The Steps of the Home Selling Process
The home selling process is an exciting but sometimes stressful experience. It is my goal to keep you informed and updated through the process. Although each experience will vary, this outline of the timeline and flow of the transaction is helpful to look over!
1. Preparing your home for market
During this process, I will give you guidance and tips on how to make your home show in its best light. Decluttering and removing personal items allows a buyer to see themselves living in your home, therefore increasing your chances of receiving an acceptable offer. Before hitting the market, I ask your home to be clean and ready to show. I will then have professional photos taken and begin marketing your home.
2. Showings and Open Houses
Once we hit the market (typically on a Thursday), we will start showings bright and early on Friday morning. I love having the opportunity to hold your home open one or two times the first weekend to get as many perspective buyers in to view it. The first week your home is on the market is the best chance you will get an offer at or above your listing price.
3. An offer is received!
This is an exciting part of the journey – a buyer likes your home and we have received an offer! In some cases, we may get more than one offer on your home. As we get offers, I call the agents, speak to lenders, verify assets, and provide you with comprehensive information to help you decide if an offer is for you.
4. Earnest money due – usually within 1 to 3 days of offer acceptance
After you've accepted the offer, the buyer will deliver their earnest money to the Title Company to be held. This deposit will be applied to the buyer’s cash needed to close. In the event the buyer defaults on the contract, this money may be retained by you, but that doesn’t happen too often.
5. Disclosures – usually delivered within 2 days of being under contract
As part of the necessary documents needed to sell your home, you will complete a variety of disclosures to provide to your buyer. It is important that you take the time to provide accurate information on these disclosures, and doing so will help the process continue towards closing smoothly.
6. Title Commitment – usually within 7 days of being under contract
A big part of the process is verifying that the property title is clean and that you as the seller can sell the home and transfer ownership to the buyer. We will verify there are no issues or defects on title that can hold up closing, as well as provide you a resource at the title company that will be able to answer property specific questions.
7. Property Inspections and Due Diligence – usually to be completed within 10-14 days
Per the contract, the buyer will have the opportunity to do a battery of home inspections and due diligence on the property. This is the buyer’s opportunity to really get to know the systems of the property. The cleaner your homes systems are, the better! We will receive any property objections the buyer has in writing. Once we receive this we will work through their requests, hopefully getting to a resolution that works for everyone.
8. Property Insurance – typically needed to be secured in about 14 days
As we move deeper into the contract, the buyer will need to secure a homeowner’s insurance policy. During this process, don’t be surprised if a representative of the insurance company comes to your home. If this does occur, they may ring the doorbell, but they do not need access in your home, they are looking for insurability concerns like downed fences, trees encroaching the property, and roof issues.
9. Property Appraisal – in most cases, the appraisal is completed within about 20 days
The appraisal is ordered by the lender and an expense to you. In a nutshell, the appraisal is ensuring that the home is worth what you have agreed to sell it for. Hopefully, there are no issues with value, but in the event the home does not come in “at value”, I will work hard to come to a resolution with the buyer for you.
10. Loan Objection – this is typically 5 to 7 days prior to closing
The Loan Objection is the buyer’s last opportunity to get out of the contract if their financing falls through and is typically the last day the buyer can terminate the contract without risking their earnest money.
11. Buyer’s Final Walkthrough
The buyer is allowed access (per the contract) to visit the home prior to closing to make sure it is in the condition they have agreed to purchase it in. This walk through can be a few days pre-closing or right up to closing. I do ask that you allow access for this walk through – the house can be in a packing state and if need be, you can be present at the home.
12. Closing – usually 30-45 days after offer is accepted
Another HAPPY DAY! This is the day that you sign all of your documents and “close” on the transaction. Closing normally takes a few hours, and often the buyer and seller close together, giving an opportunity to meet the seller. Normally, you will receive your proceeds from the sale at closing, in the form of a wire or cashier’s check.
13. Possession – often the day of closing, but up to 60 days after closing
About 50 percent of the time, possession is given at the time of closing, but there many situations that allow you, the seller, a few days post-closing to move out. Also, it has become common to allow the seller to ‘rent back’ the property after closing to allow you to find a replacement home.