- The process of selling your home can be incredible cumbersome and complex. As a seller, it is important to engage the services of a real estate professional early in this process.
- Your REALTOR® will help you assess your motivations and price expectations, as well as help determine the market price for your property; but you must ensure you find the right representative.
- The field of real estate sales is quite broad, with representatives boasting experience in different communities and with different types of property. For example, one REALTOR® may be astute at selling commercial properties, while another is versed in land assembly. One REALTOR® may have decades of experience selling residential properties in Rosedale, while another has focused her practice in Willowdale. Different professionals boast different strengths.
- Interview a variety of representatives, ask about their experience, sales activities, pricing strategies and commission rates. Find a REALTOR® that you trust to sell your home.
- Once you decide on a representative, you will sign a Listing Agreement with your REALTOR®, designating them as your representative and enabling them to market and hold your property available for sale.
- Understand the market trends in your neighbourhood and research the prices at which similar properties are selling.
- Your REALTOR® will help you complete a comparative market analysis, in which the prices of similar properties in your community are used to establish a base value for your home.
- Consider factors such as location, size, amenities, and condition when establishing price.
- Get feedback from buyers to determine how much they would pay for your property and how much they can afford.
- Understand that setting a price that is too high may cause your property to sit on the market for an extended period of time. This may stigmatize your property as unsellable.
- You may choose to price your property significantly below the market price in hopes of creating competition and a bidding war. Your REALTOR® will help advise if this is an appropriate strategy given the market conditions and purchasing demographic/sociographic.
- It is important to ensure that a prospective buyer can envision themselves living in your home. In order to achieve this, your property must present well.
- Ensure that the property is clean and tidy. Declutter the property, as grime and excess clutter can inhibit a buyer from envisioning their furniture and belongings in your space. Depersonalizing your space and removing personal photos and belongings will further enhance their vision.
- If there is outstanding maintenance, complete the appropriate repairs. It is possible for an offer to include a home inspection condition; completing repairs ahead of time will ensure a smooth inspection process and provide a prospective buyer less leverage in negotiating a lower price.
- Getting a home inspection beforehand may also be a wise move. Attaching a pre-listing home inspection to a listing may deter a prospective buyer from including a home inspection condition.
- You may choose to list your property on the Multiple Listing Service® System, which is a database shared by all REALTOR® registrants. Each REALTOR® and their clients will have access to your listing.
- Your REALTOR® may explore several other marketing avenues such as: social media, a property-specific, traffic-driven website, feature sheets/brochures, email mailouts, traditional print advertisements, magazine publications, open houses and neighbourhood signage.
- All marketing materials should feature high quality photos that showcase the property's advantages and that highlight its strengths.
- Exploring every channel available is essential to getting the greatest exposure. Exposure translates to showings and showings translate to offers.
- Once a prospective buyer has viewed your property and decides they want to purchase it, they will prepare a written offer. If you are submitting an offer to purchase a residential property, you can expect such an offer to be drafted on the Ontario Real Estate Association Agreement of Purchase and Sale - Residential.
- If you choose to price your property significantly below its expected market price, in hopes of creating a bidding war, you may choose to establish an offer date. This is the date on which any prospective buyer interested in purchasing may deliver a written offer.
- Your REALTOR ® will help you review all offer documentation and help advise on the best offer strategy to get you the highest price on the best terms. You may choose to reject an offer, accept an offer, or submit a counteroffer on terms more advantageous to you.
- Several variables must be considered when reviewing an offer such as: market price expectations, the existence of competing offers, conditions included, deposit amounts and terms, buyer expressions of interest and budgets, as well as your own personal needs and requirements.
- Offers to purchase are oftentimes made irrevocable for a fixed period of time, over which you can review its elements and decide on how they wish to respond.
- Once you receive an offer you will make one of three decisions: they may accept your offer, reject your offer, or submit a counteroffer with modified terms and conditions.
- Carefully review the agreement of purchase and sale before signing. Ensure you understand all terms and conditions. If you are not satisfied with the terms of an offer and choose to submit a counteroffer, it is made irrevocable, which means you cannot rescind or otherwise take it back for a fixed period of time.
- Seek clarification from your REALTOR® on any clauses or language that you find unclear or
concerning. It's essential to have a clear understanding of your obligations and rights as a seller.
- Once both parties have affixed their signatures and the accepting party has confirmed acceptance of an offer or counteroffer, then the agreement is binding, and the buyer will be required to submit the negotiated deposit to secure the purchase.
- When working with a REALTOR®, the deposit is oftentimes deposited in your representative's brokerage's trust account pending completion, after which it is released to you or your lawyer.
- Offers may be conditional on mortgage financing and/or home inspection, both of which afford the buyer a period of time from the date of acceptance to complete this due diligence. If the buyer is unable to arrange an acceptable mortgage or is not satisfied with the home inspection, then they may back out of the transaction within the conditional period.
- Execution by both parties triggers this conditional period, if applicable. During this period, the buyer will conduct a home inspection and review its findings, as well as submit any further required documents to their mortgage lender in hopes of obtaining a mortgage commitment.
- There are several other clauses that may be included in an agreement of purchase and sale that make it conditional such as: status certificate review (condominium), solicitor review and zonin by-law review, just to name a few.
- If all is acceptable, the buyer will submit a Notice of Fulfilment of Conditions, indicating that the conditions have been satisfied. This will notify the seller that the agreement is “firm,” pending completion.
- In Ontario, each party to a transaction in real estate requires representation by a lawyer. At the time of acceptance/execution you will provide your REALTOR® with the lawyer you wish to use for the purposes of closing.
- Your lawyer will prepare any undertakings or documents required to close the transaction and will liaison with the buyer's lawyer in arrangement of the trade.
- The buyer may choose to conduct a final walkthrough of the property before closing to ensure that any required repairs have been completed and that the state of the property has not been materially changed since initially viewing the property.
- On the date of closing keys will be exchanged, and the lawyers will agree on a statement of adjustments outlining the proportion of the recurring expenses that must be paid by the buyer and seller, such as utilities, taxes or maintenance fees (if applicable).
- Your lawyer will receive funds from the buyer's lawyer in their trust account and will issue you any residual funds above the outstanding mortgage balance shortly after closing.
Selling a property can be a complex and challenging endeavor, and many sellers wonder whether they should enlist the services of a REALTOR®. Partnering with a REALTOR® can bring numerous advantages and significantly enhance the overall selling experience.
One of the foremost reasons to work with a REALTOR® is their deep knowledge of the local real estate market. REALTORS® possess valuable insights into the current market conditions, trends, and pricing strategies. They can provide sellers with a clear understanding of what their property is worth, ensuring it is neither overpriced, which can deter potential buyers, nor underpriced, potentially resulting in a financial loss.
Once the property's value is established, REALTORS® can leverage their extensive marketing resources and networks to ensure maximum exposure. They can effectively promote the property through multiple channels, including Multiple Listing Services ® System, online platforms, social media, and their own professional networks. This broad exposure greatly increases the chances of attracting qualified buyers quickly, saving time and effort for the seller.
Perhaps one of the most significant advantages of working with a REALTOR® is their ability to provide objective advice. REALTORS® offer impartial guidance based on their professional knowledge and experience. This objectivity proves invaluable when making crucial decisions about offers, repairs, or price adjustments.
Beyond the tangible benefits, working with a REALTOR® can reduce the stress associated with selling a property. They handle the details, offer guidance throughout the process, and provide a reassuring presence, making the entire experience more manageable.
While it is possible to sell a property independently, the expertise, resources, and support that REALTORS® provide often make their services an invaluable asset for sellers. Whether it's market knowledge, marketing prowess, negotiation skills, or legal protection, working with a REALTOR® can significantly improve the chances of a successful and profitable property sale.
