Selling Property

Why Use A Real Estate Agent To Sell Your Home or Property?

When you have decided to sell your home or property, 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 be prepared to deliver a high standard of service to customers. Most importantly, a good agent will save you time and money.

Here are the advantages of working with a sales agent:

• An agent knows real estate values in your neighborhood and will help set an agreeable and competitive price on your home.
• An agent will establish a marketing strategy for your home ensuring that your property is exposed to scores of potential buyers.
• An agent takes care of the many tasks involved in selling a house (from placing your listing to putting up the for sale sign). This ensures that the transaction is simple and low-stress for you.
• An agent is an expert in the home selling process and as such will advise you of your rights, options and obligations.
• An agent is an experienced negotiator and will work for to get you the best price possible price.

Unison Realty Group Ltd. and its agents have over thirty years of combined experience. We will find you what you want and leave you as a satisfied client. We sincerely hope you will let us use our experience to your benefit.

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Assessing the Current Market

Before putting your home up for sale, you'll want to give careful consideration to current market conditions.

Understanding the market in which you're selling will help you make important decisions about your reasons and strategy, timing, asking price, net financial requirements and alternatives - whether you ultimately sell, or not.

You'll first need to know whether it's a buyer's market or a seller's market whether there are more homes on the market than potential buyers (buyer's market), or vice-versa (seller's market).

• You'll want to think about seasonality and the best times of the year to sell.
• You'll consider mortgage rate trends - are rates high or low? rising? falling? or relatively steady?
• You'll need to investigate the average asking and selling prices of similar homes in your neighborhood, how long they have generally taken to sell, and whether the homes currently for sale in your area are few or many.
• Finally, you'll want to appraise the overall economic situation. When the economy flourishes, the demand for housing is high. During times of uncertainty, it diminishes.

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The Buyer's Market

Simply stated, a buyer's market is one in which the number of homes on the market is greater than the number of potential purchasers. In a buyer's market, purchasers have greater choice which inevitably leads to greater competition among sellers.
Price, location, size, neighborhood, type of structure, additional features, the uniqueness of your home and its level of upkeep are just some of the points that prospective buyers will compare before making an offer.
Economic factors over which you have no control might also affect local housing markets. At a national level, high or increasing mortgage rates often lead to reduced demand and a buyer's market.
Regionally, economic downswings or declining employment opportunities might also contribute to a surplus of homes for sale in a specific area.

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The Seller's Market

A seller's market is one in which most sellers would like to find themselves one in which demand exceeds supply and a large number of potential buyers vie for a limited number of homes.

Like the buyer's market, a seller's market is often driven largely by external economic forces - low or declining mortgage rates that make even higher-priced properties more attractive, or economic upswings that bring people flooding into a city or region to capitalize on local employment opportunities.

In a true seller's market, you're in the driver's seat. You can likely ask top dollar for your home (or close to it!) and still attract at least a few interested prospects.

The hotter the market, the more critical timing becomes for buyers. Homes can be sold virtually overnight, with timid buyers often losing out to more aggressive ones.
 
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Seasonality

Whether you're determining the best time to put your home on the market, estimating how long it will take to sell, or planning your move, you'll need to factor the seasonality of housing sales into your strategy.

Home buying in Canada is both seasonal and weather-related, with spring and summer usually coming up the big winners. For families with children, being settled in time for the school year is an important consideration.

Battling wintry elements to look at houses is not the preferred choice of most home-buyers. It's more difficult to visit during winter and, for the average buyer, picturing the beautiful rose garden you're so proud of requires healthy imagination.

Although the autumn is usually more agreeable for shopping around, many people are put off by the idea of moving during winter.

Despite this, homes are sold year-round. While you might find fewer interested buyers during winter months, you'll also find less competition!

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Real Estate Commissions

As the vendor, it is your responsibility to pay a sales commission to the real estate agent for successfully selling your home. The commission that you will pay is established in the listing contract.

Typically expressed as a percentage of the final selling price, commissions are payable upon the closing of the sale.

You'll generally be obliged to pay the negotiated commission if a sale is made under either of the following conditions:

• if you accept any offer made during the time the listing agreement is in effect - even if you sell your home yourself.
• if, within a pre-determined number of days following the expiry of the agreement, you accept an offer from a buyer who visited your home while the agreement was in effect (the specific time frame will be spelled out in the listing agreement).
• Commission rates in Canada today typically run in the 5% to 7% range depending on the type of listing agreement. In certain situations, they can be negotiated for instance, if your real estate agent is also involved with your next home purchase and/or represents your potential buyer.
• Finally, real estate commissions are subject to GST and, where applicable, to provincial sales tax. Your agent or local real estate association can tell you which taxes apply in your jurisdiction.

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Exclusive Listing or Multiple Listing Service®

As the vendor, you'll decide whether you want an "exclusive" listing, or prefer to use the "Multiple Listing Service"', also known as MLS®.

With an exclusive listing, only the real estate firm that you have contracted with and its agents - can sell your property. This condition applies throughout the duration of the listing agreement.

Conversely, an MLS® listing is one in which any real estate firm or broker is permitted to sell your property.

An MLS® listing authorizes your agent to market your home through the Multiple Listing Service' which is effectively a "bulletin board" or nation-wide communications network of all properties currently on the market.

An MLS® listing provides sellers with broader marketing coverage. In theory, every associated agent in the country can work on your behalf. As a result, sellers generally pay higher commission rates for MLS® listings (6%-7%) than for exclusive listings (5%-6%).

On exclusive listings, the agents and their real estate firm receive the full commission. On MLS® listings, commissions are divided between the listing agent, the buyer's agent and their respective real estate firms.

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Establishing Your Asking Price

Recorded on the listing agreement, your asking price is likely the most and crucial - decision you'll make when you put your house on the market.

Ask too little and you risk leaving money on the table unnecessarily. Ask too much and you may scare off potential buyers.

To help you determine your asking price, your agent should first do a comparative market analysis of other similar properties sold in your area in recent months. Then, depending on the particular condition or features of your home, you'll set your asking price accordingly.

You'll also look at market trends - in a vibrant seller's market, you can ask a higher price; during slower times or in a buyer's market, you'll be more conservative.

Finally, you'll consider your own selling needs - are you merely speculating to see what the market will bring? Must you sell quickly? Is there a minimum amount you can afford to accept?

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Chattels and Fixtures

It's important to understand the difference between "chattels" and "fixtures" when you're selling your home - or you may end up selling more than you planned!

• A "chattel" is an item of personal property that may or may not be connected to your home by pipes or wires. The washer, dryer, fridge, stove and dishwasher are all good examples.
• "Fixtures" are items that have been permanently attached to the property in some way and have technically become part of the house. Built-in shelving, wall-to-wall carpeting and light fixtures all qualify as fixtures.

In an offer to purchase, buyers generally list the chattels they want the seller to leave behind. Sellers must state which fixtures they plan to remove.

The distinction between chattels and fixtures can be blurry. How do you classify an electric garage door opener and remote control units, or a central vac system and accessories?

Leave nothing to chance. Clearly spell out in the listing agreement exactly what you're including - and excluding! - in your asking price. A mistake in classifying chattels and fixtures can be costly.

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The Offer To Purchase

After several visits, a buyer may make an offer to purchase your home. Usually presented by the buyer's real estate agent to your realtor - or directly to you if you're acting as your own agent - this offer is a formal written contract that sets forth the terms under which the buyer is prepared to purchase.

It includes such details as bidding price, proposed closing date, down payment, mortgage details and repayment terms, and chattels and fixtures to be included in the sale.

A serious offer should be accompanied by a deposit, often in the 5% to 10% range. Your real estate agent can advise you on what is appropriate for your situation. If the offer is accepted, the deposit is held in trust by your brokerage firm until closing day. It is then applied to the sale.

An offer also generally carries a time limit. If you fail to respond within the specified time frame, the offer expires.

Depending on the buyer's strategy, the time limit could be as long as a week or two, or as short as a few hours.

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The Counter-Offer

As the vendor, you must respond within the specified time period in order to keep the offer alive. You have three options. You can:

• accept the offer as is
• submit a counter-offer
• reject the offer entirely

If the buyer has made a serious offer, most vendors usually try to negotiate the terms by submitting a counter-offer. In your counter-offer, you can propose a new asking price, a different closing date, or the inclusion or exclusion of chattels or fixtures that may or may not have been listed in the original offer.

Like the buyer's offer to purchase, you'll also stipulate an expiry time and date. Presented by your real estate agent on your behalf, your buyer has the same options - to accept your counter-offer, to submit his or her own counter-offer, or to reject it entirely and walk away.

Both you and your buyer can submit as many counter-offers as you wish until agreement is reached or one party chooses to end the negotiations.

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Conditional Offers

While you might strike a deal in principle with a buyer, loose ends - in the form of "conditions" - may have to be tidied up before the sale can be completed.

A conditional offer is one in which the sale of the property is agreed to by both buyer and seller, subject to outstanding conditions being met by the appropriate party.

A buyer's ability to successfully obtain mortgage financing, a satisfactory home inspection or the sale of the buyer's current home within a prescribed period of time are all conditions which might affect the final outcome of the sale.

If the conditions are satisfied within the allotted time frame, the offer becomes "firm and binding". If not, the deal is off, and the deposit is returned to the buyer. As the seller, don't put yourself in the position of facing a lengthy period of legal limbo.

Add an escape clause to your counter-offer - if another acceptable offer is presented while you're waiting for conditions to be met, the first buyer must either waive the condition and close the sale, or forfeit the deal.

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The Certificate of Location

Commonly known as a survey, an up-to-date certificate of location is a vital legal document in the home-selling process. It must be forwarded to the lawyer or notary handling the sale in time for the closing.

Prepared by a qualified surveyor, the certificate of location specifies the exact size and location of your property, the size of the building and the type of structure. It notes conformity with local zoning regulations and by-laws, and includes drawings of exterior and (sometimes) interior groundplans.

The certificate of location must accurately reflect any structural changes made while you've owned the house including additions, garages, decks - even the relocation of a storage shed! Certain items falling under a predetermined height (landscaping, for instance) are exempted.

If no improvements have been made, the original survey generally remains in effect indefinitely. In some provinces, however, surveys must be updated routinely.

While it is usually the seller's responsibility to provide an up-to-date certificate of location, the cost of having a new one prepared (if necessary) becomes, in some jurisdictions, the buyer's financial obligation. It’s wise to specify who will be responsible for assuming this cost in the offer to purchase.

Talk to your agent or contact your local real estate association to find out the laws in your province.

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The Closing Date

Mutually agreed between buyer and seller and recorded in the offer, closing day is the day when money, title and (usually!) keys change hands.

Whenever possible, avoid closings on Fridays, the end of the month or before long weekends - neither you nor your buyer has any leeway if anything goes wrong.

If you're retiring your mortgage, you may face additional interest adjustments that could have been avoided. With a Friday closing, you could be charged three extra days of interest (four days over a long weekend!) if the funds reach the lender too late Friday afternoon.

In some jurisdictions, the buyer's lawyer/notary will contact the local water, hydro and gas companies to have meters read as of closing day. In other jurisdictions, you may have to do this yourself, so check with your lawyer/notary beforehand. New accounts are then opened in the buyer's name and arrangements are made for your final bills to be sent.

As a smart seller, double-check several days prior to closing to ensure that all is in order. You'll need to contact telephone, cable television and other providers yourself to cancel service and ensure you're not charged beyond the closing date.

If certain conditions have not been met by closing day - the buyer's financing is not in place, for example - the deal may be forfeited.

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The Possession Date

The possession date - or the day that you are actually required to vacate the premises and hand your keys over to the new owners - may not always coincide with your closing date, and should also be written into the offer.

Negotiating this date may take some flexibility on your part, but can pay big dividends.
Sometimes, due to circumstances, the new owners may have to move earlier than expected - their lease may have expired or they may have already sold their previous home with an earlier possession date.

It's in your best interest to be as accommodating as possible - it may help swing the sale in your favor and can potentially be factored into the final selling price.

Agree to store their furniture for a short period of time-if that's what it takes-or stay in a hotel or with relatives until your new home is ready. Although it may be somewhat inconvenient, you have nothing to lose and everything to gain!

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