Sellers
Whether you've decided to upgrade, downsize, move to a new town or just feel a need for change, there are many things to consider when you decide to sell your home. A licensed RE/MAX real estate sales representative can guide you through the entire process, from pricing your home to closing the deal.
Why Use a Sales Representative?
A sales representative will bring a wealth of knowledge and experience to your buying or selling process as well as negotiating skills and an on-going education program that keeps them up to date on the latest trends, skills and responsibilities to the Buyer or Seller. A sales representative will explain exactly what you can expect from the buying and/or selling process, from start to finish.
Sales representatives are members of the Canadian Real Estate Association (CREA) and as such adhere to a strict Code of Ethics and Standards of Business Practice. This enables sales representatives to achieve the highest professional standards in order to better serve you, the consumer.
Your sales representative works with your best interests in mind. By signing a Buyers Agency Agreement, you have, in fact, created a contract between yourself and the sales representative in which the sales representative owes you, the client, loyalty, obedience, confidentiality and full disclosure of all pertinent information regarding the purchase or sale of your property.
Sales representatives know the ever-changing market. They know what the house down the street sold for, how long it was on the market and how it compares to your property. They know whether the market is hot for buyers or sellers.
A sales representative also has the access to the best tool of all - the Multiple Listing Service (MLS) which lists the properties currently for sale in your area. They will also use other tools to market your property - advertising in local papers, holding open houses, and placing your property on the internet for wider exposure.
One of the most important responsibilities of a sales representative is to negotiate to obtain the best possible deal for you while at the same time offering advice and perspective.
Most sales representatives will also help to obtain information regarding financing. Many sales representatives have Mortgage Brokers "in-house" to help you with qualifying and obtaining a mortgage at the most competitive rates and terms.
Why would you not use a sales representative?
Click here for an explanation of "Agency Relationships"
Pricing Your Home
First thing is first. How much do you realistically expect to get for your home? You must consider things such as the age and condition of your home, the size of your property, whether or not it needs to be updated, and the current market value for homes in your area. What have other homes in your area been selling for? Are there a lot of homes for sale in your area and price range? All of these factors will help determine what you can get for your home.
You have to be very careful when pricing your home. If you list it too high, you run the risk of it sitting on the market for a long time. People start to wonder what is wrong with a home when it doesn't sell fast. Listing your home for what it's realistically worth will generate genuine interest and may lead to multiple offers. In most cases when a home is priced well, it sells fast and for top dollar. Your RE/MAX sales representative will help you determine what your home is worth. They watch the market everyday and have knowledgeable experience in pricing your home.
Click here for a FREE Market Evaluation of your home
Preparing Your Home For the Market
It is important to look at your home through the eyes of the potential buyer. What needs to be done? There are many things that you can do to your home that cost relatively little, but will greatly increase your chances at a quick, relatively painless sale. You must first look at the big things like plumbing, electrical, the roof etc. Are they all in good condition? These are key elements that purchasers look for when buying a home. You also must consider the costs involved in fixing up your home. Will you recover your costs or would it end up costing you money? A RE/MAX sales representative can help you evaluate what should be done and what should be left alone.
Click here for a list of things you can do to help make your home more "showable".
The Offer Presentation
As the seller you are in control. Your RE/MAX sales representative will present you with the offer from the prospective buyer. As the seller, you have the choice to accept, decline or counter the offer. By countering the offer you are basically asking them to keep the negotiations open with you. When faced with multiple offers, you choose the offer that you would like to work with. You may choose to accept a lower offer that comes in firm over accepting a higher offer that is conditional on the sale of the buyer's home. It is ultimately your decision, but your RE/MAX sales representative can guide you in making the best possible choice.
Before the Closing
You have accepted an offer on your home and have set a closing date. The buyer may have opted for a home inspection in his/her offer. In this case, a certified home inspector (hired by the buyer) will come into your home and check things like the plumbing, electrical, roof, etc., to let the buyer know of any potential problems with the house. The buyers mortgage company may send out an appraiser to ensure that the value of the house is worth the mortgage that they are granting. The buyer's lawyer will want to conduct a title search to ensure that the home is legally yours to sell. When you work with a RE/MAX sales representative, he/she will take care of all of this for you to ensure the smoothest transition possible. A few days before it closes you will go to your lawyers and sign the papers and give him your keys.
Closing Day
Although closing details vary from area to area, three basic steps are always taken. You, as the seller prove you have marketable title, the buyer pays for the property, and you give the buyer a deed or bill of sale. Settlement usually takes place in less than an hour.
Specifically, you sign the settlement papers and the deed. The buyer signs the settlement papers and mortgage note.
All payments by you and the buyer are detailed on standard federal settlement forms. You pay for your closing costs and the buyer pays whatever is owed on the down payment plus the buyer's closing costs.
You receive, either now or shortly after closing, any money kept in escrow for taxes and insurance and unused prepaid items, such as insurance. Disbursement of funds may be at settlement or within 7-10 working days, depending on local custom.
When all papers are signed and checks have changed hands, the buyer receives your keys. Your house is sold and the transaction officially settled when the papers are recorded.
Closing Costs
When selling a property, it is important to keep in mind that you may be responsible for the following costs:
Real Estate Commission
This amount is usually based on the sale price of the property and can differ from one brokerage to another. Be sure to ask your sales representative the amount commission he will be taking from the sale of your home.
Legal Fees
These fees can range from $500-$1200 depending on the lawyer and the amount of legal work that is required to complete the transaction.
Discharge of Mortgage
These fees will be specified in your mortgage agreement. Fees will include a legal fee and, if applicable, a penalty, which is sometimes equal to three months interest on the mortgage or based on an interest differential calculation.
Survey
If stipulated in the offer, you may have to provide a survey. This can cost between $600-$1000 and can often improve your chances of selling your house quickly.
The costs given above are approximations only. Contact a sales representative for a more accurate assessment.
Just Because Your House Has Sold, That Isn't the End
Chances are you've bought a new home, or are in the process of looking for one. While you already have experience with the home-buying process, our comprehensive Buyer's Section has all the information, calculators, work sheets, check lists and tips you need.