Sellers FAQ
Making the decision to sell your home can be overwhelming. Selling the home in which you’ve built memories and dreams can be difficult. Your Listing Agent is a key component in guiding you through the process effectively and efficiently in order to obtain the best possible selling price for your home. Below are some questions you might have when becoming a property seller.
Want to know what your home is worth? Just fill out our
Market Evaluation form and you will be contacted for additional details so that we can create an accurate free evaluation for you!
Q: I have never sold a home before, is there a process to home selling?
A Yes. The process should include meeting with different agents for an initial consultation, so that you can decide who you feel will be the best match for you. The agent you select will be the one who you believe will most successfully lead you through all the steps necessary to market and sell your home. After you complete the process, your agent will remain a source for your post sale needs, and beyond.
Initial Consultation:
The initial consultation should be used to determine your needs and priorities. Agency relationships should be explained. (see:
Agency Relationships Explained). A discussion regarding the agents Marketing Plans should take place. (see:
What We Do for You). A general Pricing Strategy should be discussed and information to prepare an accurate market evaluation should be gathered.
Once you decide on an agent:
Your agent will design and Implement an agreed upon Marketing Plan. As part of the marketing plan your agent will make recommendations as to home enhancements to increase saleability. When you list your property (see:
Exclusive or MLS listings …What’s the difference) your agent will carry out agreed upon scheduled marketing activities, arrange showings of the property for all agents and their prospective buyers, communicate with you with activity and market updates on a regular basis, monitor the results of all marketing activities and work with you to modify the Marketing Plan and Pricing Strategy as necessary.
When there is an offer!!
Your agent will review with you all the terms and conditions of any offer, advising you as to the desirability and or pitfalls of any contentious issues. Your agent will also advise you of the most productive negotiation strategies to end up with the best offer from the buyer possible. Remember though, that not all offers end up in a deal. Sometimes the parties are just too far apart and you will have to wait for someone more suitable as a buyer, but also be careful not to be unrealistic in what you want as there is always a danger of turning down the best offer you may get and not being able to do better later.
Once a deal is made the following will happen:
- The Buyer's deposit money is placed in the Listing Broker's trust account. Once the deposit is in the trust account, it can not be accessed by anyone, other than: as part of the money exchanged at closing, buy mutual agreement of the buyer and seller as in a Mutual Release, or by the order of a court (judge).
- All agents and other professionals will work to remove all of the conditions to the agreement, such as financing or home inspection conditions.
- The buyer’s lawyer will commence preliminary title search of the property.
- The seller’s lawyer will work with the buyer’s lawyer to ensure a smooth closing.
- The buyer’s final walk-through of property, if allowed in the agreement, will take place usually the day before closing.
- The closing takes place, money changes hands and so do the keys … everyone moves.
After-sale Service:
- Help you find your next home as needed
- Assist you with relocation, as needed
- Provide resources for other after-sale home owner needs (see Service Directory)
Q: What significance does a Listing Agreement have, and what is an “Agency Relationship"?
A The “Seller” usually engages a Realtor to act on their behalf in the sale of a property; this Realtor is known as the Listing Broker. The Seller and the Listing Broker will enter into a Listing Agreement (see:
Exclusive or MLS listings …What’s the difference) whereby the Listing Broker becomes the agent of the Seller, who agrees to compensate the Listing Broker upon the sale of the property. This relationship is called an “Agency Relationship.” The compensation paid by the Seller is usually called a commission and usually takes the form of a fee or payment from the Seller to the listing Broker upon the successful completion of the real estate transaction.
By placing a property on the MLS System, the Listing Broker offers to pay any Co-operating Broker (other brokerage company) who brings a Buyer, who purchases the property, a share of the Listing Broker’s commission.
A listing agreement is a legally binding contract and all Sellers must be aware that the contract can not be broken unilaterally. This means that if there is to be any changes to the contract after it is signed, the changes have to be by mutual agreement of both the Seller and the Listing Agent. All agreements to be valid in real estate must be in writing. If your agent promises anything that is not in the listing agreement, such as they will cancel the listing agreement if you are not satisfied with their efforts, get it in writing.
Q: How do I find the right Agent to help me sell my home?
A When you have decided to buy or sell a home, the services of a qualified real estate professional are of utmost importance. The ideal sales agent will have a good working knowledge of local real estate market conditions and will be prepared to deliver a high standard of service to you. Ask your friends and relatives if they have an agent that they were impressed with. Don’t accept a mediocre response as being a positive reference. Check out known local agents' web sites to see what they have to say about themselves and in particular look for what their clients have to say about them in their testimonials and if you know any of them don’t hesitate to give them a call. Most importantly, a good agent will save you time and money, so it’s important to get a good one.
Back to Top
Q: What is an Effective Marketing Strategy?
A In order to help you successfully promote your property to the market, a comprehensive plan of targeted activities is essential. Your Agent will make use of two major target markets while maintaining communication with you regarding the results of your marketing activities and consult with you to fine-tune your marketing strategy as needed.
The first and foremost market is “other agents.” 2003 MLS statistics for the Toronto market show that 78% of all listings are sold by a Buyer Agent from a company other than the Listing Broker’s Company. These Statistics also show that 92% of all listings are sold by an agent other than the listing agent themselves. So it is obvious that the most important market is “other agents” see how we Market to other agents here (What we do for you).
The second most important market is the buyers themselves and the best place to access the most buyers is the Internet. Many different surveys have shown that more than 70% of all buyers start their search for a new home on the internet. When a property is listed on the TorontoMLS system a portion of the listing information is uploaded to MLS.ca, where over ONE MILLION different people (unique users) look at listings every month. No other medium or media can now compete with the internet in Canada for effective marketing of properties to Buyers. It then becomes very important for your agent to be able to give you the best exposure that they possibly can on the internet, both on the national MLS.ca site and in your local market area. Remember too, that about 85% of all buyers are local buyers. How your property is presented on the internet is important, so make sure you agent understands how to create an effective internet listing. See:
What We Do for You.
Q: How buyers find the homes they purchase?
A Home buyers may use several information sources in their search process, but they are most likely to find the home they actually purchase through a real estate professional. The following is a breakdown of the percentage allocations applied to each resource for buyers to find homes:
(Source …National Association of Realtors, 2003 Profile of Home Buyers and Sellers)
- Real Estate Professional 41%
- Yard Sign 15%
- Internet 11%
- Newspaper Advertising 7%
- Friend/Neighbour/ Relative 7%
- Builder 7%, Knew the seller 4%
- Home Book/ Magazine- 1%
- Other – 5%
Q: How do I determine what selling price I should list my property for?
A Understanding Market Value – Market sensitive pricing can be the key to maximum market exposure and, ultimately, a satisfactory sale. Accurate pricing can have a significant impact on the sale of your property. Properties priced within the “market range” generate more showings and offers, and sell in a shorter period of time. Market value is defined as “what a willing buyer will pay to a willing seller at any given point in time”. Easy to say, but not so easy to determine, for some properties at least.
The existing pool of prospective buyers ultimately determines a property’s value. The more buyers for a specific property the higher the price can be. If a property is overpriced then the number of potential buyers may drop to zero. If a property is under-priced the number of buyers can increase dramatically, forcing the “market value” above what it would normally be. The only way to get an idea of what market value might be is to look at what similar properties have sold for in the very recent past and then to adjust for property and market differences.
You have to understand that the market is not the same day after day and can vary from one week to the next. As an example the there are not as many buyers in the market during Easter holidays or March break as the weeks before or after. There are not as many buyers in the market around Christmas through New years and the summer holidays. So market value is a variable depending on a lot of circumstances.
Another variable is the number of similar properties already for sale or that come onto the market at the same time as your property. If there are four similar properties on the market at the same time and only two active buyers then two properties won’t sell. If there is only one property on the market and two buyers then that one might sell in competition.
Your agent will do a comprehensive analysis of what is currently on the market and what has recently sold and will take into consideration how many buyers there seems to be for your type of property and also take into consideration the market timing to determine what would be a fair market value. Then it is up to your agent and you to decide on a pricing strategy. List low, list high or list at market value.
Also remember when pricing your property that what you paid for it has no relevance to today’s market value and what you have spent on your property to upgrade it may or may not have a positive affect on market value, all depending on what has been done.
Back to Top
Q: What sort of home enhancements might I make in order to increase the value of my home?
A When selling your home there are no guarantees that a buyer will simply walk through the front door. In many cases you may have to bring your home to the buyer. Effective marketing will help ensure that your property receives maximum exposure to attract a ready, willing and able buyer. Appearance and overall condition play a major role. Here are some easy things you can do to make your home more appealing to buyers.
Exterior- It is estimated that more than half of all houses are sold before the buyers even get out of their cars. So stand across the street from your house and review its curb appeal.
- Sweep front walkway.
- Remove newspapers, bikes and toys.
- Park extra cars away from the property.
- Trim back the shrubs.
- Apply fresh, clean paint throughout.
- Clean windows and window coverings throughout.
- Keep plumbing and all appliances in working order.
- Maintain all sealants (window, tub, shower, sink, etc.) in good condition.
- Make sure roof and gutters are in good condition; no repairs needed.
- Mow the lawn more frequently and plant flowers.
- Keep pet areas clean and deal with odours if there are any.
Interior
- Kitchen and bathroom should shine.
- Quick once-over with the vacuum; carpets should be clean.
- Place fresh flowers in the main rooms.
- Put dishes away, unless setting a formal display for decoration.
- Make beds and put all clothes away.
- Open drapes and turn on lights for a brighter feel.
- Straighten closets.
- Put toys away.
- Turn off televisions.
- Play soft music on the radio/stereo.
- Keep pets out of the way and pet areas clean and odour free.
- Secure jewellery, cash, prescription medication and other valuables.
- Enhance the spaciousness of each room. Pack away collectables to allow buyer to envision own furnishings in home.
Q: How do I prepare for a home inspection?
A One step which is inevitable in the home selling process is a visit from a professional house inspector. The following are steps which should be taken to ensure your inspection is a success. It is a good idea to be aware ahead of time of any serious problems, which may be present in your home so you will be prepared to deal with them.
- Structural - Ensure that past home renovations have not damaged the structure the home. Other structural damages to look for are whether termites have caused extensive damage, if settling of the home over time has caused damage to the foundation, and/or whether support beams and joists are strong and sturdy or cracked or otherwise damaged.
- Electrical - Ensure that the electrical and wiring systems are safe and acceptable. Loose wires or incorrectly installed or wired receptacles, switches or electrical box problems are all hazardous and should be corrected. All homes should have a minimum of 100 amp service. Knob and tube wiring may be a problem as will aluminium wiring with the wrong receptacles.
- Water Damage - Water can run and leak into odd and unexpected places, causing extensive damage over time. If there are signs of water leakage, they can quite often be spotted by examining 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.
- Safety - Trim foliage which may impair a safe view of the area around the home, ensure that windows open easily and close and lock securely and that entrances/exits to the home are able to be securely locked. Hazards such as hidden curbs, loose railings and/or stairs, unused wells which are not capped, etc., should be corrected.
- Plumbing - Ensure that all fixtures are in good working order and free from cracks and leaks. Faucets should run easily and shut off completely. Proper grouting and caulking should be present around bathtubs, toilets and other fixtures should be bolted down securely and drains should be clog free. The home's water heater should be in good working condition also.
- Heating - All heating and cooling systems may have to be checked to ensure they are relatively up to date, clean, in good working condition and have clean filters. Refrigerant should be checked in any air conditioning units and may require proper servicing.
- Objectivity - A general, unbiased overview of your home by a neighbour or friend or your real estate agent may reveal matters which need to be dealt with that you may overlooked.
Q: What do I have to do to get ready to move?
Click
here to view our Moving Tips sheet (in PDF format)
