We provide you with the most current information to assist you in making an educated decision when buying and selling real estate. With that in mind, this helpful Guide will explain some relevant terms and scenarios you can expect as you prepare to sell your home.
Pricing your Home
This is the most important decision you will make, as there are many factors to consider; contact us for Consult when you have specific market questions.
Understanding Market Conditions
The real estate market is always changing. Varying economic indicators dictate which stage your local market is experiencing. It helps to understand how market conditions can affect your position as a seller.
• What is a Balanced Market? The number of homes is equal to the demand or number of buyers. Typically, this type of market shows that demand is equal to supply, homes
Sell within an acceptable time period and prices are generally stable. What does this? Mean for me? You may experience a more relaxed atmosphere with buyers having a reasonable number of homes to view and choose from.
• What is a Seller’s Market? The number of buyers wanting to purchase homes exceeds the supply of available homes on the market. Typically, this type of market has a smaller inventory of homes and many buyers, homes sell quickly, and prices usually increase; there may even be bidding wars. What does this mean for me? You may experience more negotiating leverage and obtain a higher selling price for your property.
• What is a Buyer’s Market? A buyer’s market occurs when the supply of homes on the market exceeds the demand. Typically, there is a high inventory of homes, few buyers compared to availability, homes stay on the market longer and prices tend to drop over time. What does this mean for me? It may take longer to sell your home with less negotiating leverage in terms of selling price. We can explain what the current market conditions are and how they will affect you during your home sale process.
Pricing Your Property
The single most important decision you will make us is Determining the right asking price for your property.
Once you’ve achieved a realistic sale price, you can count on your property being
Professionally marketed and promoted to bring more buyers through your door. You can also
Expect to sell your home for the best possible price in the least amount of time.
The Benefits of Pricing Right
- Your property sells faster, because it is exposed to more qualified buyers.
- Your home doesn’t lose its’ “marketability”.
- The closer to market value, the higher the offers.
- A well-priced property can generate competing offers.
- REALTORS® will be enthusiastic about presenting your property to buyers.
Determining the Value of your Home
The market ultimately determines the true value of your property. A common-sense definition for the appropriate value of your home is what a willing buyer will pay and what a willing seller will sell for.
Before you compare your home to similar properties and establish a competitive list price, the following points should be considered.
- Community amenities
- Buyer supply
- Financing options
5 Getting to Know Your Market
A comparative market analysis is an indicator of what today’s buyers are willing to pay for a home. It compares the market activity of homes similar to yours in your neighborhood.
Those that have recently sold represent what buyers are prepared to pay. The homes currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally over-priced or poorly marketed.
We will prepare a comparative market analysis for your home based on the most current market information. Together, you and your sales representative will establish the proper list price for your home.
Understanding the Factors that Influence Overpricing
- Extensive renovations/hidden costs
- Desire to purchase in a higher-priced area
- Original cost of the home was too high
- Lack of real market information
- Building in “bargaining room”
- Perceived emotional value
The Results of Overpricing
Many sellers believe that if they price their home high initially, they can lower it later.
Often, when a home is priced too high, it experiences little activity. Gradually, the price will come down to market value, but by that time it’s been for sale too long and some buyers will be wary and reject the property.
On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than it’s worth.
Missing the Right Buyer
You may think that interested buyers “can always make an offer”, but if the home is Overpriced, potential buyers looking in a lower price range will never see this home. With the abundance of information available online, buyers are well-educated on the market they are shopping in and can quickly ascertain an appropriately priced home versus an Overpriced home.
Those buyers will not waste their time viewing homes not priced within a Suitable range. Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.
The Importance of Early Activity
As soon as a home comes on the market, there is a flurry of activity surrounding it. This is a crucial time when other sales representative and potential buyers sit up and take notice.
If the home is overpriced, it doesn’t take long for interested parties to lose interest. By the time the price drops, most buyers have moved on.
Agree on a Marketing Plan
Your property is not something you sell every day. In fact, for many people it is their largest asset. A House is very complex to market and the process needs to be well organized. To do the job properly, a plan is needed.
I can prepare a personalized plan for you containing all activities intended to market your property including a customized marketing plan.
Signing a Listing Agreement
The first formal step in marketing your property is to enter into a Listing Agreement – a contract that commits us to actively Market your home for a specified period of time. It also commits you to a pre-established marketing fee that is to be paid upon the successful closing of the sale.
What you’ll need to prepare for your appointment
- Plan of Survey or Building Location Certificate
- Property Tax Receipt
- Mortgage Verification
- Deed or Title Search
- Utility costs, info about transferable warranties (if avail)
- Info about outstanding contracts (alarm, hydro loans etc.)
- Dates of renos or upgrades (and receipts if avail.)
- Spare set of keys
- Alarm codes
- Pet safety instructions
Preparing your home to show to potential buyers
First impressions are lasting impressions. You will want to make sure that buyers looking at your home are left with the best possible impression. I can help you achieve that goal.
House exterior in good repair
House number easy to read
Eavestroughs, soffits, fascia and downspouts in good repair
Garage/carport clean and tidy
Litter picked up
Cracked or broken window panes replaced
Lawns, hedges cut, garden weeded and edged
Walks shoveled and salted
Boot tray inside the front door
Doorbell and door hardware in good repair
Porch and foyer clean and spacious Interior
chipped plaster and paint touched up and repaired
doors and cupboards properly closed
leaky taps and toilets repaired
burned out light bulbs replaced
squeaky doors oiled
mirrors, fixtures and taps cleaned and polished
seals around tubs and vanities in good repair
Floor cleaned, garbage containers emptied
Inside of closets and cupboards neat and tidy
Countertops neat and polished
All lights turned on
Air conditioner turned on (weather permitting)
Fresh air in the house
Fireplace lit/furnace on (weather permitting)
Halls and stairs cleaned
Drapes opened during daylight
Carpets freshly vacuumed
Fresh flowers in various rooms
Jewelry and valuables locked safely away or taken with you
Valuable property (such as art objects, vases, figurines out of reach, out of sight or locked away)
Pets absent or contained during the showing (pet messes indoors or out cleaned up)
The Major Elements of an Offer
Depends on the market and the buyer, but generally the price offered is different from the Asking price deposit
The deposit shows the buyer’s good faith and will be applied against the purchase price of the home when the sale closes. I will advise you on the suitability of the amount of the deposit being offered.
These will include the total price the buyer is offering as well as the financing details. The
Buyer may be arranging their own financing or may ask to assume your existing mortgage if you have an attractive rate.
These might include but are not limited to: “subject to home inspection”, “subject to buyer obtaining financing” or “subject to the sale of the purchaser’s property”.
Inclusions & Exclusions
These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors.
Closing or Possession Date
Generally, the day the title of the property is legally transferred, and the transaction of funds
Finalizes unless otherwise stated
Some Moving Tips
Once your home is sold, we can help make the move easier for you.
Follow this handy checklist:
Book the Movers
You can choose to have your movers pack everything, or just the breakables, or you can pack yourself. It’s a good idea to obtain estimates from several different companies.
At Your Present Home
Arrange to have your gas and electric meters read on the day you leave and have the invoice forwarded to your new address. Have the oil tank or water meter read (if applicable) before your sale closes and provide the reading to your legal professional if required. Inform all utilities of your impending move and noting the final readings for yourself, and for your legal professional.
At your New Home
Make arrangements for the gas and electric utilities, water softener, telephone, cable and Internet to be connected on the day the sale closes (or possession date).
Get “change of address” cards from the post office and send them out well before moving day.
Have the post office forward your mail to your new address.
Cancel any contracted services and pre-authorized cheques, newspapers, magazines and other home services. Arrange for services at your new address. Inform gardening, dry cleaning, garbage pick-up, etc.
Cancel or transfer social, athletic, civic, religious or business affiliations and memberships.
Arrange for the transfer of medical, dental, prescription and optical records.
Change the address on your driver’s license effective the day of the move
Make special arrangements for the moving of perishables, such as plants.
Collect all items for cleaning, repair or storage.
Make special arrangements for the moving of your pets.
safely dispose of all flammable liquids, as it is illegal for movers to carry them.