The Home Selling Process: How Everything Works

Before jumping into your home-selling journey, you should know a few things. Actually, there are lots of things you need to know. Selling your home is a complicated process. From home prep to selecting a real estate agent, choosing a listing price to marketing your house, negotiating offers to the closing process—it’s enough to make your head spin.

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The best thing you can do is equip yourself with good information. So here’s a guide to the home-selling process that covers how everything works.

Preparing Your Home for Sale

First things first, you need to prepare your home for sale. This means evaluating both the interior and exterior of your house to identify any potential issues that might deter buyers. Sometimes, it’s as simple as cleaning and decluttering the space. Other times, you need renovations.

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Hiring a home inspector can help you. Sure, it costs a little extra money, but it could put you in a better position when marketing your house or negotiating with prospective buyers. 

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An inspector can find leaky plumbing, electrical issues, roofing problems, or structural concerns that could sink a deal. Leaky faucets, cracked windows, or peeling paint might be minor issues to you, but they can depress buyers’ interests. Addressing these problems early on can improve the overall appeal of your property.

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Admittedly, some home buyers don’t mind a fixer-upper. But in most cases, they use the issues as leverage to bid a lower price. It’s much smarter to fix these issues and use the improvements to command a higher asking price.

What About Strategic Upgrades?

We’ve already covered necessary fixes and minor improvements. But there’s another category of home improvements that sellers should consider.

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Strategic upgrades to kitchen fixtures, bathroom fixtures, flooring, or landscaping aren’t always necessary—but they can make a substantial difference to house hunters. You can market your house as “newly renovated” or feature your “brand-new appliances” during visitations.

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The goal is to improve your selling position, without overextending yourself on unnecessary extravagances. So pick and choose what’s going to have the most impact. If you’re unsure, ask your real estate agent for advice. Don’t have an agent? Will cover that next.

Choosing the Right Real Estate Agent

Finding a qualified real estate agent makes a world of difference for home sellers. Start by researching your local agents. Reverified has even identified home pricing experts in Denver, Colorado and Dallas-Fort Worth, Texas, who are real estate agents recognized for their ability to accurately price a home for sale.

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Did you know that the majority of home sellers go with the first agent they talk to? That’s a real missed opportunity. You should interview potential agents to find out who has the most experience and best strategies for marketing your home. You should openly talk about commission rates and expectations. Weigh the pros and cons of the fees concerning the service and expertise provided. Otherwise, you disadvantage yourself.

Consider For Sale By Owner (FSBO)

Some sellers choose to go their own way, without the help of a real estate agent. And that’s A-OK. This can save you on commission costs.

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Then again, it requires a strong understanding of the market and how to effectively market your home yourself. The tips below will help you immensely. But be prepared for the time commitment and the necessity of handling all aspects of the sale. This includes hosting open houses, walk-throughs, and answering messages online.

Pricing Your Home Competitively with the Fair Deal Zone Report

The single most crucial thing for selling your house is setting the right listing price. Price too high and you risk sitting on the market for so long that you’re forced to reduce prices—often lower than what your house is really worth. Price too low and you lose out on tens of thousands of dollars that should be in your bank account instead.

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To uncover the true worth of your home, use tools like the Fair Deal Zone report from Reverified. For only $49, you get an easy-to-read report based on an impartial analysis of market trends, comparable properties, unique home features, and regional information. This isn’t just a computer-driven algorithm—it’s a state-of-the-art tool matched with human expertise to give you the best information possible!

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By pricing within the recommended Fair Deal Zone, you take advantage of a range of prices that benefit both you (as the seller) and the prospective buyer. This helps you sell your home faster and for the right price.

Factor in Closing Costs and Commissions

Remember to factor in closing costs and commissions into your financial planning. Closing costs typically range from 1% to 3% of the home's sale price for sellers and may include title transfer taxes, attorney fees, and settlement costs.

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On top of that, real estate agent commissions usually range from 3% to 6% of the sale price, split between the buyer’s and seller’s agents. What does that look like in practice? For example, on a $400,000 home, commissions alone could total $20,000 to $24,000. That’s a hefty impact on your net proceeds, if you don’t expect it.

Marketing Your House for Sale

Putting a “For Sale” sign in the front yard is just the start. Effectively marketing your home means meeting house shoppers where they are and using images and text descriptions to generate interest.

List on MLS (Multiple Listing Service)

Agents and other real estate professionals use Multiple Listing Services (MLS) to share details about homes for sale and find the right match for buyers and sellers. It’s basically a big online hub where they can see and share all the available listings.

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By listing your home on the MLS, your agent can make sure it gets maximum exposure to other agents and potential buyers. It's like putting your home on the main stage, where everyone in the market can see it.

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Plus, the MLS keeps all the details about your home accurate and up-to-date, which helps attract serious buyers. The more eyes on your listing, the better your chances of selling quickly and at the right price!

Post Your House on Popular Online Platforms

In addition to the MLS, list your home on popular online real estate platforms like Zillow, Redfin, and Realtor.com. These websites attract millions of users looking for homes, so having your listing there can make a huge difference.

Use High-Quality Photos

Most online house hunters go right to the photos. Think of these images as your digital curb appeal. So, investing in high-quality photography is a must. Hire a professional photographer to show off your home’s best features. Get shots of the interior and exterior. Make sure the lighting is good and the space is clean and inviting.

Promote Your Place on Social Media

Take advantage of platforms like Facebook or Instagram to reach potential buyers where they spend their time. Engaging videos or virtual tours can pique interest and allow buyers to experience your home before an in-person showing.

Organize Open House Events and Showings

Holding an open house is a great way to get more people interested in your home. It’s your chance to show off the space and let buyers imagine themselves living there. Make the atmosphere warm and inviting—it can leave a lasting impression!

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When it comes to showings, being flexible with schedules is super important. Keep your home clean and looking its best so it’s always ready for potential buyers to drop by. The easier it is for people to see your place, the better your chances of getting offers!

Reviewing and Negotiating Offers

If everything goes according to plan, you should start getting offers within a few weeks (in a hot market) or a couple of months (in a slow market).

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Once you start receiving offers, thoroughly analyze each one. Look beyond the bid itself to consider the overall terms of each offer. Careful review closing dates, contingencies, and financing methods. All of these should play a vital in your decision-making. For example, a buyer who is pre-approved for a mortgage may be more reliable than one needing to secure financing.

Accept the Best Offer

Once you’ve reviewed your offers, it’s time to accept the best one. At this point, the home is under contract, and the buyer typically provides earnest money as a deposit to secure the agreement. Make sure you’re comfortable with the terms before finalizing your choice.

Preparing for the Closing Process

You’re in the home stretch now. But the work isn’t over yet. Once you’ve accepted an offer, the buyers enter their due diligence phase—which includes home inspections, real estate appraisals, and title searches. As the seller, you need to make your home available for these essential steps. Why? Because they dictate whether the sale goes forward.

Readying the House for Appraisal and Inspections

For a smooth closing process, ready your home for real estate appraisals and inspections. These are key steps where the condition of your home gets a close look. Take care of any issues that came up earlier—things like leaky faucets, chipped paint, or loose doorknobs. Even small fixes can make a big difference in how your home is evaluated.

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It’s also a good idea to tidy up and make sure every area is accessible. Inspectors and appraisers need to check everything, from the attic to the basement, so clear the way for them. The better your home looks and feels, the easier it is to move forward without hiccups!

Gather All Necessary Documentation

Before closing day, gather all needed documentation, including property disclosures, warranties, and past inspection reports. Having everything organized and readily available helps streamline the process, making it easier for both you and the buyer.

Understand Seller Responsibilities per Contract

Make sure you understand your responsibilities according to the contract. This includes any repairs you agreed to make or specific obligations related to the property's condition. Being well-informed can save you from potential complications on closing day.

After the Sale

Once your home is sold, don’t forget to cancel your utilities and homeowner’s insurance. You don’t want to be stuck paying for things you no longer use. If needed, transfer utilities to the new owner to make their move-in easier.

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Also, hold on to all your closing documents. They can be super handy for tax season or if you ever need to reference them down the road. Staying organized now can save you from headaches later!

Key Points to Remember

And there you have it! Everything you need to know about the home-selling process.

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If it helps, here are a few key points to remember:

• Realistic home pricing goes a long way. The Fair Deal Zone Report from Reverified can help you set a competitive home price range that attracts buyers, gets bids fast, and secures the right payout for your property.
• Preparation pays off. The time and effort you invest in preparing your home for sale can lead to a quicker sale at a better price. A clean, well-staged property speaks volumes to potential buyers and can make all the difference in your selling experience.
• Market your property where buyers are looking. Focus on MLS and popular online platforms.

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All in all, selling your home may seem daunting, but with the right approach and a bit of preparation, you can navigate the home selling process effectively, achieving the results you desire.

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‍Want to uncover the true worth of your home? Order your Fair Deal Zone report from Reverified today!