Process of selling real estate is straight forward.
- Timing when to sell makes a difference
When to list your home on the market can influence your home’s selling price. Factors such as how quickly you need to sell, whether it’s a buyers or sellers market and seasonality all play a role in your home’s final selling price. Another factor might be the amount of inventory available in the market.
- Find the right REALTOR®
The REALTOR® who helped you buy your home is a good place to start. They already know your home and they know you, so you’ll be saving time right from the start. Or look for names on “For Sale” signs in your neighbourhood or ask your friends and family. Make sure to interview two or three candidates and choose the one you like best.
Realtor fees can be a cost breaking the bank but you now have choices. Hire a Realtor who is a full time agent, has the necessary experience and knowledge of business and charges low commission rates.
- Sign a Listing Authorization or Listing Agreement
This authorizes your REALTOR® and their brokerage to market and sell your home. It will define the legal relationship between you and the real estate brokerage and also set a time limit for your REALTOR® to sell your home. Typically a listing agreement is an exclusive one which means that only one Realtor is hired to do work on the listing side of the deal. This way, when your home sells you pay one listing fee.
- In consultation with your Realtor determine the asking price
The right asking price will attract buyers and pay you a maximum return. Setting too low a price means you could miss out on thousands of dollars. Unless you already have a strategy in place to handle this situation. For example; you list lower than market and hold back offers for few days. This way your home get the attention of many buyers and you might end up having multiple offer situation where buyers compete for your home. Setting too high a price will scare away buyers. Your goal is to find fair market value.
- Decide on who will be your lawyer
Similar to when you bought your home, it’s important to have a lawyer handle all the various documents that change hands and make sure your best interests are being protected at all times.
- Do all the preparations to be ready for sale
First impressions is always big. Now is the time to see your home through a buyer’s eyes: get ride of the clutter, clean and repair as much as you can, within reason. Remember, weigh the cost of all your improvements versus the potential financial return. A fresh coat of paint, if needed, will likely have the biggest return on investment. Other cosmetic changes will definitely make a difference.
- Let your REALTOR® handle the marketing and sale
Your home has never looked so good and now it’s time for your REALTOR® to market it to potential buyers. This happens with a “For Sale” sign, open houses, online ads, a listing on the MLS®, the internet, and, of course, through your REALTORS®’ relationship with other REALTORS®.
- Know your financing
Will the buyer “assume” your mortgage or are you “discharging” it? If you’re buying a new home, is your mortgage “portable”? What taxes are involved? These are important questions to ask your REALTOR®, your mortgage broker or your bank.
- Dealing with offers
Although your REALTOR® will walk you through the process, be prepared for some stress. You will see every offer since it’s required that your REALTOR® show you every offer that’s submitted. You will have three options: you can accept, you can reject or you can “sign back” or “counter”. Ask your REALTOR® what these terms mean. Happy negotiating!
- Sign the deal
You were successful and have drafted a legally binding agreement. Are you done? Not quite yet. Contact your lawyer or notary public, contact your lending institution and consult your REALTOR®. Immediately start satisfying any conditions of the agreement that require action on your part. On closing day, your lawyer will finalize all the details and give you a cheque for the net proceeds.