The Process of Selling Your Home (Shortened Summary Version)

A Step by Step Guide of the Process of Selling Your Home in MA & RI

Finding a Guide

Thinking of selling your home but unsure how to get started? Wondering what the process is for selling your home? In todays blog I explain the process of selling your home, step by step and in detail. Feel free to reach out anytime with questions.

There are a number of important steps to think out first. Number one – actually interview 3 agents. Studies have shown that most people choose the first person they speak to. That means, whoever falls in your lap is who most sellers are using – whether or not they are the best option. Get our free 10 Question Interview Guide HERE. Research their website, Zillow, Realtor.com, etc. Trust me, this is a big transaction, and it’s worth the extra effort.

Initial Walk Through and Needs Analysis

The second step in the process is inviting your Real Estate Agent to your house to do a walkthrough. They walk the lot, drive the neighborhood, look at similar listings, and check out all aspects of your home. Agents are looking for selling points, updates, and amenities that make your home more marketable. This helps to determine the desirability of your home compared to other similar properties nearby that have sold recently and thus, a recommendation for a listing price. Many agents come prepared with a listing price recommendation right at that meeting.

Establish The Right Price

Establishing the right price is one of the most important parts of selling your home. The price must be chosen based on data and not emotion. Your agent should be an expert at researching comparable sales and aggregating all of the data, making adjustments based on tangible differences, and recommending a listing price. You obviously don’t want to underprice your home, but you also don’t want to overprice your home either. Overpricing may be more detrimental to your sale in the end, as the house will sit a lot longer and develop a stigma. You lose a lot of viable buyers while your house sits. Ultimately, it’s up to you what you list your house for. Just be sure to make the decision based on data and not emotion.

Listing Agreement, Deferred Showing Arrangement, and Other Important Documents

Next in order to list your home on MLS there are forms and contracts that need to be endorsed. You will need a Listing Agreement with your agent to start along with the basic MLS forms. In RI & MA you will need to endorse a “mandatory relationship disclosure” which is required for the agent for the purpose of explaining the role the agent is assuming as your representative. It basically defines them as the Listing agent in this case. There may be other forms as well.

In RI you are required to complete a Seller Disclosure document disclosing any known defects in the home because RI is a full disclosure state. Some clients are intimidated by this – don’t be, and be honest. The disclosing of known issues can actually protect you. Sometimes, the agent will want to defer showings (that is, to not show the house for a few days and ask all interested parties to go to the open houses instead). Agent might do this so they can get their marketing campaign running prior to an open house. Ask your agent to explain the specifics of each form but be sure to read them yourself and do your own due diligence.

Preparing Your Property

A talented real estate agent will create a list of to-do’s to have you complete prior to taking photos of the home. Studies have shown that there are simple things that one can do to increase the desirability of space, the exterior of a home, and the home in general. Your agent may ask you to declutter, remove personal items, pack, paint, or move things. Studies have shown that when there are a lot of personal items such as family photos, and clutter on countertops, dressers, etc. buyers have a difficult time imagining their personal items there. If you do anything, remember to choose neutral colors and things that appeal to many potential buyers.

The name of the game is make your potential buyers feel comfortable, and feel like they are “at home”. We want our potential buyers to imagine themselves living and thriving in the space. Buying a home can be emotional for buyers. Your agent’s job is to help you get top dollar for your home and get it sold, so they should be giving you the tools you need to succeed. They should be experts and have the knowledge and experience about what sells a home, so follow their lead. Remember, less is more when it comes to decor and furniture. Once your house is “show ready”. This is when our team schedules the simple staging to be set up and professional photos to be taken.

Launch “Coming Soon” & Internet Marketing Campaign

Once professional photos are edited and complete, and the best photos are chosen to display your home, it is time to begin marketing. We want to put your home’s most desirable features on display for all to see. The goal here is to tell the world your home is for sale. It’s not as easy as posting your home on MLS. So we often have our team create videos, specialized social media posts, mailers, paid ads, and more – to push your house out to as many potential buyers as possible.

With The Coury Team, we do additional marketing such as creating a website for your home, adding an additional sign in front of the house along with your for sale sign that allows drive-by potential buyers to text the website and get the listing information and photos, reverse marketing, call our clients and other agents, and so much more. This helps to create the “buzz” that will help get your home sold fast, for top dollar, and hopefully with multiple bids over the asking price.

We post Facebook, Twitter, Pinterest, Nextdoor, and Instagram posts (and boost them with paid ads from the back end). This helps to blast the home out to your circle and your network’s circle. Our paid as bring another layer of exposure beyond our connections and out into the masses.We use AI and highly advanced technology to target people who are looking to buy homes on the internet. Many times, we find buyers this way before we are even showing the house. Then we schedule them for showings at the open house.

Finally, we begin our “New to Market” or “Just Listed” campaigns advertising the home and the open houses we’ve scheduled. This is when your home has to be ready for showings. The goal is to have a line of people down the street waiting to see your house at the open house. One of our open houses had over 300 showings in a weekend this past year. Needless to say, it sold for $35k over asking price.

Hold Open Houses & Start Showing the House

You should be sure to clean and stage the house to the best of your ability before showing the home. It is also very important to take any valuables with you or lock them in a safe. We are there to watch the house but sometimes the open houses can get busy making it difficult to keep an eye on everyone at all times. I always advise clients to take valuables and to then check all windows and doors are locked after an open house.

Open houses are an extremely important part of selling your home. Listings that don’t hold open houses may sit on the market longer and ultimately may suffer the consequences of reduced exposure to the pool of potential buyers. People want to be in the space, so they can mentally determine if the home fits their needs and desires. Bottom line, it is better for you if you hold open houses.

Review Offers & Negotiate

Once you’ve held a successful open house, in this market the offers should be rolling in. Your agent should disclose any and all offers to you – whether they are in writing or verbal. They should highlight the pros and cons of each. We have a summary worksheet we put together for our clients to simplify the information for our discussion. There are so many important considerations when determining the winning bid, beyond the highest offer.

Believe it or not, the highest offer may not always be the best offer. Why? Because the strength of the offer may be more important. If someone offers $100k over asking, but do not have strong financing, are they really your best bet? We go so far as to contact each agent AND their buyer’s lender to discuss the strength of their prequalification. Buyers fall through sometimes, we want to be sure yours does not. *Note, Agents must always abide by fair housing laws.

Negotiations, Contracts, Attorneys, and Final Purchase & Sale Agreements

Sometimes, there are negotiations that need to be done before finalizing your transaction. These things will happen, and it’s up to your agent to walk you through the negotiations and advise as to the best approach. Many people think that the sale of their home has to be an adversarial process. Most experienced and effective agents think “win, win”. The goal is to work through the process so that all parties feel like they won. In the end, all of the terms of the agreement need to be spelled out in the contracts, agreed upon by all participating parties, and then signed and executed. This is when the attorneys begin their legal work. They essentially coordinate and negotiate all of the legal and financial facets of your transaction. If an issue arises, they coordinate with your agent to resolve the issue. They are the ones who spearhead the process of closing and record the transaction and deeds when all is said and done.

Inspections & Negotiating Any Issues

An inspection is typically conducted by the buyers for the purposes of discovering any defects that may affect the purchase. This is a normal process and every home (even some new ones) have things that come up on the inspection. Sometimes, if there are major issues, you and your agent may need to negotiate through the issue. After the inspection period is over and the buyer is moving forward, there will be an appraisal.

An appraisal is conducted for the benefit of the bank and the buyer, but primarily for the bank. Banks do not want to lend money to someone if the house isn’t worth what they are lending. That’s a risk they won’t take. This step isn’t usually an issue unless the house has sold for more than it is reasonably worth. Also, if an appraiser finds something that does not meet FHA/VA standards, there may be an issue. In that case, there may need to be more negotiation for you and your agent to do with the buyers.

Coordinate With Attorneys, Mortgage Broker, Moving Companies, Contractors, Etc.

From here, the attorneys may have documents that they need from you, or things that they need to get to you. Little odds and ends. Rarely, if there was something wrong with the home that needed repair, the sellers may need to coordinate with a contractor for the repair of an issue. Your agent is working with the buyers agent and lender behind the scenes to ensure that they are meeting deadlines and that they are on track to get their mortgage commitment. The agents work can help prevent the sale from falling through. Ultimately they are making sure that the buyers are clear to close before the closing date. This is the light at the end of the tunnel.

On the seller side, its all planning and packing. You might be buying a house somewhere else at the same time, in which case it is helpful to use the same attorney so they can coordinate the closing on the home you are selling with the one you are buying. This also allows for a smooth transfer of funds, because your attorney can wire funds for the purposes of closing on your new home. It is common for sellers to sell a home in the morning and close on their new home in the afternoon.

Final Walk Through

The last piece of the puzzle is when the buyers schedule a final walk through. This is usually done the day before or morning of the closing. All of your belongings must be gone, including old paint, and pieces of wood you’ve stored away just in case. The house must be in “broom swept” condition. Additionally, the home must be in the same condition it was in when the agreement was made. The walk through is the buyers opportunity to make sure all things are in order before they sign their documents and take ownership.

Closing

The closing is coordinated by the attorneys. Before the coronavirus it was a joyous day when all met and sat at a table to sign final documents. There isn’t much for the seller to do, so they typically are there for a short time to sign final documents and then leave. After leaving your agent or attorney will notify you of when the transaction is on record and the status of the funds. Attorneys all have different ways they handle this and funds. Some cut checks, some wire money, etc. Ask your attorney well in advance about this so you arent surprised by anything.

In the end, we strive for smooth transactions where all parties are satisfied. Does it always happen that way? No. In life there are unforeseen issues you may have to work through, so be flexible and think win win. Good luck! Feel free to contact us anytime with questions.

~ Eric Coury

**Disclosure: The views and opinions expressed in this blog are those of the author alone and do not represent the views or opinions of Keller Williams or any other party. The contents of this blog are not meant to be interpreted as individualized advice. Please consult your tax advisor, attorney, broker, and/or financial advisor for specifics on your situation. Copyright © Eric Coury, Colonial Classic Realty LLC