Selling your home is possibly one of the biggest financial decisions you’ll ever make. You may have lived in your home for most of your life, making it a very emotional decision as well. The entire process can feel very overwhelming. It can be hard to know where to start.
Did you know that, according to the National Association of Realtors, the average U.S. home spends around 26 days on the market before going under contract? However, that number can change depending on the season, location, and how you price your home, which is exactly why preparation and strategy matter.
This guide walks you through every step involved in selling your home. By the end, you’ll know exactly what to expect, when to expect it, and how to set yourself up for the best possible outcome.
How Long Does the Home Selling Process Take?
Most first-time sellers are surprised by how long the process actually takes. The process usually takes around 55–70 days in most U.S. markets, and that’s before you factor in the preparation phase.
Many variables can affect this timeline, however. Things like seasonality, the local market, along with the price and condition of your property, can all make a difference.
For example, houses being sold in a competitive market can go under contract in days, whereas listings in slower months can sit for weeks.
According to NAR data, the average days on market in the peak summer selling season are around 33 days, compared to 44–50 days between October and December.
If you have flexibility, listing in spring or summer gives you the best odds of a faster, stronger sale.
Average weeks per stage: listing to closing:
Stage | Typical Duration | Key Activities |
Preparation | 1–4 weeks | Repairs, declutter, staging, photography |
Active listing | 2–5 weeks | Showings, open houses, offer review |
Under contract | 2–4 weeks | Inspection, appraisal, buyer financing |
Closing | 30–45 days | Title, disclosures, final walk-through, keys |
Total: listing to close | 55–70 days | Varies by market, season, and price point |
Step 1: Decide If You’re Ready to Sell
Before you call an agent or book a photographer, take an honest look at whether now is actually the right time to sell. There are three readiness checks every first-time seller should run.
Financial readiness
Start with your equity position. How much do you owe on your mortgage versus what your home is likely worth?
Sellers usually pay 8–10% of the sale price in closing costs and fees, so you need enough equity to cover those costs and walk away with something. Pull your most recent mortgage statement and compare it to recent comparable sales in your neighborhood.
Life readiness
Where are you going next? Most sellers prefer to sell first to know exactly what they can afford before buying a new house. Others negotiate a leaseback agreement, remaining in the home for a short period after closing to bridge the gap.
Market readiness
Is it a buyer’s or seller’s market in your area right now? In a seller’s market (low inventory, high demand), you have more leverage on price and terms. In a buyer’s market, you may need to be more flexible.
Your local realtor can pull current data on days on market, list-to-sale price ratios, and months of inventory to give you a clear picture.
Step 2: Find the Right Real Estate Agent
Your choice of listing agent may be the biggest factor in how your sale goes. A skilled agent prices your home accurately, markets it, negotiates on your behalf, and guides you through the process from start to finish.
While it is possible to sell your home without an agent, known as For Sale By Owner (FSBO), research shows that agent-assisted sales achieve higher prices on average.
For first-time sellers especially, the guidance is worth it.
Top 5 Questions to ask a listing agent:
1 – How many homes have you sold in this neighborhood?
Why it matters: Local market knowledge isn’t transferable. An agent who regularly sells in your neighborhood knows things like the comparable sales and the buyer demand. A high sales volume means little if it’s spread across dozens of different zip codes.
You want them to give you actual numbers, not vague reassurances. Ideally, they can name recent sales and describe how the neighborhood has trended.
2 – What’s your list-to-sale price ratio?
Why it matters: This tells you how close an agent’s listings actually sell to their asking price. A ratio of 98–102% in a normal market is a good benchmark. The agent should be able to give you a specific figure.
Watch out for vague answers or a very high ratio that isn’t explained. An 110% ratio sounds great, but could mean they’re underpricing to generate bidding wars.
3 – How will you market my home?
Why it matters: Every agent lists on the MLS. The agents who achieve faster sales and stronger prices have a good marketing plan.
You should ask to see examples of past listing marketing. Avoid agents who treat the MLS as their full strategy, or who are vague about specifics.
4 – How do you communicate with clients?
Why it matters: Selling your home involves dozens of decisions on tight timelines. Poor communication from an agent is one of the top complaints sellers report after a transaction.
You need to know how quickly they respond, through what channels, and how proactively they’ll keep you informed, not just when there’s a problem.
If they’re not responsive when they’re trying to win your business, don’t expect that to improve once you’ve signed.
5 – What is your average days on market?
Why it matters: This is arguably the most objective performance metric you can ask for. An agent whose listings sell faster than the local average is doing something right.
An agent whose DOM consistently exceeds the local average is a red flag, regardless of how polished their pitch is.
You want a specific number they can back up with data. It’s even better if they can show you their personal DOM vs. the area average side by side. Strong agents know this figure and aren’t shy about sharing it.
Agents who don’t know their own DOM or who deflect with ‘it depends on the property.’ It always depends, but strong agents track their numbers and can contextualize them honestly.
Understanding agent commission
Historically, sellers paid a commission of around 5–6% of the sale price, split between the listing agent and the buyer’s agent. That changed in 2024.
As of August 2024, buyer’s agent compensation can no longer be listed or offered through the MLS. Instead, buyers and their agents negotiate compensation separately.
For sellers, this means you have more control and more room to negotiate.
Step 3: Price Your Home Correctly
If you get the pricing right, you attract motivated buyers more quickly. Get it wrong, and you risk sitting on the market, which leads to price reductions and buyer skepticism.
What is a Comparative Market Analysis (CMA)?
A CMA is a detailed report your agent produces by analyzing recent sales of similar homes in your area. It’s the professional standard for pricing a home, and it’s far more accurate than any online automated valuation tool.
The danger of overpricing and underpricing
Overpricing feels logical. Start high and negotiate down, but an overpriced home gets fewer showings, sits longer, and ends up selling for less than a correctly priced home would have from day one.
Underpricing is also a very risky strategy that depends heavily on market conditions. You should discuss the trade-offs carefully with your agent.
Step 4: Prepare Your Home for Sale
The process of selling a home requires preparation before it hits the market. The effort you put into preparing your home before it hits the market affects both how quickly it sells and how much you get for it.
Decluttering, cleaning, and depersonalising
Start by removing personal items, anything that makes it harder for buyers to imagine themselves living there. Then declutter. Less is always more when showing a home. Follow that with a deep clean of every surface, appliance, window, and floor. If the budget allows, hire professional cleaners.
Curb appeal
The exterior of your home is the first thing buyers see online and in person. Improved curb appeal can add perceived value before a buyer even steps inside.
Pre-listing inspection
Some sellers choose to get a pre-listing inspection before putting their home on the market. The advantage is that you know exactly what buyers will find, and you can fix it. It does, however, cost a lot of money ( $300–$500), and anything found must be disclosed.
Seller’s Disclosure Requirements
In most U.S. states, sellers are legally required to disclose known material defects and issues with the property. Failing to disclose can result in the deal falling apart — or worse, legal liability after closing.
A seller’s disclosure form asks you to report anything you know about the condition of the property, including:
- Structural issues (roof leaks, foundation cracks, water damage)
- Plumbing, electrical, or HVAC problems
- Pest infestations or prior treatments
- Environmental hazards such as lead paint, asbestos, or mold
- Any prior insurance claims or major repairs
- Neighborhood nuisances or disputes
Step 5: List Your Home
Once your home is prepped, priced, and photographed, it’s time to go live. The quality of your listing directly affects how many buyers see it and how quickly offers come in. Listings with professional photos get more views online and sell faster.
For more information on the best time to sell your home, visit our website
The MLS
Your agent will list your home on the Multiple Listing Service (MLS), the database used by all realtors. Beyond the MLS, a strong marketing plan includes social media promotion, email outreach to buyer agent networks, and targeted digital advertising.
Open houses vs. private showings
Open houses bring in multiple potential buyers at once, but most serious buyers prefer private showings where they can take their time. A good agent will use both.
For showings, leave the property; buyers are more honest and comfortable when the seller isn’t present. Make sure the home is clean, well-lit, and lightly scented.
For more information on how you can get your property ready for sale, take a look at our handy guide
Step 6: Review Offers and Negotiate
A formal purchase offer includes the offered price, the proposed closing date, any earnest money deposit, financing details, and contingencies. When you receive multiple offers, your agent will create a side-by-side comparison.
Offer comparison
When reviewing multiple offers, it’s important to look beyond the headline price. The table below compares two example offers side by side so you can see how different factors can impact the overall strength and reliability of each deal.
Factor | Offer A | Offer B |
Offer price | $415,000 | $408,000 |
Financing | Conventional loan | Cash |
Inspection cont. | Yes | Waived |
Appraisal cont. | Yes | Waived |
Closing date | 45 days | 21 days |
Verdict | Higher price, more risk | Lower price, cleaner deal |
Common contingencies sellers should understand
Inspection contingency: Allows the buyer to request repairs or back out after a home inspection.
Financing contingency: Protects the buyer if their mortgage falls through.
Appraisal contingency: If the home appraises below the agreed sale price, the buyer can renegotiate or walk away.
In competitive markets, buyers sometimes waive contingencies to make their offer more attractive.
Step 7: Home Inspection and Appraisal
Once you’ve accepted an offer, two independent assessments follow: the home inspection and the appraisal. Both can affect your deal.
The home inspection
A licensed inspector will examine the home’s structure, roof, plumbing, electrical systems, HVAC, and more. The buyer pays for this, and the resulting report belongs to them. Buyers can request repairs, ask for a price reduction, or walk away if the inspection reveals serious problems.
The appraisal
If the buyer is financing the purchase, their lender will order an independent appraisal to confirm the home is worth what they’re lending against it. If the appraisal comes in at or above your agreed sale price, you’re in the clear.
If it comes in low, you have three options: renegotiate the price, ask the buyer to make up the difference in cash, or let the deal fall apart.
Step 8: Close the Sale
Closing is the final stage of the home-selling process. After accepting an offer, the clock starts the following processes:
- The buyer’s lender orders the appraisal.
- The title company researches the property’s ownership history.
- Both sides review and sign disclosures.
Your agent will keep you updated at each stage.
What are the seller’s closing costs?
Here’s a typical breakdown of some of the typical closing costs you can expect:
- Real estate agent commission fees
- Title insurance fees
- Escrow fees
- Attorney fees
- Mortgage payoff
- Property taxes
- Transfer taxes or recording fees
- Homeowners’ association fees and transfer charges
- Seller concessions or agreed buyer credits
- Repairs
- Home warranty costs
- Outstanding utility bills
- Courier, wire transfer, and document preparation fees
Ask your agent to provide a calculation showing your estimated proceeds after all costs are deducted.
Signing and receiving proceeds
On closing day, you’ll sign the deed transfer and a handful of other documents. Once all documents are recorded and the buyer’s funds are received, the proceeds are disbursed to you.
Tax Implications of Selling Your Home
Capital Gains Tax
If you sell your home for more than you paid for it, the profit (the ‘gain’) may be subject to capital gains tax. In the U.S., there are exemptions available for primary residences:
- Single filers may exclude up to $250,000 of gain from tax.
- Married couples filing jointly may exclude up to $500,000 of gain.
- To qualify, you must have owned and lived in the home as your primary residence for at least 2 of the last 5 years.
If your gain exceeds these thresholds, or if the home was an investment property rather than a primary residence, capital gains tax may apply at either the short-term or long-term rate, depending on how long you owned the property.
Ready to Sell Your Home?
The home-selling process has a lot of moving parts, but it’s entirely manageable when you know what’s coming. Preparation and the right agent make all the difference.
If you’re ready to take the next step, the Smith Realty Team is here to guide you through every stage of the home-selling process. Explore our home-selling services to see how we work, or contact us today to connect with a local expert and get started.
Frequently Asked Questions
What are the most common reasons a home sale falls through?
The most common causes for a house sale to fall through are usually:
- A failed home inspection
- The buyer’s financing is falling through
- The property is appraised at a price below the agreed-upon sale price.
- A buyer walks away without a specific contingency-based reason.
What can I do if the buyer backs out after the inspection?
You have two options: negotiate with the buyer or re-list the property. If you re-list, you’ll need to disclose the inspection findings to future buyers.
Can I keep the earnest money deposit if the buyer walks away?
It depends on the circumstances and the terms of your contract. If the buyer walked away without a valid contingency to lean on, you may be entitled to keep the deposit. If they exercised a legitimate contingency, the deposit is returned to them.
Should I keep backup offers when I’m under contract?
Yes. Ask your agent to keep the next-strongest offer. If the deal collapses, a backup offer can save time on re-listing and avoid the stigma of a property re-entering the market.
How long does it take to receive my proceeds after closing?
It depends on how the funds are transferred. Wire transfer is the fastest method. If you receive a cheque at closing, it’s available immediately but takes 1–3 business days to clear.
Do I receive the full sale price?
No, your net proceeds are what’s left after all closing costs, fees, and your mortgage payoff are deducted. If you have an outstanding mortgage, the title or escrow company handles that payoff automatically before sending you the remaining balance.
