seller information

It's time to move! Whether this is the first home you have sold, or the tenth, there are a number of considerations you should be mindful of. The following information is offered to help make you a confident expert.

Understanding market conditions Pricing your property The Marketing Plan Tips for preparing your home Moving Tips

Determining the value of your home Selecting a Realtor The Listing Agreement The Offer Local Services

Understanding Market Conditions The real estate market is continually changing. The nature of your experience, as a seller in the marketplace, will be determined by the market conditions at the time. A Buyer's Market is one where the supply of homes on the market (inventory) exceeds demand. A Buyer's Market is characterised by a large inventory, homes on the market longer, and dropping prices. In a Buyer's Market purchasers have more to look at, can take more time shopping, and enjoy greater negotiating leverage. A Seller's Market is one where the number of buyers exceeds the supply of homes, and is characterised by a small inventory, many buyers, homes selling quickly and as a result of multiple offers, and increasing prices. In a Seller's Market buyers may have to pay more and make quicker decisions. Conditional offers may be more often rejected. Aurora, and the Greater Toronto Area, has been experiencing a decidedly Seller's Market since the beginning of 1999.

Determining the Value of Your Home The market ultimately determines the true value of your property. Before comparing your home to similar properties, and establishing a competitive list price, the following points should be considered.

Location Size Style Condition Community ammenities Buyer suppy Financing options

Getting to know your market A competitive market analysis (CMA) is an indicator of what today's buyers are willing to pay for a home. It compares the market activity of similar homes to yours in your neighborhood. Those that have recently sold represent what buyers are willing to pay. Homes currently listed for sale represent your competition, and what those sellers are hoping to obtain. And those that have expired can be considered overpriced, in the buyers' eyes, or poorly marketed. Your Realtor should prepare a CMA for your home based on the most current market information. This will enable an intelligent decision, between you and your Realtor, regarding the proper list price for your home.

Pricing Your Property The single most important decision you will make with your Realtor is determining the right asking price for your property. Once you've determined a realistic list price, your property can be professionally marketed and promoted to bring the maximum number of buyers to your door. An intelligent asking price is crucial in selling for the best possible price, in the least amount of time.

Benefits of Pricing Right

Your property sells faster, because it is exposed to more qualified buyers. Your home doesn't lose its "marketability", lingering for weeks and weeks. The closer to actual market value, the higher offers tend to be. A well-priced property can generate competing, multiple offers, often resulting in an even higher sale price. Real estate professionals will be more enthusiastic about presenting your property to buyers.

Factors Contributing to Overpricing

Extensive renovations/hidden costs Desire to move up to a higher-priced area Original cost of the home was too high Lack of real market information Building in "bargaining room" Perceived emotional value

Results of Overpricing Many sellers believe that if they price their home high initially, they can always lower it later. Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to actual market value, but by that time it's been for sale too long and many buyers will be wary and reject the property simply on the issue of market time. On occasion, the price is dropped below the market value because the seller runs out of time. The property ends up selling for less than it is actually worth. Missing the "right buyer" - You may think that intersted buyers "can always make an offer", but if the home is overpriced, potential buyers looking in a lower price range will never see it. 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 real estate professionals and buyers sit up and take notice. If a home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost. 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 real estate professionals and buyers sit up and take notice. If a home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.

Selecting a Realtor

The Realtor brings the market to you. The market brings your price. The right Realtor is one who knows the market and can facilitate the best possible price - not the one who promises you the highest price just to get you to list with them! Many of the same questions, hesitations and strategies connected with seeking out professional assistance in any field - whether looking for a doctor, dentist, lawyer or accountant - come into play when you're selecting a Realtor. Some people find a Realtor through a family member or friend. This is often a reliable approach, but you might not always find the most compatible assistance this way. And in a transaction as important, and intensive, as selling and buying a home, that can be critical. A referral from a family member or friend doesn't guarantee a perfect match. Just think of something as simple as a movie or restaurant recommendation. Your close friends rave about a new Chinese food emporium downtown - so you check it out. Could this possibly be the same restaurant they were describing? Mediocre service. No chopsticks. Bland flavours. It's the same restaurant, same cook, same waitors....... just different perceptions. Regardless how you get a Realtor's name, it might be worth interviewing at least a couple before you make your final decision - or at least arming yourself with some criteria to go over with any Realtor who has been recommended to you.

A few things to look for: If you're looking for a Realtor to sell your home, be wary of anyone who suggests that they can get an unreasonably high price. A Realtor might use a high listing price to secure a contract, only to seek a lower price later, after little traffic is generated at the initial price level. Meanwhile, you've lost what can be the most critical time period in selling a home - the first few weeks immediately after it's listed. Check on experience and productivity. As with most professions, experience pays in real estate. Experienced Realtors know the market and the marketing process. They'll have the best chance of quickly and smoothly helping you sell your home. The number of transactions a Realtor is handling monthly or yearly is going to give you an indication of how committed the Realtor is to the profession. Is the Realtor a part-timer who's just dabbling in real estate sales - or is the Realtor a full-time professional whose livelihood depends entirely on an ability to successfully and repeatedly close real estate transactions? Is the Realtor part of a national network? This can be especially important if you are selling in one city in preparation to move to another. Your selling Realtor can refer you to a professional, compatible Realtor in your destination city - keeping in close contact with that Realtor so both your selling and buying efforts are closely coordinated. One final point - Does the Realtor seem primarily interested in sharing expertise and market knowledge in an honest and straightforward manner? Or does the Realtor seem more interested in telling you what you want to hear - or spend a lot of effort trying to market additional products or services? The worst time to secure the services of a "yes-man/woman", or a Realtor who seems to have a bit too many irons in the fire, is when you're entering into a transaction involving something as expensive as your home. You need straightforward, reliable information - even if it's not necessarily flattering regarding the home that you want to sell.

The Listing Agreement

The first formal step in marketing your property is to enter into a Listing Agreement - a contract that commits your broker to actively market your home for a specific period of time. It also commits you to a pre-established marketing fee that is paid upon the successful closing of the sale.

Your Realtor may require the following documents to complete this form:

Plan of Survey or Location Certificate - A survey of your property which outlines the lot size and location of buildings as well as details of encroachments from neighboring properties. This may be required in certain areas to complete the sale of your home. Your legal professional may recommend a survey, especially if significant changes have been made to your property. Property Tax Receipts - Most Listing Agreements require that the current annual property tax be shown. Mortgage Verification - Few homeowners know the exact balance of their mortgage as it is paid down. You will be asked to authorize your mortgage lender to provide the figures required. Deed or Title Search - This document is a legal description of your property and proof that you own it. Condominium Documents - A package of documents will be required for review and approval where the property being sold is a condominium. These documents are obtained from the condominium corporation. Other documents - In some instances, it may help the sale of the property if you can provide prospective buyers with information on such items as annual heating, electrical, and water expenses, as well as any recent home improvement costs. Note: You will be asked, by your Realtor, to sign a property condition disclosure statement, and an acknowledgement that you have read and understand the "blue brochure", ie. the Toronto Real Estate Board's Agency Relationships Explained.

Preparing Your Home for Showings

First impressions are lasting impressions. You will want to make sure that the buyers looking at your home are left with the best possible impression. Your Realtor can help you acheive this goal.

Exterior

House in good repair House number easy to read, particularly after sunset Eavestroughs, downspouts and soffits in good repair Garage/carport clean and tidy All litter picked up Cracked or broken window panes replaced Lawns and hedges cut and trimmed, gardens weeded and edged Walks shovelled and salted Boot tray inside front door Doorbell and door hardware in good repair Porch and foyer clean and tidy

Interior

Chipped plaster and paint touvhed-up and replaced Doors and cupboards properly closed Leaky taps and toilets repaired Burned out light bulbs replaced Squesky doors oiled Mirrors, fixtures, and taps cleaned and polished Seals around tubs and basins in good repair Floors cleaned, garbage containers emptied Interior of closets and cupboards neat and tidy Appliances cleaned Countertops neat and polished All lights turned on Air conditioner turned on in warm weather Fresh air in house Fireplace lit in cooler weather Halls and stairs cleaned Drapes opened during daylight Carpets freshly vacuumed Fresh flowers in various rooms, jewelry and valuables locked safely away Valuable property, such as objects of art, vases and figurines out of reach, out of sight, or locked away Pets absent, where possible, or contained during the showing, and litter boxes cleaned

NOTE: Buyers are generally more relaxed, less distracted, and therefore more observant in a home that they, and their Realtor, have to themselves. When possible, coordinate showing appointments with those errands that you must run, or take the dog for a walk and some fresh air. NOTE: Generally, any cooperating Realtor who wishes to show a listing will contact the Listing Broker to arrange for a showing appointment. Sellers are contacted by their Realtor, or their Realtor's front desk, only.

The Offer

Major Elements

Price - Depends on the market and each buyer, but generally, the price offered will be lower than the asking price. Most buyers, unless being pressured by competing offers, will "measure" any flexibility there may be in a list price. Deposit - The deposit demonstrates the buyer's good faith and will be applied against the purchase price of the home when the sale closes. Your Realtor can advise you on the suitability of the amount of the deposit being offered. Deposits are placed in trust accounts, usually maintained by the Listing Broker. Terms - Includes the total price the buyer is offering as well as the financing details. The buyer may be arranging his/her own financing or may ask to assume your existing mortgage if you have an attractive rate. Conditions - These might include "subject to home inspection", "subject to the buyer obtaining financing", or "subject to the sale of the purchaser's property". Inclusions and 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 transferred to the buyer and funds are received by the seller, unless otherwise specified.

Any Realtor, representing a buyer, who is given an offer to present to the seller, will make arrangements to present through the Listing Broker. The seller's Realtor then contacts the seller and sets up a time and place where the offer is presented. Generally, the Realtor representing the buyer, sits down with the seller and the seller's Realtor. The offer is presented, after which the seller decides whether to accept, reject, or counteroffer. A counteroffer is given to the buyer's Realtor who takes it back to the buyer, for the buyer's decisions. An offer can go back and forth until it is accepted, or one of the principals (seller or buyer) decides to discontinue negotiations. The seller's Realtor participates directly any time that the offer, or subsequent forms, is before the seller.

Moving Tips

Print and use the Moving Checklist as a reminder of the things you need to do prior to your move. Book the movers. You can choose to have them pack everything, or just the breakables, or you can pack everything yourself. It's a good idea to get estimates from several different moving companies. Your present home:

Arrange to have your gas, water, and electric meters read on the day you leave and have bills forwarded to your new address. Have your oil tank read and filled before your sale closes, and provide a receipt to your legal professional if required. If the water heater or furnace are rented, arrange for a transfer of the rental agreement to the purchaser. Disconnect your telephone, cable TV, and water softener.

At your "new" home:

Make arrangements for the gas and electric utilities, water softener, telephone and cable TV to be connected on the day the sale closes.

General:

Get "Change of Address" cards from the post office and send out well before moving day. Have the post office forward your mail to your new address. Cancel any contracted services and pre-authorized cheques. Inform gardening, dry cleaning, garbage pick-up, newspapers, magazines, diaper and other home services. Arrange for service at your new address. Transfer trust and bank accounts and securities. Obtain a letter of introduction from your current branch to help establish new accounts. Cancel or transfer social, athletic, civic, religious or business affiliations and memberships. Arrange for transfer of medical, dental, prescription and optical records. Change the address on your driver's license(s) effective the day of the move. Collect all items out for cleaning, repair or storage, eg. fur coats and dry cleaning. Make special arrangements for the moving of perishables such as plants. Make special arrangements for the moving of your pets. Dispose safely of all flamable liquids as it is illegal for movers to carry them.