7 Common Steps Involved in Selling a Home in the U.S.

Americans are not new to selling or buying homes. In fact, 5.64 million existing homes were sold in 2020, according to data from the National Association of Realtors. Meanwhile, 822,000 newly constructed homes were sold in the same year, as per the U.S. Census Bureau. Selling a home or any property for the matter is filled with procedural formalities, and knowing the usual ins and outs can save you money, time, and the hassle of the divestment process.

Here is a 7-step overview of the usual process involved when selling a home in the U.S.:

Step 1: Start with the basics

Once you have decided to sell your house, you have to start with some of the basic stuff to get your affairs in order. These include:

• Checking your home value – You can use online valuation tools, comparable properties, and appraisals to determine your property’s market value.
• Calculating your home equity – Home equity is the value of your home minus your mortgage payoff. Running a calculation may give you an idea of how much you want to price the property.
• Estimating your net proceeds – You need to have a ballpark figure of your expected net proceeds. This will allow you to account for selling expenses, agent commissions, and taxes in the sale process.

Step 2: Find a real estate agent

Let’s face it, selling a house is not everyone’s forte, so tapping a real estate agent and letting them do what they do best can save you some time and hassle. Agents usually advise reaching out to them around 2-3 months before you plan to list your property, especially if you plan to do some home renovation or refurbishments. Part of hiring an agent for your property sale is signing an exclusive right-to-sell listing agreement, including the agreed timeline and the agent’s commission.

Step 3: Name Your Price

Handing out a price tag for your home is the most critical part of the sale process, and with the help of your agent, you will understand how they will price your home according to market trends and competition. Agents usually structure comparative market analysis (CMA) to find a reasonable and competitive price for your home. A CMA estimates a home’s value based on recently sold and similar properties in the immediate area. Agents also take into account home inspection reports in the asking price.

Step 4: Prepare For Listing

This is when you have to detach your emotions from the house. Do not think of it as your home anymore and think of it as something on display that you need to sell. This is when you can make advisable repairs and improvements but don’t overdo it.

Home renovations add up fast on your tab, and chances are, you won’t get back the entire dollar sum you shelled out. Stick with repairs first and then move to needed upgrades. Remember to take pictorial evidence of the improvements for the listing and other reports.

Step 5: Make an Offer They Can’t Refuse

You can coordinate with your agent to market your home online and offline. This includes uploading photos of your property on multiple sites or avenues to activate your listing, using social media to reach a wider buyer pool, host virtual tours, and showings to hit buyers from every possible arena. The ideal approach to property viewings is to offer two options: an open house or a private viewing. The latter is for particular buyers you’re trying to woo in buying your home.

Once you’ve received an offer or multiple ones, your agent can help you decide which one to seal the deal with. You can also review other suggestions if you want to be hands-on in the sale process.

Step 6: Complete Due Diligence Period

Once you’ve accepted an offer, the buyer and seller would sign an offer agreement to be submitted to the escrow and title company. You will also need to clear any contingencies the buyer included in the contract, typically consisting of an inspection and appraisal. Hanging debts on the property should also be cleared to proceed with the divestment.

Both parties will also agree on a closing date around this stage. Be sure everything is out of your house before the date, or that will be a violation of the contract. As a seller, you are encouraged to leave the home in “broom clean” condition, which means swept, vacuumed, and free of debris or excess stuff the buyers haven’t agreed to keep.

Step 7: Seal the Deal

The final step of closing the deal usually involves a final inspection before handing off the keys to the buyer and taking the property off the market. You should review your settlement statement as a seller before accepting the home sale proceeds.

To avoid paying capital gains taxes, you’ll need to have owned the home and lived there for at least two of the five years leading up to the sale. As long as you meet that criteria, you can exclude up to A$500,000 of the capital gain on your primary home.

Final Words

The real estate process could be a time-consuming, frustrating and emotional initiative as it requires back-to-back negotiations between the seller and the potential buyer. However, if you can optimize your sale process, you can close deals more seamlessly and quickly. The turnover process can also be smooth for the buyer instead of a taxing experience you’d never want to get into again.

The good news is, selling your home doesn’t have to involve all the seven steps mentioned above. You can go directly to a real estate investor like Shorefront Investments even without spending on repairs or any changes in your property. At the same time, you won’t have to pay for commissions. Sealing the deal could also take 7-14 days or less as they provide real cash offers within just 24 hours. All you have to do is fill out this form to request a cash offer and wait for a scheduled meeting for the investor to visit your home for viewing. Then, you’ll receive a no-obligation cash offer, and you can decide if they’re the right buyer for you. Good luck!