How a Real Estate Transaction Works

Before listing, your agent verifies that you're the legal owner of the property — or otherwise have the legal right to sell it. This protects everyone involved in the transaction, including you.

You sign a listing agreement with your agent that spells out how the property will be marketed — including whether open houses will be part of the plan.

Your agent helps you set a fair, realistic price based on current market conditions — not just what you hope to get. Real estate markets move in cycles: sometimes there are more buyers than listings (a seller's market), sometimes the reverse (a buyer's market). Your agent's pricing tactic reflects which one you're in right now.

If you price meaningfully above market value, a buyer's mortgage lender may not appraise the home that high — meaning the buyer can't get financing for the full purchase price. Unless the buyer has that difference in cash, the deal can fall apart entirely, costing you time back on the market.

Depending on market conditions and your goals, your agent might recommend pricing below market value to attract multiple buyers and drive competitive, auction-style bidding; pricing at exactly what you want; or pricing above your target to leave room for negotiation.

Offers come in with the same structure as a purchase offer — price, deposit, and conditions — just from the other side of the table. Your agent walks you through each one and negotiates on your behalf.

The buyer's and seller's lawyers coordinate the closing. Sale proceeds first pay off any remaining balance you owe on your mortgage. If money is left over after that, it's yours. If the sale doesn't cover what you still owe the lender, you remain responsible for the shortfall.