Mortgages & Home Loans Real Estate Resources Selling Your Home The Process of Selling a House By Elizabeth Weintraub Elizabeth Weintraub Facebook Twitter Elizabeth Weintraub is a nationally recognized expert in real estate, titles, and escrow. She is a licensed Realtor and broker with more than 40 years of experience in titles and escrow. Her expertise has appeared in the New York Times, Washington Post, CBS Evening News, and HGTV's House Hunters. learn about our editorial policies Updated on March 31, 2022 Reviewed by Julius Mansa Reviewed by Julius Mansa Julius Mansa is a CFO consultant, finance and accounting professor, investor, and U.S. Department of State Fulbright research awardee in the field of financial technology. He educates business students on topics in accounting and corporate finance. Outside of academia, Julius is a CFO consultant and financial business partner for companies that need strategic and senior-level advisory services that help grow their companies and become more profitable. learn about our financial review board Fact checked by Ariana Chávez Fact checked by Ariana Chávez Ariana Chávez has over a decade of professional experience in research, editing, and writing. She has spent time working in academia and digital publishing, specifically with content related to U.S. socioeconomic history and personal finance among other topics. She leverages this background as a fact checker for The Balance to ensure that facts cited in articles are accurate and appropriately sourced. learn about our editorial policies Share Tweet Pin Email Photo: FatCamera / Getty Images The process of selling a house isn't a one-and-done transaction. It's a progression of steps. You'll have to deal with state laws that govern certain types of purchases that could affect the finality of the sale. But certain steps in the process of selling a house are pretty standard. Signing a Contract Coming to an agreement on price and terms between the seller and the buyer is the first step. The typical home spent 58 days on the market in November 2020, 13 days less than the same time last year nationwide. The seller will either accept the offer, reject it outright, or issue a counteroffer. The procedure can involve just one counteroffer, or it might evolve into a multitude of counteroffers going back and forth between buyer and seller for a period of time. At some point, ideally, there's a meeting of the minds. The listing status then changes from an active listing to a pending sale. Note Some agents put a sign up in the yard that says "pending" or "in escrow" or "under contract," but a house isn't yet sold just because the seller has accepted an offer. Time for Inspections It's critical for buyers to get a home inspection prior to closing. Other types of inspections might be advisable as well, depending on the age, condition, and location of the property. A buyer might further negotiate with the seller if an inspection turns up an unexpected defect. This is particularly the case if the defect is one that will cost a great deal to repair. Note The buyer might threaten to cancel the transaction when an inspection turns up a serious problem unless the seller agrees to a request for repairs. Then, of course, the repairs take time, and the house isn't sold yet when they're accomplished. It's not even considered sold when and if the buyer is satisfied with the results of the inspections. The Buyer's Loan Is Approved The buyer's mortgage file goes to underwriting after all the buyer's supporting documents have been received by the lender, and after an appraisal has been completed. This underwriting process can take anywhere from a few days to a few weeks. The appraisal must support the agreed-upon purchase price. More negotiations will take place or a new appraisal might be ordered if the appraiser submits a low appraisal. The home still isn't considered sold yet after the loan is approved. Note Expect an average of about 50 days—almost two months—to pass between the time the buyer first applies for a mortgage and the closing date. A Contingency Sale A buyer might have to close escrow on an existing home before moving forward with the purchase of the new home. This is known as a contingency sale and the contingency must usually be satisfied or released in order to move forward with the contract. One way to satisfy a contingency is to sign a release of contingencies or perform some other act, such as depositing all funds to close escrow. But even if the buyer deposits the entire purchase price in cash, the home might not be completely sold yet, especially if the buyer can only be held liable for liquidated damages in the event of default. When Is a House Considered Sold? A home isn't technically sold until the seller no longer legally owns it. It's sold when the deed has changed hands or is recorded, and when the funds have been disbursed. Was this page helpful? Thanks for your feedback! Tell us why! Other Submit Sources The Balance uses only high-quality sources, including peer-reviewed studies, to support the facts within our articles. Read our editorial process to learn more about how we fact-check and keep our content accurate, reliable, and trustworthy. Realtor.com®. "November 2020 Monthly Housing Market Trends Report."