Photo credit: Francesca Tosolini
Selling your home can feel like a daunting process but it doesn’t have to be. A good real estate agent will lead you through the steps and do some of the heavy lifting for your. Please note that the following is generally the order in which the process occurs.
1. We (your agents) will create a CMA (comparative market analysis) for your property, to determine what comparable properties have sold for in the recent past. Your CMA will be most accurate if you allow us to come and see your home in person, as the accuracy of CMAs are heavily reliant upon a home’s decor and condition. When we visit, we will be able to make recommendations for any repairs you should do and whether we think the home should be staged.
2. We will meet to discuss:
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- How much to list your house for
- Whether you want us to have open houses
- Whether you want to offer the buyer a home warranty
- Coldwell Banker paperwork and what it all means
3. Complete paperwork that we send you. This includes the:
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- Consumer Notice
- Customers for Life
- Standard Exclusive Listing Contract
- Seller Disclosure
- Lead-Based Paint Disclosure
- Oil, Gas, and Mineral Disclosure
- The home warranty enrollment form (which you will choose to purchase or decline)
- Realvitalize enrollment form (if applicable)
4. We will work on a timeline for selling the property and meet with any additional service providers as needed, such as handy people (if there are repairs to be done) and stagers (if there is staging to be done).
5. We (your agents) will start working on the marketing for your property, including:
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- Photographs of the property
- Text for the listing
- Creating marketing materials for your property, such as a single property website, social media posts, and soft and hard copy flyers
6. All municipalities have requirements sellers must meet in order to sell their homes. Generally this includes a dye test and an occupancy inspection, arranged and paid for by the seller. Call the municipality or check their website for information and to set this up now.
7. If you are worried about the inspection, you can choose to pay to have a pre-inspection done now. This would make it possible for you to get any necessary repairs done in advance, and some buyers may decide to forgo their own inspection if you will be sharing the pre-inspection report. Please note that any problems identified in the pre-inspection will have to be disclosed in your seller disclosure.
8. Just before the house hits the market and photographs are taken, arrange for your property to be cleaned.
9. Once your property is “live” or “active” on the West Penn Multi List, the fact that it is for sale will be public. Now other agents throughout western Pennsylvania can access information on the property including setting up showings for their clients, and other websites will display that your home is for sale (Zillow, Realtor.com, etc.).
10. Before showings and open houses:
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- Do a deep clean of your property
- Hide or remove any valuables and medications
- Decide where you (and your pets, if applicable) will go during the showings/open houses
11. When you receive an offer(s) we will meet to review and advise you on the terms of the offer(s). You can choose to accept an offer as is or make a counteroffer. Counteroffers are generally handled verbally in the Pittsburgh market. If a buyer agrees to your counteroffer, they will update the agreement of sale, initial and sign it, and send it to us for your initials and signature. Remember, you do not have an agreement until both buyers and sellers have signed a sales agreement.
12. After you have accepted an offer,
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- The buyer turns in their earnest deposit money (aka, hand money). This is generally at least 1 – 3% of the purchase price, and ensures that the buyer is serious about purchasing the property. If their offer is contingent upon results of inspections, the buyer can usually get this money back if they terminate the offer during the inspection contingency period.
- The buyer usually opts to have inspections of the property, and generally has 10 – 15 days to get this done. On the basis of the inspection results, the buyer may choose to terminate the sales agreement, accept the property in its current condition, ask you to make repairs prior to closing, or negotiate a lower price or a credit at closing enabling them to make necessary repairs.
13. If the buyer is getting a mortgage, the next hurdle is for the property “to appraise”. This means that their lender will have an appraiser determine the property’s value. If the value is equal to or higher than the amount agreed upon in the agreement of sale, all is well and the buyer’s mortgage application process continues. If the property “doesn’t appraise” (e.g., is valued at less than the agreed upon price), the buyer can choose to come up with more money on their own to make up the difference between the appraised value and the agreed purchase price, negotiate with you for a lower sales price, or terminate the agreement.
14. Even if the property is vacant, be sure to leave the utilities ON. A week before the closing, you will contact the utility companies (electric, gas, water/sewer, trash) to let them know to take the utilities out of your name on closing day.
In Pennsylvania, home sales are usually conducted by “closing companies” hired and paid for by the buyer.
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- Closing companies investigate to make sure a property’s title is “clean” — that is, free from any other person or entity holding a stake in the property’s ownership. When title is not clean, it may be because there is an heir, or a lien on the property due to unpaid taxes or service providers who are owed money.
- Title companies arrange for title insurance on properties. Buyers must pay for title insurance to protect their lender (if they have a mortgage) and may choose to buy a policy to protect themselves against future claims on the property.
- Finally, closing companies conduct the actual closing, making sure all parties pay what they owe to whom they owe it, and that all parties are paid whatever monies they are due.
15. On closing day your mortgage (if you have one) will be paid off, and things you have prepaid (like taxes) will be prorated and credited to you. You will be issued a check for any additional monies you are owed. Occasionally, sellers must bring a check to closing (such as when the property sells for less than what the sellers currently owe on their mortgage). Generally sellers are not required to attend the closing, but if you will not be there, you need to let the closing company know in advance so they can get your signature on the required paperwork and you can turn over the keys.
Congratulations on your sale!
