Homes in HRM
Your home for Real Estate Services within
the Halifax Regional Municipality!
Sheila Banser
Phone: 902.830.8757
Fax: 902.455.6738
E-mail: sheilabanser@royallepage.ca
General Real Estate Articles
Information
from CREA for Sellers
In today's market, many homeowners have considered "going it alone"
and selling their homes without the help of a REALTOR® to "save the
commission." However, once they realize how complex and intimidating
a real estate transaction can be, many people reconsider and enlist the
services of a REALTOR®. There are more than 145 steps to complete a real
estate transaction. It requires an organized, step-by-step approach that
many homeowners just don't have the time, skill or experience to carry
out.
A REALTOR® provides a variety of services including help in setting a
listing price within current market guidelines. They develop a marketing
plan, offer recommendations and advice to make your home more attractive
and "saleable," and act on your behalf during negotiations to
ensure your interests are protected.
Another advantage of working with a REALTOR® is the far-reaching market
exposure your home will receive through the Multiple Listing Service®
(MLS®). This co-operative marketing system relays information about your
home to a vast network of REALTORS® and therefore, potential homebuyers
in your market. The greater the exposure your home receives, the more
likely you are to find a buyer willing to pay your price.
Selling your home is not a simple procedure. It involves large sums of
money, stringent legal requirements and the potential for costly mistakes.
A REALTOR® is committed to spending the time it takes to help you sell
your home in the least amount of time and for the best possible price.
A REALTOR® must disclose to you in writing, who exactly they represent
in any real estate deal. A REALTOR® may represent a buyer or a seller;
they may also represent both buyer and seller in the same transaction.
Your listing REALTOR® is, in law, your agent. An agent owes his or her
client the duties of utmost care, integrity, confidentiality and loyalty.
Make sure you discuss agency with your listing REALTOR®.
The process of selling a home with a REALTOR® starts with the Listing
Agreement. It's a contract between you and the brokerage company that
the agent represents. It is a framework for subsequent forms and negotiations.
It's important the agreement accurately reflects your property details
and clearly spells out the rights and obligations of all parties. Both
you and the listing agent sign the listing agreement and each receive
a copy. The agreement binds both parties to its terms and conditions.
Generally, in the agreement you appoint the brokerage company as your
agent and give its representatives the authority to find a purchaser.
The duration of the agreement is indicated, and the compensation is specified.
The agreement also sets out the listing price, and accurately describes
the property you are selling. That will include the lot size, building
size, building style and materials, floor areas, heating/cooling systems,
room sizes and descriptions.
This is when you must also decide what you are taking with you and what
you are leaving with the house. Generally, unless stated otherwise, fixtures
remain with the property, while chattels -- things which are movable --
aren't included in the sale. If necessary, what stays and what goes are
listed under "inclusions" or "exclusions."
Finally, the Listing Agreement also details the financial conditions of
the property, including the mortgage balance, mortgage monthly payments
and the mortgage due date. It should also provide information about annual
property taxes; and references for any easements, rights of way, liens
or charges against the property.
Ask your listing REALTOR® about disclosure, which is a seller's obligation
to disclose facts about properties for sale. The buyers will need to know
material facts about the property - that is, anything that could materially
affect the sale price or influence a buyer's decision to buy it. A major
cause of post-sale disputes and lawsuits center around defects and disclosure,
but most disputes can be avoided if proper disclosures are made. Intentionally
withholding information about a property when selling it can have serious
legal consequences.
Another advantage of listing with a REALTOR® is that only a REALTOR® is
able to place your listing on the MLS® or Multiple Listing Service®. When
you decide your listings will be on the Multiple Listing Service®, the
information about your property is shared with all other REALTORS® through
the MLS® system, and all REALTORS® have the opportunity to sell your property.
This type of cooperative effort will result in the listing agent offering
compensation to the selling agent. Your property gains more exposure,
because it reaches the majority of the real estate professionals in your
community.
There's another benefit of dealing with a REALTOR®. Through mls.ca, the
national property website, participating local real estate Boards can
also advertise listings to potential buyers across Canada and around the
world.
Another major issue for anyone selling a property is how much to ask for.
Although you may have an idea of how much your house is worth, it's important
to have your home valued by a professional on its own merits. Be careful
not to price your property too high or too low. If it's too high, there's
no sale; too low and you lose on your investment.
A REALTOR®has the research and expertise to provide a market assessment
of what similar properties in your area have sold for. They can also provide
information on market history, such as the number of properties sold in
your community the previous month or year.
A REALTOR® also has a number of marketing tools and options to promote
your property. First is the mls.ca web site, which attracts more than
a million unique visitors a month. It shows the details of your home to
local, regional or national buyers looking for a property in your community.
Your REALTOR®< may also recommend an open house as a marketing strategy.
There are two types: first is an agent's open house, where sales representatives
from the listing company will be invited to view your house. If you have
signed an MLS® agreement, other REALTORS® may also be invited. Remember,
each of these REALTORS® may have a prospective buyer. The second type
of open house is a public open house, where members of the public are
invited to walk through your home and have a look. It's an efficient way
to show your home to many potential buyers at once. The listing agent
will act as host, answering any questions.
You and your listing agent will pick the time and date for an open house.
In order to give the agent access to your home, you may wish to keep a
key at his or her office, or in a lockbox. It's also a good idea to ensure
that any valuables are put away in a safe location, then leave while the
open house is underway. If you do stay, be sure to keep out of the way,
and turn off any TVs or radios to let the agent and the buyer talk in
peace.
Needless to say, clean counts with open houses. A general rule is that
clean, uncluttered and well-lit spaces look larger and more attractive.
People will naturally want to buy a house that is clean and well cared
for.
Sometimes a home doesn't sell right away. Avoid the urge to pull your
home off the market... be persistent! Generally, there are three reasons
why a home may not sell as fast as others. First is location; second is
condition; third is the asking price. Naturally, you can't change your
home's location, but you can fix the condition of your home and you can,
of course, adjust your price. Throughout the listing process, you need
to be constantly comparing your asking price against those of similar
properties in your area. It may be time to adjust the price of your home.
Review your selling strategy regularly with your listing agent: Is your
house being shown regularly? Are you receiving the feedback from prospective
buyers? Are you in touch with the marketplace? Is your property competing
well? If not, what else can you do?
Once a buyer is found, you'll be receiving an offer that will detail how
much, specify any conditions that may apply or be attached by the buyer,
say when the buyer would like to take possession, and when the offer expires.
As an act of good faith, the buyer will make a deposit with the offer.
You don't have to accept the offer as is. You may wish to make a counter
offer that comes part-way to meeting the offer's conditions. The counter
offer is one more step along the way to negotiating the final terms and
conditions of the sale. The offer, once signed by everyone, is a binding
contract. Make sure you understand and agree to all of the terms in the
document. You may want to have it reviewed by your lawyer before signing.
Before closing, especially if the buyer makes it a condition of sale,
you may be asked to provide a current survey, or a "real property
report," showing the location of the house is on the property owned
by you and that there are no encroachments. You may also have to prove
that you have title to the property (the buyer's lawyer will check this
out when he or she conducts a title search to see if there are any liens
on the property, easements, rights of way or height restrictions). Especially
in rural areas, you may also be asked to provide a certificate for a well
or septic system, stating the system meets local standards.
The buyer may also make the purchase conditional on an inspection by a
qualified engineer or inspector.
Then on or before closing day, lawyers representing you and the buyer
will set up a trust account for the money coming from the sale and will
pay off any mortgages you owe on the property. After these are paid, you
will receive any money you have coming from the sale. You must deliver
the property deed or transfer documents, mortgage details and keys to
your lawyer. Your lawyer will register the mortgage discharge and transfer
the deed at closing,
Your lawyer should also ensure that you receive compensation for prepaid
expenses such as, property taxes, electrical or gas bills, or if applicable,
any heating oil left in your tank. Some lenders will make it possible
for your mortgage to be portable, so you can take your mortgage with you
when you move to your new home.
Here, your responsibilities under the listing agreement end. You'll have
paid your listing agent the agreed-upon compensation. This can be done
by your lawyer who can arrange the payment from the proceeds of the sale.
In some provinces, including Quebec, notaries perform the same role in
the real estate transaction as lawyers do in other provinces. If you have
any questions, check with a REALTOR®.
The sale of property is a complex business transaction. There are distinct
advantages to having a REALTOR® who is well-educated, knowledgeable, and
experienced. A REALTOR® also has access to an array of services, including
the Multiple Listing Service®, which can provide you with instant, thorough
and accurate property information.
Courteousy CREA
(The comments contained on this site are for information purposes only and do not constitute legal advice.
Using a professional Realtor® lets you take full advantage of the MLS system!
There are more than 145 steps to complete a real estate transaction. It requires an organized, step-by-step approach.
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