Why use an agent?
Selling a home takes more than just putting a "for sale"
sign out front. You need an agent with experience and training
to help you determine the right price, come up with an effective
marketing strategy, and anticipate and solve any problems that
come up during the selling process. A real estate professional
can help you with every part of selling your home, and offer you
a smoother, hassle-free experience.
When you're selling your home, there are a number of
advantages to working with an agent:
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He/she knows real estate values in your
neighbourhood and will help price your home competitively by
preparing a market analysis of homes that have sold,
competing homes that are still on the market and homes that
were on the market but didn't sell.
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He/she will establish a marketing strategy
for your home, ensuring that it's exposed to as many
potential buyers as possible.
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He/she takes care of the tasks involved in
selling a house, ensuring that the transaction is simple and
low-stress for you.
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He/she is an expert in the home selling
process and will advise you of your rights, options and
obligations.
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He/she is an experienced negotiator and
will work for you to get you the best possible price.
Effective marketing for your home
An agent can help you market your home by exposing it to as many
potential buyers as possible. The first step is putting it on
the MLS. But listing your property is only the beginning; your
agent will prepare a personalized plan that includes everything
he/she plans to do to sell your property. At Royal LePage, your
property will be aggressively promoted through:
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A posting on the Multiple Listing Service
(MLS)
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Royal LePage property advertising
publications
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The Royal LePage web site
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Other Royal LePage offices and real estate
professionals
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Mailings to potential buyers in your area
Pricing your property right
If you price your property too low, it may sell quickly, but
you'll lose out on money. If you price it too high, it may not
sell at all. Your agent can help you figure out the best asking
price for your home.
The benefits of the right price A well-priced property may generate competing offers,
which will drive up the final price. Other real estate
professionals will be enthusiastic about presenting your
property to their buyers. Your home will sell faster because it
is exposed to more qualified buyers.
As part of your pricing strategy, your agent will put
together a comparative market analysis, which is a good
indicator of what today's buyers are willing to pay. It compares
the market activity of homes similar to yours in your
neighbourhood:
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Homes that have recently sold represent
what buyers are willing to pay.
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Homes currently listed for sale represent
the price sellers hope to obtain.
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Listings that have expired are generally
overpriced or have been poorly marketed.
Don't overprice your home
Some sellers believe that if they price their home high
initially, they can lower it later. Instead of making you more
money, this strategy could end up hurting you.
-
Early activity is key. As soon as a
home comes on the market, agents and potential buyers sit up
and take notice. If it's overpriced, interested parties will
quickly lose interest. By the time the price drops, the
majority of buyers are lost. When a home has been for sale
too long, buyers will be wary and may reject the property.
-
You'll miss the right buyer. You
may think that interested buyers can always make an offer,
but if your home is overpriced, potential buyers looking in
a lower price range will never see it. And those who can
afford a home at your asking price will soon recognize that
they can get a better value elsewhere.
-
You could run out of time. You may
end up having to drop your price below market value if your
home doesn't sell initially. Price it right the first time,
and you won't end up having to sell it for less than it's
worth.
The elements of an offer
Here's a quick reference to everything you need to know
about accepting on offer on your home
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Price: Depends on the market and
the buyers, but generally, the price offered is different
from the asking price
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Deposit: Shows the buyer's good
faith and will be applied against the purchase price of the
home when the sale closes
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Terms: Includes the total price the buyer
is offering as well as the financing details. The buyer may
be arranging his/her own financing or may ask to assume your
existing mortgage if you have an attractive rate
-
Conditions: These might include
"subject to home inspection," "subject to the buyer
obtaining financing," or "subject to the sale of the
purchaser's property."
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Inclusions and exclusions: These
may include appliances and certain fixtures or decorative
items, such as window coverings or light fixtures
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Closing or possession date:
Generally, the day the title of the property is transferred
to the buyer and funds are received by the seller, unless
otherwise specified (except in Manitoba and Quebec)
Renovating for resale
Renovations don't have to be expensive or
extensive to offer you a good rate of return. In fact, a quick
coat of paint can go a long way to boosting your selling price.
Just make sure your new décor is tasteful, with shades of white
and tame versions of popular colours.
The kitchen and bathroom are your best bets for
renovation with the highest payback. Take a look at these
average rates of return for home upgrades:
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Interior painting and décor - 73%
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Kitchen renovation - 72%
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Bathroom renovation - 68%
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Exterior paint - 65%
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Flooring upgrades - 62%
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Window/door replacement - 57%
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Main floor family room addition - 51%
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Fireplace addition - 50%
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Basement renovation - 49%
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Furnace/heating system replacement - 48%
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New lighting - 84%
Preparing your home for an inspection If you're selling your home, be prepared for a visit
from a home inspector, who will be checking out the property on
behalf of possible purchasers. Take a look through your home
using these steps, and repair any problems to ensure that your
inspection is a success.
1. Make sure the structure is sound.
Check to see if any renovations have damaged
the structure. Look for termite damage. Ensure that "settling"
hasn't caused damage to the foundation or support beams and
joists.
2. Check if electrical and wiring systems are
safe.
Loose wires or incorrectly installed or wired
receptacles, switches or electrical box problems are hazardous
and should be fixed. All homes should have a minimum of 100 amp
service.
3. Look for leaks.
Water can leak into unexpected places, causing
extensive damage over time. Examine the underside of sinks and
dishwashers, along ceilings, on floors or along basement walls.
Plumbing fixtures, water-using appliances, drain pipes, water
supply inlets and outlets, basements and roofs can all be causes
and sources of water damage.
4. Resolve safety issues.
Make sure windows open easily and lock
securely, and entrances/exits can be securely locked. Correct
hazards such as hidden curbs, loose railings and stairs,
uncapped wells, etc.
5. Check plumbing.
Faucets should run easily and shut off
completely, bathtubs should be properly caulked and grouted,
toilets should be bolted down securely, drains should be clog
free, and the water heater should be in good working order.
6. Make sure your heating and cooling systems
work.
Make sure they are up to date, clean, in good
working condition and have clean filters. Check refrigerant in
air conditioning units.
7. Have a friend take a look.
A general, unbiased overview of your home by a
neighbour or friend may reveal issues you might have overlooked.
Glossary of terms
Amortization period: The actual number of
years it will take to pay back your mortgage loan.
Appraised value:
An estimate of the value of the property, conducted for the
purpose of mortgage lending by a certified appraiser
Assumability: Allows the buyer to take over the seller's
mortgage on the property.
Closed mortgage: A mortgage that locks you into a specific
payment schedule. A penalty usually applies if you repay the
loan in full before the end of a closed term.
Condominium fee: A payment among owners, which is allocated
to pay expenses.
Conventional mortgage: A mortgage loan issued for up to 75%
of the property's appraised value or purchase price, whichever
is less.
Down payment: The buyer's cash payment toward the property
that is the difference between the purchase price and the amount
of the mortgage loan.
Equity: The difference between the home's selling value and
the debts against it.
High-ratio mortgage: A mortgage that exceeds 75% of the
home's appraised value. These mortgages must be insured for
payment.
Interest rate: The value charged by the lender for the use
of the lender's money, expressed as a percentage.
Land transfer tax, deed tax or property purchase tax: A fee
paid to the municipal and/or provincial government for the
transferring of property from seller to buyer.
Maturity date: The end of the term of the loan, at which
time you can pay off the mortgage or renew it.
Mortgage: The financial institution or person that lends the
money.
Mortgage insurance: Applies to high-ratio mortgages. It
protects the lender against loss if the borrower is unable to
repay the mortgage.
Mortgage life insurance: Pays off the mortgage if the
borrower dies.
Mortgagor: The borrower.
Open mortgage: Allows partial or full payment of the
principal at any time, without penalty.
Portability: A mortgage option that enables borrowers to
take their current mortgage with them to another property,
without penalty.
Pre-approved mortgage: Qualifies you for a mortgage before
you start shopping. You know exactly how much you can spend and
are free to make a firm offer when you find the right home.
Prepayment privileges: Voluntary payments that are in
addition to regular mortgage payments.
Principal: The amount borrowed or still owing on a mortgage
loan. Interest is paid on the principal amount.
Refinancing: Paying off the existing mortgage and arranging
a new one or renegotiating the terms and conditions of an
existing mortgage.
Renewal: Renegotiation of a mortgage loan at the end of a
term for a new term.
Second mortgage:
Additional financing, which usually has a shorter term and a
higher interest rate than the first mortgage.
Term: The length of time the interest rate is fixed. It also
indicates when the principal balance becomes due and payable to
the lender.
Title: Legal ownership in a property.
Variable rate mortgage: A mortgage with fixed payments that
fluctuates with interest rates. The changing interest rate
determines how much of the payment goes towards the principal.
Vendor take-back mortgage: When the seller provides some or
all of the mortgage financing in order to sell their property.
Getting your home ready to show
If you're planning an open house, or are
expecting buyers to be looking at your home, make sure their
first impression is a good one. Here are few hints for making
your house look great to potential buyers:
Exterior
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House in good repair
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House number easy to read
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Eaves troughs, down spouts and soffits in
good repair
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Garage/car port clean and tidy
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Litter picked up
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Cracked or broken window panes replaced
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Lawns and hedges cut and trimmed, garden
weeded and edged
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Walks shovelled and salted
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Boot tray inside front door
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Doorbell and door hardware in good repair
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Porch and foyer clean and tidy
Interior
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Chipped plaster and paint touched up or
replaced
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Doors and cupboards properly closed
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Leaky taps and toilets repaired
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Burned out light bulbs replaced
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Squeaky doors oiled
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Mirrors, fixtures and taps cleaned and
polished
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Seals around tubs and basins in good
repair
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Floors cleaned, garbage containers empty
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Inside of closets and cupboards neat and
tidy
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Appliances cleaned
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Countertops neat and polished
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All lights turned on
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Air conditioner turned on in warm weather
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Fresh air in house
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Fireplace lit in cooler weather
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Halls and stairs cleaned
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Drapes opened during daylight
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Carpets freshly vacuumed
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Fresh flowers in various rooms
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Jewelry and valuables locked safely away
or taken with you
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Valuable property, such as art, vases and
figurines out of reach, out of sight or locked away
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Pets absent, where possible, or contained
during the showing, and litter boxes clean
Signing a Listing Agreement
As part of the Agreement, your agent may require the following
documents::
Plan of Survey or Location Certificate. A survey of your
property which outlines the lot size and location of buildings
as well as details of encroachments from neighbouring
properties. This may be required in certain areas to complete
the sale of your home. Your legal professional may recommend a
survey, especially if significant changes have been made to your
property.
Property tax receipts. Most Listing Agreements require that
current annual property tax assessments be shown.
Mortgage verification. Few homeowners know the exact balance
of their mortgage as it is paid down. You will be asked to
authorize your mortgage lender to provide the figures required.
Deed or title search. This document is a legal description
of your property and the proof that you own it.
Other documentation. In some instances, it may help the sale
of your property if you can provide prospective buyers with
information on such items as annual heating, electrical, and
water expenses, as well as any recent home improvement costs.
Some provinces require that you sign a property condition
disclosure statement.
Understanding market conditions
The real estate market is always changing, and
it helps to understand how market conditions can affect your
position as a seller. Your agent can provide you with info on
current conditions and explain their impact on you.
Buyers' market
The supply of homes on the market exceeds demand.
Characteristics
Implications
Sellers' market
The number of buyers wanting homes exceeds the supply of
homes on the market.
Characteristics
Implications
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Buyers may have to pay more
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Buyers must make decisions quickly
-
Conditional offers may be rejected
Balanced market
The number of homes on the market is equal to the number of
buyers.
Characteristics
Implications
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