Selling a house: what actually happens

If you haven't sold a home before, it helps to know what's ahead. Every sale is a little different, but here's the usual order of things, what happens at each stage, and what you'll need to decide along the way.

Before you start

A few things are worth sorting out before anyone walks through your home:

• Your numbers. What you still owe on your mortgage, and what you need to walk away with. If you have a mortgage, ask your lender whether there are any fees for repaying it early.
• Your timing. Are you buying somewhere else, or do you need a particular settlement date?
• A lawyer. Choose one before you list, so they're ready when an offer comes in.

1. The appraisal

We start with a chat and a walk through your property. I'll look at recent sales nearby and give you an honest price range, with my reasoning. There's no pressure to list.

It's worth knowing that the council's rateable value (CV) isn't a market price, which is why your CV doesn't tell you what your house is worth. An appraisal is my professional opinion of what your property is likely to sell for. It isn't a registered valuation, so if you need a formal valuation for a bank or a legal matter, that's done by a registered valuer.

2. Choosing your approach

There are a few ways to sell a house in New Zealand, and the right one depends on your property, the market and your timing:

• Auction. Buyers bid on the day, and if the property sells, the sale is unconditional.
• Deadline sale. Offers are due by a set date and time, and you choose from what comes in.
• Price by negotiation. No price is advertised. Buyers make offers, and we negotiate.
• Asking price. A price is advertised, and buyers make offers at or around it.

There's more on how they compare in auction, deadline sale, negotiation or tender?

We'll also agree on a marketing plan, and you'll sign an agency agreement. Before you sign, read it carefully and ask about anything you're unsure of, including the term, the fees and what's included.

3. Getting ready

This is where we tidy, fix and present the home at its best. Small jobs often matter more than big ones:

• Declutter, and give the home a proper clean.
• Fix the small things buyers notice, such as dripping taps, sticking doors and marked walls.
• Tidy the garden and the front of the house, because that's what buyers see first.

If you've had work done on the house, it's worth checking that it was consented, as selling a home with unconsented work can complicate a sale.

We'll also put together a list of what stays with the house, the chattels such as curtains, heat pumps and appliances. Your lawyer takes care of the title and rates information. A LIM report from the council shows what the council holds on file for the property, and some sellers get one in advance. We can talk through whether that suits your home.

4. Marketing and viewings

Once the home is ready, it's photographed and listed. Most buyers start their search online, so the photos and the description matter. See how your home stands out online for what goes into a good listing.

Buyers then see the home through open homes and private viewings. On those days it helps to leave the house tidy with the lights on, and to give buyers room to look around. It's often best if you're out. I keep you updated on interest and feedback as it comes in, so you can see how the market is responding, and if something needs adjusting, we talk about it.

5. Offers

Offers come in under the sale method we chose. An offer is more than a price, so look at all of it:

• The price and the deposit.
• The conditions, such as finance or a building report.
• The dates, including settlement and when the buyer takes possession.
• What's included, such as the chattels.

I'll talk you through each offer so you can decide what's right for you. You can accept it, decline it or counter it. The highest price isn't always the best offer, because conditions and timing matter too, as explained in is the highest offer always the best offer?

6. Conditions

Most offers have conditions, such as finance, a building report, a LIM, insurance, or the buyer selling their own home. Each has a date by which it needs to be met. Your lawyer will guide you here. When all the conditions are met, the sale becomes unconditional, and the agreement is binding. The buyer then pays a deposit, which is normally held in a lawyer's trust account until settlement.

7. Between unconditional and settlement

This is the stretch between agreeing the sale and handing over the keys. It's mostly paperwork and moving, and it's worth planning ahead:

• Your lawyer prepares the settlement figures, which include adjustments for things like rates.
• Book your movers, and let your utilities, insurer and other providers know your moving date. Keep your house insurance in place until settlement.
• Buyers usually do a final check of the property shortly before settlement, so leave the house clean and the chattels where they should be.

8. Settlement

On settlement day, the money moves between the lawyers, your mortgage is paid off, and the new owners get the keys. Your lawyer handles the paperwork, and I'll help make the handover smooth.

What does it cost?

Costs vary, so ask for them in writing before you sign anything. Typically there is:

• The agent's commission, and any marketing costs.
• Your lawyer's fees.
• Any fees from your lender for repaying the mortgage.
• Your moving costs.

The cheapest option isn't always the best one, so have a look at is a low commission always the best deal? If the property isn't your main home, such as a rental, speak to your accountant about tax before you sell.

How long does it take?

It varies, but as a rough picture: preparing the home might take a couple of weeks, a marketing campaign often runs for a few weeks, and then conditions and settlement add more. From the first chat to settlement day is often a couple of months, although it can be much quicker or slower. The time of year can also play a part.

Keep reading: selling before you buy, a countdown checklist for getting ready, the best time to sell in Invercargill, how to avoid underselling your home and real estate terms explained.

This is general information only, not legal, financial or building advice. Rules and market conditions change, so check the details with your lawyer, lender or the relevant authority before making decisions.