Tips for Sellers

Seller’s market

When lots of people are looking for homes but not many are for sale.

Buyer’s market

When there are lots of homes for sale and not many people buying them.

Seasonality

This refers to the fact winter sales tend to be slower in most markets while spring sales typically speed up.

Discharge mortgage

This refers to using the proceeds from the sale of your home to discharge or pay off your current mortgage. In an open mortgage, you can pay it all off without any penalties. If you have a closed mortgage, be prepared to pay a penalty.

Portable mortgage

A portable mortgage means you can take your mortgage money with you and buy a new home, without penalty.

Capital gains tax

If you had tenants living in part of your home, such as the basement, you’ll pay capital gains tax on a portion of your profits. You may also owe capital gains tax if you’re selling a vacation or investment property.

The REALTOR® you’ve used before

Sticking with a REALTOR® you know makes sense. If your REALTOR® did a good job helping you buy your home, he or she is probably a good candidate for helping you sell it.

Think local

Write down the names and numbers of REALTORS® on for sale signs. Ask friends or family to recommend a REALTOR®. Visit one of the local real estate offices in your area.

Tip: Interview candidates

Finding the right REALTOR® can make a huge difference in your house hunting experience. Be sure to interview a few REALTORS® and think about what’s important to you. Have your list of questions ready and don’t be afraid to ask for references.

Determine Your Home’s Asking Price

A REALTOR® can help you enter the market at the right time, analyze market trends and ensure that you are buying or selling your property at a good price. When it comes to making the most significant purchase of your life, make sure you don’t lose out on thousands of dollars.

Set the right price

If you set your price too low, you could miss out on thousands of dollars, however, if your asking price is too high, you could scare away willing buyers.

 REALTORS^® know the market

Your REALTOR® understands what’s happening in your local market as well as industry trends that may impact how you sell your house.

 REALTORS^® can calculate your home’s value

Using the extensive background information available exclusively to them, REALTORS® can compare your home to a collection of similar homes recently sold in your area.

This describes the legal relationship between you and the real estate brokerage and sets a time limit for the REALTOR® to sell your home.

Exclusive vs. Multiple Listing Service®

An exclusive listing states only your brokerage can find a buyer for your home. Most REALTORS® recommend a multiple listing, which allows them to put your home on a real estate board’s MLS® System—a powerful tool that will allow your listing to be marketed to potential buyers.

Price

Your REALTOR® will have very useful advice on what price will attract buyers. Learn more.  about choosing the right asking price in Determine Your Home’s Asking Price.

Real estate commission

This may be a flat fee or a percentage of the final sale price.

A physical description of your property

Your REALTOR® will write a description that highlights your property’s best features.

This includes the lot number, land surveys and the zoning code.

Financial information

Let potential buyers know the minimum deposit you require.

Completion date

The amount of time you need to move out once your home is sold. Typically, homeowners provide 60 to 90 days. Being flexible may help sell your home faster.

 How the home will be shown

Your REALTOR® can arrange viewing appointments and open houses. Any specific instructions, such as, “make sure the cat stays in” can also be noted.

What’s included in the price?

Chattels are moveable items like microwaves and window blinds. They’re not automatically included in the sale, but sellers will often include them to sweeten the deal.

Fixtures are permanent improvements to a property like central air conditioning, installed lighting and wall-to-wall carpeting. Fixtures are assumed to be included in the sale of the home.

1. You can accept the offer

You got the price you were hoping for, maybe even more. The closing date looks good and there are no conditions.

2. You can reject the offer

This offer isn’t even close so no counter offer.

3. You can “sign back” or provide a counter offer

This offer is close, but something’s not quite right. Your REALTOR® can help with the delicate art of negotiation by “signing back”. Some of the most common reasons for a sign back include:

• You want more money;
• You want to change the closing date; and
• There may be some undesirable conditions on the offer (buyer to obtain financing, approval to assume mortgage, sales of purchaser’s home, property inspection).

FINTRAC

By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations.

Your REALTOR® is required by federal law to complete a client identification form and must ask you as the seller for verified ID such as a driver’s license or passport.

Here are some important steps you don’t want to miss:

• Your lawyer will be advised that an agreement has been signed. Make sure your lawyer is ready to close the transaction.
• Immediately begin satisfying any conditions of the agreement requiring action on your part before the set date of completion.
• Notify your lawyer and lending institution if the buyer is assuming your mortgage.
• Contact the utilities, telephone and cable companies about transferring or removing service. Your lawyer will often handle the transfer of utilities.
• Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
• Contact a moving company to arrange your move on or prior to closing date. Send out your change of address notices and advise the post office.
• Notify the Ministry of Transportation about your new address for driver’s license and registration.
• Notify your REALTOR® immediately if anything changes about your property or your situation.

Contact with your lawyer

• If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
• A few days before closing, your lawyer will ask you to sign the paperwork enabling the title to be transferred to the buyer.
• On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.