Key Group

5 TIPS FOR FIRST TIME HOME SELLERS

Selling a home for the first time can come with a lot of stress anxiety. There are lots of questions running through your mind since you want to get the best value for your home, but there are no guarantees that this is what is going to happen. Besides, the real estate industry is flooded with shark-like real estate agents who will take the slightest opportunity they find to exploit you should they realize that you are uninformed. If you are a first time home seller, use these tips to increase your chances of closing the sale with a better deal:

 

Have a realistic price for your home right from the beginning

Many first-time home sellers tend to be over-ambitious and price their homes slightly higher than the actual value or the market value of similar homes in their neighborhoods. This not only scares away potential buyers but also can also make the property stay on the market for a long time. When a property stays on the market for long without being sold, buyers tend to develop a negative perception towards it, and you may end up selling it a far much lower price.

 

Get the right agent

Some first-time home sellers think that using the realty services, such as an agent when selling their home is not necessary, or they may not want to pay the agent’s fees. But this is a misinformed notion since the agent will make the process easier and faster compared to doing it alone. They have the experience in the field and can advertise your home in the right places where it will attract the right kind of buyers. Additionally, they are knowledgeable about all the necessary paperwork and they will see to it that the sale is above board, and you are in compliance with all the necessary regulations and bring buyers to the table through their realtor network.

 

The ache for a home is in all of us, the safe place where we can go as we are and not be questioned.
MAYA ANGELOU

 

Be realistic about your home value

For first time home sellers, the idea of the first move can be a little daunting. You need to realize that there is no relationship between the assessed value and the actual market value of the home. You need to be prepared for this and have in mind that the value of your home is actually what buyers are willing to pay for it. You may need to do renovations and take care of valuations amidst other fees and these may not necessarily be reflected in the final sale value.

 

If you get an offer, move fast

The moment you get an acceptable offer from a potential buyer, and you agree to sign the contract, you need to start moving fast toward the closing. Many first-time sellers tend to underestimate the speed at which their house might sell, and it is imperative to have a plan in place so that you know where you will move to once the house is sold, again where an agent helps.

 

Only sell when you are ready to sell

Finally, if you are a first-time seller, only sell your house when you are ready. Start by determining where you will be headed to after the house is sold then look for a local agent in good time. Also, be sure to present your house in the best condition and at a fair market price.

YOUR HOME’S SOLD, CLOSING TIME

I always encourage clients to stay on good terms with the people who bought their home. Though the Buyers are legally obligated to close the deal, it is always nice to have a good relationship with them – what goes around, comes around. This can mean being as flexible as possible when the Buyers are arranging their access visits, be willing to consider a buyer offer to purchase some of your furniture and decor not included in the offer and getting back to them in a timely manner.

Here is a list of some more simple things you can do to make this a great experience for the Buyers:

• The most important thing is to leave your home in a broom swept condition. Many agents will even put this into the offer because sometimes people move out and leave a mess behind. Please plan ahead to have your home cleaned out before the Buyers move in. Some often-overlooked areas are closets, backyards, crawlspaces, garages and yes, the fridge.
• On a practical note, the Buyers will definitely need things like your old warranty papers (for your roof, heating/cooling system, appliances etc.) and contracts or receipts for work or services done on the property by you or by contractors within the last five years. These papers are typically left on the kitchen counter.
• Other items to leave for the Buyers include extra keys to doors, outside storage buildings, crawl spaces etc., garage door openers (if applicable) and the security alarm code if you have kept the alarm system going for them to assume when you leave.
• You can also help out by leaving the new Buyers some names and phone numbers of services you use, such as your alarm system company, auto mechanic, house cleaners, lawn/garden services – even your veterinarian and local dry cleaner.

Home is the nicest word there is. It’s not a place, it’s a feeling.
Ray Brown

 

In addition to reviewing your offer and preparing legal documents, your lawyer will also meet with you on closing day to fully execute all the documentation, receive your keys to hand over to the Buyer’s lawyer, and also carry out the exchange of documents and monies. Here are twelve things that your lawyer will do for you:

• Receive instructions from you about the sale of your property and discharge of your existing mortgage.
• Review the executed offer.
• Review and respond to the requests submitted by the Buyers’ lawyer.
• Prepare the Statement of Adjustments.
• Prepare the draft of the Transfer/Deed.
• Prepare all supporting sale documents.
• Forward a request for a mortgage discharge statement for any mortgages registered on title.
• Meet with you to execute all sale documentation and get your keys on closing.
• Attend to the closing and effect the exchange of documents & monies.
• Go to the registry office to discharge the executed Charge/Mortgage.
• Deliver the balance of the sale proceeds (if any) to the real estate office.
• Conduct all necessary correspondence and telephone conversations with any parties involved in this sale.

In order to help expedite the process, below is a list of some items your lawyer may ask for:

• The property Survey if available.
• Your Deed or Transfer of Land document.
• If you are selling a condo unit, the address & phone number of the Condominium Corporation.
• The keys to the property.
• The Agreement of Purchase and Sale .
• The correct spelling of your name(s), your address and telephone number.
• Your forwarding address, if known.
• Contact information for the Buyer’s lawyer.
• Your bank, financing & mortgage information (Mortgage reference number).
• Power of Attorney, if applicable.
• Copies of your most recent: property tax bill, water bill, cable bill, electricity bill, gas bill. If the home is oil-heated, you will be required to fill the tank as of the closing date (you will be credited for this on the closing adjustments).

 

 

When you are selling your home, closing day is a little different than when you are buying. As a Seller, you should have met with your lawyer a couple of days prior to closing. At this meeting, you will sign off the mortgage, the legal papers, and give a set of keys to your lawyer for the Buyers.

You will be notified by your lawyer when the property is officially closed. They will advise you when that the money and keys have changed hands, and the Buyers are registered on title.

Here are some things to keep in mind when choosing your Realtor:

• Go local – look for the top Realtor in the area you want to live in. Your Realtor should work in the area you want to move to – how else will they know what the local market is doing and what private opportunities might be under the radar?
• Check the agent’s track record of success over the years – a good Realtor should know their stats. Ask to see their client testimonials, and search the content of their website, which should give you a good idea of how the Realtor works for their clients.
• Choose an agent who often handles homes in your price range. If you are a first-time condo buyer, choosing an agent who primarily sells luxury homes means you may not be getting the market expertise, time or energy they would devote to someone with more money to spend.
• Call one of the agents on your short list and speak to them, or a member of their team. If you enjoy the conversation, then arrange to meet them in person to determine if they are the right fit for your unique needs and lifestyle. After the meeting, consider whether they seemed trustworthy, honest, realistic when discussing your home purchase, committed to you, motivated and knowledgeable.
• When it comes to real estate, two heads are better than one. If the agent you are considering works with a team, including a Buyer Specialist and administrative staff, you can usually be assured of a better experience. No successful Realtor can fill every role in the complex buying process, so although you might not be working with the team leader all the time, you are still getting the best of his/her expertise plus the rest of the team’s time and skill.
• Choose an agent who listens to what you want and who takes the time to explain things which are not clear to you. Ask questions.
• Ask what makes your Realtor’s service special; what distinguishes them from the other agents out there.
• Choose an agent who is available on your time schedule. If you are only available to look at homes on Sunday, and your agent does not work on weekends, then find one who can accommodate you. Ask what provisions are in place for when your Realtor is not available.

Make your experience a ‘one-stop-shop’! Your agent should be able to assist you with other necessary real estate services, such as arranging a house inspection, recommending a mortgage broker and finding a real estate lawyer.

SELLING YOUR HOME, TIME TO GET TO WORK!

Though cosmetic issues are not necessarily a sign of a badly maintained home, Buyers sometimes place a lot of emphasis on a property’s presentation. First time Buyers can be especially concerned with making such a big purchase and they want everything to be – or at least, to look – perfect. Your home’s exterior is the first thing potential Buyers are going to see, and if is dilapidated, it may turn them off before they even see the inside. First impressions, also known as “curb appeal”, definitely count for a lot.

Here are some things you can do to improve the look of your home’s exterior:

• Trim the shrubs.
• Mow the lawn.
• Remove dead tree limbs and other yard debris.
• Brighten up the garden with fresh shrubs or flowers.
• Remove clutter from stray toys and gardening equipment.
• Touch up peeling paint on doors, siding, and trim.
• Repair and/or paint any fencing.
• Fix damaged roof shingles and flashing.
• Clean outside windows and fix torn screens.
• Clean gutters and downspouts.
• Clear the driveway and sidewalk.
• Tidy up the garage and shed.
• Ensure outside lights and doorbells work.

Here are some simple things you can do to improve the look your home’s interior:

• Wash walls, ceilings, and trim.
• Every room should look as spacious, bright and warm as possible.
• Tighten loose knobs, towel racks, switch plates and outlet covers.
• Fix tight doors and windows, squeaky floorboards and loose stair banisters.
• Clean and repair caulking around tubs and sinks.
• Fix leaky faucets; remove water stains.
• Clean and organize the basement and attic. (This is a good time to throw out all the stuff you do not want to move.)
• Organize your closets. Get rid of the clutter and limit the number of items stored overhead or on the floor.
• Clean out kitchen cabinets and remove clutter from counter-tops.
• Shampoo carpets and polish floors.
• Arrange furniture to make rooms appear as spacious as possible.

 

 

Along with the cosmetic issues, you can also do some renovating to increase your property’s value. According to Canadian surveys, the top three renovations that return the best increase on your investment are:

1. Bathrooms (75 to 100% return)
2. Kitchens (75 to 100% return)
3. Interior and exterior painting (50 to 100% return)

These renovations would be the top recommendations for return on investment for your home:

• Replacing roof shingles (50% to 80%)
• Replacing the furnace and heating system (50% to 80%)
• Renovating the basement (50% to 75%)
• Adding a recreation room (50% to 75%)
• Installing a fireplace (50 to 75%)
• Up-grading floors (50 to 75%)
• Building a garage (50 to 75%)
• Replacing windows and doors (50 to 75%)
• Building a deck (50 to 75%)
• Installing central air conditioning (25 to 75%)

Keep in mind though, that not every home needs to be renovated or updated for a successful sale. Some Buyers like to do their own home renovations and are looking for a “blank canvas” to work with. If you have accumulated a lot of clutter over the years, be prepared to rent a storage locker or POD in which to store some of your belongings during the sale of your home. Other options are to hold a yard sale or give generously to charity.

Here are some of the areas you will want to tidy up to improve your home’s presentation:

• Kitchen counters and cupboards.
• Bathroom counters, shelves, and cupboards.
• Closets.
• Surfaces like coffee tables, desks, window ledges, any open shelving.

Surveys of Canadian home buyers suggest that Buyers are willing to spend time and money decorating to their tastes once they have moved in, so there is little need to purchase expensive decor that the Buyers may just eliminate later.

The best times to consider staging and decorating are:

• When the home is very dated, to the point that existing furniture detracts from the home itself.
• When an investment property has been tenanted and the common areas are poorly maintained (if the tenant’s consent to having their space changed temporarily of course).

When the property is vacant. Just as clutter can overwhelm potential buyers, so can total emptiness – it can be hard to get a good idea of room sizes without furniture to show what will fit inside. This is especially true of smaller condo units where furniture can provide a frame of reference, showing what you can do with the space.

THE HOME LISTING PROCESS

Once you have decided to list your property for sale, you can count on an agent to:

• Put your home on the market in a timely manner. My team is highly organized and prepared to work intensively for you to meet your timelines.
• Take care of all the paperwork and organize all the details, from staggers to professional photographers and floor plans.
• Advise you about your legal rights, sale options, and obligations.
• Check in with you frequently to advise you on what is happening behind the scenes, provide feedback from showings and keep you updated on what is being done on an ongoing basis to actively market your property.
• Negotiate offers to get you the best price and the best terms.

Real estate never stops, homes can be sold over the Christmas holidays and even in traditionally slower months, like August. Though spring and fall are the most active seasons for real estate, in the summer and winter there are usually fewer homes for sale to accommodate the needs of Buyers, so your property would have more exposure. Going a little bit against the grain has helped clients in the past, but we will look at all factors, keeping your ultimate goals and timelines in mind, and determine the best time for you to sell.

In order to put your home on the market, legal documents will come into play. The most important of these is the Listing Agreement, which is a contract between you and the brokerage. It will:

• Clearly spell out the rights and obligations of all parties, the length of the agreement, and the compensation (commission rate).
• Set the listing price.

The second major form is the MLS Data Form for putting your home on the Multiple Listings Service (exclusive agreements are different, used less often, and may be appropriate in some cases.) The MLS data form will:

• Accurately describe the property (including lot size, building size, style, and materials, floor areas, heating/cooling systems, room sizes, and descriptions)
• Detail what is, and what is not, included in the sale. As a general rule, fixtures are included; chattels, things which are movable, are not, but each transaction is unique, so take some time to decide what you would like to do.
• Provide information about annual property taxes, and note any easements, rights of way, liens or charges against the property.

 

 

In addition to these documents, there are other forms to spell out in writing your preferences about showings, offer dates, and other important items. These documents are binding for us both, so we will go over them very carefully before you sign anything! Of course, you will receive copies of all the signed documents for your records.

There are also some things an agent will need from you, including:

• Plan of survey or sketch showing the lot size, location of buildings and any encroachments from neighboring properties. You should hopefully have this from when you bought your property. Not to worry if you do not – most offers do not hinge upon a survey.
• Property tax receipts. The Listing Agreement will include information about your annual property tax assessments, so I will need to verify your taxes with a receipt.
• Mortgage verification. Details about your mortgage provided by a mortgage lender upon your authorization.
• Other documentation such as annual heating bills, water and sewage costs, electricity bills and recent expenditures on home improvements.
• Fintrac documents – I will need some of your personal information like date of birth and ID to verify for the Federal listing requirements.

You should receive copies of all the above and return the originals to you. You should receive a custom marketing plan that will give your property the maximum exposure and attention it deserves. Some of the ways a client’s property is marketed include:

• A feature spot on the front page of my very high-ranking website.
• Thorough, accurate MLS listing with pictures, text and details.
• Full-colour feature sheets that are offered to all prospective Buyers.
• Professional floor plans that are both accurate and attractive
• Professional photography capturing your home in its best light.
• High profile For Sale sign for freehold homes.
• Using my vast online social network.
• Just Listed cards mailed to the neighborhood.
• Advertisements in print media such as the Globe and Mail, National Post, Post City Magazines and others.

For some homes, an agent can even arrange cleaning, painting, formal staging and/or even a pre-sale home inspection from a qualified inspector so your home’s condition is honestly disclosed to potential Buyers. Make sure to discuss which extras your home may need, as well my full list of advertising options. You will always be informed about what actions are being taken to sell your home, and receive regular progress updates regarding feedback from showings and other interest on your home. Be sure to keep you up-to-date on the sales of other homes in the area to keep you informed.

During the listing period, your house should be ready to show at all times – meaning clean and clutter-free. Remember that those last minute touches before someone come’s to view your home can make all the difference:

• Turn on all the lights, even during the day, and open all the drapes and blinds.
• Turn off the TV and play soft music.
• If you can, ask friends to look after your pets or remove them for showings. Some people may be allergic, others may be afraid of animals.
• You may be used to the smell of cigarette smoke and pet or food odors over time; others walking into your home, are not! Smell is very important and odors should be aired out with fabrics and surfaces cleaned, not just sprayed.
• Leave windows and mirrors sparkling.
• Set out fresh flowers, hang decorative towels in the bathroom, and make sure couch cushions are straightened.

If possible: leave! Some Buyers are uncomfortable when the owner is in the house. In their hurry to get away, they may miss important features, or fail to ask important questions. They want to be able to talk freely about how they feel about your home and they may not want to say these things in front of you. If you must remain, be courteous, but try to stay in another part of the house and do not make conversation. The Buyer’s Realtor knows what the Buyer is looking for and can discuss features and answer questions.

SO IT’S TIME TO SELL

Are you thinking about selling your home but wondering if the right time is now? To help you determine if it is I have used my years of real estate experience, plus that of the brokerage team, to put together a guide to walk you through the steps of selling your property and give you the tools you need to make this important decision.

First of all, you need to know that local market conditions will have the most impact on the amount of money you can get for your property and how quickly you can sell it. You may put a price on your home, but the market is what really prices your home.

Under any circumstances, selling a home can be a stressful process, emotionally, financially and physically. To help ease this stress, I am here to counsel you through the sale with the wisdom I have gained from experience, saving you incalculable aggravation and money. I know your neighbourhood, what Buyers want in a home, how to negotiate the best price and how to close the deal for you. Together, we can make the sale of your property easy and worry-free – and it all begins with you.