If you are considering selling your home and want to know what happens from start to finish, this article will certainly prove helpful. It can be daunting, but researching the process is a great place to start. We are here to help guide you through the process, so please reach out any time.
Click on each step to expand.
Step 1 - Property Valuation: What is your Home Worth? --3 to 6 weeks prior to listing--
For more information on this step, see also our article, Determining Property Value.
In order to determine the current market value for your home, REALTORS® compile what is referred to as a CMA (Comparative Market Analysis) by researching recent comparable sales in the vicinity of your home. Most likely, the REALTOR® providing you with this CMA will want to do a simple walkthrough of your home initially, making notes on features, improvements, or anything else you may feel ought to be considered when pricing your home. After finalizing his or her research, your REALTOR® will set up a follow-up meeting to discuss their findings with you.
Step 2 - Interview and Hire a REALTOR® --3 to 6 weeks prior to listing--
Step 2 coincides with Step 1. We recommend interviewing several REALTORS® to best determine the right Broker to list and market your property. See our article, 5 Questions to Ask when Interviewing a REALTOR®. Once you decide on the right representative for you, have a follow-up conversation about these things:
1) Timing & Logistics:
a. What kind of deadlines are you working with - do you need to sell by a certain date?
b. Are you going to buy your next home in the area, or are you moving out of state? Your REALTOR® can assist whether you are relocating locally, in state, or across the country. Be sure to ask how he or she can make the transition simplified and seamless for you.
c. When do you want to activate your listing (the date at which public marketing will begin)?
2) Preparing your home for public marketing:
a. We live in homes differently than we sell them. What can you do to prepare your home to maximize your market value in the eyes of potential buyers? For more info, see our article, Preparing Your Home to Sell.
Step 3 - Sign the Listing Documents --2 to 3 weeks prior to listing--
The following contract and disclosure paperwork will be filled out and signed between you and your REALTOR®.
RMLS or WVMLS Listing Contract: These listing contracts outline the terms under which you are listing your home on the public MLS (multiple listing service).
Data Input form: This form has fields for the varied data pertaining to your home which will be organized via the MLS and distributed through IDX (internet data exchange) to any real estate website that has the ability to search for active listings (TheBellaCasaGroup.com, Realtor.com, Zillow.com, etc.)
Disclosed Limited Agency Agreement: This is a signed form outlining the agency relationship between you and your Broker, and is connected to the longer informational Oregon Real Estate Agency Disclosure Pamphlet already provided to you by your broker.
Sellers Property Disclosures Statement: This Q&A worksheet is for you as the homeowner to fill out. The many questions regarding the systems of the home will help to ensure you have fulfilled your duty to disclose known issues or defects to the buyer side of your home.
Siding Disclosure: This Q&A worksheet addresses the siding material for your home.
Lead-Based Paint Disclosure: This disclosure is only required if your home was built prior to 1978. There is an informational pamphlet which accompanies it with detailed information on lead hazards in the home.
Step 4 - Prepare the Marketing Materials for Going Live --1 to 2 weeks prior to listing--
You will have already begun discussing what to do to prepare your home for selling, but now you will be preparing your home for photos so that beautiful marketing materials can be created for your home. For info on this, see our article, Preparing for Photography.
In addition to photos and marketing materials, your Broker may take room measurements, create an amenities list, order a sign post, install the lockbox, and do other tasks so that everything is ready on the day the listing goes live.
Step 5 - Show the Home to Prospective Buyers --Day 1 of listing, and beyond!--
Depending on the current market conditions (supply and demand), you may experience an initial burst of showing activity as all the current buyers scramble to get in to see the newest listing on the market. This might be a good time for an open house. Discuss the pros and cons of open houses with your REALTOR®. If you don't receive an offer after this initial burst, the showings will slow down a bit.
Don't worry! A balanced market happens when it takes 4-6 months to sell a home.
Step 6 - Receive an Offer for Purchase --30 to 45 days to closing--
Once your REALTOR® has found a willing and qualified buyer for your property, the negotiations begin. Upon mutual acceptance (defined as the point at which you and the buyer, through your REALTORS®, come to an agreement regarding the terms of the sale), you are officially under contract to sell and the transaction (typically 30 days) begins! See our article, What Happens in a Transaction?
Step 7 - Negotiate Any Repairs --15 to 25 days to closing--
The buyer will hire a professional home inspector to inspect the home and all its systems within the first 2 weeks of the transaction. Based on the inspection report, the buyer has the option to submit a Buyer's Repair Addendum. If something came up on their report which prompts the buyer to seek further negotiations (either in the form of seller-paid repairs or concessions), this is the time to do it. You have the option to agree to the Repair Addendum, reject it, or make a counter offer.
Keep in mind: though many repairs seem simple to the DIYer, because you are in a real estate transaction they may be required to be performed by a licensed contractor. Ask your REALTOR® if you have any questions about what repairs are allowed to be performed by you. For any repairs that require hiring a contractor, keep your receipts! The buyer will likely want to have copies for their file, and they function as documentation that the work was done by an industry professional.
Step 8 - Home Appraisal --10 to 15 days to closing--
If the buyer is obtaining a loan to purchase the home, an appraiser, hired by the lender, will schedule an appointment to do a walkthrough. He or she will provide a report (similar to your Broker's CMA) to the lender. The property must appraise for the contract purchase price according to the appraiser's report.
Step 9 - Pack Up! You've (Almost) Sold Your Home --10 to 15 days to closing--
Though nothing is finalized until the transaction has completely funded (the lender and buyers funds have arrived at Title & Escrow) and recorded (T&E have recorded the new deed with the county), it's likely that you're ready to begin (or have already begun) the move-out process. The contract between you and the buyer will specify the date that the buyer is entitled to possession, often at 5pm on the day of closing.
Need recommendations for movers? We can help!
Step 10 - Signing at Title and Escrow --a few days to closing--
Title and Escrow are the neutral third party overseeing the transaction, receiving & dispersing the funds, and ultimately recording the new deed for transfer of ownership to the buyer. You will have been in contact with T&E throughout the transaction (see, What Happens in a Transaction). Your escrow officer will reach out to schedule an appointment for you to come in and sign the final sale documents for transferring ownership to the buyer. He or she will provide you with a Settlement Statement outlining credits and debits according to the terms of the contract, calculating your proceeds once the sale is finalized.
Step 11 - Signing at Title and Escrow --day of closing--
Once funding and recording has occurred (the contract between you and the buyer will have specified this date) your home is officially no longer your home - it has closed! We hope you are saying your goodbyes and pulling out of your driveway with a pleasant transaction in the rearview mirror. Your escrow officer will have asked about how to get your sale proceeds to you, most often with a direct wire to your bank account.
You are on to new beginnings! We thank you for the opportunity to serve you through this process. The best compliment you can pay us is when you choose to refer friends and family to us. That is the preeminent indicator that we have done our job well and have earned not only your business, but also your trust. Thank you!
Want to talk more about the process for selling your home? Reach out to one of Bella Casa Real Estate Group’s experienced REALTORS® today for a free consultation!