\u00a0–<\/span><\/p>\nOnce you have accepted an offer, legal fees are incurred for your lawyer to prepare closing documents and transfer the title. Lastly, moving expenses are likely unless you have a friend or family member with a few trucks at their disposal. All things considered, researching these key costs can help save thousands and reduce your stress throughout the selling process.<\/p>\n
\u00a0–\u00a0<\/span><\/p>\n3. Work with a Realtor or Sell By Yourself?<\/h2>\n
As mentioned earlier, real estate agents will charge a commission for listing and selling your home. Depending on the level of services provided, this can range from a fixed fee to a percentage of the home sale value, typically between 4-5% in total, of which on average 2%-2.5% is usually paid to the buyer\u2019s agent. Alternatively, some homeowners opt to sell their home outside of the organized real estate process in a process known as For-Sale-by-Owner (\u201cFSBO\u201d). The commission saved in this process can be meaningful, but it is often outweighed by a lower sale price and more effort as well as stress from you to manage the entire process. FSBO properties do not receive the same online exposure as a real estate board listing, and they are not priced or marketed well. Many people think they could save the entire 4-5% in commissions, however, keep in mind that you may still need to pay buyer\u2019s agent commission if they are represented. If you have a good listing agent, they are likely to help you realize additional value of more than the 2-5% in commission savings. Last and most importantly, many buyers that seek out FSBO listings are professional investors that look to pay below market value or share in the commission savings.<\/p>\n
\u00a0–<\/span><\/p>\nAll things considered, having a competent REALTOR\u00ae will help guide you through this process and maximize your net sale proceeds, while also protecting you against potential liability associated with selling your home.<\/p>\n
\u00a0–<\/span><\/p>\n4. Selecting a Suitable Realtor<\/h2>\n
The value of a good real estate agent is understated because of horror stories about REALTORS\u00ae who cut corners and have poor service standards. In selecting a suitable REALTOR\u00ae, you will want to do your research on them and have each prepare a listing presentation that outlines their experience, what they know about your neighbourhood, and the specific strategy they will employ to maximize the value of your home sale. You will also notice that great REALTORS\u00ae will take time to learn about your unique situation and customize their approach for your specific needs. Lastly, you will be able to speak with them about their commission rate and what is included within their services.<\/p>\n
\u00a0–<\/span><\/p>\nAs part of their listing presentation, a competent REALTOR\u00ae will include a Comparable Market Analysis that outlines other similar homes that have sold and what property adjustments should be considered in arriving at an optimal list price. Key recommendations on staging, home improvements, and other particulars such as offer date and format will also be provided, and by interviewing multiple agents, you will get a good sense as to who is best suited to win your business.<\/p>\n
\u00a0–<\/span><\/p>\n5. Sign a Listing Representation Agreement<\/h2>\n
Once you select a REALTOR\u00ae, they will have you sign a representation agreement that outlines key terms of their working relationship with you. The contract will have a commencement date and expiry date for when they can sell your home, and will also detail the property list price and commission terms.<\/p>\n
–<\/span><\/p>\nBefore anything is signed, ask the REALTOR\u00ae to walk you through this entire document and ensure your understanding of key terms and clauses. They will also obtain your feedback and input to customize the agreement to best suit your specific needs. Once completed, your REALTOR\u00ae can officially take steps to market your home for sale on the Multiple Listing Service (MLS\u00ae) and through other channels.<\/p>\n
–<\/span><\/p>\n6. Maximizing the Appeal of Your Property<\/h2>\n
There are a variety of strategies that can be employed to maximize the marketability of your home, unique to each property\u2019s situation. Depending on your property, multiple recommendations could apply, ranging from staging services to home upgrades that carry a high return on investment. Here are a few of the most important considerations:<\/p>\n
\u00a0–<\/span><\/p>\n\n- Declutter and clean!<\/b>\u00a0Effective home staging seeks to depersonalize the property by removing clutter, cleaning, organizing rooms, maximizing features and minimizing flaws in order to help the buyer envision the potential of the home.<\/li>\n
- Optimize each room for its best use to buyers.\u00a0<\/b>A bedroom currently used as your home office is perfectly fine, but including a bed will help signal room versatility for potential buyers. A good REALTOR\u00ae will spend time identifying your house\u2019s target buyer and will guide you to stage your home to reflect how they would want to live in it.<\/li>\n
- Not all home renovations are equal.\u00a0<\/b>While kitchens and bathrooms are often the most important features within a property, major renovations may not get the sale value uplift to fully cover their costs depending on the design and finishing. However, smaller upgrades, such as a new kitchen backsplash or bathroom sink, can meaningfully increase the final sale price. Lastly, refreshing outdated rooms with fresh paint is often associated with the highest return on investment due to its minimal cost but significant benefit to property staging.<\/li>\n
- Consider professional staging services.\u00a0<\/b>Unless you are a pro in interior design\/decor, chances are not all of your furniture and decor go well together. Not everyone loves that heirloom antique furniture you treasure so much. It\u2019s also a lot of work and money to invest in high-end furniture. It will be most economical to hire professional staging services to help you set up a beautiful showing and maximize appeal to potential buyers.<\/li>\n
- Curb appeal is king!\u00a0<\/b>How your home looks from the outside \u2013 the porch, door, walkway, gardens \u2013 will set the tone for how a buyer feels about your home. Give it the attention it deserves.<\/li>\n<\/ul>\n
[\/et_pb_text][\/et_pb_column][\/et_pb_row][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.24.2″ _module_preset=”default” min_height=”35px” custom_padding=”0px||0px||true|false” da_disable_devices=”off|off|off” global_module=”1002″ saved_tabs=”all” locked=”off” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on”][\/et_pb_section][et_pb_section fb_built=”1″ _builder_version=”4.18.0″ _module_preset=”default” custom_padding=”54px||48px|||” global_colors_info=”{}” da_is_popup=”off” da_exit_intent=”off” da_has_close=”on” da_alt_close=”off” da_dark_close=”off” da_not_modal=”on” da_is_singular=”off” da_with_loader=”off” da_has_shadow=”on” da_disable_devices=”off|off|off”][et_pb_row _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_column type=”4_4″ _builder_version=”4.18.0″ _module_preset=”default” global_colors_info=”{}”][et_pb_text _builder_version=”4.18.0″ _module_preset=”default” text_font_size=”21px” text_line_height=”1.6em” header_2_font=”||||||||” header_2_font_size=”36px” header_2_line_height=”1.3em” header_3_font_size=”1.25rem” header_3_line_height=”1.88rem” header_4_font=”|700|||||||” header_4_font_size=”1.25rem” header_4_line_height=”1.88rem” global_colors_info=”{}”]<\/p>\n
7. Listing Your Home and Conducting Showings<\/h2>\n
While preparing your property for showings, gather relevant and important documents potential buyers would want to have such as recent tax and utility bills, site surveys, records of past renovations\/repairs, a recent home inspection report (if you want to receive offers without inspection conditions), warranties and appliance manuals, etc. It\u2019s best practice to disclose all known issues and defects to your REALTOR\u00ae to pass along to potential buyers, in order to avoid getting sued later.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nOnce your property is ready for listing, we recommend capturing professional photos to optimize the property listing page on the MLS\u00ae and various real estate sites that REALTORS\u00ae and prospective buyers frequent. To provide a best-in-class listing that ranks prominently on websites, a virtual 3D tour and a floor plan would be great to add. These property features are sought after by serious buyers and will help your property attract multiple showing requests.<\/p>\n
\u00a0–<\/span><\/p>\nAs the last step, your REALTOR\u00ae will prepare a lockbox or access code and coordinate with you to find out the best times to do showings. They will also quarterback the showing process as well as an open house if you elect that option. In most cases, showings and open houses are conducted by your REALTOR\u00ae and will be based on times when you will be off the premises.\u00a0<\/p>\n
–<\/span><\/p>\n8. Pricing Your Home, Setting an Offer Format and Reviewing Offers<\/h2>\n
Pricing a house is both a science and an art, and let\u2019s be honest, no one has a crystal ball to accurately predict the ultimate sale price. We recommend 2 tips for first time sellers. First, research your neighbourhood and comparable properties to level set a realistic expectation on the property value. Next, talk to your REALTOR\u00ae about his\/her recommended pricing range and tactic. Ask your REALTOR\u00ae to explain his\/her rationale for the recommended pricing tactic: pros and cons of pricing your home for a bidding war vs. pricing high with the intent to negotiate vs. pricing your home at market value.<\/p>\n
\u00a0–<\/span><\/p>\nIn addition to pricing strategy, you may want to discuss with your REALTOR\u00ae ahead of time on the asking price to anchor potential buyers to. Ultimately, buyers will decide how much your home is worth by deciding how much they want to pay for it. Buyers usually consider:<\/p>\n
\n- <\/span>Recent sales of similar properties in your neighbourhood or similar neighbourhoods<\/li>\n
- <\/span>Properties currently on the market<\/li>\n
- <\/span>Current market conditions<\/li>\n
- <\/span>The size, quality of finishes and amenities (e.g. parking) of your property<\/li>\n
- <\/span>Location \u2013 current neighbourhood characteristics and how people expect it to change in the short and medium term<\/li>\n<\/ul>\n
If your home is priced strategically and optimized from a staging and marketing perspective, you may receive multiple offers from prospective buyers. Buyers can submit a purchase offer at any time your property is listed, but best practice is to set an offer date shortly after the bulk of showings have been completed. During this scheduling process, ensure that as many buyers as possible will have a chance to arrange a showing within a short timeframe.<\/p>\n
\u00a0–<\/span><\/p>\nIn a sellers\u2019 market, you may also get pre-emptive offers, more commonly referred to as bully offers, regardless of an offer date being clearly communicated. While some of these offers can be highly competitive and attractive, discuss with your REALTOR\u00ae to ensure that you get the best possible price for your home.<\/p>\n
–<\/span><\/p>\n9. Offer Negotiation, Countering and Acceptance!\u00a0<\/h2>\n
Whether you receive one or multiple offers, your REALTOR\u00ae should walk you through key aspects within these offers. Beyond the offer price, there are many key terms and conditions, such as the irrevocable date (how long the buyer\u2019s offer is available to you), closing date (when the buyer\u2019s want to move into your home), and sale conditions (home inspection required, buyer obtaining financing required, etc.). Depending on your personal situation, these additional factors could make one offer more attractive than another with a higher price. For example, an offer with a superior price but conditional on multiple items being met may put your sale at higher risk.<\/p>\n
\u00a0–<\/span><\/p>\nWhile this is certainly the most emotional and intimidating part of the process, a good REALTOR\u00ae will reduce your stress by expertly navigating you through this negotiation. Most importantly, they will protect and promote your best interests, by ensuring that only the most competitive offers are considered for next steps and potential counter-offers. While the best offer is sometimes countered with removed conditions or amendments to the sale price or closing date, this strategy prevents working with multiple buyers at the same time, so many REALTORS\u00ae will simply send back all competitive offers for a final re-submission which can then be reviewed and negotiated again. Once the best possible terms have been negotiated for your unique case, you will have the opportunity to make the final call as to whether you accept one offer or continue marketing your property.<\/p>\n
–<\/span><\/p>\n10. Sale Closing and Next Steps<\/h2>\n
Once an offer has been accepted, sale conditions must be fulfilled or waived within the outlined timeline, with some of the most common conditions you\u2019ll see as a first time Seller outlined below:<\/p>\n
\u00a0–<\/span><\/p>\n\n- Financing Condition<\/b>\u00a0\u2013 a condition that allows a Buyer to back out of the sale if they don\u2019t obtain financing (usually 3-5 days long in Toronto<\/a>). Naturally, any premium offer price that is tied to a financing condition should be viewed with skepticism.<\/li>\n
- Home Inspection Condition<\/b>\u00a0\u2013 a condition that allows the Buyer to perform a home inspection and back out of the sale if it isn\u2019t satisfactory to them (usually 1-5 days, depending on market conditions)<\/li>\n
- Status Certificate Review Condition<\/b>\u00a0\u2013 a condition that allows a condo buyer to have the condominium status certificate reviewed by their lawyer \u2013 usually the certificate must be provided within ten business days, and the lawyer has\u00a0 1-3 days to review.\u00a0<\/li>\n
- Sale of Property Condition<\/b>\u00a0(rarely used) \u2013 allows the buyer to back out of a sale if they aren\u2019t able to sell their existing home within a certain period.<\/li>\n<\/ol>\n
–\u00a0<\/span><\/p>\nOnce all conditions have been fulfilled or waived, you will have a firm and binding offer and can proceed to pop the bubbly! Prior to the closing date, your REALTOR\u00ae and lawyer will guide you through final steps to ensure you have met all your obligations, such as having your existing mortgage discharged, confirming that appliances included within the sale remain in good working order, and that key utilities and insurance accounts are properly transferred.<\/p>\n
\u00a0–<\/span><\/p>\nOf course, your next home may have been already secured before the listing or closing period of your current home sale. You may even choose to use another REALTOR\u00ae to help you with this purchase while your listing agent works to maximize the value of your existing home.\u00a0<\/p>\n
\u00a0–<\/span><\/p>\nSelling can be a daunting and stressful process, therefore we hope these ten tips will empower you to become more knowledgeable and result in a smooth experience!<\/p>\n
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