A Step-by-Step Guide for Home Sellers
Selling a home is one of the largest financial transactions most people will make. The process can seem complicated, but understanding the major steps can make the experience much easier.
Whether you choose FSBO, Flat-Fee MLS, or a traditional full-service Realtor, the basic process is similar.
This guide explains what you need to know—from deciding to sell through closing.
Step 1: Decide Why You Are Selling
Before putting your home on the market, determine your goals.
Are you:
- Moving to another state?
- Downsizing?
- Moving closer to family?
- Buying another home?
- Selling an investment property?
- Relocating for work?
- Retiring?
- Selling an inherited property?
- Looking for the highest possible price?
- Looking for a quick sale?
Your reason for selling can affect your pricing and marketing strategy.
For example, a seller who needs to move within 30 days has very different priorities from someone who wants to maximize the sale price over the next six months.
Step 2: Determine What Your Home Is Worth
Pricing is one of the most important decisions you’ll make.
A home priced too high may sit on the market.
A home priced too low may sell quickly but leave money on the table.
The best starting point is a Comparative Market Analysis (CMA).
A CMA looks at comparable properties that have:
- Recently sold
- Similar square footage
- Similar number of bedrooms and bathrooms
- Similar location
- Similar condition
- Similar lot size
- Similar amenities
Don’t rely solely on online estimates.
Online valuation tools can be useful as a starting point, but they don’t know everything about your property.
Step 3: Calculate Your Expected Net Proceeds
Knowing your home’s value isn’t enough.
You need to know:
How much money will I actually receive from the sale?
A simplified calculation is:
Sale Price
− Mortgage Payoff
− Brokerage Compensation
− Buyer-Broker Compensation, if applicable
− Seller Closing Costs
− Transfer Taxes
− Seller Concessions
− Repairs
− Other Selling Expenses
=
Estimated Net Proceeds
For example:
Estimated sale price: $500,000
Mortgage payoff: $250,000
Estimated selling expenses: $25,000
Estimated net proceeds:
$225,000
This is only an example. Actual costs vary considerably by location and transaction.
Step 4: Decide How You Want to Sell
You have several choices.
Option 1 — FSBO
For Sale By Owner
You don’t hire a listing broker and handle most of the process yourself.
Potential advantage:
Lowest listing-broker expense.
Potential disadvantage:
You are responsible for most of the work.
Option 2 — Flat-Fee MLS
You hire a licensed real estate broker to list your property on the MLS for a predetermined fee.
Potential advantages:
- MLS exposure
- Lower listing expense
- More control
- Seller can handle some aspects of the sale
Potential disadvantage:
You may still have significant responsibilities depending upon the package.
Option 3 — Traditional Full-Service Realtor
A full-service listing generally provides more assistance with:
- Pricing
- Marketing
- Showings
- Offers
- Negotiations
- Contract management
- Closing
The seller and broker negotiate the compensation.
Step 5: Prepare Your Home
You don’t necessarily need to spend a fortune renovating your house.
Start with the basics.
Exterior
- Cut the grass
- Trim landscaping
- Clean walkways
- Clean the front door
- Remove clutter
- Make the entrance attractive
Interior
- Declutter
- Deep clean
- Remove excessive personal items
- Touch up paint
- Repair obvious problems
- Clean windows
- Organize closets
- Make rooms appear spacious
Don’t Over-Improve
Before spending $30,000 on renovations, determine whether those improvements are likely to increase your sale price enough to justify the cost.
Step 6: Take Professional Photographs
Most buyers begin their search online.
Your photographs are often the first impression of your property.
Good listing photography should show:
- Exterior
- Kitchen
- Living areas
- Bedrooms
- Bathrooms
- Backyard
- Pool
- Garage
- Special features
Depending on the property, consider:
- Drone photography
- Video
- 3D tours
- Floor plans
Step 7: Create Your MLS Listing
Your MLS listing should accurately describe the property.
Include:
- Address
- Asking price
- Bedrooms
- Bathrooms
- Square footage
- Lot size
- Year built
- Property features
- Appliances
- Improvements
- HOA information
- School information where appropriate
- Showing instructions
Don’t exaggerate.
Your MLS description should accurately represent the property.
Step 8: Put the Property on the MLS
This is where a Flat-Fee MLS service can be particularly valuable.
The property is entered into the applicable MLS and can become visible to real estate professionals searching for properties for their buyers.
Depending upon the MLS and syndication arrangements, the listing may also appear on consumer real estate websites.
The MLS listing should contain accurate information and high-quality photographs.
Step 9: Market the Property
MLS exposure is important, but additional marketing can help.
Depending upon the property, consider:
- Yard sign
- Social media
- Email marketing
- Online advertising
- Open house
- Broker outreach
- Property video
- Drone photography
- Direct marketing
The marketing strategy should match the property and target buyer.
Step 10: Make Your Home Easy to Show
A buyer who can’t easily see your property may move on to another home.
If possible:
- Keep the home clean
- Keep the house available for showings
- Be flexible with appointment times
- Keep pets secured
- Turn on lights
- Open curtains
- Make the home comfortable
If you’re using a traditional Realtor, the agent may coordinate showings.
With FSBO or some Flat-Fee MLS plans, the seller may handle this responsibility.
Step 11: Review Offers
Eventually, offers should begin arriving.
Don’t look only at the purchase price.
Consider:
Purchase price
How much is the buyer offering?
Financing
Is the buyer paying cash, using conventional financing, FHA, VA or another loan?
Down payment
How much money is the buyer putting down?
Inspection contingency
What inspection rights does the buyer have?
Financing contingency
What happens if the buyer can’t obtain financing?
Appraisal contingency
What happens if the property doesn’t appraise?
Closing date
Does the buyer’s proposed closing date work for you?
Seller concessions
Is the buyer asking you to pay some of their expenses?
Earnest money deposit
How much money is the buyer putting at risk?
Step 12: Negotiate the Contract
The highest offer isn’t necessarily the best offer.
For example:
Offer A
$525,000
But:
- Financing contingency
- Large seller concession
- Long inspection period
- Delayed closing
Offer B
$515,000
But:
- Strong financing
- Large down payment
- Short inspection period
- Minimal concessions
- Convenient closing date
Depending on your circumstances, Offer B might actually be the better transaction.
Step 13: Complete the Inspection
The buyer will generally have an opportunity to inspect the property according to the terms of the contract.
Possible issues include:
- Roof
- HVAC
- Plumbing
- Electrical
- Foundation
- Water intrusion
- Mold
- Termites
- Appliances
- Pool
- Structural problems
The inspection doesn’t necessarily mean you must fix everything.
What happens next depends on the contract and negotiations.
Step 14: Appraisal
If the buyer is financing the purchase, the lender may require an appraisal.
The appraiser evaluates the property’s value for the lender.
If the appraisal comes in below the contract price, several things could happen:
- Buyer pays additional cash
- Seller reduces the price
- Buyer and seller split the difference
- Buyer challenges the appraisal
- Contract is renegotiated
- Contract terminates if permitted by the agreement
Step 15: Title and Closing
Before closing, the title/settlement company or attorney generally works to make sure the transaction can close properly.
Items may include:
- Title search
- Payoff of existing mortgage
- Required disclosures
- Closing statement
- Prorations
- Taxes
- Recording
- Deed
- Final settlement figures
The exact process varies by state.
This is particularly important because Florida, Maryland, Virginia, New York and Washington, DC have different closing practices and requirements.
Step 16: Final Walk-Through
The buyer will usually have an opportunity to conduct a final walk-through shortly before closing.
The buyer is generally checking that:
- The property is in the agreed condition
- Agreed repairs were completed
- Fixtures remain
- The property is substantially as represented
Step 17: Close the Sale
At closing:
- Documents are signed
- The buyer provides funds
- The mortgage is paid off
- Applicable taxes and expenses are paid
- The deed is transferred
- The transaction is recorded as required
- The seller receives the remaining proceeds
Congratulations.
You’ve sold your home.
How Long Does It Take to Sell a Home?
There is no universal timeline.
The process can take:
A few weeks to several months—or longer.
Factors include:
- Asking price
- Market conditions
- Property condition
- Location
- Buyer demand
- Financing
- Inspection issues
- Appraisal
- Negotiations
- Title issues
Pricing the property correctly from the beginning can have a major impact on how quickly it sells.
How Much Does It Cost to Sell a Home?
Potential expenses include:
- Listing brokerage compensation
- Flat-Fee MLS fee
- Buyer-broker compensation, if negotiated
- Transfer taxes
- Recording fees
- Title/settlement costs
- Attorney fees
- Repairs
- Photography
- Staging
- Seller concessions
- HOA/condo fees
- Mortgage payoff
- Moving expenses
See our complete guide:
[How Much Does It Cost to Sell a Home?]
How Can I Save Money When Selling My Home?
One of the largest potential savings opportunities is brokerage compensation.
You can compare:
FSBO
You handle the sale yourself.
Flat-Fee MLS
You pay a predetermined fee for MLS listing services.
Full-Service Realtor
You pay negotiated compensation for a broader range of professional services.
The best choice depends upon how much work you’re willing to do yourself.
Should You Use a Flat-Fee MLS?
A Flat-Fee MLS may be a good choice if you:
- Want MLS exposure
- Want to reduce listing expenses
- Are comfortable handling showings
- Understand your local market
- Are comfortable negotiating
- Want more control over the sale
If you want someone else to handle most of the transaction, a full-service listing may be a better fit.
Common Mistakes Sellers Make
1. Pricing too high
An overpriced property can sit on the market.
2. Poor photographs
Bad photographs can dramatically reduce interest.
3. Ignoring repairs
Obvious problems can make buyers nervous.
4. Being unavailable for showings
Buyers have many choices.
5. Becoming emotionally attached to the price
The market—not the amount you need to move—determines what buyers are willing to pay.
6. Looking only at the highest offer
Terms and contingencies matter.
7. Not calculating net proceeds
The sale price isn’t the amount you take home.
8. Choosing a broker based only on commission
Compare services, experience and expected results, not just the fee.
Home Selling Checklist
Before Listing
☐ Determine why you’re selling
☐ Research your home’s value
☐ Calculate estimated net proceeds
☐ Choose your selling strategy
☐ Decide what repairs are worthwhile
☐ Declutter and clean
☐ Take photographs
☐ Prepare disclosures
Listing
☐ Determine asking price
☐ Prepare MLS description
☐ Upload photographs
☐ Put property on MLS
☐ Begin marketing
☐ Establish showing procedures
Offers
☐ Review price
☐ Review financing
☐ Review contingencies
☐ Review concessions
☐ Review closing date
☐ Compare net proceeds
☐ Negotiate contract
Contract to Closing
☐ Inspection
☐ Repairs/negotiations
☐ Appraisal
☐ Title work
☐ Mortgage payoff
☐ Final walk-through
☐ Closing documents
☐ Closing
Ready to Sell Your Home?
Netrealtynow.com gives sellers several ways to sell.
$299 Flat-Fee MLS
For sellers who want MLS exposure while handling more of the sale themselves.
Full-Support Flat-Fee MLS
For sellers who want additional professional assistance without automatically paying a traditional percentage-based listing fee.
Full-Service Listing
For sellers who want more comprehensive professional representation.
Choose the level of service that fits your needs—and your budget.
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[CALCULATE YOUR NET PROCEEDS]
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