Setting a fair price for your home is one of the most important aspects of selling it. Set the price too high and buyers who have been searching for a home such as yours will recognize that it is priced inappropriately. Setting your price too low could lead prospective buyers to believe something is wrong with your home. Worse still, you cheat yourself of getting the best return on your investment.

So how do you determine the fair market value? It is determined by the real estate market conditions in your area at the time you list your home for sale. Accurately arriving at a realistic selling precise requires someone familiar with the market and your particular neighborhood. A comparable market analysis takes into consideration current market conditions and neighborhood influences, as well as your home's specific selling factors. This information is then compared to homes with similar features that were sold recently in your area.

Determining fair market value does not stop here. Two other factors affect your home's value; location and quantifiable renovations.

Most real estate sales are made through a licensed real estate agent (or broker) with whom the seller has listed the property. If you are the seller, the broker is your agent and acts as an intermediary between you and potential buyers. Generally, the broker acts based upon a written listing agreement and will receive a commission when the house is sold.

Real estate sales usually begin with the seller and the buyer signing a contract or agreement of sale (usually called the purchase and sale agreement). Other than the deed, this agreement is probably the most important document covering the real estate transaction. The agreement outlines the terms and conditions of the sale, as well as any remedies for damages in case either party backs out of the deal.

After both parties sign the purchase and sale, the buyer generally becomes the "equitable owner" of the property. This means that unless the agreement says otherwise, the buyer assumes the risk of damages or destruction of the property after the agreement has been fully signed. However, as seller you should maintain insurance on the property if the purchase and sale agreement states that you assume the risk of loss.

Before the actual sale or "closing," you will have to clear the property of any liens or other encumbrances. You will also have to make any necessary repairs and otherwise get the property ready to be handed over to the buyer.

The closing is a very important step in the sale. It's when the real estate transaction is finalized, with the buyer receiving the deed and possession of the property and you receiving the purchase money. At closing, the buyer, seller, attorneys, real estate agents, a representative from the lending institution and a representative from the title insurance company meet to review and sign all the necessary documents and proceed with closing.

Once the closing has ended, the buyer receives his or her deed, and possession of the property. You receive any money left over after any outstanding loans and all other expenses have been paid for.