| Sellers Information
In today's market, many homeowners have considered "going it
alone" and selling their homes without the help of a REALTOR® to
"save the commission." However, once they realize how complex
and intimidating a real estate transaction can be, many people
reconsider and enlist the services of a REALTOR®. It requires an
organized, step-by-step approach that many homeowners just don't have
the time, skill or experience to carry out.
A REALTOR® provides a variety of services including help in setting
a listing price within current market guidelines. They develop a
marketing plan, offer recommendations and advice to make your home more
attractive and "saleable," and act on your behalf during
negotiations to ensure your interests are protected.
Another advantage of working with a REALTOR® is the far-reaching
market exposure your home will receive through the Multiple Listing
Service® (MLS®). This co-operative marketing system relays information
about your home to a vast network of REALTORS® and therefore, potential
homebuyers in your market. The greater the exposure your home receives,
the more likely you are to find a buyer willing to pay your price.
Selling your home is not a simple procedure. It involves large sums
of money, stringent legal requirements and the potential for costly
mistakes. A REALTOR® is committed to spending the time it takes to help
you sell your home in the least amount of time and for the best possible
price.
A REALTOR® must disclose to you in writing, who exactly they
represent in any real estate deal. A REALTOR® may represent a buyer or
a seller; they may also represent both buyer and seller in the same
transaction. Your listing REALTOR® is, in law, your agent. An agent
owes his or her client the duties of utmost care, integrity,
confidentiality and loyalty. Make sure you discuss agency with your
listing REALTOR®.
The process of selling a home with a REALTOR® starts with the
Listing Agreement. It's a contract between you and the brokerage company
that the agent represents. It is a framework for subsequent forms and
negotiations. It's important the agreement accurately reflects your
property details and clearly spells out the rights and obligations of
all parties. Both you and the listing agent sign the listing agreement
and each receive a copy. The agreement binds both parties to its terms
and conditions.
Generally, in the agreement you appoint the brokerage company as your
agent and give its representatives the authority to find a purchaser.
The duration of the agreement is indicated, and the compensation is
specified. The agreement also sets out the listing price, and accurately
describes the property you are selling. That will include the lot size,
building size, building style and materials, floor areas,
heating/cooling systems, room sizes and descriptions.
This is when you must also decide what you are taking with you and
what you are leaving with the house. Generally, unless stated otherwise,
fixtures remain with the property, while chattels -- things which are
movable -- aren't included in the sale. If necessary, what stays and
what goes are listed under "inclusions" or
"exclusions."
Finally, the Listing Agreement also details the financial conditions
of the property, including the mortgage balance, mortgage monthly
payments and the mortgage due date. It should also provide information
about annual property taxes; and references for any easements, rights of
way, liens or charges against the property.
Ask your listing REALTOR® about disclosure, which is a seller's
obligation to disclose facts about properties for sale. The buyers will
need to know material facts about the property - that is, anything that
could materially affect the sale price or influence a buyer's decision
to buy it. A major cause of post-sale disputes and lawsuits center
around defects and disclosure, but most disputes can be avoided if
proper disclosures are made. Intentionally withholding information about
a property when selling it can have serious legal consequences.
Another advantage of listing with a REALTOR® is that only a REALTOR®
is able to place your listing on the MLS® or Multiple Listing Service®.
When you decide your listings will be on the Multiple Listing Service®,
the information about your property is shared with all other REALTORS®
through the MLS® system, and all REALTORS® have the opportunity to
sell your property. This type of cooperative effort will result in the
listing agent offering compensation to the selling agent. Your property
gains more exposure, because it reaches the majority of the real estate
professionals in your community.
There's another benefit of dealing with a REALTOR®. Through
REALTOR.ca, the national property website, participating local real
estate Boards can also advertise listings to potential buyers across
Canada and around the world.
Another major issue for anyone selling a property is how much to ask
for. Although you may have an idea of how much your house is worth, it's
important to have your home valued by a professional on its own merits.
Be careful not to price your property too high or too low. If it's too
high, there's no sale; too low and you lose on your investment.
A REALTOR® has the research and expertise to provide a market
assessment of what similar properties in your area have sold for. They
can also provide information on market history, such as the number of
properties sold in your community the previous month or year.
A REALTOR® also has a number of marketing tools and options to
promote your property. First is the REALTOR.ca web site, which attracts
more than a million unique visitors a month. It shows the details of
your home to local, regional or national buyers looking for a property
in your community.
Your REALTOR® may also recommend an open house as a marketing
strategy. There are two types: first is an agent's open house, where
sales representatives from the listing company will be invited to view
your house. If you have signed an MLS® agreement, other REALTORS® may
also be invited. Remember, each of these REALTORS® may have a
prospective buyer. The second type of open house is a public open house,
where members of the public are invited to walk through your home and
have a look. It's an efficient way to show your home to many potential
buyers at once. The listing agent will act as host, answering any
questions.
You and your listing agent will pick the time and date for an open
house. In order to give the agent access to your home, you may wish to
keep a key at his or her office, or in a lockbox. It's also a good idea
to ensure that any valuables are put away in a safe location, then leave
while the open house is underway. If you do stay, be sure to keep out of
the way, and turn off any TVs or radios to let the agent and the buyer
talk in peace.
Needless to say, clean counts with open houses. A general rule is
that clean, uncluttered and well-lit spaces look larger and more
attractive. People will naturally want to buy a house that is clean and
well cared for.
Sometimes a home doesn't sell right away. Avoid the urge to pull your
home off the market... be persistent! Generally, there are three reasons
why a home may not sell as fast as others. First is location; second is
condition; third is the asking price. Naturally, you can't change your
home's location, but you can fix the condition of your home and you can,
of course, adjust your price. Throughout the listing process, you need
to be constantly comparing your asking price against those of similar
properties in your area. It may be time to adjust the price of your
home.
Review your selling strategy regularly with your listing agent: Is
your house being shown regularly? Are you receiving the feedback from
prospective buyers? Are you in touch with the marketplace? Is your
property competing well? If not, what else can you do?
Once a buyer is found, you'll be receiving an offer that will detail
how much, specify any conditions that may apply or be attached by the
buyer, say when the buyer would like to take possession, and when the
offer expires. As an act of good faith, the buyer will make a deposit
with the offer.
You don't have to accept the offer as is. You may wish to make a
counter offer that comes part-way to meeting the offer's conditions. The
counter offer is one more step along the way to negotiating the final
terms and conditions of the sale. The offer, once signed by everyone, is
a binding contract. Make sure you understand and agree to all of the
terms in the document. You may want to have it reviewed by your lawyer
before signing.
Before closing, especially if the buyer makes it a condition of sale,
you may be asked to provide a current survey, or a "real property
report," showing the location of the house is on the property owned
by you and that there are no encroachments. You may also have to prove
that you have title to the property (the buyer's lawyer will check this
out when he or she conducts a title search to see if there are any liens
on the property, easements, rights of way or height restrictions).
Especially in rural areas, you may also be asked to provide a
certificate for a well or septic system, stating the system meets local
standards.
The buyer may also make the purchase conditional on an inspection by
a qualified engineer or inspector.
Then on or before closing day, lawyers representing you and the buyer
will set up a trust account for the money coming from the sale and will
pay off any mortgages you owe on the property. After these are paid, you
will receive any money you have coming from the sale. You must deliver
the property deed or transfer documents, mortgage details and keys to
your lawyer. Your lawyer will register the mortgage discharge and
transfer the deed at closing,
Your lawyer should also ensure that you receive compensation for
prepaid expenses such as, property taxes, electrical or gas bills, or if
applicable, any heating oil left in your tank. Some lenders will make it
possible for your mortgage to be portable, so you can take your mortgage
with you when you move to your new home.
Here, your responsibilities under the listing agreement end. You'll
have paid your listing agent the agreed-upon compensation. This can be
done by your lawyer who can arrange the payment from the proceeds of the
sale. In some provinces, including Quebec, notaries perform the same
role in the real estate transaction as lawyers do in other provinces. If
you have any questions, check with a REALTOR®.
The sale of property is a complex business transaction. There are
distinct advantages to having a REALTOR® who is well-educated,
knowledgeable, and experienced. A REALTOR® also has access to an array
of services, including the Multiple Listing Service®, which can provide
you with instant, thorough and accurate property information.
(The comments contained on this site are for information
purposes only and do not constitute legal advice.)
Call
Me Toll Free To Arrange A Viewing: 1-866-854-6049
Or Send Me An E-Mail: tammywolzen@royallepage.ca |
