The Home Selling Process

Step 1—Get Started

Before the “for sale” sign goes up, make sure your home is ready — and so are you.

Determine affordability

Selling your home requires some upfront costs. You’ll need to factor in any necessary home improvement costs, closing costs, and moving expenses. If you have equity in your home, you could end up walking away with some money. On the other hand, if your home is worth less than the amount you owe on it, you’re unlikely to have leftover money. You can estimate your home equity by subtracting the amount you still owe on your mortgage from the current market value of your home. 

Review market conditions

Research your local housing market, including the current inventory of homes for sale, recent sales, and housing prices. Are homes moving quickly, or are they staying on the market for a long time? Are you prepared for a quick sale, or do you need time to find a new home? Start by gathering information about the market from national real estate websites as well as local agents.

Decide how to list

There are several ways to market and list your home for sale. You can work with a real estate agent, sell it yourself (i.e., “for sale by owner”), or use an online marketplace. While there are pros and cons to each, a professional real estate agent can help you determine the best asking price for your house. They’ll also market the home and guide you through the selling process. 

Prepare your home

Ensuring your home is in the best possible condition is a benefit to both you and potential buyers. Give your home a thorough inspection — inside and out — and take care of any needed repairs, cosmetic updates, and general maintenance ahead of time. 

Next step

Step 2—List your home

Once you’ve done your research and gotten your home ready to sell, it’s time to list it.

Have a marketing plan

Work with your agent (unless you’re selling the home on your own) to develop a detailed marketing plan to attract buyers. This will likely include listing the home on the MLS (Multiple Listing Service) to maximize exposure to other agents and buyers, as well as tactics like open houses, virtual tours, and flyers.

Show it off

Once your home is on the market, expect potential buyers to tour the property at various times — sometimes with little notice. Make sure the house is clean, valuables are locked away, and pets are kept safe. In-person tours are a huge factor in a buyer’s decision-making process, so make the most of your showings.

Next step

Step 3—Sell your home

Once you have an offer on the table — or maybe several — you’ll move on to the final step of selling your home.

Review offer(s)

Examine all offers carefully, even if they seem too low. Don’t just focus on the price — some buyers may offer other favorable terms like a short closing or fast inspection period. When you get a suitable offer, you can either accept it or make a counteroffer for a higher price or different terms. Your agent will work with you to determine a fair price and reasonable terms, and they’ll negotiate with the buyer’s agent.

Finalize the contract

Review the sales contract thoroughly with your agent. Once you and the buyer agree on the sale price and other terms, you’ll both formally accept by signing the sales contract. Each contract is different, but typical terms include an inspection period, closing date, and any seller/buyer contingencies that must be met before closing.

Close

Once all the terms and conditions of the contract have been met, the final step of the process is closing the sale. As the seller, you will receive the proceeds from the sale and transfer ownership to the buyer at closing. You’ll use the proceeds to pay off your current mortgage (if applicable) and any other costs from the sale. Every state has its own laws, so talk to your agent about your responsibilities for that day.