This guide is to help you prepare yourself and your home for the current real estate market. Following these steps will help you sell for the highest possible price, in the shortest amount of time and with as little stress as possible.

Step 1: Making the decision to sell:

Do you really need to sell? If you love your neighborhood and just need more space, perhaps you can remodel and stay. Or if the market is slow and houses aren't selling, you may be better off waiting or renting your home out.

Whatever your reason, before you even put up the "For Sale" sign, crunch the numbers to see if it makes financial sense to sell your home. These steps will help you figure out whether you should sell or stay.

Making the decision to sell your home will not be very easy. There are many items you need to think about. First of all, you need to remove any emotions form the decision making process.  Emotional decisions will cause problems latter in the sales process. Second, you need to determine the major factor that made you think of selling to begin with (career change, home is too small or home is too large). This factor will play an important role in the decisions you will need to make later. Third, you need to determine how this sale will affect you and your family. Fourth, is selling your home the best result for your needs? And finally should you sell first or buy first?

Determine your short and long term goals. Consider your family, career and interests, and create your idea of the perfect home. You may have done this when you were shopping for your current home, and now it's time to reexamine your priorities. Ask yourself: Where do I want to be in my life? How does my current home stack up to my needs and goals? Will the selling process derail me from my long-term goals or help me achieve them?

Consider capital gains tax which is the money you owe Uncle Sam if you happen to profit big from the sale of your home. Have you lived in the house you intend to sell at least two of the past five years? If yes, then you could be exempt.

If no, you might incur early mortgage payoff penalties and capital gains tax, two very hefty bills that may make it financially unwise to sell your home. There are exceptions to the tax rule, job change, divorce, death of a spouse, etc. so check with your accountant.

Calculate the costs of repairs and home improvements. If you're trying to get top dollar for your home, you'll need to do some remodeling to get it into selling shape. Prioritize by choosing projects that'll give you the most return on your investment. Estimate the costs of supplies and contractors, see what projects you can afford and adjust how much you expect to get for your home.

Don't give buyers a reason to haggle on price. Make necessary fixes like fixing leaky faucets and update your home with new light fixtures and hardware.

Consider getting a professional home inspection to identify potential problems before buyers find them.

Keep up with the Joneses, but don't outdo them. If the neighborhood norm is hardwood floors and you have carpet, upgrade. Buyers these days expect stainless steel appliances and granite countertops in the kitchen.

Consider making green upgrades.

Take advantage of tax perks.

Compare the costs of selling and remodeling. If you want to sell because you're unsatisfied with the size or lack of features of your home, you may find that remodeling it to fit your needs could cost less than selling the house, moving and buying another one. Perhaps you can build an addition or add "green" updates to your home to lower energy bills.

If you have to renovate before you sell anyway, it won't hurt to do the extra research to see what it would take to make you stay. It may make more financial sense to customize your current home rather than buy another one.

Calculate your selling and moving expenses. In addition to repairs and improvements, expect to pay about 7 percent to 10 percent of the home's sale price in closing costs. These include: Real estate agent commissions - This is typically 5 percent to 7 percent of the sale price.

Professional home inspection It's not required but getting one will reveal any problems with your home before a buyer finds them.

Transfer taxes - Some cities charge a transfer tax, which is based on the property's sale price.

Prorated property taxes - Depending on the date of your closing, you may owe property taxes. Check your state laws. If you've prepaid your property taxes for the year, you may get a credit. You may also get a refund on prepaid escrow costs like your annual home insurance premium.

Factor in other selling-related costs: Staging and marketing expenses - You'll need supplies to prep the house, such as new paint, furniture, light fixtures, window treatments, rugs and other accents. Mortgage payoff penalties - If you're subject to a penalty, negotiate with your lender to reduce it. Capital gains tax - See if you're exempt.

Moving expenses - This can range from a few hundred dollars for a local move to thousands of dollars for a cross-country relocation. Read our Moving Guide for tips to estimate costs and minimize the stress of moving.

To determine the potential proceeds from your house sale. Roughly estimate how much you expect to get for your home, based on comparable home sales and listings in your area. Subtract your selling and moving expenses. If you're lucky or live in a solid housing market, you'll see a good percentage of appreciation and potential profit.

Calculate your buying expenses. Selling is really three parts: selling, buying and moving. If you want to "trade up" to a better home, job, neighborhood, school district or city, make sure you thoroughly research your destination. This will require several trips to see homes and get to know the area (another expense). Know what to expect with home prices, cost of living, schools, crime rates and amenities. Make sure you can handle any changes in overall costs of living.

Know the mortgage options for your next home purchase. The last thing you need is to be "homeless" or waste cash on rent because you sold your home too soon. If possible, hold off until you're sure you can find a new place to live.

If you're looking for more space or amenities, crunch the numbers to see if you can afford a larger mortgage.

Check your credit report and credit score. Talk to your current lender and others to find out what kind of mortgage terms and rates you can get. Make sure you can secure a mortgage that works with your financial goals.

Research the local housing market. Now that you've determined your motivation, look at current market conditions. Are people buying in your neighborhood? Do research on the Internet and consult with local real estate experts. If home prices have dropped significantly or foreclosures and short sales have flooded your market, you may want to wait it out. Otherwise, you're likely to be bombarded with low-ball offers.

Evaluate the popularity of your neighborhood. If demand for housing in your area is high because of factors like a great school district or close to shopping, you may want to capitalize on that and sell at a premium.

Now that you have made the decision to sell it is time to move forward. No it's not time to put the sign out just yet. Before you move on to step 2 take a look at these checklists they will help you through the entire process. Also read these reports to increase your knowledge in the selling process Nine Biggest Selling Myths, Ten Factors Most Likely to Influence Your Sale and Reasons why homes don't sell. 

Step 2: Choosing a Real Estate Professional:

When choosing a real estate professional there are three important criteria you should consider when interviewing agents, and they are; level of service, record of sales and reputation of agent and company. I have prepared a list of ten questions you can use when interviewing agents to determine who will best meet your needs and who you will feel comfortable having on your team.

One of the biggest mistakes that most home seller's make is they hire Uncle Charlie, who lives three counties away. Sure he may know your personal situation, but does he know your community? Does he know where the best restaurants are located, how the public transportation is routed through the community or who all the local officials are? Knowing all this information and more about your community will enable the agent to market your property for the best results.

Remember your not just interviewing an agent, that agent works with a broker who is also an important part of your team. So insure you get as much information about the company as you do the agent.

Step 3: Real Estate Education

Now that you have selected a real estate professional it is time for the agent to educate you on information that is required by law and the information that is important to you making future decisions in the home sale process.

The law requires that all real estate professionals discuss Agency with every client. An agency is created when you and the agent have completed a listing agreement (listing contract) and all parties have signed the documents. A Seller's agent has the obligation of providing you client level services in a fiduciary relationship that include; Loyalty, Obedience, Disclosure, Confidentiality and Accounting.

By law all commissions are negotiable. A broker can only set a commission rate for their company and an agent can only set a commission rate for their services. Yes commission rate are negotiable, but that does not mean that an agent or broker have to work with you if you do not wish to pay what they charge. The commission rate and the decision to work together must be decided upon before the listing agreement is signed.

The law requires that you be given information on the different Environmental issues involved with the sale of real estate. These issues consist of Lead-Based-Paint, mold, radon and termites. Environmental issues are the largest deal breaker of any real estate transaction.

The law and the MLS service require that a property must have a completely signed listing agreement before the listing agent and broker can list the property on the local MLS service.

The listing agreement consists of several documents that will cover everything from what the responsibilities of the agent and broker are, what the responsibilities of the sellers are, what property is being sold, what is wrong with the property and the terms and condition of the transaction.

Step 4: Enhancing Your Property to Sell

There are many reasons why buyers choose certain homes over others. It is very important you prepare your home to appeal to as many buyers as you can. A clean, decluttered and nutural home will attract more buyers which means the higher possibility of selling you home fast and for top dollar. 

We create in our home an environment that is comfortable for us. When you put your home on the market "it is no long a home, it is a product for sale".  With that said we need to de-personalize, de-clutter, clean and make it appealing to potential buyers. See 20 Steps to Sell Your Home

Say goodbye to the days when baking a batch of cookies and putting out fresh flowers before an open house would be enough to sell your home. In today's real estate market, it takes more than that to attract buyers, and frustrated home sellers are resorting to some unusual methods to get their homes noticed. From clever to downright bizarre, here are our top 10 unique home-selling tactics.

Get a home inspection! A home inspection is the best way to find out if there is anything wrong with your home. After all most buyers will have the home inspected and if there are any problems found at that time the buyer will request five time the cost of repairs off the sale price or will ask that you fix the issues which can cause the closing to be delayed until the work is done. So if the home inspection is done prior to listing the property there will be no surprises after an offer is accepted. Here are the top 10 red flags for homebuyers.

Have your agent complete a home evaluation to determine what needs to be done to de-personalize your home. The home evaluation will also be used to determine the listing price and provide critical information for marketing your home.

 Staging your home is a must with all the competition out there today. New home builders have been doing this you over 30 years to get buyers to buy new instead of resale. In the past sellers refused to make any changes to their homes to attract buyers. Today buyers are looking for homes that require no work to move in. According to the National Association of Realtors, a staged home will sell faster and for about five to seven percent more than homes that have not been staged. Get your home ready to sell.

Your home stager will recommend small improvements that will bring your home into the current time. These types of improvements may require you to hire a professional to complete. Just make sure you do not go overboard, keep in mind, the more you spend the less return you will receive. See Which Home Improvements Give The Best Return.

There are several options when hiring someone to stage your home. 1) Hiring a stager to complete all the work will run you form one thousand to five thousand dollars depending on what needs to be done. 2) Hiring a stager to show you what needs to be done and you doing the work will cost you from two hundred and fifty dollars to five hundred. The choice is yours, but it is highly recommended that you do. A home stager will look at your home through the buyer's eyes.

No matter what you do not every buyer will like your home. That is why a home stager will do their best to transform your home to appeal to as many buyers as possible.

One other way to enhance your property is to offer incentive that will attract buyers.

Step 5: Setting a List Price

What is my home worth? That is the first question every potential seller will ask. Remember There are six factors affecting the salability of any property. These factors are; Location, accessibility, Price, property condition, terms and the agent you select. YOU CAN CONTROL FIVE OF THESE!

You cannot just pull a number out of thin air when pricing your home. When you under price your home, it will sell very quickly but you will have left thousands in the pocket of the buyer. When you over price your home, it will sit on the market longer than the normal and a proven fact is that the longer a home is on the market the less it will sell for. So do yourself and your agent a favor PRICE IT RIGHT.

The first step in setting your list price is to understand the local market conditions as well as the overall market picture. Your real estate professional will have all the necessary information you need to determine what the market is telling us about your home. You can also turn to the internet to find information on local and global market conditions.  Only the market will determine the value of your property. Selling your home in a declining market.

Your real estate professional will produce a CMA (Comparable Market Analysis) for you. The CMA will consist of recent homes sold in your area, homes that are currently for sale in your area and any homes that have been taken of the market for any reason other than a sale. With this information your agent will show you how to price your home at the best price for the best results.

Don't rule out the possibility of having an appraisal to find out the value of your property. An appraisal will run about three hundred dollars and will give you the peace of mind that you have selected the correct list price. As with the home inspection the appraisal will be money well spent.

Now let's take a look at all the improvements you have made to your home while you were there. Will these changes have any effect on the list price? This is one tough question. First you need to determine if the changes you made will be acceptable to a wide range of buyers. How many buyers will like the purple paint on all the walls and the ceiling in the living room?  Will they like the neutral granite counters in the kitchen? Is that twenty square foot master bathroom you added going to be big enough for all the buyers that will view your home? Just because you like it does not mean that everyone will. Secondly how much did you spend on these improvement? Just because you paid ten thousand on the toilet in the new master bath does not mean that you can raise the list price by ten thousand dollars. If you have over improved your home for the market you will not receive the return you were looking for. For more information on what improvements bring the best return read the top 15 home improvements that ad value.

In summery Sellers set the list price, Market determines the value and the Buyers sets the sale price.

Price and Package Your Home to Sell

Step 6: Listing Your Home

One decision that needs to be made at this point is what will be staying with the home at the time of sale and what you will be taking with you. Rule of thumb; if it is attached to the house by means of screws, bolds nails through the object or glue, then it stays with the property, examples are lights, cabinets, built-in appliances, doors and so on, otherwise it is considered personal items and you can take it with you. If there are items in the home that you wish to take with you they should be removed and replaced prior to placing the property on the market.

Along with the home inspection and the appraisal, you need to consider testing for environmental issues. By law your agent is required to provide you with the EPA publication on Lead-Based-Paint. But this is not the only issue buyers will be concerned with. Buyers looking at your home will also be interested in knowing if there is mold, radon or pests in your home.

Your homeowner insurance will need to be kept up to date until the day of closing. If something should happen to your home prior to closing and you do not have insurance to cover the damages the buyer will not be obligated to continue with the purchase of your property.

At this point you should have a list of all utilities, who they are provided by and average yearly costs. Buyers will be asking for this information and if your agent has it available for marketing it will save lots of time when a buyer is interested in your home.

The final decision you need to make before signing the listing documentation is what incentives you want to offer the buyers to entice them to purchase your home over the competition. Monetary incentives are the most desired by buyers. Things like help with closing costs, a year's worth of taxes paid or financing help. With this incentive in the listing agreement your agent will be able to market your property showing how you can help your buyer to purchase your home without a price lower than the listing price.

With these decisions made you're now ready to complete the listing agreement (listing Contract). Your agent will have all the forms necessary. The listing agreement consists of the actual agreement between you and the broker/agent, the disclosure statement and agency. Once all of these documents have been signed by all sellers and the agent, you have a legally binding contract with the broker/agent to sell your home.

Step 7: Marketing Your Property

Marketing is the most important part of getting your home sold in the shortest amount of time, for the highest possible price and with the least amount of stress.

If you're not using the latest technology to sell your home, you will be losing out on many buyers that are only using these technologies to search for homes. Insure that your real estate professional is up-to-date on the many new was to market your property.

When you interviewed your agent one of the questions you should have asked them is how they plan to market your home. Now you need to ask them how they plan to market your property specifically. You can use this 28 Step Marketing Plan as a guide to evaluate your agents plan. Remember you and your agent should be working as a team, so if you feel there is something your agent is missing or even something you feel is too much in the marketing plan, let them know how you feel.

A Marketing plan is no good if the agents advertising plan and materials fall short of a professional appearance. The advertising is what will make the marketing plan work. There are new ways of advertising being introduced every day, ask your real estate professional if they keep up to date and use a lot of these new outlets. Insure that your agent gets your property listed in high volume web-sites and print media.

Step 8: Showing Your Property to Prospective Buyers

Even though you have had your home staged, painted and cleaned you will still need to be prepared for the open house. Open all drapes, clear away all clutter caused by everyday living, make the beds and empty the sink and dishwasher of dishes. Preparing for an open house or showing should only take no more than thirty minutes.

At the time of the open house or showing take the family to include the pets and leave the property to allow the agents to do their job. In order for the agents to get the best feedback buyers need to be able to speak freely and they will not do so if you're around. You must also be flexible with the showing schedule so that buyers are able to view your property when they are able to. The National Association of Realtors recommends that you allow showing from 9 AM to 8 PM. If buyers are unable to view your home because the children are asleep or you want to watch the football game, they will go to the next listing and most likely not return to yours.

Signage for your open house is one of the most important marketing tools to use. Many buyers going to open houses do so because they saw a sign. Maybe while out looking at other homes with their agent or while out enjoying the day with a little R & R.

In summery your goal is to sell your home, if you do not make it possible for the buyers to know you're there and to view the property you will have a long wait and loads of unnecessary stress.

Step 9: Offers and Negotiations

When an offer is written your agent has the obligation by law to present the offer to you in person. Your agent also has the obligation by law, to the buyer, to present the offer to you in person even if the agent and you are not happy with it. Every offer requires your signature no matter your decision.

When your agent informs you they have an offer in hand, it is very important that you make time available to review the offer. Most buyers only allow you 24 hours to respond. If you delay a response, buyers in this completive market will move to the next property, as they will view the delay as non-caring and feel that a transaction with a non-responsive seller will just be a headache in the long run.

Once you have reviewed the offer or offers you will need to decide whether you wish to accept, counter or reject the offer. Yes these are the only three choices you have. As I said in the beginning emotions should never affect your decisions in a real estate transaction, but if the offer offends you, surely you may reject it. Rejecting an offer will tell the buyer that they hit a nerve. I highly recommend that you counter any offer that is presented, even if you do not like any terms or condition of the offer. A counter offer gives you the opportunity to change the terms and conditions to better fit your desires. The final option is accepting the offer. According to the National Association of Realtors only one percent of offers written are accepted without change. If you are happy with all the terms and conditions by all means accept it as fast as possible so no one has the chance to change their mind.

What will you do if you receive a low-ball-offer? The first thing you want to do is to consider all your options. Just because the buyer is coming in very low doesn't mean they can't afford to pay more. In the current market buyers will try to get as much as they can for as little as possible.

The art of negotiating a real estate offer is not an easy task. This is one of the areas where your agent will earn most of their money and gray hairs. In most cases the negotiations will only take several hours. But when there are unrealistic buyers and sellers involved it can take much longer. I have witnessed one negotiation take four months.

Once all parties agree on all terms and conditions, signatures of all parties are on the offer, you will have an accepted offer.

Step 10: The Sales Contract

The accepted offer is now the sales contract (see sample contract). Clearly printed on the first page of the sales contract is the phrase "TIME IS OF THE ESSENCE". The means that if a date or time is set forth in the sales contract the party responsible for the term or condition only has until that date and time to accomplish the task. If the party responsible does not complete the task or request for an extension the other party has the right to declare the contract null and void.

The sales contract will spell out everything that needs to be done or not to be done prior to closing on the property. The contract also states any requirement determined by law. These requirements in most cases will be handled by the closing officer, Mortgage Company, real estate professional or other government agencies.

Contingencies in the contract can be good for both buyers and sellers. A contingency is simply a condition in the contract that allows one or both parties to be released from the contract if certain situations do not yield a favorable result. These situations could be the results of a home inspection, mortgage approval or anything the buyer or seller would like to make the contract contingent on.

Any changes to the sales contract must be in writing and signed by all parties involved.

To clearly understand the sale contract have your agent go over the basic parts with you prior to receiving any offers. By doing so, you will spend less time reviewing the offers when they arrive.

Step 11: Terms and Conditions of the Sale Contract

Such conditions as home inspectors, Mortgage Company, appraiser and closing company or attorney,   will all be determined by the buyer or the buyers mortgage company.

Your responsibility is to make sure anyone needing access to your property to complete the tasks, are able to do so. No one should be entering the property without first communicating through your agent.  If you have anyone wanting access to the property that you're unaware of, contact your agent immediately to resolve the issue. For your safety do not let them in until you have clarification.

If you had a presale or have had an offer withdrawn do to a bad inspection Do Not Hold Back on the bad report when negotiating with perspective buyers.

Step 12: The Closing

The closing date will be one of the terms of the contract. The closing time will be determined by the Settlement Company or attorney conducting the closing.

You may be required to produce paperwork for the Settlement Company or attorney. This paperwork could be but not limited to current mortgage information, insurance, title and/or deed information.  In most cases the closing officer has access to this information but there are times when it is not available through public records.

The settlement company or attorney will prepare all the documents required to transfer the property from seller to buyer. These documents include the HUD-1, title insurance, title and deed information. The buyer's mortgage company will have all the mortgage documents to the closing officer prior to closing.

The buyers are entitled to a final inspection of the property with-in twenty four hours prior to closing. In most cases this final walk-through will take place the same day as closing, as the seller's belongings will have been removed. This is when the buyer is given the opportunity to check the property for any inspection repairs or infractions that may have accrued since they last viewed the property.

The final procedure is to meet in a pre-determined place for the final step of the home selling process. "GETTING PAID" Once all the documents have been signed the closing officer will process all checks and distribute them as necessary. At this time the keys to the property will be given to the buyer and the property is their responsibility.