Selling a home is a major undertaking. Before taking the plunge, ensure you’ve thoroughly thought it through and feel ready to proceed. First, consider your motivations for selling to determine if you’re truly prepared to part with your current home.

Moving Is Emotional and Stressful

Moving can be tiring and stressful. Additionally, leaving your home may be emotionally difficult, especially if you’ve lived there for many years. Therefore, make sure you’re genuinely ready before putting your property on the market.

Moving Up

One of the most common reasons to sell a home is the need for more space or the desire to move to a more luxurious property. Many homeowners find that increased income, coupled with appreciation in their current houses, makes moving up a feasible option. This strategy has proven to be a successful long-term wealth builder as housing prices generally continue to rise over time.

Financial and Tax Implications of Selling

A home is a major investment, and deciding to sell involves significant financial implications. Ask yourself: Is now a good time to sell? Is it a good time to buy another home? Have you considered the tax consequences of the sale?

Selling for Financial Reasons

Many people sell their homes for financial reasons. These include a reduction in income, increased expenses (e.g., college tuitions), and the need to save or invest more to meet financial goals. These factors often lead individuals to move to a smaller, more affordable home.

Remodeling vs. Selling

If you desire more space or luxurious appointments, consider remodeling instead of selling. You can remodel your existing house to meet your needs. Review our remodeling checklist to determine if this option suits you best.

Selling for Retirees

Retirement is an ideal time to sell the old family home and purchase something smaller and more convenient. For many, home equity represents a significant portion of overall savings and net worth. Reinvesting the proceeds from the sale of an appreciated home can significantly improve your post-retirement budget and support an active, enjoyable lifestyle.

Sell First or Buy First?

One of the biggest questions homeowners face is whether to sell first or buy first. This decision is not easy to make. Review our tips to determine which option is best for you.

Rent Out Your Old Home Instead of Selling

If you’re moving but hesitant to sell your old home, consider renting instead. By renting, you may sustain the costs of both your old and new houses. However, being a landlord comes with responsibilities. Check out our rental guide to understand what’s involved before choosing this path.

Be Realistic

Having realistic expectations is crucial. This applies to both the price you hope to get for your current home and what you seek in a new one. You might love your home and overlook some flaws, but buyers won’t. Conversely, small issues that bother you may not even register to the average purchaser. Therefore, take an impartial look at the property before making any final decisions.

It’s always a good idea to gather as much information as possible when planning something as important as selling a home. Market conditions will significantly impact your selling experience. Understanding what is happening in the marketplace can help you develop and execute a realistic plan to sell your home.

Gauge Market Conditions

Real estate markets are highly cyclical. The current status of the market can significantly affect your home selling strategy and the results you achieve. Try to understand the state of the market so you know what to expect and how hard you can bargain when negotiating with buyers.

Hot vs. Cold Market: What’s Best?

Deciding whether a hot or cold market is beneficial depends on your situation. Unless you’re planning to rent, you will likely buy a new home while selling your old one, making this decision complex. Generally, if you’re moving up to a significantly more costly home, you might prefer a weak market. In this case, the savings on an expensive new property will outweigh the losses on the older one. Conversely, empty-nesters looking to switch to a smaller home may benefit from selling during a hot market, maximizing gains on the larger home.

When Is the Best Time to Sell?

There are two primary selling seasons: spring and fall. Spring is the strongest since many shoppers want to buy and move before school begins. Summer and winter are generally slower periods in most markets. However, some areas have their own seasonality. For example, selling a home in a seaside vacation spot is probably best in summer when demand is high.

Understanding Area Sales

Don’t rely on anecdotes or stories about bidding wars and houses being snapped up in one day. Instead, use hard data when considering selling your home. Check actual sale and closing prices of homes in your area to understand the true state of the market.

Have Realistic Expectations

Having realistic expectations is crucial. This applies to both the price you hope to get for your current home and what you seek in a new one.

You might love your home and overlook some flaws, but buyers won’t. Conversely, small issues that bother you may not even register to the average purchaser. Therefore, take an impartial look at the property before making any final decisions.

Selling a home is a major undertaking. If you invest the time required to get everything ready beforehand, you’ll have a much easier time once your home hits the market.

Advantages of Using a Broker

A good listing broker acts as a partner in your home search. Spend time developing a strong relationship with your broker. Your broker can provide valuable market insights and help you set the right price for your home. They can also identify potential problem areas and suggest remedies. Listing with a broker ensures your home is posted to the Multiple Listing Service (MLS), exposing the property to thousands of potential buyers.

A Good Listing Broker is a Marketing Director

An experienced listing broker effectively coordinates advertising and promotion for your home. This includes running ads in local papers, holding open houses, and publicizing the listing to area brokers.

Choosing a Broker

Choose a broker with experience in listing homes and strong knowledge of the local market. A listing broker must be available to other brokers seeking information on your house and should invest the necessary time to market the property effectively. With the internet becoming increasingly crucial to home marketing, look for a broker with a strong web presence. If a broker lacks the time, interest, or commitment to understand your needs, seek one who does.

Working with Your Broker

Take advantage of your broker’s knowledge and experience. Start with a consultation on pricing and be honest about your specific requirements, such as the need to sell quickly. Don’t hesitate to ask your broker to suggest any repairs or improvements. While some suggestions may be too expensive or unfeasible, your broker can identify aspects of your home that might turn off buyers.

Your home is the star performer in this show. Even the best marketing and promotion efforts will fall short if your home isn’t appealing to potential buyers.

There are a number of things to consider when getting your home ready for market. By addressing these items early – before the sales effort begins – you can insure that your home will show its best side to buyers.

Seller Liability
Many sellers do not realize the extent of their potential liability after the sale. While local laws vary considerably, a seller is generally required to disclose any deficiencies of which he or she is aware. This is the problem – how do you prove exactly what you did or did not know? Our disclosure checklist can provide a starting point by helping you determine which items are disclosure issues. A pre-sale inspection by a reputable inspector can be an ideal way to protect yourself against disclosure related claims after the closing.

Pre-Sale Inspections
Inspections are for buyer’s, right? That is a popular perception, but the truth is that a pre-market inspection can be a very valuable tool for a seller. Since the buyer is probably going to have an inspection anyway, why not find out about any problems upfront so you’re not taken by surprise a few weeks before the closing date? A pre-sale inspection can also help protect against potential seller liability – if the inspector didn’t find a problem it is a reasonable assertion that the seller did not know about it either.

Clean, Clean, Clean
A home for sale can never be too clean. In addition to a complete scrubbing you may want to do a little rearranging to insure that your home shows as well as possible. Review our home cleaning checklist for some ideas on where to start.

Major Improvements
Most major home improvements don’t make sense for sellers, however there are notable exceptions to this rule. Required repairs, or other deficiencies that must be disclosed, will likely make it very difficult to sell your home (and you’ll probably end up agreeing to correct them anyway) – so it may be worth dealing with these items before hitting the market.

Smaller Projects
Unlike major improvements, many small home projects can be very good investments for the seller. Generally, the best projects to consider are those that are fairly low in cost yet provide a major impact to the look of the property. Check out our list of 10 improvements for sellers for some ideas.

Get Your Broker’s Input
Have your broker take a close look at your home and give you some suggestions on worthwhile cleanup and improvement projects. Your broker knows from experience what appeals to buyers and can also offer the viewpoint of someone outside your family who does not see your home everyday.

Pricing is one of the most crucial aspects of your marketing effort. The price you choose must reflect your home’s attributes, current market conditions, and your need for a fast sale.

Work with Your Broker

Your broker is active in the market every day and offers the best view of pricing and sales activity. Once your broker understands your home and its features, they can prepare a comparative market analysis and propose a listing price. Seriously consider this pricing, but feel free to disagree or suggest another figure—just strive to be realistic.

Consider Market Conditions

Real estate markets are highly cyclical. While home prices typically rise over extended periods, the road can be bumpy. The price you get for your home and the time it takes to sell depend largely on the overall market state. Our guide to evaluating real estate markets can help you decide how to proceed.

Be Objective About Your House

Be objective when setting your home’s price. Remember, it’s not about what you paid or how much you love the property—the key is what the market will bear at this time.

How Quickly Do You Need to Sell?

Setting real estate prices isn’t an exact science. A low asking price may generate a fast sale, while a higher listing price might allow you to net a larger figure if you’re patient. Be honest with yourself about your needs when setting a price. Our quick sale checklist can help you decide if accepting a bit less for a faster sale makes sense.

Is Your Home Overbuilt?

Generally, nicer homes yield higher sales prices. However, near the top of the market, this relationship can diverge. Overbuilt homes rarely sell for the prices they appear to deserve. Buyers in the price range of the overbuilt home often seek more upscale communities, while typical buyers for the area may not afford significantly higher prices. If your home is overbuilt, you may need to accept that you won’t get the price you think you should.

Don’t Get Emotional Over Pricing

It’s easy to get upset when pricing your house. After all, to you, it’s a home where you lived for years and raised your children. But to a buyer, it’s just another house for sale. Your broker’s job is to present the facts and help you decide on a realistic price based on your home and your timing.

Preparation can get you ready for the selling process, but finding a buyer requires a well executed marketing effort.

There are a number of components to a well-conceived marketing plan. Understanding each – and what it can contribute to your sales effort – is important to achieving the best possible results.

Advertising
Advertising is a key part of an effective marketing plan. Your real estate broker should advertise the property periodically in local newspapers. Generally, the cost of advertising is included in the commission, so make sure your property gets its share. Signage is also important – a prominently displayed sign on the property is one of the most effective pieces of advertising, so make sure there is a clear and visible spot available.

Multiple Listing Service
The Multiple Listing Service, or MLS, is a catalog of available homes in a given market area. Your broker will list your home in the local MLS so that other realtors in the area can access information when working with buyers. The MLS is only available through your broker – and it is a powerful selling tool.

Open Houses
Open houses are another major marketing tool when selling a home. There are two basic types of open house. The first, generally scheduled during the week, is for area brokers to stop by and take a look at a home that is new to the market. The second type is held on a weekend – usually a Sunday afternoon – and is intended to allow homebuyers to visit the property without an appointment.

The Lockbox
A lockbox is a small device containing a key to the house that is attached to or near the front door. Local brokers can access the box to gain entry to the house at any time. Ideal for unoccupied homes, the lockbox may be problematical if you have kids or pets – or are simply uncomfortable with this arrangement. If you do not use a lockbox, make sure that your broker has a key or that you are available on short notice to open the house.

Using the Net
The Internet has begun to revolutionize the home selling process. Shoppers (and sellers) have access to more information than ever before. It’s important to select a broker who has a significant understanding of the Internet. Your broker should have a web site where shoppers can access information about your home and should list the property with one or more major online listing services.

Have Your Home Ready
Your home should be maintained in a constant state of readiness to be viewed. Try to keep things as clean and uncluttered as possible. Keep the yard well tended and make sure that access to the house is unfettered (keep snow cleared away in winter).

Staging
Have potpourri or scented candles on hand to keep the house clean and fresh smelling. If you have a fireplace, consider having a fire burning during viewings (season and time permitting). Ask your broker for other suggestions on presenting your home in the best possible way.

Handling Kids and Pets
Whenever possible, arrange for children and pets to stay with a friend or neighbor during showings. If the children are home during a showing, explain that they should be quiet and well behaved while the buyers are in the house.

When Should You Lower Your Price?
Despite the best pre-market comparisons and marketing efforts, sometimes a seller simply does not get any offers. One potential reason for a lack of buyer interest is a price that is too high – especially if the market is weak.

Before lowering the price, however, it makes sense to check out if there are any other problems to blame. Has there been sufficient advertising? Did the broker hold an open house for realtors and another for the public? Does the house have any features that are turning buyers off? If so, can they be corrected?
If everything else seems to be in order – and assuming that other homes in the area are selling reasonably well – the price is probably the problem. A reduction may be just the thing to increase traffic levels and generate a few serious offers.

A buyer’s early impressions are crucial, so it’s extremely important to make sure that you are prepared to properly handle showings. This entails a number of things – from being available on short notice to deflecting insensitive remarks about your home.

It’s best to handle buyers in a calm, unemotional manner. Try to be as responsive as possible to requests for information or last-minute showings. Most of all, it’s important to be patient. If you appear too eager to a buyer you are only undermining your negotiating position.

Dealing with Showings
Showings are where your home really gets sold. First impressions are of vital importance – if the buyer isn’t intrigued at the outset there is very little likelihood that an offer will be forthcoming. Make sure your home is available on short notice and is always looking its best. Let your broker take the lead during showings. You may not even want to attend – many buyers feel more comfortable viewing a home without the owners present.

Controlling Your Emotions
Selling a home is an emotional undertaking for many people. Listening to buyers making candid – and often insensitive – remarks about your home can be upsetting. It’s best to ignore this kind of thing, however, and not let it get to you. If you find these comments difficult to take, or are simply uncomfortable with the notion of strangers prowling around your home, arrange to be out during showings – your broker is capable of handling the situation.

Handling Information Requests
Buyers may ask a variety of questions about your home and the neighborhood. Make sure you only provide information that you know is correct. Misleading a buyer – even accidentally – could cause problems down the road. If you don’t know the answer to a question, say so. You can always offer to check it out and get back to the buyer.

Identifying Real Buyers
There is really no reliable way to discern whether buyers are serious or not until an offer is made. Some buyers will visit a home 3 or 4 times and never go any further, while others will make an offer the day they see a property for the first time. Our tips for identifying real buyers offer a few pointers on spotting the serious ones.

Pricing is only one factor to consider when reviewing an offer on your home. It’s important to review the entire offer – with all of its terms and conditions – when making a decision.

Consider these areas when evaluating any offers you receive from interested purchasers.

Price
Obviously, price is a major consideration. How close is the offer to your asking price? Is the market strong – do you have a good chance of getting more if you wait?

Contingencies
Virtually all home purchase contracts have some contingencies – and many of these are extremely reasonable. But it’s important to consider the potential of these conditions to affect or terminate the transaction. It may be advisable to accept a lower price with few contingencies over a higher figure with a large list of conditions.

Prequalified Buyers
Buyers who are pre-approved for mortgage financing are among the strongest purchasers. Not only do these buyers already have funding in place – they are also typically among the most credit-worthy buyers.

Beware the Home Sale Contingency
Offers are sometimes conditioned upon the sale of the buyer’s current home prior to the closing. This is an extremely onerous condition. You simply trade the risk of selling one home for that of selling a different one – and you have far less control over the marketing of the buyer’s house.

Seller Financing
Some offers are contingent upon the seller taking back financing. The exact terms can vary considerably, however it is usually not advisable to accept this type of deal unless there are no alternatives. Apart from the fact that most sellers want to cash out in order to buy a new home, holding a mortgage can be risky, involving costly legal enforcement actions if the borrower defaults. With the number of mortgage programs available from lenders, a buyer who demands financing from the seller is probably a high-risk borrower.

What Does the Buyer Want You to Do?
Few homes are in perfect condition, yet a buyer may expect to receive yours in pristine form. A purchaser who expects to buy a 50-year-old house in flawless condition is unrealistic – and could turn out to be a difficult buyer. While you should expect to repair any major problems, beware of a purchaser who seems excessive in his or her demands.

Handling Multiple Offers
If you are fortunate enough to receive multiple offers, make sure to review each one carefully. If one party is significantly stronger than the other(s), or one offer has fewer conditions you may want to try work with that buyer first. After reviewing the terms of the offers – and discussing them with your broker – you can submit a counter-offer to all of the parties.

Counter-Offers and Negotiation
Negotiation is very common in the real estate markets. When you receive an offer for less than the asking price you have three choices – accept it, reject it out of hand, or make a counter-offer.

Handling Lowball & Insulting Offers
No matter how carefully you research the market and how fairly you price your home, there’s a decent chance you’ll get at least one offer that is well below the market value of your home.

While many people get upset or angry by these offers, the proper way to handle them is unemotionally. Simply send a polite refusal to the buyer. If the buyer cannot or will not come up to your price level you’ve lost nothing. If he or she is simply fishing to see how low you will go you haven’t lost any negotiating ground at all.
Whatever you do, don’t take it personally. Selling your home and moving is stressful enough – don’t drive yourself crazy over a bottom fisher trying to get a deal.

A properly written contract sets forth the terms of the sale and protects the interests of both buyer and seller.

The contract specifies the terms of the sale and the rights and obligations of the buyer and the seller. A well-written document protects both parties, while a poorly drafted contract can cause serious problems.

Get it in Writing
Oral agreements are usually difficult or impossible to enforce, so if you’ve negotiated your purchase verbally make sure to have contracts signed as soon as possible.

Attorney Review
Always make sure that any contract you sign has an attorney review clause that allows you time (at least three business days – preferably five) to review the document and have it checked out by your lawyer if you feel it is necessary. Many states specify a mandatory review period, whether it is specified or not, but don’t take any chances – make sure it’s in writing. This gives you the chance to make sure all bases are covered before you are committed.

Choose an Attorney or Escrow Company
In some areas it is standard practice to retain an attorney to handle the closing. In others the norm is to have the title or escrow company handle the transaction. If you do hire an attorney (which is a good idea), try and find someone local who specializes in real estate closings. An experienced real estate attorney can help you move quickly to closing and sidestep any problems or oversights. If you are using an escrow company, make sure that they have a solid track record.

Cover All Contingencies
Make sure that the buyer’s contingencies are reasonable and that the time allowed for any required activities or testing (i.e. obtaining a mortgage, home inspections, etc.) is not excessive. Reasonable contingencies are an essential part of a fair and balanced contract – just don’t let the buyer take advantage of you.

Learn About Deeds and Title
The deed is a legal document that transfers ownership of the home. There are several types of deed that can be used for your transfer, as well as a number of special provisions that may apply. Your attorney or escrow broker can answer any questions you have on title and deeds.

Know Your Deposit Obligations
The contract should specify the due dates and disposition of earnest money and deposits. Typically a small amount is posted at the signing of the contract with the balance of the deposit (usually 10% of the purchase price) due within 1-3 weeks. Make sure that the deposit monies are posted as required – they are your primary security in the deal.

Using a Real Estate Attorney
In many areas it is standard practice to hire a real estate attorney to close a purchase. In others, escrow companies are typically used for this purpose.

While escrow companies are often perfectly capable, they do not represent you in the way an attorney does. An attorney is charged with protecting your interests, so you may want to consider using one even if it is not normal practice in your area.

You’re almost there, but there is still some work to do before the deal is closed.

There’s a lot to do in the weeks leading up to the closing, so good organization is a must. Proper scheduling can reduce your stress and prevent any mistakes or delays.

Get Organized
Create a schedule of the items you need to complete before closing. Set up a file with all of your purchase and closing related documentation so you have it readily available.

Confirm Payment of Deposit Funds
The contract probably calls for the balance of the deposit to be paid to the escrow broker within a certain period of time. Confirm that this has been done as required. The deposit is your major security until the closing – make sure it is posted as required. If the buyer seems unable to produce the required funds it could be a sign of trouble – so find out what is going on.

Monitor Inspections and Contingencies
The contract is probably subject to a number of inspections and contingencies. These conditions are intended to allow the buyer to check things out and make sure there are no problems – not as an open ended delaying tactic. Confirm that the buyer schedules the inspections in a timely manner, and make sure access to the property is available.

Deal with the Inspection Reports
The buyer’s inspection reports will usually list a number of sub-standard items – few homes are without defects. The buyer my provide you with a list of things to be corrected before the closing. You may or may not agree that you are responsible for items on the list. At this point another negotiation may result. Although each deal is different, typically the seller will repair (or provide a credit to cover the cost) any major or structural problems. The seller is usually responsible for the cost of radon remediation, if required. Normal wear and tear items, on the other hand, are not usually corrected by the seller.

Address Your Contingencies
The contract may include contingencies or conditions requiring the seller to take certain actions – removing debris or an old shed, for example. Make sure to attend to these matters early so they do not become a problem at closing time.

Get a Payoff Letter
If you have a mortgage on your home you will be paying it off at the closing so you can transfer clean title to the buyer. Your lender should provide you with a payoff letter specifying the exact amount required to completely retire the loan. The payoff letter should also specify a per diem, an additional amount required for each day after the payoff letter is dated. For example, if your payoff letter states a figure of $95,000 with a per diem of $20 you would owe $95,200 if the closing occurred 10 days after the date of the letter. Your attorney or escrow broker may request the payoff letter from the lender – but it’s still a good idea for you to make sure it gets done.

Review the Closing Costs
Consider your closing costs so you have a good idea of what proceeds you will net from the sale. Our guide to closing costs can give you some idea of what to expect.

Provide Information to the Buyer
Provide the buyer with copies of any relevant documents you have – surveys, septic designs, service records, building permits (from past projects), etc. The contract may specify that you are to provide these items, but even if it doesn’t, it may help the buyer conclude the inspection phase – and it is a basic courtesy.

Get Ready for Moving Day
You’ll probably be moving out right before the closing (or just after if you’ve arranged this with the buyer), so now is the time to start preparing. You need to hire a mover (unless you plan to handle the move yourself) and start packing your possessions. It’s also time to make arrangements for utility shutoffs and installations at your new address – our utility checklist can help you organize these tasks.

Do the Walkthrough
The final walkthrough should be conducted the day of or before the closing. The walkthrough allows the buyer to confirm that the house is ready and that any required repairs have been completed. Conducting a walkthrough reduces the chance of confusion or problems at the closing.

Don’t Get Stressed Out
There is a lot of work to do in the weeks leading up to the closing. It’s important to get yourself organized and not to become overly stressed. If your contract was properly written you’ll have enough time to finish everything – and if you fall slightly behind it’s likely the closing can be delayed a few days until you are ready to go.

Make a list of everything you need to get done. Don’t hesitate to ask your broker to help you get ready – he or she is not only there to help, but is also a veteran of this process. Your broker can run important errands, arrange for inspectors to have access to the house, or help you find a contractor to make a repair. Don’t overlook this resource if you feel you are falling behind.

Keep a list of all items that need to be completed before the closing. Note the dates of appointments and check off items that are completed.
A little organization – and maybe a bit of help from your broker – is all you need to get to the closing table without driving yourself crazy.

It’s almost finished. The preparations are all complete – now it’s time to finalize the sale.

Check with your attorney or escrow broker a day or two before the closing date to confirm that everything is on schedule. Remind the attorney or broker to complete the closing statements and other documentation in advance – this may seem obvious, but closings often become protracted affairs because the professionals are unprepared.

Have Your Paperwork Available
Bring all of your documentation to the closing in case you need something at the last minute. Your closing file should include the contract, receipts for any repairs made, and copies of all correspondence relating to the purchase.

Understand the Closing Documents
Review the closing statement (HUD-1) and other documents beforehand so you understand the purpose of each. Your primary documents are the closing statement, the deed, and the mortgage cancellation paperwork.

Deal With Any Problems
Closings frequently proceed without a hitch, but problems are not uncommon. Don’t panic if the closing hits a snag – most issues can be resolved by simple means, such as escrowing funds to cover a contingency or unfinished repair. Even if the closing has to be postponed, don’t overreact – chances are the matter can be resolved in a few days.

Execute the Documents
At this point the parties should execute the closing statements and other documents – and you will then sign over the deed. Congratulations, you’ve just sold your house!

Give Keys and Documents to the Buyer
You should have the keys available to give to the buyer at the closing. Additionally, you should provide all warranties, repair records, etc. pertaining to the house – either bring these to the closing or leave them in an accessible location in the house.

Congratulations! It’s done – you’ve sold your house!

It’s finally time to leave the old place and move on. Depending upon your arrangements with the buyer, you will probably be moving out either right before or after the closing.

Be Prepared for the Movers
Make sure the moving van has room to park and easy access to both houses. Movers expect payment upon delivery, so you’ll also need to have a certified check and/or cash available to settle the bill. Many movers accept credit cards as well, so inquire in advance if this is your chosen payment method. Tipping is customary – usually about $20 per mover – though this is obviously highly variable with the length and difficulty of the move.

Work With the Movers
Be available to answer questions about packing order and fragile items. Point out any items you intend to move yourself, and keep these things separated from those to be handled by the movers. Make sure the movers have clear directions to your new house as well as a phone number to reach someone if they get lost or have any problems. Make sure someone remains at the old home until the movers are packed and ready to leave.

Do a Final Walkthrough
Make one last inspection to insure that nothing has been forgotten and left behind. It’s OK to have a few minutes to yourself if you are feeling emotional at this point.

Arrange for Mail to be Forwarded
You’ll actually want to make these arrangements a week or two before moving day. Go to your old post office and arrange for mail to be forwarded to your new address (if you had a P.O. box you may want to retain it for a period of time). Send out change of address cards with your new location.