Home Seller Guide
Everything You Need to Know Before Selling Your Home
Selling a home is a major financial decision. Whether you are selling your first home, an investment property, a condominium, or a luxury property, understanding the process can help you make better decisions and potentially increase your net proceeds.
At Netrealtynow.com, we believe sellers should understand their options before choosing how to market and sell their property.
You can choose FSBO, Flat-Fee MLS, or traditional full-service representation. The right choice depends on your property, your experience, your available time and how much professional assistance you want.
The Home Seller’s Road Map
A successful home sale generally involves these steps:
- Decide whether it’s the right time to sell
- Determine your home’s market value
- Calculate your estimated net proceeds
- Choose how you want to sell
- Prepare your home
- Determine your asking price
- Prepare your disclosures
- Create your marketing plan
- Put your property on the MLS
- Show the property
- Review offers
- Negotiate the contract
- Complete inspections and other contingencies
- Complete title and closing requirements
- Close the sale
- Receive your proceeds
Let’s look at each step.
1. Should You Sell Your Home?
Before doing anything else, determine why you want to sell.
Common reasons include:
- Moving to another state
- Downsizing
- Upsizing
- Retirement
- Relocation
- Buying another home
- Moving closer to family
- Selling an investment property
- Financial reasons
- Changes in lifestyle
- Inherited property
Your reason for selling should influence your strategy.
For example, if you need to move quickly, getting the absolute highest possible price may not be your only objective.
If maximizing your proceeds is the priority, you may be willing to spend more time preparing and marketing the property.
2. Determine What Your Home Is Worth
One of the biggest mistakes sellers make is overpricing their property.
Start by researching comparable properties.
Look at:
- Recently sold homes
- Current competing listings
- Square footage
- Number of bedrooms
- Number of bathrooms
- Lot size
- Age of the property
- Condition
- Location
- Renovations
- Garage
- Pool
- Waterfront
- Views
- HOA/condo amenities
Don’t confuse asking prices with actual market value.
A property listed for $600,000 isn’t necessarily worth $600,000.
Recent closed sales are generally much more useful when determining market value.
3. Calculate Your Net Proceeds
The sale price isn’t the amount you take home.
Your estimated proceeds may look something like this:
Sale Price
− Mortgage Payoff
− Brokerage Compensation
− Buyer-Broker Compensation, if applicable
− Transfer Taxes
− Title/Settlement Costs
− Seller Concessions
− Repairs
− Other Selling Expenses
= Estimated Net Proceeds
Example
Sale price: $500,000
Mortgage payoff: $250,000
Estimated other selling expenses: $25,000
Estimated proceeds:
$225,000
This is only an example. Actual expenses vary by property and location.
4. Choose How You Want to Sell
You generally have three primary choices.
FSBO — For Sale By Owner
You sell the property yourself.
Advantages:
- No listing-broker compensation
- Maximum control
- Direct contact with buyers
Disadvantages:
- More work
- No listing broker
- Pricing responsibility
- Marketing responsibility
- Showing responsibility
- Negotiation responsibility
Flat-Fee MLS
You hire a licensed broker to list your property on the MLS for a predetermined fee.
Advantages:
- MLS exposure
- Lower listing expense
- More control
- Seller can handle some aspects of the transaction
Disadvantages:
- Services vary
- You may still handle showings
- You may still negotiate offers
- Additional services may cost extra
Traditional Full-Service Realtor
A full-service listing generally provides more assistance with:
- Pricing
- Marketing
- Showings
- Buyer communication
- Offers
- Negotiation
- Contract management
- Closing
Compensation is negotiated between the seller and broker.
5. Prepare Your Home for Sale
You don’t necessarily need to remodel your entire house.
Focus on things buyers notice immediately.
Exterior
- Mow the lawn
- Trim landscaping
- Clean the driveway
- Clean windows
- Remove clutter
- Improve curb appeal
Interior
- Declutter
- Deep clean
- Remove excessive personal belongings
- Touch up paint
- Repair obvious defects
- Organize closets
- Clean carpets
- Make rooms look larger
Important:
Don’t spend $30,000 on improvements without determining whether those improvements are likely to increase the property’s value enough to justify the expense.
6. Decide What to Repair
Ask:
Will this repair help me sell the property or increase the price enough to justify the cost?
Potentially worthwhile repairs may include:
- Leaking roof
- Broken HVAC
- Plumbing problems
- Electrical problems
- Water damage
- Broken appliances
- Obvious cosmetic damage
Some sellers make the mistake of spending heavily on improvements that buyers don’t value.
7. Determine Your Asking Price
Pricing is both an art and a science.
Your asking price should take into account:
Market value + competition + condition + market conditions + your objectives
Three common pricing mistakes:
Too high:
The property receives little interest.
Too low:
You may leave money on the table.
Changing the price repeatedly:
This can make buyers wonder why the property isn’t selling.
A properly priced property can attract more attention when it first comes onto the market.
8. Prepare Your Seller Disclosures
Disclosure requirements vary significantly by state.
Because Netrealtynow.com serves:
Florida | Maryland | Virginia | Washington DC | New York
sellers should understand that the requirements aren’t identical in each jurisdiction.
Depending upon the property and location, disclosures may involve matters such as:
- Property condition
- Known defects
- Lead-based paint
- Flooding
- Environmental conditions
- HOA/condo information
- Structural issues
- Previous damage
- Other legally required information
Never assume that the disclosure rules are the same from one state to another.
For your Netrealtynow.com website, I recommend having separate seller-disclosure pages for each market.
9. Create Your Marketing Strategy
A good marketing plan should put the property in front of as many qualified buyers as reasonably possible.
Potential marketing includes:
- MLS
- Major real estate websites
- Professional photography
- Video
- Social media
- Email marketing
- Open houses
- Yard signs
- Broker outreach
- Digital advertising
The exact strategy should depend upon the property.
A $250,000 condominium doesn’t necessarily require the same marketing strategy as a $3 million waterfront property.
10. Put Your Home on the MLS
For many sellers, MLS exposure is one of the most important parts of the marketing process.
Real estate professionals search the MLS for properties that meet their buyers’ requirements.
A properly prepared MLS listing should include:
- Accurate property information
- Asking price
- Photographs
- Property description
- Features
- Showing instructions
- HOA/condo information when applicable
Depending upon the MLS and syndication arrangements, the listing may also appear on consumer real estate websites.
11. Make the Property Easy to Show
Once your home is listed, make it easy for buyers to see it.
If possible:
- Keep the home clean
- Keep lights on
- Open curtains
- Secure pets
- Remove valuables
- Be flexible with showing times
- Keep the property presentable
Every showing is an opportunity to generate an offer.
12. Review the Offers
When an offer arrives, don’t look only at the price.
Consider:
Price
How much is the buyer offering?
Financing
Cash or financing?
Down payment
How much is the buyer putting down?
Inspection
What inspection rights does the buyer have?
Appraisal
What happens if the property doesn’t appraise?
Closing date
Does the proposed date work for you?
Concessions
Is the buyer asking you to pay costs?
Earnest money
How much is the buyer depositing?
13. Don’t Automatically Take the Highest Offer
Consider this example:
Offer A
$550,000
But:
- Large concessions
- Small down payment
- Long inspection period
- Financing contingency
Offer B
$535,000
But:
- Cash
- No financing contingency
- Minimal concessions
- Quick closing
Depending upon your circumstances, Offer B might produce a better transaction.
14. Understand Buyer-Broker Compensation
A buyer may have an agreement with their real estate professional concerning compensation.
That compensation can be negotiated.
Offers of compensation to buyer brokers cannot be displayed in the MLS under current MLS rules, but compensation can still be negotiated outside the MLS.
Sellers should understand exactly what they’re agreeing to before signing a contract.
15. The Inspection
The buyer will generally have inspection rights according to the purchase agreement.
Possible issues include:
- Roof
- HVAC
- Plumbing
- Electrical
- Foundation
- Water intrusion
- Mold
- Termites
- Pool
- Appliances
An inspection doesn’t automatically mean the seller must fix everything.
The result depends on the contract and negotiations.
16. The Appraisal
If the buyer is obtaining financing, the lender may order an appraisal.
If the appraised value is lower than the purchase price, the transaction may require renegotiation.
Possible solutions include:
- Buyer brings additional cash
- Seller reduces price
- Buyer and seller split the difference
- Appraisal is challenged
- Contract terminates if permitted
17. Title and Closing
The title company, settlement company or attorney will handle different parts of the closing depending on the jurisdiction.
The process may include:
- Title search
- Mortgage payoff
- Closing statement
- Deed
- Required disclosures
- Transfer taxes
- Recording
- Final settlement figures
Because closing procedures vary, sellers should understand the requirements in the state where the property is located.
18. Final Walk-Through
Before closing, the buyer will generally have an opportunity to inspect the property one last time.
Make sure:
- Agreed repairs are complete
- Included appliances remain
- Fixtures remain
- The property is in the agreed condition
- Personal property that wasn’t included has been removed
19. Closing
At closing:
- Documents are signed
- Buyer funds are received
- Mortgage is paid off
- Applicable expenses are paid
- Deed is transferred
- Transaction is recorded as required
- Seller receives the remaining proceeds
How Much Does It Cost to Sell a Home?
There is no single answer.
Potential expenses include:
- Listing brokerage compensation
- Flat-Fee MLS fee
- Buyer-broker compensation, if negotiated
- Transfer taxes
- Title/settlement expenses
- Attorney fees
- Repairs
- Staging
- Photography
- HOA/condo fees
- Seller concessions
- Moving expenses
Read our complete guide:
[How Much Does It Cost to Sell a Home?]
How Can You Save Money?
The biggest potential savings may come from how you structure your brokerage services.
FSBO
Lowest potential brokerage cost, but maximum seller responsibility.
Flat-Fee MLS
Lower-cost MLS exposure while retaining more control.
Full-Service Realtor
More professional assistance with a negotiated brokerage fee.
What Is the Best Way to Sell?
There is no one-size-fits-all answer.
Choose FSBO if:
You have experience, time and confidence handling the transaction yourself.
Choose Flat-Fee MLS if:
You want MLS exposure and are comfortable handling some of the selling process.
Choose Full-Service if:
You want a professional to manage more of the transaction.
Seller’s Financial Checklist
Before listing, know these numbers:
Estimated market value: $________
Mortgage balance: $________
Expected sale price: $________
Listing cost: $________
Estimated buyer-broker contribution: $________
Closing costs: $________
Transfer taxes: $________
Repairs: $________
Seller concessions: $________
Estimated net proceeds: $________
Seller’s Pre-Listing Checklist
Property
☐ Declutter
☐ Deep clean
☐ Make necessary repairs
☐ Improve curb appeal
☐ Organize closets
☐ Remove unnecessary personal items
Financial
☐ Determine market value
☐ Obtain mortgage payoff
☐ Estimate selling costs
☐ Calculate net proceeds
Marketing
☐ Professional photographs
☐ MLS listing
☐ Property description
☐ Yard sign
☐ Online marketing
☐ Social media
Legal/Transaction
☐ Seller disclosures
☐ HOA/condo documents
☐ Review listing agreement
☐ Understand brokerage compensation
☐ Understand buyer-broker compensation
☐ Identify title/settlement provider
Frequently Asked Questions
How long does it take to sell a home?
It can take anywhere from several weeks to several months or longer. Price, condition, location and market conditions all matter.
Should I sell FSBO?
FSBO can save listing-broker expenses, but you take on substantially more responsibility.
Is Flat-Fee MLS cheaper than a Realtor?
It can be substantially less expensive on the listing side, but the services provided are different.
Should I renovate before selling?
Not necessarily. Focus on improvements that are likely to improve marketability or value.
Should I get an inspection before listing?
A pre-listing inspection can identify potential problems before putting your property on the market, but it isn’t necessarily appropriate for every seller.
How do I know what my house is worth?
A CMA based on comparable recent sales is a useful starting point. A licensed real estate professional can help analyze the local market.
What matters most when selling?
Price, presentation, marketing, availability for showings and negotiation.
Sell Your Home With Netrealtynow.com
You don’t have to choose between doing everything yourself and paying for a traditional full-service listing.
Netrealtynow.com offers different levels of service.
$299 Flat-Fee MLS
For sellers who want MLS exposure and are comfortable handling much of the sale themselves.
Full-Support Flat-Fee MLS
For sellers who want additional professional assistance while potentially reducing the cost of a traditional percentage-based listing.
Full-Service Listing
For sellers who want more comprehensive professional representation.
Choose the level of service that fits your property, your budget and your goals.
[COMPARE LISTING PLANS]
[CALCULATE YOUR NET PROCEEDS]
[LIST YOUR HOME]