THE HOUSE SALE PROCESS: HOW IT WORKS

Buying or selling a house isn't like buying or selling a pair of shoes. Because houses are often the biggest purchases people make, they are governed by contracts and require specific actions to ensure that public records accurately reflect who owns which property. Here is what you can expect when you're ready to sell your home.

Set Your Asking Price

The first step in a successful home sale is pricing the property right. If you're unsure how to do this using information about comparable sales in your neighborhood, you can have a professional appraiser help you.

Write Your Listing

Once you know your asking price, it's time to list your property and start marketing it. Most home buyers start their searches online, so make sure your listing has a strong online presence, and don't be afraid to use social media to help market your property.

Arrange Tours for Prospective Buyers

As interest in your property builds, you will be showing your home to potential buyers. Keep your house and yard clean, and have informative handouts available for those who view your house. Some sellers stage an open house in addition to allowing buyers to schedule a tour of the property.

Consider Offers

It's wise to only consider written offers and to only respond with a written counteroffer, acceptance, or rejection. Negotiations may take several days and more than one offer-counteroffer cycle. You have every right to reject "lowball" offers.

Accept an Offer

Depending on how the market is faring, offers may come in below or above the asking price. You, the seller, will have to know how low you're willing to go. This is another situation in which a professional appraiser's report can help you out, because you can use this report to strengthen your bargaining position.

Sign the Purchase and Sale

Once you agree to accept an offer, both you and the buyer will sign a Purchase and Sale Agreement. If you're in the enviable position of having multiple offers to consider, choosing a buyer who is pre-approved for a mortgage can make the closing process quicker. It is also a good idea to have a "second best" offer from a potential buyer in mind in case the first deal falls through.

Fulfill Contract Obligations and Schedule Closing

It's a good idea for both parties to have lawyers review the agreement to ensure that they are protected and that everyone understands the agreement. In general, the Purchase and Sale Agreement spells out what steps both parties must take for the sale to be finalized.

The buyer has to obtain financing, and part of this process involves having an appraisal (even if you've already had the home appraised). Sometimes sellers are required as part of the agreement to make specific repairs and to provide receipts showing that the work has been done. When the buyer finalizes his or he financing, a closing date is set.

Attend the Closing

On the date of closing, you and the buyer meet at an escrow company office or a lender's office so that all arrangements can be finished. Any funds that have been deposited with an escrow agent are disbursed to the seller on the day of closing. At that time, the seller transfers the deed to the property to the buyer, signifying that the ownership has changed hands. A new deed has to be recorded at the county's Register of Deeds office.

In some instances, the seller has to pay certain expenses (like clearing a lien or tax bill) out of pocket before closing. Find out in advance exactly what your obligations are on and before closing.

Celebrate!

Selling your own home can be exciting and rewarding. If you're ready to list your home as a FSBO property, click here and you can get started right now.