Real Estate 101, Selling

Here are the steps for selling a home:

1) Choose a Listing Agent

• A listing agent will represent you and have a fiduciary responsibility to look out for your best interests.
• Interview agents and meet with at least three neighborhood specialists.
• Negotiate your listing agreement, including term.

2) Get Home Ready for Sale

• Prepare your home for sale by cleaning, decluttering and improving curb appeal.
• Hire a professional stager to stage your home, or ask your real estate agent for help in staging.
• Make repairs before selling.
• Protect your privacy while your home is on the market.
• If you're selling a home where pets live, make alternate plans for your pets.

3) Figure Out How Much Your Home is Worth

• A seller's biggest mistake is to overprice.
• Price your home in line with sold homes identified in a comparative market analysis report.
• Consider whether your market is hot, cold or neutral, and price according to the market temperature.

4) Market Your Home

• You or your agent should identify the sizzling selling points and choose advertising words to sell.
• Approve your agent's marketing campaign or figure out how to advertise your house for sale yourself.
• Follow the top 10 home marketing tips for selling your home.
• Hire a virtual tour company to take quality photographs and put a 360-degree virtual tour online.
• Tweak marketing to increase traffic and showings.
• Post internet listings online. Your agent or you should saturate the internet with photographs and description of your home.

5) Show Your Home

• If you're wondering about lockbox vs. appointments, you'll get more showings if you let agents use a lockbox.
• Your home will show better if you are selling in spring than selling in winter.
• Selling during the holidays will likely result in a lower sales price, regardless of what agents tell you.
• Follow the top 10 home showing tips. You've got only one chance -- and sometimes only 3 seconds -- to make a good first impression. • Prepare for an open house and use the approach sparingly.
• Ask for buyer feedback so you can adjust your price, condition or marketing campaigns accordingly.

6) Receive Purchase Offers and Negotiate

• Make certain that buyers use the right form for writing a purchase offer.
• Even if you receive a lowball offer, negotiate by issuing a counter offer. Don't ignore offers.
• Ask for a kickout clause or first right of refusal if the buyer's offer is contingent on selling a home.
• Consider making a counter offer contingent on buying a home, if market conditions warrant.
• Don't be afraid to make a full-price counter offer, if you are priced competitively.
• If you are priced right, prepare yourself for multiple offers.

7) Open Escrow / Order Title

• Your agent or transaction coordinator will open escrow and order a title policy.
• Write down the contact information for the closing agent.
• Select a date to close based on when the buyer's loan will fund.
• Ask for a receipt for the buyer's earnest money deposit.

8) Schedule Appraiser Appointment

• Clean the house the day before the appraiser arrives.
• If you receive a low appraisal, ask your agent about alternatives.
• You are not entitled to receive a copy of the appraisal because you did not pay for it.
• If the buyer decides to cancel the contract based on an appraisal, ask your agent or lawyer about your rights.

9) Cooperate with Home Inspection

• Get ready for the home inspector.
• Ask your agent to provide you with a home inspection checklist so you will know which items an inspector will want to see.
• Expect that the inspector will want access for an attic inspection and will look for a wet basement; prepare those areas for inspection.
• Prepare as well for the final walk-through inspection.

10) Obtain Seller-Required Inspections

• If your contract calls for a roof certification, hire a reputable company to conduct the inspection.
• States that allow for termite / pest inspections make these reports public records.
• The fees for all inspection reports, even if seller-mandated, are negotiable.
• If your home was built before 1950, a sewer inspection might call for a new sewer line, but trenchless sewers are less expensive to install.

11) Delivery Seller Disclosures

• All homes in the US are subject to lead-based paint disclosures.
• If you are aware of material facts, disclose them.
• Your title company should provide CC&Rs, but if you belong to a homeowner association, additional documentation will be required.

12) Negotiate Request for Repair

• Ordinarily, sellers do not need to accept a buyer's request for repair; however, buyers can generally then cancel.
• You are entitled to a copy of the home inspection report, if the buyers request repairs.
• If you do not choose to make repairs, a buyer might instead accept a closing cost credit.

13) Ask Buyer to Release Contingencies

• In California, for example, contracts default to 17 days, at which time, the buyer must release contingencies.
• If you do not demand a release, buyers are not obligated to provide it.
• If buyers do not provide a release, in CA, sellers have the right to cancel.

14) Sign Title / Escrow Documents

• In southern California, you will sign escrow documents shortly after opening escrow.
• In northern California, you will sign escrow documents near closing.
• Bring a valid picture ID.

15) Close Escrow

• Your property deed, reconveyance and deed of trust will record in the public records.
• Title will notify you and your agent when it records.
• Depending on buyer's possession rights specified in the contract, you may be required to move on the day it closes.