Steps To Buying And Selling A Home
Buying or selling a home is one of the biggest financial decisions an individual will ever make. Our real estate reporters and editors focus on educating consumers about this life-changing transaction and how to navigate the complex and ever-changing housing market. From finding an agent to closing and beyond, our goal is to help you feel confident that you're making the best, and smartest, real estate deal possible.
steps to buying and selling a home
In a perfect world, your next house would be ready and waiting as soon as you turn over the keys to your previous one. But of course, the world is not perfect, and the timing between selling one home and buying the next does not always line up the way you want it to. Take heart, though, because a little planning and working with a savvy real estate agent can help make both transactions run more smoothly.
But if you follow these steps, you can simplify the home buying process, lower your stress and make it a (nearly) painless experience. Before we get to the steps, though, here are some important factors to consider.
Garrett Callahan is a freelance writer who writes on the ins-and-outs of buying the perfect home. For over six years, he has written extensively on travel, history, and culture, and he spent the past two years researching the home-buying process as a first-time homeowner. Based in Massachusetts, he is an admirer of historic homes and loves an old house with a good story.
First, work with an experienced real estate agent who can help you understand the challenges and benefits of buying and selling a home in your current market. A good place to start with your agent is having a discussion on current real estate trends so you have a grasp on how much your home will sell for and how much you can expect to pay for a new home.
Escrow is a type of financial agreement in which a neutral third party controls payments between two other parties. When you sell a home, escrow is used to protect both you and the buyer. It ensures that payments, such as the buyer's earnest money deposit, are only released once the terms of the contract are met."}},"@type": "Question","name": "What steps should you take if your house is not selling?","acceptedAnswer": "@type": "Answer","text": "If your house is not selling, it may be overpriced for your area and the current market. You may also need to make repairs or updates if buyers in your area are looking for a turnkey property. You might even need to do something as simple as clearing out more of your possessions if your house is too cluttered. Consult with your agent to come up with a plan to improve your listing and get it back on the market."]}]}] .cls-1fill:#999.cls-6fill:#6d6e71 Skip to contentThe BalanceSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.BudgetingBudgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps View All InvestingInvesting Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps View All MortgagesMortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates View All EconomicsEconomics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy View All BankingBanking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates View All Small BusinessSmall Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success View All Career PlanningCareer Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes View All MoreMore Credit Cards Insurance Taxes Credit Reports & Scores Loans Personal Stories About UsAbout Us The Balance Financial Review Board Diversity & Inclusion Pledge View All Follow Us
Budgeting Budgeting Calculator Financial Planning Managing Your Debt Best Budgeting Apps Investing Find an Advisor Stocks Retirement Planning Cryptocurrency Best Online Stock Brokers Best Investment Apps Mortgages Homeowner Guide First-Time Homebuyers Home Financing Managing Your Loan Mortgage Refinancing Using Your Home Equity Today's Mortgage Rates Economics US Economy Economic Terms Unemployment Fiscal Policy Monetary Policy Banking Banking Basics Compound Interest Calculator Best Savings Account Interest Rates Best CD Rates Best Banks for Checking Accounts Best Personal Loans Best Auto Loan Rates Small Business Entrepreneurship Business Banking Business Financing Business Taxes Business Tools Becoming an Owner Operations & Success Career Planning Finding a Job Getting a Raise Work Benefits Top Jobs Cover Letters Resumes More Credit Cards Insurance Taxes Credit Reports & Scores Loans Financial Terms Dictionary About Us The Balance Financial Review Board Diversity & Inclusion Pledge Mortgages & Home Loans Homeowner GuideSelling Your HomeImportant Steps in the Home Selling ProcessByElizabeth WeintraubUpdated on June 12, 2022Reviewed byDoretha ClemonIn This ArticleView AllIn This ArticleChoose a Listing AgentHow Much Your Home Is WorthGet Your Home Ready for SaleMarket Your HomeShow Your HomeReceive Purchase OffersOpen Escrow and Order TitleSchedule an AppraiserCooperate With the Home InspectionDeliver Seller DisclosuresNegotiate Requests for RepairAsk Buyer to Release ContingenciesSign Title and Escrow DocumentsClose EscrowFrequently Asked Questions (FAQs) Photo: Glow Images, Inc / Getty Images
The real estate agent and lender you choose are extremely important to maximizing your homebuying experience. You rely on them to complete your purchase, and your choice of representation can have a significant impact on your budget and stress levels.
Your real estate agent should demonstrate their expertise before you sign anything. There should be an initial meeting where your needs and goals are discussed. You'll be led through the homebuying process and review some potential home options so that the agent can gauge your preferences. Remember that you are under no obligation to work with them until you sign an agreement. Though your relationship with your lender may not be as personal, you'll want to have a conversation and vet them, too, before formally agreeing to work together.
Moving too fast can have devastating results, as Stuart Jones discovered on the way to buying his first home in Philadelphia (Jones asked CNET not to use his real name). Jones had been eyeing a three-bedroom airlite row house built in 1930 -- a fixer-upper with a facade made of local stone. Eager to sign, Jones got a recommendation for a lender from an acquaintance and signed a contract without asking any questions.
If you're searching in a hot market -- where homes are selling fast and competition is fierce -- you may feel pressured to forgo an inspection. If you're considering that, recruit some help: bring someone knowledgeable about buildings and systems to the showing. It may give you more insight into the state of the home and highlight major red flags.
Contingencies are a common way buyers and sellers protect their interests when buying property or negotiating a deal. A seller may request a sale-leaseback to (literally) buy them some more time to purchase a new home after selling theirs. As part of the negotiations, the buyer and seller of the home will agree on how long the leaseback will be and the monthly rent.
If you own a home in a competitive market and wish to upgrade in your neighborhood, you may want to buy a new home before selling your current residence. Although there are certainly risks involved, buyers with strong financials can typically make it work. Whether you plan to receive a gift, put down a smaller down payment, or use home equity, make sure to fully understand the financial implications, particularly if you intend to borrow from your retirement plan or take on a variable mortgage.
When buying a home it is imperative to shop around before choosing a lender. The interest rates, fees, and products offered will vary considerably with each institution, and frequently by multiple percentage points. Do some online research to view published rate information and generate a list of lenders to contact.
Yes, you can sell a house with a mortgage. During the escrow process, you will get a mortgage payoff statement (sometimes called a payoff quote) from the lender holding your mortgage that lists the exact remaining balance. When your loan closes, the escrow agent will send the balance of your mortgage to your lender, paying off your mortgage."}},"@type": "Question","name": "Should I Stage My House?","acceptedAnswer": "@type": "Answer","text": "Staging a home can lead to quicker sales and higher home prices. However, not everyone needs to hire a professional staging service. Just taking a few steps like cleaning and decluttering can have a significant impact on a home's sale and will need to be done before moving regardless of the sale.","@type": "Question","name": "How Much Will I Make Selling My House?","acceptedAnswer": "@type": "Answer","text": "How much you will make depends on the sale price, agent commissions, closing costs, and the remaining mortgage balance. If working with a real estate agent, you should receive a seller's net sheet before you even list your property, which details what you can estimate to make. When you have accepted an offer and are in escrow, you will get a closing disclosure from your lender that details exactly how much you will receive after your loan closes.","@type": "Question","name": "Should You Sell Your Home for Cash?","acceptedAnswer": "@type": "Answer","text": "Selling a home for cash is a quick way to avoid the hassle and stress of staging a house, showing it, making repairs, and juggling competing offers. However, most cash buyers won't buy a home for more than 75% of the home's value, minus any anticipated fixing-up expenses. Selling a home for cash is easier, but at a significant financial cost that should be considered."]}]}] Investing Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All Simulator Login / Portfolio Trade Research My Games Leaderboard Economy Government Policy Monetary Policy Fiscal Policy View All Personal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All News Markets Companies Earnings Economy Crypto Personal Finance Government View All Reviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All Academy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All TradeSearchSearchPlease fill out this field.SearchSearchPlease fill out this field.InvestingInvesting Stocks Bonds Fixed Income Mutual Funds ETFs Options 401(k) Roth IRA Fundamental Analysis Technical Analysis Markets View All SimulatorSimulator Login / Portfolio Trade Research My Games Leaderboard EconomyEconomy Government Policy Monetary Policy Fiscal Policy View All Personal FinancePersonal Finance Financial Literacy Retirement Budgeting Saving Taxes Home Ownership View All NewsNews Markets Companies Earnings Economy Crypto Personal Finance Government View All ReviewsReviews Best Online Brokers Best Life Insurance Companies Best CD Rates Best Savings Accounts Best Personal Loans Best Credit Repair Companies Best Mortgage Rates Best Auto Loan Rates Best Credit Cards View All AcademyAcademy Investing for Beginners Trading for Beginners Become a Day Trader Technical Analysis All Investing Courses All Trading Courses View All Financial Terms Newsletter About Us Follow Us Facebook Instagram LinkedIn TikTok Twitter YouTube Table of ContentsExpandTable of ContentsGetting EmotionalNot Hiring a Real Estate AgentSetting an Unrealistic PriceExpecting the Asking PriceSelling During Winter MonthsSkimping on Listing PhotosNot Carrying Proper InsuranceHiding Major ProblemsNot Preparing for the SaleNot Accommodating BuyersSelling to Unqualified BuyersFrequently Asked QuestionsSelling a Home FAQsThe Bottom LinePersonal FinanceMortgageAvoid These Mistakes When Selling Your HomeLearn how to get the best price for your house 041b061a72