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.
Why Should You Decide to Sell Your Home?
You should decide to sell your home based on your specific goals, which can include moving to another state, downsizing, relocating for work, or selling an investment property. Your reason for selling, whether it's for the highest possible price or a quick sale, will significantly 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.
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.
You can determine what your home is worth by starting with a Comparative Market Analysis (CMA). Pricing is one of the most important decisions you’ll make, as a home priced too high may sit on the market, while one priced too low may sell quickly but leave money on the table. A CMA looks at comparable properties that have recently sold, similar square footage, number of bedrooms and bathrooms, location, condition, lot size, and amenities. It's important not to rely solely on online estimates, as they don’t know everything about your property.
How Can You 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).
You calculate your expected net proceeds by considering various deductions from the sale price. Knowing your home’s value isn’t enough; you also need to understand the actual amount you will receive after all expenses. The following section will detail the components needed for this calculation.
- 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.
How Do You 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
=
What is Option 1: For Sale By Owner (FSBO)?
For example:
The estimated net proceeds in this example are $225,000. It is important to note that this is only an example, and actual costs can vary considerably by location and transaction. This figure represents the money a seller might receive after all expenses and mortgage payoffs are accounted for.
Mortgage payoff: $250,000
You decide how to sell your home by considering the several choices available, which include For Sale By Owner (FSBO), Flat-Fee MLS, or a Traditional Full-Service Realtor. Each option offers different levels of involvement and cost, allowing you to select the method that best suits your needs and comfort level.
What are the Estimated Net Proceeds?
$225,000
A potential advantage of FSBO (For Sale By Owner) is the lowest listing-broker expense. By handling most of the selling process yourself, you can significantly reduce or eliminate the fees typically associated with hiring a listing broker.
How Do You Decide How to Sell Your Home?
A potential disadvantage of FSBO (For Sale By Owner) is that you are responsible for most of the work involved in selling your home. This includes tasks such as marketing, showings, negotiations, and contract management, which can be time-consuming and complex.
What is Option 2: Flat-Fee MLS?
For Sale By Owner
You don’t hire a listing broker and handle most of the process yourself.
What is a Potential Advantage of FSBO?
Lowest listing-broker expense.
What is a Potential Disadvantage of FSBO?
To prepare your home for sale, you should start with the basics, as you don’t necessarily need to spend a fortune renovating your house. Focus on essential improvements and cleaning that will make the biggest impact without overspending, as detailed in the following sections.
What is Option 3: Traditional Full-Service Realtor?
You hire a licensed real estate broker to list your property on the MLS for a predetermined fee.
What are the Potential Advantages of Flat-Fee MLS?
- The potential advantages of Flat-Fee MLS include gaining MLS exposure, benefiting from lower listing expenses, having more control over the sale, and the ability for the seller to handle some aspects of the transaction. This option combines the broad reach of the MLS with cost savings and seller involvement.
What is a Potential Disadvantage of Flat-Fee MLS?
You may still have significant responsibilities depending upon the package.
Option 3 — Traditional Full-Service Realtor
You should take professional photographs when selling your home because most buyers begin their search online, and your photographs are often the first impression of your property. Good listing photography is crucial and should clearly show the exterior, kitchen, living areas, bedrooms, bathrooms, backyard, pool, garage, and any special features. Depending on the property, consider adding drone photography, video, 3D tours, or floor plans to enhance the listing.
- Option 3, a Traditional Full-Service Realtor, provides comprehensive professional representation covering all aspects of the sale. This includes pricing, marketing, managing showings, handling offers and negotiations, contract management, and closing. The compensation for these services is typically negotiated between the seller and the broker.
The seller and broker negotiate the compensation.
How Should You Prepare Your Home for Sale?
You don’t necessarily need to spend a fortune renovating your house.
To create your MLS listing, you must accurately describe the property and include essential details. Your listing should feature the address, asking price, number of bedrooms and bathrooms, square footage, lot size, year built, property features, appliances, improvements, HOA information, school information where appropriate, and showing instructions. Accuracy is key for attracting the right buyers.
How Should You Prepare Your Home's Exterior?
- To prepare your home's exterior, you should focus on enhancing its curb appeal. This involves tasks such as cutting the grass, trimming landscaping, cleaning walkways, cleaning the front door, removing clutter, and making the entrance attractive. These basic steps create a positive first impression for potential buyers.
How Should You Prepare Your Home's Interior?
- To prepare your home's interior, you should focus on creating a clean, spacious, and inviting environment. Key tasks include decluttering, deep cleaning, removing excessive personal items, touching up paint, repairing obvious problems, cleaning windows, organizing closets, and making rooms appear spacious. These efforts help buyers envision themselves in the home.
Should You Over-Improve Your Home Before Selling?
Before spending $30,000 on renovations, determine whether those improvements are likely to increase your sale price enough to justify the cost.
Why Should You Take Professional Photographs When Selling Your Home?
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
How Do You Create Your MLS Listing?
To market your property for sale, while MLS exposure is important, additional strategies can significantly help. Depending on the property, you should consider using a yard sign, social media, email marketing, online advertising, open houses, broker outreach, property videos, drone photography, and direct marketing. The most effective marketing strategy will always match the specific property and its target buyer.
Include:
- Address
- Asking price
- Bedrooms
- Bathrooms
- Square footage
- Lot size
- Year built
- Property features
- Appliances
- Improvements
- HOA information
- School information where appropriate
- Showing instructions
Should You Exaggerate in Your MLS Listing?
You can make your home easy to show by ensuring it is always clean, available for showings, and comfortable for potential buyers. If possible, be flexible with appointment times, keep pets secured, turn on lights, and open curtains. A buyer who can’t easily see your property may move on to another home. While a traditional Realtor may coordinate showings, sellers using FSBO or some Flat-Fee MLS plans may handle this responsibility themselves.
How Do You Put Your 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.
When reviewing offers for your home, you should not look only at the purchase price, but also consider various other factors. Eventually, offers should begin arriving, and it's crucial to evaluate the complete picture of each offer, including financing, contingencies, and closing dates, as detailed in the following points.
The MLS listing should contain accurate information and high-quality photographs.
How Do You Market Your Property for Sale?
The purchase price refers to how much the buyer is offering for your home. This is a primary factor to consider, but it should be evaluated in conjunction with other terms of the offer.
The type of financing the buyer is using is a crucial consideration, as it determines whether they are paying cash, using conventional financing, FHA, VA, or another type of loan. The financing method can impact the stability and timeline of the sale.
- Yard sign
- Social media
- Email marketing
- Online advertising
- Open house
- Broker outreach
- Property video
- Drone photography
- Direct marketing
The buyer's down payment refers to how much money they are putting down towards the purchase. A larger down payment often indicates a stronger offer and greater financial commitment from the buyer.
How Can You Make Your Home Easy to Show?
An inspection contingency outlines the inspection rights the buyer has within the contract. This typically allows the buyer to have the property professionally inspected and, based on the findings, potentially renegotiate terms or withdraw from the sale if significant issues are found.
A financing contingency specifies what happens if the buyer can’t obtain financing for the purchase. Typically, if the buyer is unable to secure a loan within the agreed-upon timeframe, this contingency allows them to withdraw from the contract without penalty, protecting their earnest money deposit.
- 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
An appraisal contingency addresses what happens if the property doesn’t appraise for the contract price. This clause allows the buyer to renegotiate the price, pay the difference in cash, or potentially withdraw from the contract if the appraised value is lower than the agreed-upon sale price.
The proposed closing date is the date the buyer suggests for finalizing the sale. It is important to consider if this date works for your schedule and moving plans, as it dictates when the transaction will be completed.
How Should You Review Offers When Selling Your Home?
Seller concessions occur when the buyer is asking you to pay some of their expenses as part of the deal. These can include closing costs, prepaid items, or other fees, and they effectively reduce the net proceeds you receive from the sale.
An earnest money deposit is the amount of money the buyer is putting at risk to show their serious intent to purchase the property. This deposit is typically held in escrow and can be forfeited by the buyer if they back out of the deal without a valid contingency.
To negotiate the home sale contract, it's crucial to understand that the highest offer isn’t necessarily the best offer. You must evaluate all terms and contingencies, not just the purchase price, to determine the true value and likelihood of a successful closing. For example, consider the following scenarios:
What is the Purchase Price?
How much is the buyer offering?
What Type of Financing is the Buyer Using?
Offer A entails a purchase price of $525,000, but it comes with several conditions. These include a financing contingency, a large seller concession, a long inspection period, and a delayed closing. These factors should be carefully weighed against the high purchase price.
How Much is the Buyer's Down Payment?
Offer B entails a purchase price of $515,000, but it presents more favorable terms. These include strong financing, a large down payment, a short inspection period, minimal concessions, and a convenient closing date. Depending on your circumstances, Offer B might actually be the better transaction due to these stronger conditions.
What is an Inspection Contingency?
What inspection rights does the buyer have?
What is a Financing Contingency?
What happens if the buyer can’t obtain financing?
What is an Appraisal Contingency?
What happens if the property doesn’t appraise?
What is the Proposed Closing Date?
Does the buyer’s proposed closing date work for you?
What are Seller Concessions?
Is the buyer asking you to pay some of their expenses?
What is an Earnest Money Deposit?
How much money is the buyer putting at risk?
How Do You Negotiate the Home Sale Contract?
The highest offer isn’t necessarily the best offer.
For example:
What Does Offer A Entail?
$525,000
But:
- Financing contingency
- Large seller concession
- Long inspection period
- Delayed closing
What Does Offer B Entail?
$515,000
After completing all the steps, you've successfully sold your home. This signifies the culmination of the entire selling process, from initial decision-making to the final transfer of ownership and receipt of proceeds.
- 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.
How Do You Complete the Home Inspection Process?
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.
What Happens During the Home Appraisal Process?
If the buyer is financing the purchase, the lender may require an appraisal.
The appraiser evaluates the property’s value for the lender.
FSBO (For Sale By Owner) helps save money because you handle the sale yourself, thereby avoiding listing brokerage compensation. This means you take on all responsibilities for marketing, showings, and negotiations, but you retain a larger portion of the sale proceeds.
- 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
What Happens During Title and Closing?
Flat-Fee MLS helps save money because you pay a predetermined fee for MLS listing services, which is typically much lower than traditional percentage-based brokerage compensation. This allows you to gain broad exposure on the MLS while controlling your listing expenses.
While a Full-Service Realtor involves paying negotiated compensation for a broader range of professional services, it can indirectly affect savings by potentially securing a higher sale price or faster sale, offsetting the fees. The best choice ultimately depends upon how much work you’re willing to do yourself versus the value of comprehensive professional representation.
- 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.
What Happens During the 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
How Do You Close the Home 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
What Happens After You've Sold Your Home?
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:
How Does FSBO Help Save Money?
You handle the sale yourself.
How Does Flat-Fee MLS Help Save Money?
You pay a predetermined fee for MLS listing services.
How Does a Full-Service Realtor Affect Savings?
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.
What is the $299 Flat-Fee MLS Service?
For sellers who want MLS exposure while handling more of the sale themselves.
What is the Full-Support Flat-Fee MLS Service?
For sellers who want additional professional assistance without automatically paying a traditional percentage-based listing fee.
What is a Full-Service Listing?
For sellers who want more comprehensive professional representation.
Choose the level of service that fits your needs—and your budget.
[COMPARE LISTING PLANS]
[CALCULATE YOUR NET PROCEEDS]
[LIST MY HOME]