1. Gauge your need to sell.

• Define your goals for the next 5-10 years.
• Weigh the pros and cons of selling your house.
• Figure out if you can afford to sell, move and buy a new home.
• Calculate your home equity.
• Research the local housing market.
• Consider remodeling the home to fit your needs.
• Weigh the pros and cons of renting out your home.

2. Calculate your selling expenses.

• List the repairs and projects you'll have to do to get your home in selling condition and estimate the costs of hiring supplies and contractors.
• See what projects you can afford and adjust how much you expect to get for selling your home.
• To get top dollar, consider remodeling projects and green upgrades that increase your home value.
• Expect to pay about 7 percent to 10 percent of the home's sale price in closing costs, including real estate agent commissions, transfer taxes and prorated property taxes.

• Professional home inspection
• Capital gains tax
• Mortgage payoff penalties
• Staging and marketing expenses
• Moving expenses
• Cost of living in new city or neighborhood
• Costs related to getting a mortgage for new home

3. Plan your selling strategy.

• Determine how fast you need to sell your house and how much money you want to get from the sale.
• Interview at least three reputable real estate brokers and list your home on the multiple listing service (MLS).
• Weigh the pros and cons of selling the home yourself.
• Learn how to go about selling your home yourself.
• Consider a physical or online auction for a quick sale in a slow market.
• Look into home-swapping opportunities online.
• Plan your sale during the spring or fall peak homebuying seasons.
• If you go FSBO (For Sale By Owner), hire a real estate agent or attorney.
• If you hire a listing agent, negotiate terms of your listing contract, such as commissions and termination date.
• Determine your home's strengths and unique features and promote them in all advertising.

4. Determine your home's fair market value (FMV) and set a price.

• Research public records and collect information on comps -- comparable homes in your area with similar square footage, construction, age and condition that sold within the past six months and are currently on the market.
• Browse listings for homes for sale in your area to get a sense of what is on the market and current home prices.
• Ask your agent to prepare a Comparative Market Analysis (CMA) report.
• Find out about new construction and foreclosures in your area.
• Figure out the average cost per square foot for your area, and make sure your home is in line with it.
• Evaluate market trends, including whether it's a buyer's or seller's market.
• Use your FMV to determine your asking price. Consider pricing strategies such as pricing low to urge a bidding war or Value Range Marketing.

5. Advertise and market the home.

• MLS listings
• "For Sale" signs
• Classified sections of local newspapers
• Real estate publications
• Put ads on free Web sites like craigslist.com.
• Create your own Web site to promote your home.
• Email notices or flyers about your home to real estate agents, friends, family, coworkers, everyone.
• Use photos to showcase your home. Hire a professional real estate photographer or learn how to take great pictures yourself.
• Use a handheld video camera to give online buyers a virtual tour of your home, by walking through each room and talking about its features.

NEXT: Steps 6-10 of The Selling Process >>

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