Every thing you ever wanted to Know about Selling your Home
Pricing the Property
It’s normal, of course, to think your home is worth a lot and to want to get the best possible price and you may hope buyers will fall in love with the whole package and be willing to spend top dollar for it.
Some Realtors will sign a listing agreement with you and put your home on the market for your goal price, knowing full well that the market won’t bear that price. They will let your home sit on the market even though that’s not in your best interests.
We won’t do that. It helps the competition, not you!
The market sets the price, not wishful thinking or any other factors. It’s a simple law of supply and demand, location, condition and property type.
What you have spent on your house to buy it or to fix it up have no impact on what your house is worth on the open market and what a willing buyer is prepared to offer you.
Our job is to help you set a realistic price to match market conditions so your home sells in a reasonable amount of time for the best possible price. We use the historical sold information provided from several databases. Enabling us to produce a comprehensive analysis of what comparable homes have historically sold for in your neighbourhood, weighing that with your home’s unique features. This process is known as a Comparative Market Analysis and it’s generally considered the most effective method of determining what potential buyers will be willing to pay for your home.
The CMA is divided into three categories:
1. Similar properties that have recently SOLD: By studying these, we can see what homeowners have actually received over the last few months.
2. Similar properties that have currently been LISTED: These properties show exactly what alternatives a serious buyer has to choose from – your competition in the market.
3. EXPIRED LISTINGS could be as a result of overpricing or other factors like location, layout, poor marketing etc.
Once we have a foundation from the CMA, we will make value (cost) adjustments to the comparables and or the subject. Adjustments for time, age of improvements, lot size, location, Community amenities and so on.
This is a similar process that banks and lending institutions use in determining how much they will be willing to lend you for your home.
We will list your property at market value- why?
Potential buyers won’t look at over-priced homes. The potential buyer will not look at under-priced homes ether. If the buyer’s budget for a home is $500,000, they are likely looking at homes priced from $450,000-$550,000, not $300,000 homes or $700,000 homes. Price your property right!
An unrealistic price will eventually develop a stigma and the property will lose its marketability. You will attract more interest on your home if it’s priced right and the potential buyers will probably bring their best offers if they really want your home. Today’s buyer is educated and they know the market very well. * When an educated buyer is ready to make an offer, they will have seen all of the existing properties for sale in your neighbourhood and will have a good idea of the housing inventory and prices. That’s why the first few weeks after listing are the most critical: the number of prepared buyers who will see your home will be at its peak. If the right buyer does not come forth we then wait for the next cycle of new buyers to your market area and or we adjust our price. Most buyers take between 4 and 8 weeks to collect information about the market before making their first offer.
Marketing Plan
The marketing plan will give your property the maximum exposure to the target market.
· Feature sheet available, containing pertinent details about your home and neighbourhood
· Detailed professional floor plans that are both accurate and attractive
· Colure Photography
· Accurate MLS listing information with pictures.
· Listed on MLS.CA and the powerful TREB MLS
· Use of other social media, face book, twitter and others.
· Open house – agents and public (more on that later)
I recommend that the property have a pre-sale property inspection from a qualified inspector so your properties condition is honestly disclosed to potential buyers. And any problems may be corrected. This reduces the need for the buyer wanting to put in a condition on home inspection We may recommend decorating, repair and home staging the property prior to putting the property on the market.
Once on the market we will provide you with updates on activity of the listing and the comparative market. You will receive regular progress updates as to showings feedback and other interest in your home. I’ll also be sure to keep you up-to-date on sales of other homes in the area.
Showings and Open Houses
One of the difficult things about selling your home is opening it up to strangers. To minimize the impact on you, we’ll discuss appropriate showing times Obviously, we’ll try to limit the listing period to make things as easy as possible for you. Another way we do this is to offer other agents a chance to preview your home all at once, in a special Agents Open House that will be held before your home is open to the general public. Letting agents ‘vet’ your home first means those who return with their clients already think well of it.
During the listing period, your house should be ready to show at all times – meaning clean and clutter-free. And, those last minute touches before someone comes to look at your home can make all the difference:
· Turn on all the lights even during the day, and open all the drapes and blinds.
· Turn off the TV and play some classical or easy listening music
· If you can, ask friends to look after your pets or remove them for showings. Some people may be allergic, others may be afraid of all kinds of animals.
· Smell is very important and odours should be aired out with fabrics and surfaces cleaned, not just sprayed.
· Leave windows and mirrors sparkling.
· Set out fresh flowers, hang decorative towels in the bathroom, and make sure couch cushions are straightened
· If possible, leave! Some buyers are uncomfortable when the owner is in the house. In their hurry to get away, they may miss important features, or fail to ask important questions. They want to be able to talk freely about what they don’t like and what they might want to change, or even if they love your home, either way they won’t want to say these things in front of you. If you must remain, be courteous, but try to stay in another part of the house and do not make conversation. The buyer’s Realtor knows what the buyer is looking for. He or she can discuss features and answer questions.
· Make certain all valuables are locked away (not in drawers) (people who come into open houses and or showings do look in drawers and tend to snoop. Do not leave any thing valuable available!
· Never let any one into your home other agent or not unless you have had a call first from our office first. Safety first.
Legal contracts
Several legal documents are used to put your property on the market. A listing agreement is a contract between you and my brokerage, DOSMAN REAL ESTATE SERVICES INC. It will Provide a framework for subsequent forms and negotiations, it spell out the rights and obligations of all parties, the length of the agreement, and the compensation (commission rate) and the listing price. The MLS data form is filled out with all the property details to be included. The MLS data form will accurately describe the property (including lot size, building size, style and materials, floor areas, heating/cooling systems, room sizes, and descriptions) Detail what is, and what is not, included in the sale (As a general rule, fixtures are included; chattels, things that are movable, are not. If necessary, list what stays and what go under inclusions or exclusions.) Provide information about annual property taxes, and note any easements, rights of way, liens, or charges against the property List all leased or rented items, such as a hot water tank or furnace…(Please see a sampling of the forms in pdf format.)
Please prepare the following documents, as we will need to review and copy them for the file.
· Plan of survey or sketch – A survey of your property showing the lot size, location of buildings, and any encroachments from neighbouring properties. You should hopefully have this from when you bought your property.
· Property tax receipts – The listing agreement requires us to provide accurate tax information.
· Mortgage verification – Details about your mortgage provided by a mortgage lender upon your authorization – good to have especially if we’re offering your existing mortgage terms to the buyer, to sweeten the deal
· Deed or title search – A legal description of your property, and proof that you own it
· Other documentation – Annual heating bills, water and sewage costs, electricity bills, and recent expenditures on home improvements.
Fintrac documents – I’ll need your personal information like date of birth and ID to verify for the new Federal listing requirements.
Samples Documents
There are many legal forms involved in the real estate transaction, to become familiar with the many forms; I have included them here for your review. Knowledge is key to a successful property sale
Listing Agreement Authority to Offer for Sale
Agreement of Purchase and Sale
Confirmation of Co-operation and Representation
A Firm Deal
Congrats – after all that preparation, paperwork and promotion, your home has sold. Once an offer is accepted and any conditions have been removed or waived, the deposit will be deposited into our safe, trust, insured bank account. Upon closing the trust deposit monies will be transferred over to your lawyers office less any real estate fee’s owing.
Here are four important things to take note of right away:
· Your closing date, which is spelled out on the contract. This is the big day to plan around – if you can move out a day or two early to minimize your stress and any conflicts with the buyer’s schedule, that would be ideal!
· The contract requisition date (AKA Title Search date). That is the last day that the Buyer’s lawyer has to search the title to make sure that everything is in order. If there are concerns they will need to be addressed prior to that day.
· Access visits – the Buyer (accompanied by their agent) may be entitled to see the house again before closing, at mutually agreeable times – the specifics will be on a Schedule forming part of the offer (appearing near the end of the documentation). You’ll have to agree to these dates and times and you can reject them within reason if they conflict with your schedule – we try to get at least several days’ notice for you.
· Appraisal – An appointment may be made by the Buyer’s bank or mortgage broker to appraise the home. This is usually a very quick 15-minute interior/exterior walk-through of your home and unfortunately, not a lot of notice is given for these appointments – usually less than 24 hours. I will inform you of their intent to inspect as soon as my office gets the request.
To facilitate the continuing appointments, we can discuss leaving a lockbox on your property for easy entry of approved parties, or I can hang onto a set of keys, or you can arrange to be home for these visits or leave a key in a suitable place like your mailbox just for the specific times someone will be visiting your home.
Real Estate Lawyer
Here are twelve quick points on exactly what the lawyer will do for you:
1. Receive instructions from you about the sale of your property and discharge of your existing mortgage.
2. Review the executed offer.
3. Review and respond to the requests submitted by the buyers’ lawyer.
4. Prepare the Statement of Adjustments.
5. Prepare the draft of the Transfer/Deed.
6. Prepare all supporting sale documents.
7. Forward a request for a mortgage discharge statement for any mortgages registered on title.
8. Meet with you to execute all sale documentation and get your keys on closing.
9. Attend to the closing and affect the exchange of documents & monies.
10. Go to the registry office to discharge the executed Charge/Mortgage.
11. Deliver the balance of the sale proceeds (if any) to the real estate office.
12. Conduct all necessary correspondence and telephone conversations with any parties involved in this sale.
So what should you do to help your lawyer carry out these tasks? Here’s what your lawyer will ask for:
· The property Survey if available
· Your Deed or Transfer of Land document
· If you’re selling a condo unit, the address & phone number of the Condominium Corporation
· The keys to the property
· The Agreement of Purchase and Sale
· Your forwarding address, if known
· Contact info for the buyer’s lawyer
· Your bank, financing & mortgage information (Mortgage reference number)
· Power of Attorney, if applicable
· Copies of your most recent: property tax bill, water bill, cable bill, electricity bill, gas bill. NOTE: If home is oil-heated, you will be required to fill the tank as of closing date (you will be credited for this on the closing adjustments)
You can expect the lawyer’s invaluable service to cost you approximately $600-$1000, including disbursements.
Helping the Buyer
Though the buyers are legally obligated to close the deal, it’s always nice to have a good relationship with them! This can mean being as flexible as you can when the buyers want to come in for one of their access visits.
The most important thing is to leave your home in a broom swept condition. Some agents will even put this into the offer because sometimes, people move out and leave a huge mess behind! Please plan ahead to have your home cleaned out before the buyers move in. Some often-overlooked areas are closets, backyards, crawlspaces, garages, and yes, the fridge!
You can help out by leaving the new buyers some names and phone numbers of services you use, such as your alarm system, auto mechanic, house cleaning, lawn/garden services – even your veterinarian and local dry cleaner. The buyers will be thrilled at your goodwill!
On a practical note, the buyers will definitely need things like your old warranty papers (for your roof, heating/cooling system, appliances etc.), contracts or receipts for work or services done on the property by you or by contractors within the last five years, and extra keys to doors, outside storage buildings, crawl spaces etc. Also garage door openers if that applies to you, as well as the security alarm code if you’ve kept the alarm system going for them to assume when you leave. It’s common to leave all this paperwork on the kitchen counter. You won’t need it anymore!
Closing Day
You should have met with your lawyer a couple of days in advance. Be sure to set this meeting up, if your lawyer hasn’t already contacted you (they can get really busy especially in popular moving months like June and July). At this meeting you will sign off the mortgage, the legal papers, and give a set of keys to your lawyer for the new buyers.
On the actual day of closing you will be notified later in the afternoon by the lawyer that it all happened. The property is officially closed when the money and keys change hands, and the buyers are registered on title. Now it’s onto your new home!
Source treb/e.davis/orea
It’s normal, of course, to think your home is worth a lot and to want to get the best possible price and you may hope buyers will fall in love with the whole package and be willing to spend top dollar for it.
Some Realtors will sign a listing agreement with you and put your home on the market for your goal price, knowing full well that the market won’t bear that price. They will let your home sit on the market even though that’s not in your best interests.
We won’t do that. It helps the competition, not you!
The market sets the price, not wishful thinking or any other factors. It’s a simple law of supply and demand, location, condition and property type.
What you have spent on your house to buy it or to fix it up have no impact on what your house is worth on the open market and what a willing buyer is prepared to offer you.
Our job is to help you set a realistic price to match market conditions so your home sells in a reasonable amount of time for the best possible price. We use the historical sold information provided from several databases. Enabling us to produce a comprehensive analysis of what comparable homes have historically sold for in your neighbourhood, weighing that with your home’s unique features. This process is known as a Comparative Market Analysis and it’s generally considered the most effective method of determining what potential buyers will be willing to pay for your home.
The CMA is divided into three categories:
1. Similar properties that have recently SOLD: By studying these, we can see what homeowners have actually received over the last few months.
2. Similar properties that have currently been LISTED: These properties show exactly what alternatives a serious buyer has to choose from – your competition in the market.
3. EXPIRED LISTINGS could be as a result of overpricing or other factors like location, layout, poor marketing etc.
Once we have a foundation from the CMA, we will make value (cost) adjustments to the comparables and or the subject. Adjustments for time, age of improvements, lot size, location, Community amenities and so on.
This is a similar process that banks and lending institutions use in determining how much they will be willing to lend you for your home.
We will list your property at market value- why?
Potential buyers won’t look at over-priced homes. The potential buyer will not look at under-priced homes ether. If the buyer’s budget for a home is $500,000, they are likely looking at homes priced from $450,000-$550,000, not $300,000 homes or $700,000 homes. Price your property right!
An unrealistic price will eventually develop a stigma and the property will lose its marketability. You will attract more interest on your home if it’s priced right and the potential buyers will probably bring their best offers if they really want your home. Today’s buyer is educated and they know the market very well. * When an educated buyer is ready to make an offer, they will have seen all of the existing properties for sale in your neighbourhood and will have a good idea of the housing inventory and prices. That’s why the first few weeks after listing are the most critical: the number of prepared buyers who will see your home will be at its peak. If the right buyer does not come forth we then wait for the next cycle of new buyers to your market area and or we adjust our price. Most buyers take between 4 and 8 weeks to collect information about the market before making their first offer.
Marketing Plan
The marketing plan will give your property the maximum exposure to the target market.
· Feature sheet available, containing pertinent details about your home and neighbourhood
· Detailed professional floor plans that are both accurate and attractive
· Colure Photography
· Accurate MLS listing information with pictures.
· Listed on MLS.CA and the powerful TREB MLS
· Use of other social media, face book, twitter and others.
· Open house – agents and public (more on that later)
I recommend that the property have a pre-sale property inspection from a qualified inspector so your properties condition is honestly disclosed to potential buyers. And any problems may be corrected. This reduces the need for the buyer wanting to put in a condition on home inspection We may recommend decorating, repair and home staging the property prior to putting the property on the market.
Once on the market we will provide you with updates on activity of the listing and the comparative market. You will receive regular progress updates as to showings feedback and other interest in your home. I’ll also be sure to keep you up-to-date on sales of other homes in the area.
Showings and Open Houses
One of the difficult things about selling your home is opening it up to strangers. To minimize the impact on you, we’ll discuss appropriate showing times Obviously, we’ll try to limit the listing period to make things as easy as possible for you. Another way we do this is to offer other agents a chance to preview your home all at once, in a special Agents Open House that will be held before your home is open to the general public. Letting agents ‘vet’ your home first means those who return with their clients already think well of it.
During the listing period, your house should be ready to show at all times – meaning clean and clutter-free. And, those last minute touches before someone comes to look at your home can make all the difference:
· Turn on all the lights even during the day, and open all the drapes and blinds.
· Turn off the TV and play some classical or easy listening music
· If you can, ask friends to look after your pets or remove them for showings. Some people may be allergic, others may be afraid of all kinds of animals.
· Smell is very important and odours should be aired out with fabrics and surfaces cleaned, not just sprayed.
· Leave windows and mirrors sparkling.
· Set out fresh flowers, hang decorative towels in the bathroom, and make sure couch cushions are straightened
· If possible, leave! Some buyers are uncomfortable when the owner is in the house. In their hurry to get away, they may miss important features, or fail to ask important questions. They want to be able to talk freely about what they don’t like and what they might want to change, or even if they love your home, either way they won’t want to say these things in front of you. If you must remain, be courteous, but try to stay in another part of the house and do not make conversation. The buyer’s Realtor knows what the buyer is looking for. He or she can discuss features and answer questions.
· Make certain all valuables are locked away (not in drawers) (people who come into open houses and or showings do look in drawers and tend to snoop. Do not leave any thing valuable available!
· Never let any one into your home other agent or not unless you have had a call first from our office first. Safety first.
Legal contracts
Several legal documents are used to put your property on the market. A listing agreement is a contract between you and my brokerage, DOSMAN REAL ESTATE SERVICES INC. It will Provide a framework for subsequent forms and negotiations, it spell out the rights and obligations of all parties, the length of the agreement, and the compensation (commission rate) and the listing price. The MLS data form is filled out with all the property details to be included. The MLS data form will accurately describe the property (including lot size, building size, style and materials, floor areas, heating/cooling systems, room sizes, and descriptions) Detail what is, and what is not, included in the sale (As a general rule, fixtures are included; chattels, things that are movable, are not. If necessary, list what stays and what go under inclusions or exclusions.) Provide information about annual property taxes, and note any easements, rights of way, liens, or charges against the property List all leased or rented items, such as a hot water tank or furnace…(Please see a sampling of the forms in pdf format.)
Please prepare the following documents, as we will need to review and copy them for the file.
· Plan of survey or sketch – A survey of your property showing the lot size, location of buildings, and any encroachments from neighbouring properties. You should hopefully have this from when you bought your property.
· Property tax receipts – The listing agreement requires us to provide accurate tax information.
· Mortgage verification – Details about your mortgage provided by a mortgage lender upon your authorization – good to have especially if we’re offering your existing mortgage terms to the buyer, to sweeten the deal
· Deed or title search – A legal description of your property, and proof that you own it
· Other documentation – Annual heating bills, water and sewage costs, electricity bills, and recent expenditures on home improvements.
Fintrac documents – I’ll need your personal information like date of birth and ID to verify for the new Federal listing requirements.
Samples Documents
There are many legal forms involved in the real estate transaction, to become familiar with the many forms; I have included them here for your review. Knowledge is key to a successful property sale
Listing Agreement Authority to Offer for Sale
Agreement of Purchase and Sale
Confirmation of Co-operation and Representation
A Firm Deal
Congrats – after all that preparation, paperwork and promotion, your home has sold. Once an offer is accepted and any conditions have been removed or waived, the deposit will be deposited into our safe, trust, insured bank account. Upon closing the trust deposit monies will be transferred over to your lawyers office less any real estate fee’s owing.
Here are four important things to take note of right away:
· Your closing date, which is spelled out on the contract. This is the big day to plan around – if you can move out a day or two early to minimize your stress and any conflicts with the buyer’s schedule, that would be ideal!
· The contract requisition date (AKA Title Search date). That is the last day that the Buyer’s lawyer has to search the title to make sure that everything is in order. If there are concerns they will need to be addressed prior to that day.
· Access visits – the Buyer (accompanied by their agent) may be entitled to see the house again before closing, at mutually agreeable times – the specifics will be on a Schedule forming part of the offer (appearing near the end of the documentation). You’ll have to agree to these dates and times and you can reject them within reason if they conflict with your schedule – we try to get at least several days’ notice for you.
· Appraisal – An appointment may be made by the Buyer’s bank or mortgage broker to appraise the home. This is usually a very quick 15-minute interior/exterior walk-through of your home and unfortunately, not a lot of notice is given for these appointments – usually less than 24 hours. I will inform you of their intent to inspect as soon as my office gets the request.
To facilitate the continuing appointments, we can discuss leaving a lockbox on your property for easy entry of approved parties, or I can hang onto a set of keys, or you can arrange to be home for these visits or leave a key in a suitable place like your mailbox just for the specific times someone will be visiting your home.
Real Estate Lawyer
Here are twelve quick points on exactly what the lawyer will do for you:
1. Receive instructions from you about the sale of your property and discharge of your existing mortgage.
2. Review the executed offer.
3. Review and respond to the requests submitted by the buyers’ lawyer.
4. Prepare the Statement of Adjustments.
5. Prepare the draft of the Transfer/Deed.
6. Prepare all supporting sale documents.
7. Forward a request for a mortgage discharge statement for any mortgages registered on title.
8. Meet with you to execute all sale documentation and get your keys on closing.
9. Attend to the closing and affect the exchange of documents & monies.
10. Go to the registry office to discharge the executed Charge/Mortgage.
11. Deliver the balance of the sale proceeds (if any) to the real estate office.
12. Conduct all necessary correspondence and telephone conversations with any parties involved in this sale.
So what should you do to help your lawyer carry out these tasks? Here’s what your lawyer will ask for:
· The property Survey if available
· Your Deed or Transfer of Land document
· If you’re selling a condo unit, the address & phone number of the Condominium Corporation
· The keys to the property
· The Agreement of Purchase and Sale
· Your forwarding address, if known
· Contact info for the buyer’s lawyer
· Your bank, financing & mortgage information (Mortgage reference number)
· Power of Attorney, if applicable
· Copies of your most recent: property tax bill, water bill, cable bill, electricity bill, gas bill. NOTE: If home is oil-heated, you will be required to fill the tank as of closing date (you will be credited for this on the closing adjustments)
You can expect the lawyer’s invaluable service to cost you approximately $600-$1000, including disbursements.
Helping the Buyer
Though the buyers are legally obligated to close the deal, it’s always nice to have a good relationship with them! This can mean being as flexible as you can when the buyers want to come in for one of their access visits.
The most important thing is to leave your home in a broom swept condition. Some agents will even put this into the offer because sometimes, people move out and leave a huge mess behind! Please plan ahead to have your home cleaned out before the buyers move in. Some often-overlooked areas are closets, backyards, crawlspaces, garages, and yes, the fridge!
You can help out by leaving the new buyers some names and phone numbers of services you use, such as your alarm system, auto mechanic, house cleaning, lawn/garden services – even your veterinarian and local dry cleaner. The buyers will be thrilled at your goodwill!
On a practical note, the buyers will definitely need things like your old warranty papers (for your roof, heating/cooling system, appliances etc.), contracts or receipts for work or services done on the property by you or by contractors within the last five years, and extra keys to doors, outside storage buildings, crawl spaces etc. Also garage door openers if that applies to you, as well as the security alarm code if you’ve kept the alarm system going for them to assume when you leave. It’s common to leave all this paperwork on the kitchen counter. You won’t need it anymore!
Closing Day
You should have met with your lawyer a couple of days in advance. Be sure to set this meeting up, if your lawyer hasn’t already contacted you (they can get really busy especially in popular moving months like June and July). At this meeting you will sign off the mortgage, the legal papers, and give a set of keys to your lawyer for the new buyers.
On the actual day of closing you will be notified later in the afternoon by the lawyer that it all happened. The property is officially closed when the money and keys change hands, and the buyers are registered on title. Now it’s onto your new home!
Source treb/e.davis/orea
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