Sellers Information
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 REALTOR.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 REALTOR.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.
