Helpful Hints Before Selling

 

 

 

Why are you selling your home?

 

            Ask yourself this question. When was the last time you changed something major in your life without a good reason to do so?

 

            For most people, selling a home is a major change indeed. Without a reason to move, weather to buy a bigger home or downsize or to relocate or whatever, without a reason to do so you will more than likely accomplish very little.

 

            What’s your reason for moving??

 

 

 

If Buying as well – Make a “Wish List”

 

            If you are thinking of buying another home as part of the process of selling your current home, then you should consider making a “Wish List” of your wants and needs (see Helpful Hints Before you Buy – under Buyer Info.)

 

 

 

If Selling and Buying – What comes first??

 

            It’s like the old what comes first, “the chicken or the egg?”

 

            Anyone who is selling their home and buying another one in the process has to answer the question – “What comes first – to sell or to buy?”

 

            For the lucky few, selling and buying of their homes happen almost simultaneously and no decision is required. However, most people aren’t so lucky and end up having to decide or at least talk about what their plan or strategy would be if they sell before they buy and what would their plan be if they buy before they sell.

 

            Since a lot of the decision has to consider current market conditions, your financial position and your tolerance for gambling, there are no single solutions to cover all situations. What I can do is offer you some suggestions to work with if you buy first or sell first and hopefully you can use this information to help decide which position best suits your needs.

 

 

 

Helpful Hint – one possible method?

 

            Regardless of Buying first or Selling first, make sure you do 2 things before you list your current home for sale.

 

1)      you and your Realtor agree on the market value of your current home and possible time it will take to sell

2)      go out with your Realtor (with your “Wish List”) and look at 5-10 homes that meet your basic needs

 

From those house visits – decide

 

a)      if you think/feel you could easily see yourself happy with 2-3 of those homes seen, then list your home for sale and get both balls rolling

b)      if you were quite disappointed with the homes you visited, then do not list your home until you start to see more homes that suit your needs. (every situation is different, discuss this with your Realtor)

 

 

If you “BUY FIRST” –

 

-         make sure you are in a strong real estate market (a seller’s market would be best)

-         your home should be marketable – by this, it should show well, appeal to the needs of a broad audience (in other words it should not be something so unique that few buyers would be interested ) and it should be listed with a price realistic for the current market.

-         when you buy, try and buy the home with a condition – “…subject to you selling your current home…” (in a good market this condition is rarely accepted by the seller and it generally takes away any leverage or negotiating power from you as the buyer. But it gives you some peace of mind) Discuss the pros and cons of this condition further with your Realtor.

-         if you end up buying without the condition to sell your home, try to arrange a longer closing date to give you more time to sell your home.

-         people who buy first generally feel/think that their home will sell quite readily and that finding the home to buy will be more of a challenge

-         people who buy first need to be more of a gambler than the person who sells first

-         people who buy first often are financially equipped to carry 2 homes and their costs (ie mortgage, taxes and utilities) for a minimum of 2 months

-         if you decide to buy first, remember this, the moment all conditions of your purchase are removed, you now are potentially in a position of owning 2 homes.

 

Make sure, before you buy, you and your Realtor have discussed the pros and cons, have discussed and agreed upon the market value of your current home and that you are ready or close to being ready to list your home for sale.

 

 

If you “SELL FIRST” –

 

-         you are probably more concerned about determining a final selling price and closing date for your current home then you are about finding a suitable next home

-         you may have a home with unique characteristics, that may take sometime to sell and may appeal only to a small group of buyers (discuss this with your Realtor)

-         you may want or need a specific price for your home that may exceed market expectations and without that price you will not sell your home.

-         when you receive an offer on your home, you can put in a condition that you now have 5 or 10 days to find a home for yourself or no deal. This condition is not always well received and the buyer of your home would have to agree to it.

-         much like buying first, if you sell first, try for a longer closing date to enable you time to find a suitable home.

-         Remember this, if you sell first, eventually the day will come when you have to pack you bags and leave, you better be confident (and may need to be flexible with your requirements) that it will be easy to find your next home.

 

 

Mortgage Questions

 

            If the home you are selling has a mortgage on it, this section discusses some possible situations you may be involved in.

 

Prepayment Penalties –

 

            If you are deciding to sell your home and your mortgage contract has not matured by the time you move, you will be breaking that contract and possibly subject to a penalty for doing so. The penalty for breaking the mortgage contract early, often is 3 months interest cost (approx. 3 monthly mortgage payments). But it can be much greater, depending on your contract. So contact your lender, explain what your plans are and find out your options.

 

Portable Mortgage –

 

            Most mortgages today have a clause that allows home owners the option to take their mortgage with them to their next home (it becomes “portable” – take it with you) This is important to know, because in most cases if you “port” your mortgage and keep similar terms and conditions (and keeping the same or greater dollar amount) you can avoid the cost of any expensive Prepayment Penalties. This option can save you money and allow you to move at anytime, not just when your mortgage comes up for renewal.

 

            It’s important to know that even with a “portable” mortgage, you still have to qualify under the lenders guidelines for the new mortgage on your next home.

 

            So if you are thinking of “porting” your mortgage, before you go to far, contact your lender and discuss your options and get preapproved for the mortgage you may need on your next home.

 

Bridge Financing –

 

            Often when you are selling one home and buying another, they may not always close on the same day. This could be due to the circumstances or by choice. You may want to stagger the closing dates in order to go into your next home and do some painting or decorating before actually moving in.

 

            If by circumstance or by choice, the situation generally involves your new home closing before your current home does. Since the money to buy your new home is tied up in your current home (which you don’t have until it closes) you will need to borrow the money to close the purchase of your new home.

 

            Bridge financing (a form of bank loan) allows someone to borrow money from their current home to help facilitate an earlier closing of their new home. This is a great tool to have. Talk to your lender about Bridge Financing and its conditions and costs.

 

 

Selecting a Realtor

 

              So the time has come and you want to sell your home. This is probably one of the biggest financial investments you have ever made and naturally you want to hire someone who you think/feel you can trust to do the best job to meet your needs.

 

            There are many Realtors to choose from and unfortunately there are no tried and true methods for the selection process. But we can offer some suggestions, advice and questions to ask, that may help you select the best Realtor for the job.

 

            Suggestions, advice and questions??

 

Repeat Source –

 

            Call the Realtor who sold you the home. If you were happy with them and their service, using them again could save you a lot of stress and frustration.

 

            As the saying goes, why reinvent the wheel? If you found a good mechanic who fixed your car, you probably won’t go looking for a new mechanic the next time your car needs work. So why go looking for another Realtor?

 

Open House –

 

            Visit local open houses in your area, it’s an opportunity to see a Realtor in action and a non threatening chance to ask some of your questions.

Ask a Friend –

 

            Talk to someone you know and who’s opinion you value who has recently used a Realtor. Ask them how they selected their Realtor and would they recommend that Realtor to others?

 

 

Flyers and Phone Calls –

 

            Those sometime annoying phone calls or junk mail you get from Realtors can now actually serve a good purpose. It’s not very often a Realtor will call you or send their flyer to your home if they aren’t active in your neighbourhood. Once you start to think about making a move, it could be six months to a year from now, create a file folder and put every flyer you get in it and make notes of who is cold calling your home. This will at least give you a list of names or local active Realtors.

 

 

Real Estate Ads –

 

            Take a look at the local newspaper and review the real estate ads. It may be a hit and miss, but again like some of the other methods, it at least helps you gather some names and information.

 

            Selecting a suitable Realtor can be a very stressful time for some people. Hopefully some of the above ideas will be helpful and ease some of that stress.

 

 

QUESTIONS

 

            Regardless of how you select your Realtor, weather you use someone you worked with in the past, or choose someone new, there are some general questions you may want to ask any Realtor.

 

1) What’s my house worth today? (have them give you a market evaluation of your home, showing you the recent sales of other homes in the area and current listings of your competition) What should the list price of my home be?

 

2) What is your marketing plan? (how do you intend to promote and market my home to Realtors and the public?)

 

3) What will all this cost me?

 

4) Tell me about current market conditions – is it a buyers, sellers or balanced market?

 

5) Do you have any service guarantee to back up your work? (what if you are not happy with your Realtor after your home has been listed, will they let you break the contract? What conditions apply?)

 

6) If I am thinking of buying a home as well, what should I do first, sell or buy? What are the pros and cons of each option?

 

7) What can I do to make my home show its best?

 

8) (ask yourself this question) – Is this Realtor a knowledgeable, professional who I feel/think I can work with to get the best results??

 

 

 

Preparing Your Home For Sale

 

            Since every home, market conditions and personal situations are different there can be a variety of suggestions that could help make your home show at its best.

 

            Because of this we will only list some general suggestions to follow. However, you should seriously discuss with your Realtor any changes or enhancements you can make, so that your home shows well and attracts the highest possible selling price. Remember you never get a second chance to make a first impression.

 

Some suggestions –

 

- try to avoid or mask any strong odours that may be considered offensive (such as smoking, pets or cooking)

 

- make sure your doorbell works (if you have one)

 

- make sure you have working light bulbs in all lights, even the basement

 

- no clutter – clean and tidy all counter tops in the kitchen and all bathrooms

 

- open all blinds, curtains etc. – make your home as bright as possible

 

- vacuum and clean regularly during the time your home is listed for sale

 

- leave a radio on while you are out (be selective about the station you choose)

 

- tidy all floors – pick up toys, clothes etc.

 

- repairs – you may want to fix minor problems, like damaged drywall or doors, cracked tiles, water stains, carpet stains, minor painting, remove or replace damaged wallpaper, etc. etc.

 

- if you are selling any appliances with your home, they should be in working order

 

- pack rat? – sometimes when a home has to many things in it (ie to much furniture) it makes the home look smaller than it really is – perhaps storing these extra items in the basement or storage unit will open the flow of your home?

 

- there could be other helpful suggestions that may be specific to your home, ask your Realtor for their advice.

 

            It has been proven, that homes that show well and are priced right, tend to sell quicker and get higher prices. If that is what you want for your home, you may want to follow some of the above suggestions.

 

 

 

 

 

 

 

 

Michael J. Wilson – Sales Representative

Royal LePage Connect Realty – (905) 683-1790

 

“ Make the Move with Mike “