Selling a House: The Process Explained (Step-by-Step Guide)

A clear, comprehensive guide to selling your home — from pricing and preparing the property to listing on the MLS, reviewing offers, navigating contingencies, working with escrow, and closing the sale. Each step links to a deeper explanation so sellers can move confidently through the process.

🏡 Overview: How the Home Selling Process Works

The selling process includes seven stages: preparing your home, pricing it correctly, listing on the MLS, reviewing and negotiating offers, navigating contingencies, finalizing escrow and title work, and closing the transaction. Each step includes links to detailed definitions and guides.

Use this guide as both a roadmap and a glossary — each concept links to deeper explanations.

📍 Phase 1 — Preparing to Sell Your Home

Before listing, homeowners must understand their market, legal obligations, and expected costs. This phase ensures your home is priced correctly and ready to attract qualified buyers.

1. Determine Your Reason for Selling

Clarify timeline, financial goals, and whether you plan to buy and sell simultaneously. Related: Home Sale Contingency.

2. Understand Your Selling Costs

3. Order a Preliminary Net Sheet

A preliminary Seller Net Sheet is a projection showing how much money you — the seller — will likely walk away with after the sale. It takes the expected sale price and subtracts all major and minor costs, so you understand your true proceeds before you list or accept an offer.

A comprehensive net sheet typically accounts for:

  • The agreed-upon sale price or offer amount
  • Your outstanding mortgage balance(s) or loan payoff amount(s)
  • Closing costs (title insurance, escrow fees, transfer/recording fees, attorney or settlement fees, document prep) Closing Costs Guide
  • Any prorated property taxes, HOA dues, or prepaid fees owed at closing
  • Seller concessions or credits requested by the buyer (e.g. repairs, warranties, closing-cost assistance)
  • Agent commissions or buyer-agent compensation if applicable Buyer Agent Compensation Agreement
  • Any additional seller-paid fees (e.g. HOA document fees, payoff of secondary liens, pre-listing repairs or staging costs, HOA resale disclosure packets, etc.)

Because no two transactions are exactly the same, a net sheet is an estimate — not a guarantee. Final proceeds will vary based on actual payoffs, negotiated concessions, taxes, and closing-day adjustments. Professional resources warn sellers to treat a net sheet as a planning tool rather than a final settlement amount. Closing Disclosure Guide

Why you should order one early: Before you list, a net sheet helps you determine a realistic listing price that meets your financial goals. After you receive offers, it helps you compare them on a net-proceeds basis — so the highest offer isn’t always the best offer. Even during negotiations or repair credits, updating your net sheet ensures you always know your bottom line.

Additionally, if you're selling without an agent (FSBO) or using a flat-fee MLS service, a net sheet becomes even more important — because you’ll likely be responsible for more line items yourself. Use this tool to evaluate:

  • Whether it still makes financial sense to list
  • What concessions or credits you can afford during negotiations
  • Your minimum acceptable net proceeds

4. Review Your Local Market Conditions

Understanding your local market helps you decide when to list, how to price, and what level of demand to expect. Market conditions influence buyer behavior, negotiation leverage, and how quickly your home may sell.

Key factors to evaluate include:

  • Comparable homes (comps) — Recently sold homes similar to yours based on size, condition, and location. Comps help you understand buyer expectations and price direction. What Are Comps?
  • Active competition — Homes currently listed in your neighborhood. High inventory may require more competitive pricing, while low inventory can give sellers an advantage.
  • Market speed — Look at days on market trends to see how quickly homes are selling. Faster sales indicate stronger demand.
  • Fair market value trends — Broader appreciation or depreciation patterns in your area. Fair Market Value

A clear understanding of these factors helps you set the right price from the start and position your home competitively in any market environment.

5. Determine Whether to Work With an Agent or Sell FSBO / Flat-Fee MLS

One of your earliest decisions is choosing how to sell your home: hire a full-service agent, use a flat-fee MLS service, or sell entirely on your own (FSBO). Each path varies in cost, control, exposure, and workload, so understanding the differences up front helps you choose the right approach.

The main selling options include:

  • Full-Service Agent — Handles pricing, marketing, MLS listing, showings, negotiations, disclosures, and closing coordination. Easiest and most hands-off for the seller.
  • Flat-Fee MLS — List your home on the MLS for a small fixed fee while retaining control of showings, negotiations, and paperwork. Flat Fee MLS vs FSBO vs Full-Service Realtor
  • For Sale By Owner (FSBO) — Market, price, negotiate, and manage paperwork yourself. Saves listing-side commissions but increases workload and risk. FSBO Pros and Cons
  • Pocket Listing / Private Sale — A non-MLS listing used for privacy or limited exposure. Rare but useful in specific situations. Pocket Listing Pros and Cons

Key factors to consider:

  • Time & workload — Agents manage the process; FSBO and flat-fee require you to handle showings, calls, negotiations, and paperwork.
  • Exposure — MLS listings (agent or flat-fee) reach the most buyers. FSBO-only listings typically attract less traffic. MLS Overview
  • Pricing & negotiation skill — Agents bring market expertise. FSBO sellers must analyze comps and negotiate independently. Buyer-Agent Compensation
  • Legal/contract requirements — Disclosure laws, contract clauses, and escrow coordination can be complex. Flat-fee and FSBO sellers should ensure they understand required paperwork. Real Estate Deeds Guide
  • Net proceeds — Saving on commission doesn’t always mean higher net profit. Pricing errors or low exposure can reduce offers. FSBO vs Realtor

When FSBO or flat-fee may make sense:

  • You already have a buyer lined up.
  • Your home is easy to value and in a high-demand area.
  • You are comfortable with negotiations and paperwork.
  • You want to reduce commission expenses. Pros and Cons of Flat-Fee MLS

When a full-service agent is typically the better choice:

  • Your home needs strong marketing to stand out.
  • You prefer a hands-off experience or want expert negotiation.
  • Your market is competitive or pricing is uncertain. Understanding Comps

There is no one-size-fits-all answer — the best choice depends on your home, your comfort level, and your financial goals.

6. Prepare Required Seller Documents

Sellers must gather the documents needed to legally sell the property, disclose known issues, and complete the closing process. While the core documents are similar nationwide, the exact requirements vary by state and by the type of property being sold.

  • Seller’s Disclosure Statement
  • HOA documents (if applicable)
  • Past repair records, warranties, and permits
  • Mortgage payoff information
  • Identity verification and property ownership documents

Because disclosure laws and required forms differ from state to state, sellers should be aware of the rules where they live. To help you understand how requirements can vary, here are examples from several major states:

These examples illustrate the differences between states, but they are not a complete list of nationwide requirements. Sellers should review their state-specific forms or consult a licensed professional if they are unsure which documents apply to their situation.

📍 Phase 2 — Pricing, Preparing & Listing

Buyers form impressions quickly. This phase ensures your home is priced correctly, photographed professionally, and marketed effectively.

7. Analyze Comparable Sales (CMA)

A comparative market analysis (CMA) is one of the most important tools for pricing your home accurately. It compares your property to recently sold homes with similar features, size, condition, age, and location to determine its fair market value. Related: What Are Comps?

When reviewing comps, focus on:

  • Recent sales (past 3–6 months) in your neighborhood
  • Homes with similar square footage, age, and lot size
  • Adjustments for upgrades, condition, and amenities
  • Price per square foot patterns
  • Days on market and whether homes sold above or below list price

To deepen your pricing strategy, explore these related resources:

These resources explain how data, buyer demand, and property condition shape your home’s true value — and help you set a listing price grounded in real market evidence.

8. Choose a Pricing Strategy

Once you understand your home’s market value, choose a pricing strategy that aligns with your goals, timeline, and current market conditions. The right strategy can increase showings, attract stronger offers, and reduce days on market.

Common pricing strategies include:

  • Pricing at market value — The most balanced approach. Matches recent comps and attracts serious, qualified buyers early.
  • Pricing slightly below market value — Used to generate strong interest, increase showing activity, and encourage multiple offers in competitive markets.
  • Pricing above market value — Tests higher demand, but risks fewer showings and longer time on market if buyers don’t see the value.

Your strategy should reflect how quickly you need to sell, how much competition exists in your area, and how confident you are in your home’s appeal compared to similar listings. For deeper guidance, see How to Price Your Home to Sell and How to Price a FSBO Home.

9. Complete Pre-Listing Repairs

Tackle obvious defects, safety issues, and deferred maintenance before listing. Buyers notice small problems quickly—and even minor issues can lead to lower offers or requests for credits during inspection.

Common pre-listing repairs include:

  • Fixing leaks, plumbing issues, or running toilets
  • Repairing damaged walls, flooring, or trim
  • Addressing electrical issues such as broken outlets or exposed wiring
  • Servicing HVAC systems and replacing filters
  • Fixing roof damage, missing shingles, or gutter problems
  • Correcting safety hazards (loose handrails, trip hazards, smoke detectors)

Prioritizing repairs reduces the risk of buyers renegotiating later and helps your home show better from day one. For a detailed breakdown of what to fix before listing, see Important Repairs Before Listing Your Home.

If you prefer not to make repairs, you can list the home “as-is.” This option can simplify the process, but it may limit your buyer pool or affect offers. Learn more: Selling a House As-Is.

10. Stage the Home

Staging helps buyers visualize how they would live in the space. A clean, well-organized, and thoughtfully arranged home feels larger, brighter, and more inviting—leading to stronger first impressions and potentially higher offers.

Key staging steps include:

  • Deep cleaning and removing clutter
  • Depersonalizing (family photos, excessive décor)
  • Rearranging furniture to improve flow
  • Maximizing natural light
  • Adding neutral, welcoming touches such as fresh linens or plants

If the home is vacant, consider whether staging or leaving it empty will better showcase the space. Each approach has advantages depending on the layout, price point, and buyer expectations. Learn more: Staged vs. Empty Home.

11. Hire a Professional Photographer

Professional real estate photography is one of the highest-impact investments you can make before listing. Bright, well-composed images attract more clicks, increase showing activity, and help your home stand out against competing listings.

A professional photographer will:

  • Capture wide angles that make rooms feel larger
  • Use proper lighting to highlight features and reduce shadows
  • Showcase exterior and interior spaces at their best times of day
  • Deliver high-resolution, MLS-compliant images

Most MLS systems have strict rules on photo formats, image limits, watermarks, and prohibited content. Ensure your photographer follows these guidelines to avoid delays or listing errors. Learn more: MLS Photo Rules.

12. Sign a Listing Agreement

The listing agreement is the contract between you and your real estate agent (or brokerage). It outlines the agent’s duties, the duration of the listing, authorized marketing activities, and—critically—how compensation will be handled in today’s post–NAR settlement environment.

Key elements typically covered in a listing agreement include:

  • Listing price and how price changes will be handled
  • Marketing commitments (MLS entry, photos, showings, open houses, advertising)
  • Listing duration and cancellation terms
  • Agent duties such as negotiation, disclosures, and coordination with escrow/title
  • Compensation structure for both the listing agent and any cooperating buyer agents

Since cooperative compensation is no longer displayed on the MLS, sellers and agents now use separate agreements to define whether, and how much, the seller is willing to offer a buyer agent. Understanding these options is essential before your listing goes live. See: What Is a Listing Agreement?

Additional compensation-related agreements you may encounter:

  • Buyer-Agent Compensation Agreement — Defines what the seller will offer a buyer’s agent, if anything. Learn More
  • Off-MLS Compensation Agreement — Allows sellers to offer buyer-agent compensation outside the MLS system while remaining compliant with new rules. Off-MLS Compensation Guide
  • General Compensation Agreements — Explain the structure of real estate fees, who pays what, and how commission obligations are created. What Is a Compensation Agreement?

To understand how all compensation models fit together—including listing fees, buyer-agent compensation, and post–NAR rules—review the comprehensive overview: Real Estate Fees & Compensation Agreements Explained.

You and your agent should discuss these items early so your MLS listing, marketing strategy, and negotiation approach are all aligned with your chosen compensation structure. For guidance on who pays the buyer’s agent under the new rules, see: Who Pays the Buyer’s Agent After the NAR Settlement?

13. Prepare MLS Listing Details

Your MLS listing is the primary way buyers and agents discover your home. A strong listing includes accurate data, compelling descriptions, and compliant disclosures—ensuring your property appears in the right searches and attracts qualified buyers.

Key components of a complete MLS listing include:

  • Property description — Highlights key features, upgrades, and lifestyle benefits.
  • High-quality photos — Follow MLS photo rules and focus on clarity, composition, and lighting.
  • Accurate property details — Square footage, bed/bath count, lot size, year built, zoning, and amenities.
  • Location information — Neighborhood features, school district, and proximity to essentials.
  • Required disclosures — Attach state-specific forms and known defect details.
  • Showing instructions — How buyers’ agents can schedule tours.
  • Agent/broker remarks — Not visible to the public but critical for communicating updates, incentives, or exclusions to agents.

The MLS is a structured system, and small errors—incorrect square footage, missing disclosures, or non-compliant photos—can delay your listing or reduce visibility. Preparing the details carefully ensures maximum exposure once the property goes live. For related guidance, review MLS Photo Rules.

14. List the Property on the MLS

Listing your home on the Multiple Listing Service (MLS) provides maximum exposure to buyers and agents. The MLS is the central database used by real estate professionals, and it syndicates your listing to major consumer websites while notifying buyer agents whose clients are searching for homes like yours. Because of this reach, the MLS remains the most powerful marketing tool in real estate.

When your listing goes live on the MLS, it:

  • Distributes your property to top real estate platforms (Zillow, Realtor.com, Redfin, etc.)
  • Alerts buyer agents through automated MLS searches
  • Highlights your home to active buyers in your price range and area
  • Creates urgency, especially within the first 24–72 hours on market
  • Provides verified, structured property data to prevent misinformation

Because every MLS is local, homes must be listed in the correct regional system. Buyer agents typically search only their local MLS, so listing in the wrong system—or in too few systems—can significantly reduce exposure. Learn how MLS coverage works here: Local MLS Coverage Explained.

A complete MLS listing typically includes:

  • Accurate property details (square footage, beds/baths, lot size, year built)
  • High-quality, MLS-compliant photos
  • Compelling property description emphasizing key features and benefits
  • Required disclosures and documents
  • Showing instructions for buyer agents
  • Private agent remarks used for updates, incentives, or exclusions

Publishing your listing on the MLS also makes your property eligible for “status tracking” as it moves from Active → Contingent → Under Contract → Pending → Closed. These statuses inform buyers and agents of your home’s progress and increase transaction transparency.

For a deeper understanding of what an MLS listing contains and why the MLS remains the foundation of modern real estate marketing, review: What Is an MLS Listing? and What Is the MLS?

15. Understand Listing Status Types

MLS listings move through several status changes as the property progresses from “just listed” to closing. Understanding these statuses helps you track buyer activity, manage expectations, and communicate accurately with your agent.

The most common MLS status types include:

  • Active — The home is available for showings and accepting offers.
  • Contingent — The seller has accepted an offer, but one or more contingencies (inspection, appraisal, financing, etc.) must still be satisfied.
  • Under Contract — A binding agreement exists; the property is moving through escrow.
  • Pending — All contingencies have been removed, and the transaction is nearing closing.

Each MLS also has additional status variations—such as Coming Soon, Hold, Withdrawn, or Back on Market—that can affect visibility and how buyers perceive your listing. For a full breakdown, see: MLS Listing Status Types.

As your listing progresses, agents must update the MLS promptly to stay compliant and ensure accurate market data. Status changes follow strict rules that vary by MLS. Learn more: MLS Status Changes Explained.

16. Host Showings and Open Houses

Showings and open houses give buyers their first in-person experience of your home. A well-prepared showing can highlight your property’s strengths, increase buyer interest, and help generate stronger offers.

To make every showing count:

  • Ensure the home is clean, bright, and decluttered
  • Open blinds and turn on lights for a welcoming atmosphere
  • Set comfortable temperatures for the season
  • Secure valuables and sensitive documents
  • Leave the property during showings to help buyers feel at ease

Many sellers also use open houses to increase traffic and visibility—especially in the first week on market. For a breakdown of how open houses work and when they’re most effective, see What Is an Open House? and Best Time for an Open House.

Showings and open houses are part of a broader marketing mix that can also include yard signs, MLS exposure, professional photos, and more. To understand how these elements work together—especially for FSBO or flat-fee MLS sellers—see FSBO Marketing Mix: Yard Signs, Open Houses & MLS.

17. Track Seller Feedback

After each showing or open house, review buyer and agent feedback to understand how your home is being received. Consistent feedback helps you identify issues early so you can adjust pricing, presentation, or marketing before the listing goes stale.

In most markets, agents submit feedback through online showing management tools such as ShowingTime, which automatically collects comments after a scheduled showing.

Common feedback themes to monitor include:

  • Whether buyers feel the home is priced appropriately
  • Comments about condition, layout, or curb appeal
  • Concerns about needed repairs or updates
  • How your home compares to other listings buyers have seen
  • Recurring objections that may prevent offers

If traffic is low or feedback is consistent, you may need to adjust your pricing strategy, improve staging, complete repairs, or enhance marketing. Early adjustments often lead to a faster and more profitable sale.

📍 Phase 3 — Receiving & Negotiating Offers

This phase involves reviewing buyer terms, contingencies, timelines, and financing strength.

18. Review the Complete Offer Package

Includes price, earnest money, timelines, financing, and contingencies.

19. Understand Buyer Contingencies

Contingencies are conditions that must be met for the sale to move forward. They protect the buyer, but they also introduce uncertainty for the seller. Understanding how each contingency works helps you identify which offers are strong, which carry risk, and which may lead to delays or renegotiation.

Some contingencies strengthen an offer when handled properly, while others introduce significant risk. For a deeper breakdown of how contingencies work, compare different types, and understand how they impact seller timelines, see: Real Estate Contingencies Explained and Most Common Contingencies.

Sellers also have options when responding to contingency-heavy offers: you can shorten deadlines, request removal of certain contingencies, or counter with stronger terms. Learn how to negotiate them effectively: How to Negotiate Contingencies.

When a buyer must officially remove or satisfy contingencies, it's important to understand the rules, timelines, and how this affects your ability to accept backup offers. See: How to Remove or Satisfy Contingencies and How Long Contingencies Last.

Some buyers may offer all-cash or waive contingencies for a quicker, cleaner closing. While appealing, this can also pose legal risks. Review: All-Cash, No-Contingency Offers and Legal Risks of Waiving Contingencies.

For the most complete deep-dive on every contingency type, timeline, and negotiation strategy, see the master resource: Ultimate Guide to Real Estate Contingencies.

20. Evaluate Buyer Financing Strength

Not all offers are equally reliable. A buyer’s financing strength can significantly impact the likelihood of a smooth closing. Sellers should review the buyer’s pre-approval, down payment, loan type, and lender reputation to understand how secure the offer really is.

Start by confirming that the buyer has a legitimate, up-to-date mortgage pre-approval rather than a basic pre-qualification. A true pre-approval means the lender has reviewed income, credit, and assets—making the offer far stronger. For buyers trying to strengthen their position quickly, see: How to Get Approved Quickly.

Key factors that indicate strong financing include:

  • Down payment amount — Larger down payments generally signal stronger financials and reduce the risk of financing falling through.
  • Loan type — Conventional loans typically carry fewer hurdles than FHA, VA, or USDA loans, which may require specific property conditions.
  • Credit strength — While you won’t see the buyer’s score directly, strong pre-approval letters imply they meet lender credit standards. Learn more: What Credit Score Is Needed to Buy a House? and How Credit Scores Affect Real Estate.
  • Lender reputation — Local lenders or well-established national lenders often close faster and with fewer surprises compared to online discount lenders.

A buyer with strong financials is more likely to close on time and less likely to trigger appraisal or financing delays. When comparing offers, financing strength is often as important as price—sometimes more important.

21. Consider Seller Concessions

Buyers may request seller concessions to help cover certain costs associated with purchasing the home. Concessions can make a property more attractive to buyers—especially in higher-rate or first-time-buyer markets—but they also reduce your net proceeds.

Common seller concessions include:

  • Credits toward buyer closing costs
  • Interest rate buydowns
  • Repair credits instead of completing repairs
  • Home warranties

Whether concessions are reasonable depends on the market. In a seller’s market, you may be able to decline or negotiate them down. In a buyer’s market, offering a modest concession can help secure a strong offer or move the sale forward without reducing the listing price.

Understanding how concessions affect your bottom line is essential. Review your net sheet and compare offers on a net-proceeds basis—not just the offer price—to determine whether the concession is worth accepting.

For a full breakdown of allowable concession limits by loan type and examples of how concessions impact negotiations, see the complete guide: Seller Concessions Explained.

22. Respond With Acceptance, Rejection, or Counteroffer

Once you’ve reviewed the offer’s price, terms, contingencies, and financing strength, you must decide how to respond. Sellers generally have three options: accept the offer as written, reject it outright, or issue a counteroffer with revised terms.

Acceptance — You agree to all terms exactly as presented. The offer becomes a binding contract once both parties sign.

Rejection — You decline the offer without proposing changes. This is common when the offer is far below expectations or the terms introduce excessive risk.

Counteroffer — You propose new terms (price, closing date, concessions, contingency adjustments, etc.). This keeps negotiations alive while moving the deal closer to your preferred outcome. Learn more: What Is a Counteroffer?

When countering, sellers often adjust:

  • Purchase price
  • Closing timeline
  • Contingency deadlines or removal
  • Seller concessions
  • Repair requests or repair credits
  • Buyer-agent compensation terms

A counteroffer legally voids the original offer, so buyers are free to accept, reject, or issue their own counter. Negotiations may go through several rounds before both parties agree.

To protect your position, always compare counteroffer adjustments against your net sheet and bottom-line goals. The strongest offer isn’t always the highest price—it's the one most likely to close smoothly on your terms.

23. Handle Multiple Offers (If Applicable)

When your home attracts strong interest, you may receive multiple offers at once. Managing this situation strategically can increase your final sale price and improve your terms. Sellers should evaluate not just price, but financing strength, contingencies, timelines, and overall likelihood of closing.

Common strategies for handling multiple offers:

  • Set an offer review deadline — Gives all buyers time to submit their best offer, creating a competitive environment.
  • Request “highest and best” offers — Asks buyers to present their strongest terms upfront, simplifying your decision.
  • Use a counteroffer selectively — Instead of accepting one offer immediately, counter the strongest buyer(s) with improved terms.
  • Consider escalation clauses — Some buyers may include a clause automatically increasing their offer above competing bids.

Remember that the best offer isn’t always the highest price. Favorable contingencies, shorter timelines, and strong financing can reduce your risk and lead to a smoother closing.

For a full breakdown of strategies and examples, see: How to Negotiate Multiple Offers (FSBO or MLS).

24. Finalize Acceptance

When you and the buyer agree to all terms and both parties sign the offer (or counteroffer), the contract becomes legally binding. At this moment, the home is considered Under Contract, and the buyer’s contingency timelines begin. Escrow opens, and all parties must follow the deadlines outlined in the agreement.

Once fully signed, your agreement becomes an executed contract—meaning all signatures are in place and the terms are official. Learn more: What Is an Executed Sales Contract?

From signing until closing, the transaction enters the executory period, where each party must complete their required actions: inspections, appraisal, financing, title work, etc. This period is legally different from closing and comes with strict obligations. See: What Is the Executory Period?

During this phase, the buyer typically gains equitable title—a legal interest giving them certain rights in the property—while you retain legal title until the deed transfers at closing. More detail here: Legal Title vs. Equitable Title.

📍 Phase 4 — Entering Escrow

After acceptance, the transaction moves into escrow, where a neutral party manages funds and documents.

25. Buyer Delivers Earnest Money

After acceptance, the buyer must deliver their earnest money deposit—usually within 1–3 business days. The deposit shows the buyer’s commitment and is held in escrow until closing.

The funds are placed in a neutral escrow or title account. This protects both parties and ensures the money can only be released according to the purchase contract. Learn more: Who Holds Escrow Money?

Why earnest money matters:

  • Shows the buyer’s seriousness
  • Protects the seller if a buyer backs out improperly
  • Applies to the buyer’s closing costs or down payment

For more on how escrow accounts operate and how funds are protected:

If a deal falls apart, release of the deposit depends on contingency performance and contract rules. See: Escrow Disputes Explained.

Once the earnest money is received, the transaction is officially “in escrow,” and all contract timelines begin.

26. Escrow Opens Title

Once escrow is opened, the title company begins researching the property’s ownership history and recorded liens. They issue a title commitment, which outlines the conditions required for the title company to insure the transaction. This document reveals any issues that must be cleared before closing—such as liens, unpaid taxes, easements, or title defects. For a full breakdown of how title work functions in a real estate sale, see the Complete Title Guide.

27. Seller Provides Required Disclosures

Sellers must provide all state-required disclosure forms along with information about known defects, past repairs, environmental hazards, and any issues that could materially affect the property’s value or safety. These disclosures protect both parties and help prevent disputes later in the transaction. Learn more about your obligations here: Duty to Disclose Latent Defects.

28. Provide HOA Documents (If Applicable)

If your property is part of a homeowners association, you must provide the buyer with the full set of HOA documents. These typically include the CC&Rs, bylaws, rules and regulations, budgets, financial statements, and any pending special assessments. Buyers review these documents during their contingency period to understand community restrictions, fees, and upcoming obligations. See: What Are CC&Rs?

29. Review Title Exceptions

Title exceptions are items that affect ownership or use of the property and will not be covered by the title insurance policy. Sellers should review these carefully to understand what must be cleared before closing and what will simply transfer to the buyer.

  • Liens — Outstanding debts secured by the property that typically must be paid off at closing.
  • Easements — Legal rights allowing others to use part of the property (utilities, shared driveways, access paths).
  • Encumbrances — Restrictions or claims that affect ownership, such as deed restrictions or recorded agreements.

Most exceptions are routine, but some may require legal clarification or payoff before the title company will issue a clean policy. Reviewing these early prevents surprises later in escrow.

📍 Phase 5 — Inspection, Appraisal & Buyer Requests

30. Buyer Conducts Home Inspection

The home inspection is one of the most important steps in the escrow process. The buyer hires a licensed inspector to evaluate the property’s structure, systems, and overall condition. This report helps the buyer understand potential issues and may influence requests for repairs or credits. Learn more: What Is a Home Inspection?

During the inspection, the inspector typically reviews:

  • Roof, attic, and insulation
  • Foundation, framing, and structural components
  • Electrical panels, wiring, and outlets
  • Plumbing fixtures, supply lines, and drainage
  • HVAC systems and water heater
  • Interior walls, windows, floors, and appliances
  • Exterior siding, grading, and drainage

After receiving the report, the buyer may:

  • Accept the property as-is
  • Request repairs or seller credits
  • Renegotiate terms
  • Cancel under the inspection contingency (if provided in the contract)

Sellers should expect minor defects in nearly every inspection report. Focus on addressing items related to safety, system failures, or structural concerns—these are the issues most likely to impact negotiations.

31. Review Buyer Repair Requests

After the inspection, the buyer may submit a formal list of repair requests or ask for a credit in lieu of repairs. These requests typically focus on safety issues, system failures, or items that materially affect the home’s value. Related: Credits vs. Repairs.

Common types of requests include:

  • Repairing safety or code issues (e.g., faulty wiring, missing GFCIs)
  • Fixing major system problems (HVAC issues, plumbing leaks, roof damage)
  • Replacing broken items (windows, appliances, fixtures)
  • Requesting a seller credit so the buyer can handle repairs after closing

Sellers generally have three options:

  • Agree to the requested repairs — Often used for significant issues that could affect financing or the next buyer.
  • Offer a credit instead of repairs — Allows faster closing and gives buyers freedom to choose their own contractors.
  • Decline the requests — Appropriate when requests are cosmetic, unreasonable, or already reflected in the asking price.

A well-negotiated repair response keeps the deal on track while protecting your bottom line. Credits can also be easier than repairs—especially when timing, contractor availability, or weather constraints make repairs difficult.

32. Negotiate Repairs or Credits

Once you receive the buyer’s repair requests, take time to review them carefully. Then decide whether to address each issue with repairs or offer a monetary credit instead — whichever better protects your bottom line and helps close the deal. Related: Credits vs. Repairs After Home Inspection.

33. Buyer Removes Inspection Contingency

Once repairs or credits are agreed upon, the buyer formally removes the inspection contingency. This confirms that the buyer accepts the property’s condition and can no longer cancel based on inspection findings, unless allowed by another contingency.

34. Lender Orders Appraisal

For buyers using financing, the lender orders a professional appraisal to confirm the home’s value. The appraisal protects the lender by ensuring the property is worth the loan amount.

The appraiser will review comparable sales, inspect the property, and produce a valuation report. If the home appraises at or above the purchase price, the process moves forward. If it comes in low, the buyer and seller may need to renegotiate or explore alternatives.

35. Handle Low Appraisal Issues

If the appraisal comes in below the purchase price, the buyer’s lender will not finance the full amount. At this point, both parties must decide how to address the shortfall (known as the appraisal gap).

Common solutions include:

  • Buyer covers the appraisal gap with additional cash.
  • Renegotiating the purchase price to meet the appraised value.
  • Splitting the difference between buyer and seller.
  • Challenging the appraisal by providing stronger comparable sales.
  • Canceling the contract if protected by an appraisal contingency.

Low appraisals are common in fast-moving or low-inventory markets. Understanding your options helps keep the transaction on track while protecting your bottom line.

📍 Phase 6 — Title Work & Final Closing Preparation

36. Clear Title Requirements

Before the sale can close, all title issues identified in the title commitment must be resolved or formally accepted by the buyer. Common items that require action include outstanding liens, unpaid property taxes, judgments, child support liens, and any title defects that prevent the transfer of clear ownership. These issues must be satisfied, released, or corrected before the title company will issue a final title insurance policy.

Most title problems are routine and handled through escrow—such as paying off a mortgage or removing an old lien at closing—but some issues may require additional documentation, legal clarification, or recorded releases. Understanding how title cleanup works helps keep your transaction on schedule. Learn more in the Real Estate Deeds Guide.

37. Prepare for Loan Payoff

As closing approaches, escrow requests an official payoff statement from your mortgage lender. This document shows the exact amount required to pay off your loan on the scheduled closing date, including remaining principal, daily interest, and any lender fees. Escrow will use this payoff amount to ensure your mortgage is fully satisfied at closing.

If you have multiple mortgages, HELOCs, or other liens, payoff statements must be obtained for each account. Accurate payoff information prevents delays and ensures the correct amount is deducted from your final proceeds.

38. Review Settlement Statements

Before closing, escrow provides your final settlement documents—most commonly the Closing Disclosure or a ALTA Settlement Statement. These forms itemize every financial component of the transaction, including closing costs, commissions, prorated taxes, loan payoffs, and your final net proceeds.

Carefully review each line to ensure accuracy. Verify that:

  • Your loan payoff amounts match the lender’s payoff statements
  • Commission and compensation agreements are correctly reflected
  • Prorated taxes, HOA dues, and utilities are calculated accurately
  • All buyer and seller credits are shown correctly
  • Your final net proceeds align with expectations from your preliminary net sheet

To better understand each line item and common points of confusion, review a detailed Closing Disclosure Line-by-Line Breakdown. If your sale uses older loan or carrying structures, you may also want to reference a Closing Disclosure vs HUD-1 comparison.

If anything looks incorrect or unclear, request clarification from escrow immediately—small errors can delay closing or affect your payout.

39. Provide Required Documentation to Escrow

Before closing, you must supply escrow with all necessary documents. This typically includes affidavits required by your state, the signed deed (prepared or reviewed by your attorney/title company), proof of identity, and any additional paperwork needed to complete the transfer of ownership.

For a detailed overview of what goes into deed preparation and transfer, see the Real Estate Deeds Guide.

40. Schedule Signing Appointment

Escrow or the title company will arrange a signing appointment where you’ll review and sign all required closing documents. This typically includes the deed, seller affidavits, tax forms, and final settlement statements. Depending on your state, signing may occur in person with a notary or through a mobile/notary signing service.

📍 Phase 7 — Closing & Transfer of Possession

41. Complete Final Buyer Walkthrough

The final walkthrough gives the buyer a last opportunity to confirm the property’s condition before closing. Buyers verify that the home is in the same (or agreed-upon) condition, that no new damage has occurred, and that any negotiated repairs have been completed. This is not a new inspection, but a contractual safeguard to ensure the seller has fulfilled all obligations. Related: Final Walkthrough Guide.

42. Sign Closing Documents

At closing, the seller signs all documents required to legally transfer ownership to the buyer. These typically include the deed, seller’s affidavits, tax forms, and any state-specific disclosures. The signing appointment usually occurs with a notary, escrow officer, or attorney, depending on your state’s requirements.

Common seller documents include:

  • Deed — Transfers legal ownership to the buyer.
  • Seller’s affidavit — Confirms no undisclosed liens, judgments, or claims exist.
  • IRS Form 1099-S — Reports the sale for tax purposes.
  • Payoff authorization — Allows escrow to pay off your mortgage or liens.
  • Bill of sale (if applicable) — Transfers personal property included in the contract.

Once all documents are signed and notarized, they are returned to escrow for final review and recording with the county.

43. Escrow Records the Deed

Once all funds have been received and closing documents are signed, escrow sends the executed deed to the county recorder’s office. Recording the deed is the official act that transfers ownership from seller to buyer. Until this step is completed, the buyer does not legally own the property.

The county reviews the deed for accuracy, verifies recording fees, and then updates the public record to show the new owner. This process is known as the conveyance of title.

Once recorded:

  • The buyer becomes the legal owner of the property
  • The seller’s mortgage payoff is finalized
  • Title insurance policies become effective
  • Escrow prepares to release remaining closing funds

Recording timelines vary by county—some record instantly, while others require 24–72 hours. Escrow typically cannot release sale proceeds until the deed is officially recorded.

44. Seller Receives Proceeds

After the deed is officially recorded with the county, escrow can release your net proceeds. This is the final financial step of the transaction, and sellers typically receive their funds the same day or the next business day, depending on banking cutoffs and recording timelines.

Proceeds can be disbursed in several ways:

  • Wire transfer — The fastest and most common option. Funds are sent directly to your bank account.
  • Cashier’s check — Available for local pickup from escrow or title, though less common for large amounts.
  • Proceeds transfer — If you are buying another property simultaneously, escrow can send funds directly to the next closing.

Before funds are released, escrow subtracts all required amounts, including loan payoffs, taxes, commissions (if applicable), prorations, and closing fees. The resulting balance is your final net amount from the sale.

For security reasons, always verify wire instructions directly with escrow to avoid fraud, and confirm your bank’s processing timelines if you need immediate access to the funds.

45. Transfer Keys & Possession

Once the deed is recorded and funds are disbursed, the final step is transferring possession of the property to the buyer. The exact timing is determined by the possession clause in your purchase agreement, which specifies when the buyer can physically take control of the home.

Common possession arrangements include:

  • Possession at closing — The buyer receives keys immediately after recording. This is the most common scenario.
  • Possession after funding — Seller hands over keys once escrow confirms funds have been released.
  • Seller rent-back agreement — The seller temporarily remains in the home after closing for an agreed period, often paying daily rent or security deposits. Useful when coordinating a move or purchasing another property.

At possession, the seller typically provides:

  • Keys, access codes, garage openers
  • Mailbox keys or community gate remotes
  • Instruction manuals or warranties (optional but helpful)
  • Any required HOA documents or transfer packets

Be sure to leave the home in the condition required by the contract (often “broom clean” or better). A smooth possession handoff helps prevent disputes and completes the transaction on a positive note.

If additional time is needed before or after closing:

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