How to Sell Your Property
Price Your Property
The most important decision you will make with your listing agent is determining the right asking price for your property in the current market conditions.
The Benefits of Pricing Right
- Your property sells faster, because it is exposed to more qualified buyers.
- Your home doesn’t lose it’s “marketability”.
- The closer to market value, the higher the potential volume of offers received.
- A well-priced property can generate competing offers.
- The real estate community will be enthusiastic about presenting your property to buyers.
The Result of Overpricing
Many sellers believe that if they price their home high initially, they can lower it later.
Often, when a home is priced to high, it experiences little activity. Gradually, the price will come down to market value, but by that time it’s been for sale too long and some buyers will be wary and reject the property.
You may think that interested buyers “can always make an offer”, but if the home is over-priced, potential buyers looking in a lower price range will never see it.
On occasion, the price is dropped below market value because the seller runs out of time. The property sells for less than what it’s worth.
The Importance of Early Activity
As soon as a home comes on the market, there is a flurry of activity surrounding it. This is the crucial time when potential buyers sit up and take notice.
If the home is overpriced, it doesn’t take to long for interested parties to move on. By the time the price drops, a majority of buyers are lost.
Define Your Marketing Plan
Your property is not something you sell every day. In fact, for most people it is their largest asset. A house is very complex to market and the process needs to be well organized. To do this job properly, a plan is needed.
Your listing agent can prepare a personalized plan for you containing all activities required to market your property, including listing on the MLS, creating marketing materials, traditional and online advertising, and networking with other members of the real estate community.
Signing a Listing Agreement
The first formal step in marketing your property is to enter into a Listing Agreement – a contract that commits your Realtor to actively market your home for a specified period of time. It also commits you to a pre-established marketing fee that is to be paid upon the succcessful closing of the sale. Your Realtor may require the following documents:
- Plan of Survey of Location Certificates – a survey of your property that outlines the lot size and location of buildings as well as details of encroachments from neighbouring properties.
- Property Tax Receipts – most listings require that the current annual property tax assessments be shown.
- Other Documentation – this may include annual heating, electrical and water expenses, as well as any recent home improvement costs. Note: In many provinces, you will be required to sign a property condition disclosure statement.
The Major Elements of an Offer
Depending on the market and the local conditions, the price offered may differ from the asking price.
The deposit shows 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 deposit being offered.
Includes the total price the buyer is offering, as well as the financing details. The buyer may be arranging their own financing or may ask to assume your existing mortgage if you have an attractive rate.
Offers can be “firm” which means that buyers are willing to buy the home exactly as it is. Or, the offer could be “conditional” on things like property inspection, approval of financing or the sale of their existing home. The home may not be sold until all agreed upon conditions have been met.
Inclusions and Exclusions
These might include appliances and certain fixtures or decorative items which would be included (or excluded) in the purchase of a property, such as window coverings, light fixtures, or mirrors.
Closing or Possession Date
Generally, the day the title of the property is legally transferred and the transaction of funds is finalized, unless otherwise stated. The regulations surrounding closing and possession dates varies by province which your Realtor will know.