of leaving your home to deal with, along with all of the memories. Understanding the process of home selling, however, is half the battle. Here are thirteen basic steps of the home selling process.
1. Hire a Real Estate Agent
Statistics show that hiring a real estate agent is the most important thing you can do to get your home sold. By picking the right agent, you’ll be much more likely to finish the remainder of the steps in the home selling process.
2. Be Honest About Disclosures
You shouldn’t try hiding repair issues and hope no one notices. Discuss what the known repair issues are with your Real Estate Agent to determine a course of action. Will you repair them or simply know they will come up during the Buyer’s home inspection? Also, be sure to discuss any existing liens on the home.
3. Determine Your Home Selling Price
Your selling price needs to be your home’s fair market value. Fair market value (FMV) is the estimated market value of a property. It is based on what a knowledgeable and willing buyer would probably pay to a knowledgeable and willing seller in the market. Your Real Estate Agent will complete a thorough, local market analysis to determine your home’s selling price, by reviewing:
- Recent sales
- Pending sales
- Active sales
4. Prepare Home for Listing
Preparation is the key to selling your home quickly and for top dollar. Make repairs if your budget allows for them because buyers often ask for a price reduction when they see needed repairs.
5. Prepare for Home Showings
You want everything to be just right. It’s important that their first impression is a favorable one from the minute they drive up your driveway. They should be able to see themselves or their family living there.
6. Review Buyer’s Offers
You need to pay close attention to things besides the purchase price, like:
- Deposits
- Financing commitment periods
- Title evidence
- Assessments
- Inspection periods
- Closing dates
- Addenda
- Any additional added terms
- Signature dates
It’s also a good idea to keep an eye on any timelines used and check that they have been computed correctly. You don’t want them to conflict with one another.
The lender will also review the buyer’s credit, income, and assets to accurately determine credit, income, and asset worthiness. They will also provide, in a writing, a Buyer’s Pre-Approval Letter. Are they paying for your home in cash? Then, you should ask to see their proof of funds.
7. Prepare for Your Home’s Inspection
A Buyer will hire an Inspector to come and thoroughly inspect your home. They are just making sure there are not any major issues that might affect the home purchase. The inspector will make note of all the little things and uncover anything major that needs addressing. There might be some negotiations depending on the inspection’s results.
8. Make Preparations to Move
You typically have 30 days in which to move once you sign an executed Real Estate purchase contract. Remember that a Buyer can also negotiate the closing date. The day of closing is, after all, when the Buyer takes ownership of your home. You should plan accordingly.
9. Keep Home in Same Condition as When Buyer Submitted Offer
Make sure to keep your home in the same condition as when the Buyer signed the contract to buy it. Remember, the buyer will inspect the home one final time before closing.
10. Title Company Preparation
Title Companies play an important role. They make sure that the Title is clear so that the deed can transfer to the new Buyer. They give the Buyer a Title Commitment through proper examination. The exam involves searching for any possible existing liens or open permits that exist for the property. Any existing liens or open permits found will need resolving before closing.
11. Moving and Cleaning
The closing date is almost here. It’s time to move your things to your new home. Make sure that you leave your home clean when you leave.
12. Buyer Final Walk Through
The Buyers will go back to your home before heading over to the Title Company to sign the closing documents. They will make sure that all is the same as when they saw it last. The closing could be stopped if anything is missing and/or damaged.
13. Attend Closing
Before you leave for the closing, you’ll want to gather up all of your:
- House keys
- Remote controls
- Codes
- Manuals
- Anything that the Buyer would need to operate the home
Then, you sign all of the necessary closing documents once you are at the closing table. The closing usually takes a few hours. Once completed, your bank receives the wired funds.
For questions considering any of these home selling process steps, give us a call. We’d love to help you sell your home quickly and easily.