Million of existing homes are sold each year, and while each transaction is different every owner wants the same thing – the best possible price with the least amount of hassle and aggravation.

Unfortunately, home selling has become a more complex business than it used to be. New seller disclosure statements, longer and more mysterious form agreements, and a range of environmental concerns have all emerged in the past decade.

More importantly, the home-selling process has changed. Buyer brokerage – where real estate agents represent homebuyers – is now common in every region of the country, and good buyer-brokers want the best for their clients, just as the seller’s broker does.

The result is that while hundreds of thousands of existing homes may be sold each week, the process is not as easy for sellers as it was five or ten years ago. Surviving in today’s real estate world requires experience and training in such fields as real estate marketing, financing, negotiation and closing.

Are you ready?

Even before preparing to place the property on the market there are certain things that should be done to avoid problems and delays later. First of all, make sure that you have clear title to the property.

Did you receive ownership through probate or inheritance? Was their a co-owner whom you bought out? Did you remodel the property in the past? Were all of the contractors paid? Are there any mechanic’s liens recorded? Have you ever been sued? Is it possible that a judgment or child support lien has attached? What about tax liens?

All of the above can potentially cloud the title to your property and even if it’s a mistake or has been cleared up, these things can still delay a transaction. Before listing, review your credit report for any potential problems. The credit report won’t reveal all types of issues that can arise on title, but will give you a “heads-up” prior to you signing a binding agreement with a buyer.

Secondly, make sure you have the requisite authority to sell the property. If you’re selling on behalf of a trust, or administrator of a probate, does the trust give you full authority to do so? Would the sale have to be sanctioned by the probate court? What if you’re signing pursuant to a power of attorney? Is it a general power of attorney or a special power of attorney (a special power of attorney specifically references the address and legal description of the property you’re empowered to sale and is usually required by California title companies)? Are you solely authorized to proceed or will additional signatures or parties be involved?

If you have seven brothers and sisters, and your mom left the home to all of you, unless there’s been an intervening legal action, each of the eight will probably have to sign. Reviewing the current title to the property can help you determine if there are additional steps you’ll need to take or if other parties or entities will need to be involved. Ask your real estate agent to request the last 2 – 3 deeds recorded (whether grant deeds or trust deeds) just to make sure.

Having done your homework and confirming that you have clear title and are authorized to sell, the next step is to start preparing yourself and the property. In fact, the home-selling process typically starts several months before a property is made available for sale.

Preparing The Property: It’s necessary to see your home through the eyes of a prospective buyer, and determine what needs to be cleaned, painted, repaired or thrown away. Ask yourself: If you were buying this home what would you want to see? The goal is to show a home which looks good, maximizes space and attracts as many buyers – and as much demand – as possible.

How do you improve your home’s value?

The general rule in real estate is that buyers seek the least expensive home in the best neighborhood they can afford. In terms of improvements, this means you want a home that fits in the neighborhood but is not over-improved. For example, if most homes in your neighborhood have three bedrooms, two baths and 2,100 sq. ft. of finished space, a property with five bedrooms, more baths and far more space would likely be priced much higher and likely be more difficult to sell.

Improvements should be made so that the property shows well, is consistent with the neighborhood and does not involve capital investments, the cost of which cannot be recovered from the sale. Furthermore, improvements should reflect community preferences.

Cosmetic improvements – paint, wallpaper and landscaping – help a home “show” better and often are good investments. Mechanical repairs – to ensure that all systems and appliances are in good working condition – are required to get a top price.

Ideally, you want to be sure that your property is competitive with other homes available in the community. Your First Residential real estate agent sees hundreds of homes and can provide suggestions that are consistent with your marketplace.

Preparing Yourself: While part of the “getting ready” phase relates to repairs, painting and other home improvements, this is also a good time to ask why you really want to sell.

Selling a home is an important matter and there should be an honest assessment, both emotionally and intellectually. Is there a job change, need for more space, retirement, the death of a spouse or child, a need for a change of scenery, or to just help escape bad memories? Your reason for selling can impact the negotiating process so it’s important to discuss your needs and wants with the real estate agent who lists your home.

When should you sell?

The marketplace tends to be more active in the summer because parents want to enroll children in classes at the beginning of the school year (usually August). The summer is also typically when most homes are likely to be available.

Generally speaking, markets tend to have some balance between buyers and sellers year-round. In a given community, for example, there may be fewer buyers in late December, but there are also likely to be fewer homes available for purchase. So, home prices tend to rise or fall because of general demand patterns rather than the time of the year. Owners are encouraged to sell when the property is ready for sale and there is a need or desire to sell.

Get a real estate agent.

Before placing a home on the market you should also seek the services of a seasoned, competent real estate brokerage, such as First Residential. In some cases, sellers elect to meet only with one real estate agent while other owners elect to meet with several. Whatever your preference, there will be a number of questions you will want to ask, including:

What should you expect when working with a real a real estate agent? Once your home is listed, will he or she immediately begin to market your home according to the most appropriate conventions for your community?

Your real estate agent should keep you informed as the marketing process unfolds and as expressions of interest are received. In time, the marketing plan may be modified to reflect buyer reactions and changes in the marketplace.

In real estate there are written offers and oral offers. Oral offers (“Would they take $225,000 for the home?”) are not acceptable because they generally cannot be enforced (“Gee, did I say $225,000? I was sure I said $215,000”). Written offers created by real estate agents with assistance from qualified attorneys address numerous issues, are consistent with local requirements and provide the foundation for an actionable offer.

Every reasonable owner wants the best possible price and terms for his or her home. Several factors, including market conditions and interest rates, will determine how much you can get for your home. The idea is to get the maximum price and the best terms during the window of time when your home is being marketed.

In other words, home selling is part science, part marketing, part negotiation and part art. Unlike math where 2 + 2 always equals 4, in real estate there is no certain conclusion. All transactions are different, and because of this, you should do as much as possible to prepare your home for sale and engage the real estate agent you feel is best able to sell your home.
What is your home worth?

All homes have a price; in fact, they have more than one. There’s the price owners would like to get, the amount buyers would like to offer, the appraised value, and the amount the buyer’s lender is willing to loan. Ultimately, in terms of selling a home, the property is worth what someone is willing to pay for it (notwithstanding the various opinions referenced above).
In considering home values, several factors are important:

There are no universal marketing standards for real estate because marketplaces are localized. For instance, open houses may be common in some communities but rarely used in others.
In the case of an open house, a real estate agent typically advertises that the home will be open for a given period (e.g., 2-5 p.m. on Sunday). During the open period, the real estate agent hosts the home while the owners leave for a few hours.

At the open house, the agent will provide literature, maintain a visitor log and answer questions. By interacting with visitors, the agent will seek feedback regarding the home and opportunities to follow up with prospective purchasers.

How do you show your home online?

The Internet is massively important in real estate marketing and serves two important roles. First, it is a “place” to view real estate. Realtor.com, for example, lists millions of homes. Online real estate information includes not only home listings, but numerous additional features and benefits. For instance, Homestore® offers neighborhood information, school data, recent home sale prices, video tours, model forms, real estate news and consumer information.

Second, and equally important, the Internet offers new communication media. E-mail and instant messaging give real estate agents and consumers more opportunities to keep in touch. As the Internet evolves, more technologies and techniques will be introduced to make transactions easier and more efficient.

There is no question that selling a home is an important event. A home sale represents transition, movement and change. Big money is involved. Households move from the known and comfortable to the unknown and a period of adjustment. There may be job changes, new schools, distance from old friends and the possibility of new ones.

No less important, a home sale by itself can be complex. There will be people looking at your house, documents to sign and issues to be negotiated.

Because a home sale involves an array of both personal and business concerns, it’s important to get it done right. You need to carefully prepare your home, understand the market and see what alternatives are realistically available. The old motto “be prepared” is a good guide in such circumstances.

What’s an acceptable offer?

The goal of every seller is to have a line of buyers outside the front door, each clutching higher and higher offers. And while this has been known to happen, in most markets there is some balance between the number of buyers and sellers. A number of factors determine whether a buyer’s offer is acceptable. They include:

In each case, owners – with assistance from their First Residential agent – will need to carefully review offers, consider marketplace options and then determine whether an offer is acceptable.
What is a counter-offer?

A counter-offer is a written expression from one party in a real estate negotiation to the other party informing them that there is a willingness to accept certain terms of an offer, but not others.

For example, assume your house is listed at $300,000 and your real estate agent has indicated in the listing that the seller seeks a fast closing, stove, refrigerator and countertop microwave does not convey.

Potential buyers essentially have three choices:

For example, you receive an offer from an interested buyer at $296,500, with escrow closing in 90 days, and the stove, refrigerator and microwave included in the deal. Let’s assume that you’re okay with the sales price of $296,500 (you really need to close and move on), and you’re also fine with the buyer having the 8 year old stove and the $149 countertop microwave, but the refrigerator cost you $2,600 and it’s only 5 months old. Moreover, waiting 90 days until closing simply doesn’t work for you.

So, you’re okay with some things the buyer has proposed, but others, not so much.

How do you negotiate?

It’s sometimes argued that negotiation must produce one “winner” and one “loser.” Others suggest that a “win/win” situation is possible where each side gets something of value.
Real estate bargaining typically involves compromises by both sides. It’s not war; it’s not winner-take-all; and it’s not the time to take personally any comments made by purchasers.
Instead, negotiating should be seen as a natural business process; buyers should be treated with respect; and owners should never lose sight of either their best interests or their baseline transaction requirements. These are the tandards unique to each owner, which must be met before the home can be sold.

With this in mind, you’ll confer with your agent and prepare a counter-offer that says something like: 1) Escrow will close in 38 days; 2) The refrigerator does not convey; and, 3) the microwave and stove convey without warranty.

Offers and counter-offers reflect the back-and-forth activity of the marketplace. It’s an efficient and practical process – but also one that may contain tricky clauses and hidden costs. Your First Residential real estate agent can explain the local bargaining process in detail and assist in the actual negotiations.

It might seem as though once a sale agreement has been signed that the selling process is complete. Not only is it not over yet, but some of the most complex aspects of a real estate transaction now begin.

A sale agreement sets not only a purchase price for the home, but also a series of terms and conditions. For instance:

The real estate agent typically arranges required inspections and helps the owner prepare for closing.

When should you close?

With automation now available, closings can occur within a week in some areas – at least in theory. In practice, it takes time to arrange financing, conduct inspections, obtain appraisals, locate replacement housing, contact movers, pack and actually move.

While instant closings are not practical, neither are closings too far in the future. The problem with closing dates that exceed 60 days is that loan rates are difficult to lock in. If mortgage rates go up, it’s possible that the buyer will no longer be able to afford the home and thus the deal may fall through.

The result of these considerations is that most homes close 30 to 45 days after a sale agreement has been signed.

What happens?

Closing – or “escrow” is essentially where the closing agent (the party who conducts settlement) takes in money from the buyers, pays out money to the owner and makes sure that the purchaser’s title is properly recorded in local records along with any mortgage liens.

The closing agent reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes and title searches).

Closing is also the time when “adjustments” will be made. For instance, suppose you’ve pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.

It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.

How do you prepare to sell?

It’s important to look at the sale agreement and review your obligations. For instance, if you have agreed to paint a room or replace the dishwasher, such work must be completed before closing. Your real estate agent can discuss your agreement and the steps which must be taken to complete the transaction.

The closing agent will handle both the settlement papers and related documents.

Even the smallest home contains a lot of furniture, clothes, kitchen equipment, pictures and other items. For a short move, it may be worthwhile to transport small goods by your self, but larger items will likely require a professional mover.How do you plan a move?

The time to plan your move begins once you’ve decided to sell your home. Some of the activities required to sell the home can actually help with the moving process. For example, cleaning out closets, basements and attics means there will be less to do once the home is under contract.

Note: It will take a lot longer than you think to pack up your items. Significantly longer—we mean 3 to 5 times longer! Yes. First you’ve got to decide what you’re going to take with you, what you’ll give away, what you’ll sale, and what, if anything, you’ll put in storage. You must remember that the items you’ve accumulated over the years all represent a phase in your life and it’s virtually impossible to decide the fate of those items without revisiting their history. One of our favorite clients was sure that he could pack up his garage in two days. We told him no way! He started at 7:00 A.M. on Saturday morning. By 7:15 A.M. he came across his duffel bag from his days as a marine in Vietnam. He started to look at the pictures, read the letters, hold the trinkets, and relive the battle of Khe Sanh. At 2:30 P.M. he was just sitting in the middle of the garage floor, still mesmerized by a duffel bag full of memories from 45 years ago. He had not moved or touched anything else since 7:15 A.M.

Your life is in those boxes, and unless it’s been totally devoid of anything meaningful, it takes a loooooong time to go through them. It’s an arduous process. You’ve been warned …
Okay, moving right along.

Your planning will be guided by a number of things:

Who should you employ to help you move?
There are a number of factors to consider. Money is one issue: You’ll want to spend as little as possible, but choosing only on the basis of cost can be a mistake. Movers must have the right equipment, training and experience to do a good job. A mover, no matter how large or small, should be able to provide recent references for home sellers with a similar volume of goods to transport.
Get mover estimates in writing. Be aware that it’s possible to get discounts through membership organizations and, sometimes, on the basis of your profession: Clergy, for example, sometimes qualify for a discount.
Always confirm mover credentials. Movers should be licensed and bonded as required in your state, and employees should have workman’s comp insurance.
Finally, make a checklist! Moving is a big job and checklists can make it more organized and easier. Here are some of the major items to consider: