Real Estate Sales Process | Process Street Real Estate Sales Process – Process Street

Introduction:

89% of home sellers use real estate agents when selling their home. In theory, that's a solid number. 

However, when you also consider that a massive 33% of those sellers would not use the same agent again you start to see a problem. The real estate sales process can be long, frustrating and precarious, and if not done correctly you stand a very good chance of alienating future custom.

However, here at Process Street, we've been working hard to write a collection of process documents which will help ease the pain.

By running through this checklist every time you start the sales process, you can be sure that no key details or opportunities are missed whilst getting the deal running smoothly.

In this checklist, there are links to separate workflows you can use to have more control over the sales process, like home staging and cleaning.

We also have articles on the best real estate apps and several other free real estate checklists for you to check out.

Ready to process a sale? Let's get started.

Listing preparation:

Record basic details

We're kicking off the real estate sales process with a nice and easy step; you need to start by recording the details of the property and its sale. Do so by filling out the form fields below.

Property owner details

Listing agent details

Property details

Record condition of the property

Before listing the property for sale, it must, of course, be in tip-top shape. 

If the property hasn't been staged or cleaned yet, not to worry. We'll help you get it done. 

Stage the property

Before you do anything else, you need to make sure that the property is staged correctly. 

This should be discussed with the seller, as they will have to do it themselves.

If they are reluctant, be sure to bring up the potentially significant boost to the property's retail price.

We have compiled an easy-to-follow Home Staging Guide which you can forward to the seller without hassle.

Clean the property

Ensure that the property is thoroughly cleaned and ready to be presented both online and in person.

This should, as with staging, be discussed with the seller as it will be their responsibility.

Remind them that a thorough cleaning can boost property prices by a surprising amount, which is desirable for both you as the agent and the seller.

We have a Pre-Listing House Cleaning Checklist which can be run by the seller to make sure that all bases are covered, and the property is set and ready to sell.

Pricing:

Conduct a comparative market analysis

It's now time to complete a comparative market analysis so you and the seller can define and evaluate an optimal price for the property. 

There are a number of important components of the analysis that must be taken into consideration. 

Upload the report using the form field below.

You can read all about how to complete a comparative market analysis here

Present analysis to the seller

Take the time to carefully review the market analysis report with the seller.

Walk them through every section of the report, describing the methods you used to gather the data and explaining why it is useful information for valuing their property. 

Agree on a listing price

Once you have reviewed the market analysis with the seller, agree on a listing price so you can move on to signing a listing agreement and getting the property on the market!

Listing agreement:

Issue listing agreement

It's time to issue a listing agreement. This will grant you the authority to act as the property owner's agent in the sale of the property.

The listing agreement should include the following 10 items

  • 1
    Beginning date and termination date
  • 2
    Property owner's name and contact info
  • 3
    Address of the property for sale
  • 4
    List price
  • 5
    Listing type (exclusive right-to-sell, exclusive agency, or open)
  • 6
    Amount of compensation offered to the broker (flat fee or percentage)
  • 7
    Terms and conditions
  • 8
    Dispute resolution
  • 9
    Authorization for the broker to cooperate
  • 10
    Authorization for the broker to reveal or not to reveal

Read more about the different types of listing agreements

Receive signed listing agreement

Send a copy to your client

Once the listing agreement has been signed, it's essential that you send a copy to your new client for their own record-keeping purposes.

Sales listing:

List the property for sale

Now you need to list the property for sale. Important details are stated below. 

Address:
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{{form.Property_address_-_ZIP_Code}}

Agent Name: 
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Agent Email: {{form.Listing_agent_email_address}}
Agent Phone: 
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Listing Price: {{form.Listing_price}}

Record the listing URL in the form field below.

Whilst Zillow is a popular place to do it, it is highly recommended that you take a look at our Real Estate Listing checklist in order to avoid missing any important steps.

Viewings:

Schedule an open house

Now is the time to market the property and get fully interactive with potential buyers by hosting an open house.

If you're unsure about why hosting an open house is a great idea, here are 5 reasons why.

This can be easily achieved by running through our House Viewing Checklist.

Confirm private viewings

Confirm prospective buyers who are interested in scheduling a private viewing. 

Then run the House Viewing Checklist to execute the viewings in the most efficient and professional way you can. 

When a potential buyer expresses interest in organizing a private viewing, it's important to gather as much information as possible regarding their search criteria. This will help you evaluate their suitability and tailor the viewing to emphasize aspects that they are most likely to find appealing. 

Receiving offers:

Issue purchase agreements

Whilst it may seem over the top, a purchase agreement needs to be issued for every offer and signed by the potential buyer. 

The purchase contract should include the following sub-checklist items:

  • 1
    Identification of the parties
  • 2
    Description of the property
  • 3
    The offered purchase price
  • 4
    The initial cash down payment
  • 5
    The length of the payment term
  • 6
    The deposit amount
  • 7
    Any contingencies that must be met before the sale can go through
  • 8
    The prospective date of closing
  • 9
    The signatures of each party

Examples of purchase agreements are available online, such as the file below, which originates from Central Michigan University's website. This is a vital step in the real estate sales process and cannot be overlooked!

You can create a free, attorney-drafted purchase agreement form here

Receive signed purchase agreements

Save copies of the purchase agreement as necessary using the form fields below for safe keeping.

Negotiating the sale:

Discuss offers with your client

All offers should have been relayed back to the seller and documented in writing. The next step is to discuss them with the seller and decide how you'll be moving forward. 

Consider how long the property has been on the market and any potential recent (and similar) sales to judge the worth of the offer.

Discuss offers with your client to help them through the process, much in the same manner as when you advised them on the initial property price.

Do not stop marketing or showing potential buyers around the property; whether this offer is the one which will be taken or not, do not rely on it going through.

Respond to the offers

Once you have discussed the offer with the seller, it is your responsibility to contact the buyer and either relay their acceptance or provide a counter-offer. Once again, record the offer in writing.

If this counter-offer is further negotiated upon, keep relaying offers to both parties and answering any questions either may have. Bear in mind that negotiations may not be entirely based on price; aspects such as concessions, financing and timing can all be altered to suit both parties.

Do this until negotiations end and a final offer is accepted and confirmed by both sides.

Agree on price and terms

Record both a copy and vital details of the accepted offer using the form fields below.

Closing:

Schedule inspection for the buyer

The sales process is almost at an end; time to arrange a date and time for the buyer to conduct their own final inspection of the property

Obviously, the time should be agreed upon by both the buyer and seller.

Doodle is a fantastic dedicated way of managing your meetings. For more information and alternatives, check out How to Manage Small Business Calendars in the Cloud.

Conduct any post-inspection negotiations

Self-explanatory to the utmost, you need to conduct any necessary negotiations after the property inspection on the buyer's behalf.

This step may not always be necessary, largely being dependent on your initial property assessment and the information given during the sale. If you have already disclosed any problems with the site or building then there will usually not be any points on which the buyer can further negotiate.

If, however, negotiations are required then you must relay offers between the buyer and seller until a satisfactory conclusion is made.

Oversee the exchange of contracts

Although this task can also be carried out by a legal representative or consultant on the seller's behalf, it is possible that you, as the agent, will have to exchange contracts (purchase agreements) between the buyer and seller.

Not only does both party need to sign the contract of sale, but a copy of the signed document needs to be given to both sides within 24 hours of signing. Ensure that the buyer pays the required deposit on the property.

Whilst much of the closing procedure is handled by the buyer and seller's legal representatives, the closing documents on the seller's side include:

  • 1
    The HUD-1 settlement statement
  • 2
    A certification of title
  • 3
    The deed
  • 4
    Loan payoff
  • 5
    Mechanic's liens
  • 6
    Bill of sale
  • 7
    Statement of closing costs
  • 8
    Statement of sale

Remember that, although the buyer generally has a 5-working-day settlement period to think over their choice and back out with no repercussions, the seller does not have this grace.

For more information on any of these documents, Zillow provides a succinct explanation for all.

Remove the property from marketing

Only once contracts have been exchanged, the settlement period is over and the property is technically sold should you remove it from marketing campaigns. Ensure the buyer is given any keys to the property and the remaining funds are transferred to the seller.

Congratulations to both you and the seller - this Real Estate Sales Process checklist is complete and you've successfully sold you property! Now get ready to start the process all over again!

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