Breaking down the Real estate Sales process into 7 phases
We are working hard to provide you with all the resources needed to make the home selling process as simple as possible
First, let’s get to know each phase of the the sales process. The entire real estate transaction can be divided into 7 phases.
Preparing the listing for the market.
Managing showings.
Receiving offers, negotiations and going under contract.
Property Inspections
Property appraisal and buyer loan approval.
Preparing for closing.
Signing day, and possession transfer.
Phase 1. Preparing the listing for the market.
Once you decide to list with Hometiva, you’ve already had a detailed in-home consultation and discussed the listing strategy with your agent, but there are still things to do prior to going live on the MLS. Here is a list of the primary seller responsibilities to prepare the home for the market.
Preparing the home for the professional photo session. We always recommend that the home is in the best condition possible to provide the best showing experience for the buyers.
Please follow any personalized recommendation we provided during your in-home consultation as well as these simple tips for getting your home ready for the market/photos. Photoshoot checklist >
Your agent will schedule the professional photos session based on your preferred timelines.
Completing the required paperwork and disclosures. During the listing onborarding process, we send an email outlining the items needed to start the MLS listing. It is important that we receive all completed information at least 48 hours prior to the active listing date. The information includes,
Completed Seller’s Disclosure. You will sent to your agent as a single PDF document and with signatures from each seller.
Features/Benefits/Upgrades. You know your home better than anyone so send us as much information as possible.
Why you love the home and why you think it will appeal to buyers. These items can include Community or HOA information or anything else you can think of. Chances are that buyers will love your home for the same reason you do, so let’s remind them of the best qualities!
Listing Agreement. All contract paperwork for the entire transaction will be sent for electronic signatures via DocuSign.
Providing the existing survey if you have a copy. You can email the survey as a PDF document.
The more information you can provide the better. We use all of the information you provide to create the MLS listing.
Links to additional resources:
Guide to completing the Seller’s Disclosure Notice >
Phase 2. Managing and approving showings
This is the busiest time for a seller, and when agents and their buyers will schedule a time to view your home. We know it can be stressful to leave your home to accommodate the buyer showings, but the showings lead to offers, and our goal is to get you the best offers possible.
Tips to help guide you through the showing process.
Confirm the advanced notice required for showing approval.
Provide your agent with the amount of time needed to prepare for any scheduled showing. One hour notice is common , but we understand that every home has different requirements.
Easily manage the showing process through the Showingtime.com app or website dashboard.
Once we activate your listing in MLS, we will send you an email with instructions to setup the showingtime.com dashboard and download the app so you can easily manage showings.
Plan to leave the house during the scheduled showing time.
This is common practice and leaving the home allows the buyer to have the best showing experience possible.
Showing agents access your home through our secure bluetooth lockbox system so you do not need to be present for any scheduled showings.
Have the home looking as nice as it did for the photos session.
Turn on lights in the house.
Turn on low volume music if available.
Keep any volume to a low level that is below normal conversation level, and we only recommend songs without words. Jazz and Chill stations are good options to enhance the atmosphere and create a positive showing experience for buyers.
Additional resources:
Showingtime.com Customer support number: 1-817-858-0055 between 8am -8pm every day.
Phase 3. Receiving offers, negotiations and going under contract.
Receiving offers on your home is a great step towards completing your home selling goals. Now that we received an offer on your home, it is time to discuss the options for accepting an offer or negotiating a better contract that fits your needs.
When any offer is received on your home, your listing agent will forward you the contract documents via email with bullet points highlighting the main details. Your listing agent will schedule a call to discuss the details of the offer and the options for responding.
Negotiating a counter offer
In most situations, there are items that need to be changed on the initial offer. Your listing agent will explain the details of the offer and the options for submitting a counter offer.
Price is the most common items that is negotiated in a counter offer, but there are other things to consider such as preferred closing date, the amount of time provided for the termination option period, and other contingencies throughout the contract.
Your listing agent will explain all contract terms.
Going under contract
There are many other items left on the checklist before closing, but securing a contract on your home is the first step towards a successful closing.
Within 3 days of the executed contract, the buyers will deliver the earnest money and option money to the title company.
The Title company will hold the funds for the option and earnest money to be credited on the closing statement.
Next Steps after the contract is signed.
Here is a link to walk you through the next steps and what you can expect immediately after your home goes under contact. Now you are are under contract. Learn what happens next >
Links to additional resources:
Now you are are under contract. Learn what happens next >
Phase 4. Property Inspections and the Termination option period.
The property inspection is a crucial part of the process, but also the part that gives the seller the most stress.
Section 5A & B of the sales contract outlines a specific amount of days when a buyer has the unrestricted right to back out of the contract for the termination option fee they provided to the seller. This is known as the Termination Option Period and this timeframe is when the buyer will perform any inspections on the property.
Your Hometiva agent is here to guide you through this very important part of the process. We have managed hundreds of property inspections, and we will guide you to a successful outcome if any issues are found.
tips to prepare for the inspection
Follow the recommendations listed on our Property Inspection Checklist. Completing these items on the checklist will help eliminate some of the most commonly found items on the report. . Click here to view the Property Inspection Checklist >
Plan to leave your home during the inspection. We want to give the inspector full access to the house and allow the inspector time to complete the job.
Treat the inspection like any other showing. The buyers will likely meet the inspector at the home to review the results so you want the home to look as nice as it did when they made the offer.
Patience is important. The buyers are the ones who pay for the inspection and get the report. Your listing agent does not immediately get a copy of the report, and it can an additional 2 to 3 days before we receive any results or requests from the buyers agent. Any negotiations for repairs has to happen within the termination option period, but the buyer is not required to immediately provide any results or details on the inspection report.
Your listing agent will forward any questions, repairs requests or copies of the inspection report as soon as they are received.
Trust your Hometiva real estate agent. We are on your side, and we are here to get you through any issues on the inspection report or questions from the buyer. Every house has different results from the inspection, but we have seen many items, and know how to overcome issues that are found. We will work to find solutions to move to the next phase of the sales process with as little impact to the seller as possible.
Don’t be scared if the inspector finds issues with your home. Remember that items listed on an inspection report are common. Even a new construction home can have a 25 page inspection report. Just remember that your dedicated Hometiva agent is here to guide you through this part of the process, and we will overcome any issues that are found. We are also trained to understand which items can have an impact on the outcome of the sale, and which items are not necessary to address.
We will review any repair request provided by the buyer. We will work together to review any repair requests provided by the buyer and determine the appropriate way to respond .
Don’t be alarmed if multiple inspectors evaluate the home. It is possible that a buyer would like to inspect various parts of the house that require a different person to perform the work. The general inspector does look at the majority of items, but a buyer may choose to have a specialist look at the pool, HVAC, plumbing, roof or other items.
The most important thing about the inspection report is that no two inspections are the same. Every home has a unique report, and this is why you hired Hometiva as your trusted listing advisor. We will work with you to get the most successful outcome possible and guide you through this important step of the process.
Links to additional resources:
Phase 5. Property Appraisal and Buyer Loan approval
Once the inspection is complete, and buyer and seller agree on any requested repairs, the status of the listing is changed to Pending. The termination option period is officially over, the buyers shift the focus to completing the lending process, and the sellers can start to focus on moving.
Now it is time for the appraisal. The appraisal is another very important part of the contract process and this is completely handled by the buyer’s lender. *Please note that if the buyer is paying cash for your home then we will zoom past this phase since an appraisal is not required and there is no lender involved.
REview important details for the appraisal and buyer loan approval process
There is a financing contingency associated with most contracts. The Third Party Financing Addendum states that a buyer has a certain amount of days ( agreed upon when the sales contract is signed) to terminate if the buyer is unable to obtain financing approval, and earnest money will be returned to the buyer.
Typically, after 14-21 days(or the agreed upon number of days in your contract), this financing contingency ends and the contract is no longer contingent on the buyer being able to obtain financing approval.
The lender decides when the appraisal is ordered. Once the lender determines that the loan is in a good place, they will order and pay for the appraisal.
The appraisal is required for any financed loan per the lender’s requirements.
The Third Party Financing Addendum states that the property has to appraise for the sales price or the buyer has the opportunity to back out and receive the earnest money.
Listing agents have little control on the time it takes for the appraisal to be returned.
This is one of the few areas of the transaction process that your Hometiva listing agent does not directly oversee. Instead, this is handled by the buyer’s lender, and any timelines for ordering the appraisal are determined by the lender.
No news is good news. The vast majority of appraisals meet the sales price and there is no interruption in the contract process.
The lender and buyer are not required to provide the details of the appraisal to the seller. We typically tell our clients that if we hear anything about the appraisal then it indicates there is an issue. Otherwise the motto “ No news is good news” is appropriate when it comes to an appraisal.
Occasionally an appraisal comes back below value and in that case we have to work together to find a solution.
An appraisal that comes back below the sales price has an opportunity to create problems with the contract, and there is a contingency in the contract that states the appraisal must meet the sales price or the contract can be terminated by the buyer and the earnest money refunded to the buyer.
Typically, buyers do not want to immediately back out if an appraisal is lower than expected, and your Hometiva agent will work diligently to find the best solution possible.
There are a few options when an appraisal comes back lower than the sales price
Buyer can pay the difference in cash.
Buyer can explore options to restructure their loan to account for the difference. This is only an option if the buyer is has a large down payment.
Seller can reduce the sales price to match the appraisal price.
Buyer and seller can both compromise and find a price in the middle. Seller reduces the price, but the buyer also pays additional money in addition to the maximum the lender will provide.
Lastly, the buyer has the option to terminate the contract and receive their earnest money back if no other agreements can be made to move the transaction forward.
Phase 6. Preparing for Closing
Once you are past the appraisal and the buyer’s loan has been approved, it is time to start preparing for your closing. At this point, there are not many things that can stop a contract from moving forward and most sellers start to prepare for moving.
What to expect as you prepare for closing.
Reviewing your estimated closing statement. Your Hometiva agent will work with the title company to prepare your estimated Closing Statement and arrange a time for your to sign the closing documents.
Your Hometiva agent is available to setup a call and review the closing statement together if needed.
Buyers may schedule a final walk thru at the house. It is common for buyers to schedule a walk thru prior to the closing. This typically happens 1-3 days prior to closing, and the buyers will come to the house for one last showing.
It is common for sellers to be in the packing stage when the walk thru is scheduled. The buyer and their showing agent will come to the house and make sure it is in the same condition as the initial showing, and they will check any repairs that needed to be completed after the inspection.
We always recommend that sellers leave the house while the buyer and their agent are there for the final walk thru.
Scheduling and confirming your closing time.
Your Hometiva agent will work with the title company to schedule your closing time.
It is possible that a remote closing will be available. You can choose to sign the documents at your home with a notary if you prefer not to go to the title company office.
Collect extra keys, remotes, manuals or any other items that will be left for the new buyers.
Additional things to start thinking about at this time.
Forwarding your mail to your new address
Preparing to disconnect utilities on the day after closing
Preparing to cancel your homeowners insurance.
We do not recommend cancelling your insurance on the day of closing. You are still the owner of the property until it is fully funded and the loan has been paid off and the new mortgage is in place. This typically happens later in the day so we always recommend to cancel your homeowners insurance for 2-3 days after closing. This leaves room for any unexpected delays.
Phase 7. Closing day and possession transfer
Congratulations! It is time for your signing day, and everything has been taken care of to ensure you have a smooth and stress-free closing. We have completed the entire listing process and it is time to sign your paperwork and finalize the transaction.
By the time you go to your closing appointment, your Hometiva agent has reviewed your closing statement and ensured that everything is accurate and ready for signing. Your agent is also available if you need to call for any reason while you are signing the contract documents.
Details for the final closing and possession transfer.
Bring your ID to closing. Every person that is required to sign the closing documents needs to bring a copy of the driver’s license to closing.
Bring the bank account information for the wire transfer of any proceeds. You will provide your bank account information at the closing. Bank wires cut off at 3pm so sellers might not receive their money in their account until the following day.
The funding process takes the majority of the day. While your signing process can take about 20 minutes, the transaction is not complete until the buyer’s mortgage company has submitted the funds to the title company. Once the money is received, and the seller’s mortgage is paid off, then we are officially funded and the transaction is complete.
Once the transaction is complete, your Hometiva agent will call to confirm that the transaction is fully funded and closed.
Make sure you leave all extra keys, manuals, and garage remotes on the kitchen counter for the buyers to easily find when they come to the house for the first time.
Your Hometiva agent will work with the buyer’s agent and determine the best way to get the keys to the buyer.
In most cases, we ask the buyer’s agent to get the key out of the lockbox when they do the walk thru and they can hold it for the buyer . If the agent does not take the key then your agent will work with the buyer agent to arrange for the key exchange.
Your Hometiva agent will plan to pick up the sign and lockbox on the day of closing or within 24 hours of the signing.
Unless a seller temporary lease is in place, it is expected that you are fully moved out of the house by the closing day.
The buyer will officially own the property once the transaction has funded and they can start their move in process.
