Welcome home sellers. Your real estate agent has shared this page to provide you with essential information about the home-selling process and what to expect during closing. We work closely with your real estate professional to ensure you have the knowledge and resources needed for a smooth home sale. Our comprehensive home selling guide walks you through each phase of the process.

Selling a home can be overwhelming, but with the right real estate selling strategy, you can minimize stress and maximize success. This guide begins after signing a sales agreement with your listing agent. While every real estate market is different, these essential home-selling steps will help you navigate the process confidently.

People Involved in the Real Estate Transaction

A successful real estate transaction requires coordination among various professionals. Here are the key individuals involved:

• Seller’s Real Estate Agent – Represents the seller and manages the listing, negotiations, and closing process.
• Seller’s Broker – Oversees the agent and ensures compliance with real estate regulations.
• Buyer’s Real Estate Agent – Represents the buyer’s interests in finding and purchasing a property.
• Buyer’s Broker – Supervises the buyer’s agent and ensures compliance.
• Buyers – The individuals or entities purchasing the property.
• Sellers – The individuals or entities selling the property.
• WDIR Inspector – Conducts the wood-destroying insect report inspection.
• Home Inspector – Evaluates the overall condition of the property.
• Handyman/Contractors – Perform repairs requested during negotiations.
• Loan Officer – Assists the buyer with mortgage approval.
• Underwriter – Evaluates the buyer’s financial status to approve the mortgage.
• Lender – Provides financing for the buyer.
• Title Officer – Verifies property ownership and ensures a clean title.
• Escrow Processor – Manages the escrow account and transaction details.
• Attorney/Escrow Officer – Handles legal aspects of the closing process.
• Cleaner – Prepares the home for showings and final walk-throughs.
• Tax Assessor – Determines the property’s tax valuation.
• Appraiser – Assesses the home’s market value to ensure the lender’s requirements are met.

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Quite a team. Selling a property is a very big deal. Now for the Guide:

Home Selling Process: Step-by-Step Guide

Selling your home is an exciting journey, and this guide will help you navigate each step of the process. Below, we outline each phase from listing to closing, ensuring a smooth and successful transaction.

1. Signing the Representation Contract with Your Real Estate Agent

The first step in selling your home is signing a contract with a real estate agent. This agreement outlines the terms of your working relationship and allows the agent to represent you in the transaction.

2. Photographs to Be Taken

High-quality photos are essential for marketing your home. Your agent will arrange for professional photographs to showcase your property’s best features and attract potential buyers.

3. Listing is Posted on MLS and Social Media

Once your home is ready, your agent will list it on the Multiple Listing Service (MLS) and promote it on social media and other real estate platforms to reach a broad audience.

4. Sign Placed (as Agreed)

A ‘For Sale’ sign will be placed in your yard if agreed upon, making it easier for potential buyers to find your home and express interest.

5. Agent Informs Other Agents of the Listing

Your real estate agent will notify other agents in their network about your home’s availability, increasing exposure to buyers working with other professionals.

6. Agent Fields Inquiries

As interest builds, your agent will handle questions from potential buyers and schedule showings to ensure that your home is seen by qualified prospects.

7. Agent Communicates Status

Throughout the process, your agent will keep you updated on showings, feedback, and any offers or inquiries received.

8. Offer Received and Forwarded to You

When a buyer submits an offer, your agent will review it and present it to you, explaining the details and any contingencies.

9. Offer Accepted, Countered, or Rejected

You have the option to accept the offer, negotiate the terms with a counteroffer, or reject it if it does not meet your expectations.

10. If Offer Accepted, Signed by All Parties

Once all parties agree on the terms, the contract is signed, making the agreement legally binding.

11. Closing Office Determined

The closing process is handled by a title company or attorney’s office, which will be selected at this stage.

12. Order a Termite Inspection

A termite inspection is often required to ensure the home is free from pest damage. The cost is typically covered by the seller.

13. Review Termite Inspection Report and Address Issues if Needed

If termites or other wood-damaging pests are found, treatment may be required before closing.

14. Buyer Orders Property Inspection

The buyer will arrange a home inspection to assess the condition of the property, identifying any necessary repairs or potential issues.

15. Review Property Inspection Report and Negotiate Repairs if Necessary

If the inspection reveals problems, the buyer may request repairs or credits at closing. Your agent will help negotiate these requests.

16. Complete Agreed-Upon Repairs or Allocate Funds at Closing

Repairs can be completed before closing, or you may agree to provide a credit to the buyer to cover the cost of future repairs.

17. Buyer’s Lender Orders Appraisal

If the buyer is financing the purchase, their lender will require an appraisal to determine the home’s fair market value.

18. Review Appraisal Results and Discuss Options if the Value is Lower than Contract Price

If the appraisal comes in lower than the sale price, the buyer may need to cover the difference, or you may negotiate a new price.

19. Buyer Receives Final Credit Approval

The lender will finalize the buyer’s loan approval, confirming that all financing conditions have been met.

20. Respond to Any Requests from Closing Attorney

The closing attorney or title company may request additional documentation to ensure a smooth closing process.

21. Review and Sign Closing Documents (Notarization Required)

You will need to sign various legal documents to transfer ownership, some of which may need to be notarized.

22. Return Signed Documents via Email or Overnight Mail

If you are not attending the closing in person, signed documents must be sent back promptly to avoid delays.

23. Buyer Conducts Final Walk-Through

The buyer will do a final inspection of the home before closing to ensure everything is in the agreed-upon condition.

24. Attend Closing (Agent Will Represent You if Needed)

Closing is the final step where all paperwork is completed, and the property officially changes ownership. Your agent can represent you if you cannot attend.

25. Receive Proceeds from Sale

Once closing is finalized, you will receive the proceeds from the sale via check or bank transfer.

What happens if the deal starts to fall apart? The following are a listing of potential Deal Issues and Possible Solutions:

Potential Deal Issues

Certain issues may arise that can impact the closing timeline or even prevent the deal from closing. Here are some common challenges:

• Buyer’s Credit Issues: If the buyer’s credit score drops or an issue is found that affects loan approval, this can lead to delays or termination of the deal.
• Insufficient Funds to Close: If the buyer does not have enough funds available at closing, the transaction may be delayed or canceled.
• Serious Termite Damage: If termite damage is extensive, repairs may take time. The buyer may not want to delay closing for repairs and may refuse funds at closing for later repairs.
• Lender-Required Repairs: VA, FHA, or other financing institutions may find issues with the property that must be corrected before approval. If the problems cannot be resolved, the loan may not proceed.
• Inspection Disputes: If the home inspector finds issues that the seller refuses to fix and the buyer insists on repairs, the deal could fall apart.
• Title Issues: A last-minute issue with the title, such as a cloud on ownership, can delay or prevent closing.

Possible Solutions

• Contract Addendum: If all parties agree, an addendum can be created to extend the closing date to allow time for corrections.
• Avoid Premature Financial Commitments: Buyers and sellers should avoid making financial commitments, such as scheduling furniture delivery, until at least two to three days before the confirmed closing date.

Home Selling Checklist

Our Home Selling Checklist will help you track the progress of your deal. Your real estate agent will keep you informed. You can check off the items and even put in dates. Keep in mind that closing dates are fluid, it is a target that everyone on that list above wants to achieve. Sometimes closing dates are brought forward and sometimes they are extended with a contract extension. Your agent and your lender will keep you informed of the process. Feel free to download this PDF and use it.