The Home Selling Process

Below is an outline of the home selling process from a seller's perspective.

Competitive Market Analysis

The first step of the home selling process is the Competitive Market Analysis, known in the real estate business as the CMA.  We come to your home to gather data and talk to you about the features your home has to offer.  We then take this information and research the value of your property.   While some real estate agents use only one or two methods of determining a homes value, we use four different methods to get a more accurate picture of value and salability.   We prepare an evaluation for you which will include public record information on your home, the market analysis, neighborhood data, current market trends and marketing approach.

Preparing Your Home For Sale

When you are considering selling your home, take some time to take a good look around and see what small improvements might have a big impact on the home.  Often a little paint and some new hardware can be a very cost effective way to spruce up a home for sale.  If some of these improvements will take longer than a few days, you'll want to plan time to get them done before listing the home.   Houses sell better when they are sparsely furnished and free of clutter and personal belongings.   We want the buyer to easily imagine themselves living in the home, having too many of someone else's belongings makes this difficult.  Pack up all your pictures and knick-knacks, leaving just one or two items on each wall or table.

Listing Your Home

When you are ready to put your home on the market, we will have you sign a listing agreement.  This agreement gives us the power to act as your agent in selling the home.   We will take pictures of the home for use in our marketing.   We will have a sign placed on your front yard and a lock box will be placed on your door to allow entry to real estate agents.  Your house will be listed in the multiple listing service (MLS) and we will begin your marketing campaign.

Showing your Home

Once your home is listed, real estate agents from all over will be showing it to their clients.   In order to make this as easy as possible for them and for you, we place a lockbox on your door.  The lockbox is opened via an electronic key.  The keys are managed by the multiple listing service and data on which houses an agent has entered is uploaded from the key to the system regularly.   This allows us to easily and safely show your home.

We are always able to accommodate seller's requests for showing restrictions.  Showing instructions involving pets or asking for a certain amount of advanced notice can be given to agents.  We recommend however you not restrict shows any more than you absolutely have to, as real estate is a dynamic business and excessively restrictive showing instructions can deter an agent from showing your house to a buyer.   Our office will contact you whenever a showing has been scheduled.

We recommend that the seller be out of the house if possible during showings.  Take a walk around the block, go out for a coffee or run some errands.  This is because the buyers feel more comfortable discussing and evaluating the house if they are not being overheard and we want the buyers to feel as comfortable as possible in the house.   If you need to stay in the house, stay as far out of the way of the buyers and their agent as possible.   Buyers are usually uncomfortable when a seller follows them around the house and points out what they feel are positive features.  You never know what the buyer will consider a positive versus a negative, everyone has their own taste, so its best to let the house speak for itself and our marketing materials will point out important features that otherwise might be missed.

Open Houses

We do regular open houses on our listings.  Similar to showings, its best if the owner is out of the house when the open house takes place.   We advertise the open house in the paper, online and we put out signs to let potential buyers know.  Open house turn out can vary greatly depending on the weather, time of year and other activities going on that weekend.

Offer & Acceptance

Once a buyer has decided they are interested in buying your home, they will make an offer.  The offer will be delivered to us by the buyer's real estate agent.   Once we receive the offer, we will call and set up a time to present the offer to you.   At that time, as the seller you can choose to accept or reject the offer and if you reject, you can make a counteroffer.   The offer is not binding until both parties have agreed to the terms of the contract.  In general its a back and forth process, the buyer makes an offer, the seller makes a counteroffer until the parties come to an agreed upon price.   Once both parties have agreed to the terms and signed the offer, we have acceptance.

Inspections

After an offer has been accepted, the buyer usually conducts appropriate inspections.   It is the buyer's responsibility to be aware of possible material defects in the property and a home inspection is the method by which they discover any defects.   Inspections usually include a physical inspection by a home inspector, a test for radon and a fire alarm inspection (which is required by law).    Some buyers may choose to do further testing, such a mold inspections.

Once the inspection the buyer will usually come back with a list of issues found at the inspection.  Regardless of how updated, well kept or maintained a home is, a home inspector will usually find a least a few minor issues to report.   The buyer will either ask for the items to be fixed by the seller, or ask for a sum of money to be given back to them at closing to fix the items themselves.   This stage reopens the contract for negotiation.  As a seller, you can choose to refuse to do any of what they are requesting, all of it, or counteroffer a subset of what is asked.  It is important to understand that if the seller chooses not to accept the buyer's request, this opens up an opportunity for the buyer to legally walk away from the contract.   Usually however there is a bit of back and forth and something is agreed upon, at this point a purchase and sale contract is signed.

Purchase & Sale Contract

Once all the details of the sale have been decided and inspections have been conducted, a purchase and sale contract will be drawn up and signed by both parties.  Usually, both parties will hire lawyers to review the contract and make sure they are appropriately protected.   At this point as a seller you are legally obliged to sell this buyer the property at the agreed upon price.   The buyer has a financing contingency which allows them to get out of the contract if they cannot find appropriate financing.  If it was negotiated as such, they may also have a contingency on selling their property, in which case if it does not sell, they will not be obligated to buy.

Final Walkthrough

The day before closing, the buyer will do a final walkthrough of the house.  This is usually a very short inspection, just to be sure the house is being delivered in the same condition as they saw it when the offer was made.

Closing

The Purchase and Sale Contract will specify a closing date, also known as 'passing papers'.  This is the day when title will be transferred.   Closings are coordinated by a closing agent, usually the buyer's bank's attorney.   All parties will meet at the attorney's office, the registry of deeds or some other agreed upon location.   Sellers sign a lot less paperwork, so usually everything that needs to be signed by both parties is taken care of first and the buyers stay to sign their mortgage paperwork.  The house needs to be vacant and cleaned out before closing and keys are usually handed over at that time.   Title passes when the deed is delivered to the buyer.   The closing agent is responsible for ensuring that money gets deposited or wired in the appropriate accounts, the mortgage is paid off if applicable.

Give us a call today to have us do a free competitive market analysis!

Copyright 2009 Dennis and Donna Ready - do not reprint without permission.