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For Sale By Owner
The virtue of self-reliance is a wonderful quality, except if you are trying to sell your own home. Here such a "virtue" can cost you time, effort and possibly money.
The overwhelming majority of homes that sell are listed with a Realtor, so you will be going against significant odds if you decide to sell your own home. The experience of a real estate professional may get you a better price and help you to avoid all the little things that can go wrong in a real estate transaction.
The desire to save the commission on a property is the reason most people decide not to work with a Realtor. Prospective Buyers who look for properties that are "For Sale By Owner" (FSBOs) are also wanting to avoid the commission, and to get a " less than market value" deal. However, nothing is saved in the majority of FSBOs. Listing your home with a real estate professional can save you money, spare you the inconvenience of showing your home, and save you the time you would spend talking to Buyers who could not qualify for a loan.
Working With A Realtor
It is not unusual for homeowners to yield to the temptation to try to sell their own home. It seems easy enough, just place an ad in the weekend paper and wait for Buyers to show up. Although it may seem easy, real estate sales are extremely complicated transactions.
The first pitfall can come with pricing your property realistically. Homeowners often price their property too high initially, then, in a panic, drastically slash the price. Even if a Buyer agrees to the initial asking price, there could be trouble if the Buyers begin to feel that they have agreed to pay too much or if the lender's appraisal values the property at far less than the agreed-upon price. Homeowners will often hire a Realtor to market their home professionally after weeks or months of trying to sell their home, or after their transaction fell through.
Renting Your Home
Homeowners who don't need the equity from their home to purchase a new home may consider renting it instead of selling. Rental property is almost always a good investment, but you should understand the consequences of becoming a landlord.
Tenants may not share your pride of ownership and therefore, may not maintain the property like you would. If you plan to rent your property, acquaint yourself with local Bylaws and Provincial landlord/tenant laws, including those dealing with rent increases and eviction procedures. Get professional advice from a tax expert and a professional Realtor before you decide to turn your home into rental property.
No Risk Listing
You have decided to move, but you are afraid to put your present home on the market until you have found a new one and completed purchase negotiations. You have found that most Sellers are reluctant to finalize offers from Buyers who must include a "Subject to Sale" clause for the sale of their current home.
If you are in such a dilemma, the first step is to contact a professional Realtor. The Realtor can show you how to list your home without the risk of putting your family out on the street. When you have a firm "Contract of Purchase and Sale " from a qualified Buyer, your offer will become much more attractive to Sellers, and when you do find the perfect home, you will greatly increase your negotiating power, perhaps resulting in a lower price.
Market Conditions
If you are going to sell your present home, the market conditions will play a crucial role in determining the asking price. Market conditions change constantly, so it is important that you get solid advice from a professional who is familiar with your specific area.
A good Realtor will know how houses in your area are selling, as well as the other factors that may influence the sale. Nearby commercial development, which may create congestion and noise, may also mean a greater demand for housing from people who will be working in there. A new bus route that cuts commuting time could make your home more valuable and highways close by can be an issue with the price. Economic conditions have a strong impact on the real estate market. Real estate professionals can help you consider all of the issues and assist you in setting a fair price for your home.
Taking It With You
Before you list your home for sale, take a careful look around. Are there some items you will want to take with you? There may be a dining room chandelier that has been in your family for three generations, a ceiling fan in the master bedroom, or the bookcases in the den that look built-in but are not.
Normally all fixtures are conveyed to the new owners when a house is sold. This includes anything that is attached to walls or ceilings and, in some cases, major appliances that are installed in the house. If you have fixtures that you don't want to leave, tell your Realtor what you want excluded from the "Contract of Purchase and Sale" at the time you list your property for sale. If it is convenient, it is best to remove any light fixtures or ceiling fans you plan to take with you and replace them before the property is shown to prospective Buyers. Your Realtor should ensure these items are excluded on the "Contract of Purchase and Sale" and also, that they are noted on your "Feature Sheets " and "Listing" to ensure that they will not become an issue when a Buyer makes an offer.
First Impressions
Good curb appeal is a major plus when we market a home. A little bit of work on the front of your home can pay big dividends.
When a potential Buyer pulls up in front of your house, their first impression is absolutely crucial. Sometimes Buyers won't even look at a home with droopy shutters, sagging gutters, peeling paint and a bumper crop of dandelions in the front yard. Or they might go in expecting to find a "fixer-upper" that could be purchased at a bargain price. If a house looks neat and cared for from the street, the initial good impression will carry over as the Buyers step inside.
It is not necessary to hire a professional landscaper, but listen to your Realtor's suggestions when you list your home. Local nurseries can help you select blooming plants that will thrive in your area. Keep the lawn mowed, and regardless of the season, take care of exterior maintenance. Strong curb appeal will help your home sell more quickly and for top dollar.
Dress For Success
Looking good is important when you want to make a great impression, whether for a job interview or a social function. The same is true of a home that is on the market. When the "For Sale" sign goes up in front of your home, it should be "dressed" for the occasion.
Since the first impression will be of the front of the house, a well-groomed exterior is crucial, from the landscaping to the paint. The interior of your home should be clean and tastefully decorated. Take care of any minor cosmetic repairs that are needed, such as cracked plaster or peeling paint. A sparkling kitchen and shiny bathrooms, clean windows, and the absence of clutter will help your home "show well". Keeping your home looking good at all times is hard work, especially if you have children and are packing for a move. The dividends are impressive, however, because a home that looks well cared for has an excellent chance of selling faster and for top dollar.
A Sparkling Kitchen
There's no doubt about it, the kitchen is one of the most important rooms in the whole house for many prospective Buyers. Smart Sellers will take a close look at how they can make their kitchen a real asset when it is time to sell.
Your kitchen doesn't need to be state-of-the-art to be attractive. The first step toward enhancing your kitchen's appeal is a thorough cleaning. This includes the walls, cabinets (inside and out), floors, and appliances. Keep the counter tops as clear as possible of small appliances and gadgets. Consider low-cost improvements which can make a big difference, such as a coat of paint, fresh wallpaper, or new floor covering. Be sure to keep the kitchen sparkling when the house is being shown. This means no dirty dishes in the sink or moldy cucumbers in the refrigerator.
Home Scents
Prospective Buyers may react strongly to the way a home smells. Smoke, strong disinfectants, insecticides, kitty litter, and french fries have all been known to dampen the enthusiasm of Buyers who might otherwise respond positively to a house that would meet their needs.
Be sure that your home passes the sniff test when it is on the market. Smoke and pets are the biggest offenders. Consider a temporary smoking ban in your home while your home is on the market. If you have a cat box, be meticulous about cleaning it. If your new puppy has ruined a chair, get rid of the chair. There are cleaning services which specialize in odor removal. They may suggest carpet steaming and other techniques to remove the offensive odor. Even if Buyers smoke themselves or have pets, they will react differently to the same odors lingering in a home they are considering.
Listing Price
Pricing a house is the most important part of the marketing process. You want to get as much for the property as you can, but if you set the price too high, you can frighten off qualified purchasers. Your Realtor can tell you the selling price of homes similar to yours. Pricing strategy depends on market conditions, and it is different in a Buyers' market than it is in a Sellers' market.
If your home is overpriced, the marketplace will reflect that to you. When a property fails to sell in a reasonable period of time, you and your Realtor should have a frank discussion to determine whether too high a price tag is the reason. Your Realtor will also be getting feedback from other Realtors who have shown your home. Remember that price is only one factor. You might consider ways you can make the property easier for Realtors to show or make cosmetic fix-ups that are needed. You should also discuss the current market conditions. The problem may be some combination of factors, including an overly optimistic asking price.
Marketing
When you list your home for sale, you and your Realtor must work as partners to ensure it sells as quickly as possible, for top dollar. While you take the necessary steps to make your property look good inside and out, your Realtor will go to work to make sure your home is exposed to as many qualified Buyers as possible.
Realtors work with each Seller to develop a successful marketing plan. This enables you to know what your Realtor is doing to sell your home and what you can expect to happen while your property is on the market. Your Realtor will also make suggestions on how to make your home sell. There should be regular communication between you and your Realtor from the day the listing agreement is signed. Your Realtor will give you progress reports and feedback from the people who have seen your home. You will also have frequent opportunities to ask questions and discuss changes in the marketing strategy.
Multiple Listing Service
When you list your house with a Realtor who participates in the "Multiple Listing Service" (MLS), you get a lot of service for your money. Depending upon the MLS region, there may be hundreds of participating members.
The Realtor who lists your home works hard to get it sold. This is done by marketing directly to home Buyers, but an even more powerful tool is marketing your home to other Realtors who may have potential Buyers. Your Realtor makes all the crucial information about your home available to the other members through the MLS, such as location, square footage, number of rooms, style of architecture, what personal property is included, and any other special features. The MLS description will also contain information about any special financing that might be available, tax and assessment info, showing instructions, and special needs you may have with respect to closing. It is a powerful tool for real estate matchmakers.
Help Your Realtor
Once your home is listed for sale, it may be difficult for you to step aside and let your agent take over. When prospective Buyers arrive, you may want to stand by to point out the closet extenders, the hidden spice cabinet behind the kitchen door, the energy-saving windows or the updated copper plumbing. If you really want to help, however, you will leave the house whenever it is being shown. Be sure to leave your home tidy and all lights turned on for all showings. You want any potential Buyers to see your home at its best !
Often the sales process does not really begin until Buyers have begun to voice their objections about a property. Sometimes these concerns are serious enough to remove your house from consideration. Sometimes, however, people voice objections as a defense mechanism because they really love the house and they want to buy it. Your Realtor is trained to know the difference. If a Seller is standing at the Realtor's elbow, the Buyer won't be comfortable enough to let this process take place, and you could lose the sale. The best way to help, is to give your Realtor the room to do their job.
The First Offer
Often the first offer to come in is the best one. When a house is fresh on the market, there is usually a rush of activity and the Buyers who see it during the first few days are those most likely to be the most interested. If you are fortunate enough to get an offer right away, you will probably be better off in the long run if you accept it, or work with it to negotiate an acceptable offer.
Sold
Some things are hard to measure, and others are easy. Success in a real estate sale is easy to determine. It occurs when the "SOLD" sign is in your front yard. And having that occur as quickly as possible is the ultimate goal.
You have undoubtedly heard that old saying about the "hard way" and the "easy way" to do something. The hard way to get the "SOLD" sign up is to try and sell it yourself. And the easy way is to use the services of a sales professional, someone who is not only trained to get it sold quickly, but to get as much for your home as the market will bear.
Remember, the Realtor doesn't get paid until your home is "SOLD". And the amount they earn in commission is dependent upon the amount of the sale. That's a lot of genuine motivation to get the job done right.
Moving Companies
Contacting different moving companies is one of the first steps in moving to a new house. You will find a variety of service options and price ranges from which to choose, whether you are moving across town or thousands of miles across country.
Call several companies for estimates. Ask each company exactly how their charges are calculated and what is included. How much insurance is included in the estimate? What is the cost for additional coverage? Are there special provisions for fragile or unusually valuable items? Is the delivery date guaranteed? If economizing is important, ask if there are ways to cut down on the bill by providing your own boxes and packing yourself. Household movers are competitive, and comparison shopping can help you get the best value for your moving dollars
You and Your Realtor
Real estate transactions are complicated and unpredictable. Professional Realtors are trained to handle the many facets of buying a home. A good Realtor is an invaluable asset to your venture if you are in the market for a house.
When you find a Realtor with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that Realtor to become truly intimate with your needs, desires, and financial capabilities.
Maintaining loyalty to the Realtor of your choice will bear you more fruit than scattering your attention among several Realtors. A Realtor who earns your trust and commitment will devote his or her entire energy to finding the right home for you.
Avoid Mistakes
When you buy your first home, you want the best advice you can get. You want to show the house to friends and relatives before you commit. They will probably tell you about all of the things that went wrong during their own transactions so you can avoid the same mistakes. These experts all have good intentions, but so much advice can put you into a state of high anxiety.
Real estate transactions are very complex, and difficulties can arise. If you are buying your home with the help of a professional Realtor, they will know how to make sure that any minor upsets do not turn into major problems. A Realtor's expertise is based on formal training and experience in many real estate transactions. Their reputation is on the line with each sale, so they are highly motivated to make your purchase or sale go as smoothly as possible. When you are dealing with a professional Realtor, you can worry about what might go wrong if you wish, but you don't have to!
See The Potential
Most Sellers know that Buyers are attracted to homes that are spotlessly clean, well maintained and tastefully decorated. Sometimes the Seller can't make the extra effort to prepare the home for showing. Some of our listings are being sold to settle estates or by someone who has been transferred unexpectedly and didn't have time to complete the necessary cosmetic repairs. Homes that need work are often exceptional values.
When a Realtor shows you a house that needs help, try to imagine how it would look with new carpet, a fresh coat of paint and your furniture settled inside. Because the condition and overall appeal of a house have such an impact on the selling price, "fixer-uppers" are often priced less than comparable homes. If the home is structurally sound and has updated systems, a small investment of "elbow grease" and paint could make it look fabulous.
Over Priced ?
Your Realtor has shown you a house that you like a lot. There is only one problem, the price seems too high. In a situation like this, you can still make an offer that you feel is appropriate.
The Realtor cannot tell you how much to offer but can give you information about the selling prices of similar homes in the area. The Realtor will present your offer to the Sellers. They have three choices, they can accept, reject, or counter your offer. If the house is a new listing, or if your offer is very low, they may decide to hold out for something better. Sellers frequently build a little negotiating room into their asking price. Prices that are not negotiable at the beginning of a listing period may become flexible as time goes on. If you want to test the Sellers flexibility, make them an offer.
Home Improvements
You have found an almost perfect house, the right number of bedrooms and baths, a wonderful family room, a great back yard. Your pulse rate increases as you imagine your furniture in the living room, your "excess" neatly stored in the huge attic, and your tulip bulbs blooming in the garden. However, the kitchen looks like the original one and it was built long before conveniences like dishwashers or microwaves.
If you have fallen in love with a house with an ugly kitchen, you should consider renovating it. Contact a contractor for expert advice and an estimate before making an offer . Renovating a kitchen can be a major undertaking, especially if you move walls around. By installing new appliances, cabinets, and flooring into the existing space, it can be done in a shorter period of time and for a small fraction of the cost. Kitchen improvements are considered excellent investments.
Renovation Finance
Buying an old house to fix up has an attraction for many people. If you can find a house with charm and character, a renovation may enable you to create just the living environment that you want. You should start with a good Realtor to help you locate the right house and recommend Lenders who make both acquisition and construction loans.
Financing a renovation is perhaps the most difficult part of the whole project, especially if the house needs extensive work. You should prepare for your loan application by having a written proposal. It helps to have an engineer's report or architectural plans and to include estimates from contractors covering the costs and timetables for the work to be done. Your Realtor can help you put together a market analysis of the neighborhood to show that you will not be over-improving the property compared with other homes in the area. Keep in mind that there are some properties that can simply not be financed.
Making An Offer
When you find the right home, what can you do to maximize your chances of actually getting it? The first step you should take is to make a prompt offer.
Whether you are in a Buyers or Sellers market, taking too much time to initiate an offer can cost you money, especially if you are planning to offer less than the asking price or will be asking for special terms. If your offer is the only one on the table, the Sellers will consider it, and if they don't accept it, they may make a good counter offer. While you are "sleeping on it", however, you risk the possibility of another offer coming in. If another Buyer appears on the scene, you lose an important advantage if you and the Sellers are going back and forth with offers and counter offers. If you really want that special house, make the best offer you can, as quickly as possible.
Presenting Offers
Many of the offers Realtors present for prospective Buyers aren't exactly what the Sellers want, the price may be lower than they are asking or there might be terms that will require negotiation. What happens after the offer is submitted?
Your Realtor will present the offer to the Sellers, and the Sellers Realtor will then discuss your offer and advise the Sellers on all pertinent market conditions. If the Sellers accept the offer, you then have a "Contract of Purchase and Sale" agreement. If the Sellers counter the offer, the next action would be initiated by the Buyers. If you want to buy a particular house, your chances of succeeding are greater if your offer is as close to fair market value as possible. You could save money by engaging in lengthy negotiations, but you run the risk of losing the home if another offer comes in or you risk offending the Seller.
Clean Contracts
"Clean" is a term that is often used to describe an offer on a house. A "clean" offer does not refer to the price of the house, but to the terms of the agreement. If you really want a particular house, the "cleaner" you can make your offer, the better.
What are the characteristics of a clean contract? A contract is considered "clean" if the Buyers are paying cash or are clearly qualified for a mortgage, the sale isn't subject to the sale of another home, the Buyers don't ask the Sellers to carry any of the financing, and if the closing date coincides with the Sellers' needs. A clean contract doesn't have any unusual requests for repairs or insistence that certain items remain that would not ordinarily stay in the house. A clean offer has an important competitive edge if you are offering less than full price or if you are in a situation where there is more than one offer on the property.
Buyers Remorse
When you sign a "Contract of Purchase and Sale" agreement on a new home, you will almost certainly feel an incredibly intense attack of panic and anxiety. Did I pay too much? Is it really the right one? How can I ever pay the enormous mortgage payments? How can I get out of it? This response, referred to as "Buyers Remorse", is completely normal !
When you feel such anxiety coming on, call your friends who have owned a home for a few years. Are they bothered by rapidly escalating prices? Not at all! That means the value of their home is going up, too. While their mortgage payments seemed high at first, they are now probably less than renting a smaller home. There is also the pride of ownership as improvements are made to the property. Did they feel anxious when they first signed the agreement? They felt just as anxious as you feel, but they are really glad that they went through with it. If you experience "Buyers Remorse", hang in there, you will be glad you did!
Making Choices
Buying a home isn't easy. You may have a good idea of what you want and how much you want to spend, but your search produces a wide array of homes on the market and a bewildering set of financing options.
A Realtor's obligation is to minimize the confusion and help match you to the best home for your needs and financial situation. Your Realtor will listen to your requirements and eliminate from consideration the properties that aren't suitable for you. If there is a gap between your taste and how much you feel comfortable spending, your Realtor can help you decide where to compromise and can suggest alternative financing plans to increase your buying power. When you have selected a home, your next step is to find a Lender, a Legal Representative, a qualified Home Inspector, and often a Septic System Inspector.
Mortgage Shopping
The most important thing to look for when you are shopping for a mortgage is the interest rate, right? Not necessarily. There are many other factors to consider, including the Lender's charges for making the loan, the terms under which the loan will be approved, and the Lender's reputation for timely completion of loan applications to meet purchase agreement deadlines.
When Realtors are involved in sales transactions, they can't tell Buyers which mortgage companies to use. They can however, provide the names of established Lenders who have provided good service to their past clients. They can give general information about the different mortgage options that are available today. Using a low interest rate as the main criteria for choosing a mortgage could cost you money, and perhaps the home you want, if the company cannot deliver on its' promises. Choosing the right mortgage person is very important, talk to your Realtor.
Your Credit Rating
Applying for a mortgage loan brings out the paranoia in everyone, even those who are most compulsive and consistent about paying their bills on time. Remember that the Lender wants your business and will do everything possible to help finalize your home purchase.
There will be nothing to worry about if you have paid your bills more or less on time. If you have a record of late payments but no serious credit problems, you may have to provide the Lender with a written explanation of why certain payments were late. Regardless of your credit history it will help to sit down with a Lender and get a mortgage " pre-approval" before house hunting. Ask your Realtor for suggestions. Your lender can probably help you work things out if your problems are not serious.
Legal Representation
Lawyers and Notary Publics both do fine work, but prices can vary greatly depending on location and expenses. Ask your Realtor for names of several who have aided past clients and call each to make sure you choose one that you are comfortable with and one who will represent your best interests.
Home Inspections
You found the house of your dreams and it looks perfect! Many Buyers in their excitement, feel that a home inspection is not necessary. When represented by a professional Realtor, your contract should include a "subject to home inspection " clause. Even new homes can have flaws. Knowledge of these flaws is for the purpose of increasing the longevity of your home through immediate correction and regular maintenance. Sometimes the flaw reflects an item which constitutes a safety risk or requires a significant dollar amount to repair. Do you ask the Seller to pay for the repairs ?Before you answer "yes", there are some important considerations.
When purchasing a home you expect all the systems, such as plumbing, heating, electrical and central air conditioning, to be in working order. In this case, the Sellers may be obligated to repair any problems with these systems. Leaky roofs, damp basements, or other structural problems may not be covered, however. If you ask the Sellers to make these types of repairs, you may void the contract by doing so. As a Buyer, you may prefer to renegotiate the purchase price. If there are other Buyers waiting in the wings with back-up offers, however, you run the risk of losing the home. There are many alternatives and you will need to rely on a professional Realtor to advise you in order to make the best decision.
The Home Inspector
How do you find the right inspector? Look for an expert on pre-purchase home inspections, not simply a renovation contractor or a friend who can tell copper from galvanized pipes. There are specialists in most cities, or you can obtain a list from a Realtor. Ask for recommendations from friends who have recently purchased homes. Your realtor can supply you with the names of several local inspection companies. Most inspectors have some background in building or engineering, and have had additional training related specifically to residences. Call several companies, and ask about the background and training of the staff, as well as their rates.
Deadlines
Both Buyer and Seller should be aware of all of the deadlines in their purchase agreement. Each contract is different, but there are usually time limits covering the home inspection, the financing approval, the title search, the property disclosure statement, and the closing date.
If you are careless, you could lose your offer. Failure to receive a mortgage commitment on time may cost you a chance at owning your dream home. In many cases, the " Contract of Purchase and Sale "agreement can be declared null and void if subjects are not removed within the time frame set forth in the contract. A delayed closing can cost the Sellers money, and they may ask the Buyer to reimburse these expenses. It is your Realtor's obligation to make sure all deadlines are met and the contract proceeds to complete smoothly.
Closing Costs
When you buy a home, you will pay "closing costs" in addition to the down payment. These costs may include the land transfer tax, title search, legal fees, and other charges imposed by the lender. These charges vary, but they usually represent a considerable amount of money and you will need an approximation of these costs in advance.
When you begin your search for a new home, your Realtor can give you information about the closing costs in your area. You can use this information as a guideline. When you apply for your loan, the lender can provide you with a estimate of the closing costs. This figure is usually very close to the actual amount, since the sales contract will have the price and terms of your new home spelled out. As the closing approaches, your legal Representative will give you a final figure for the cheque that you need on closing day.
Moving Day
The closing on the sale of your home is Friday 12:00 noon, and at that same time you are to complete the transaction on the house you are buying. Your Sellers are completing the purchase of their new house on Monday. As Sellers, each of you is obligated to leave your house vacant and clean at the time of the closing, and you will take possession of the home you are buying after a funds transfer and registration is complete.
If you are faced with a game of musical moving vans, you may want to consider bridge financing to allow you to take possession of your new home a few days before closing on your current home. This way you can move your possessions at a time which suits you best. This can be costly depending on the mortgage amount and the length of time for which the bridging financing is needed. Ask your Lender to work out costs for you. If you need to make special arrangements for your move, let your Realtor know and work out the details as early as possible before the closing .The actual time of day that you take possession of your new home can vary and is dependent on the time of registration. Your Realtor will advise you when the keys to your new home will be available.
Are You Curious
Perhaps you have no plans to buy or sell a home right now, but you are curious about your possibilities. Real estate professionals can answer any questions you may have about the ins and outs of real estate. We can provide you with information to help you make a decision.
We will discuss the local real estate market with you and help you determine whether it is a good time for you to buy or sell. If you are a first-time Buyer, you may have questions about legal descriptions, zoning bylaws, sources of financing, etc. You may be curious about how sales prices are determined. A Realtor's job is diverse, and the best Realtors are excellent sources of information. Each day I am actively involved with Mortgage Lenders, Lawyers, Inspectors and city planning departments.
Finding the right Realtor is like finding the right Physician. The help of a professional can help satisfy your curiosity. Please call me today with your Real Estate questions.
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