The Selling Process

 

            Now that you have prepared your home, talked with a mortgage lender (if required) and selected a Realtor (see Helpful Hints for selling) it’s time to list your home for sale.

 

 

Relationship with a Realtor – Explained

 

            Before signing any contract to list your home, your Realtor should stop and explain to you the relationship you have with your Realtor. They will go over the different relationships and have you acknowledge in writing that you have discussed these relationships.

 

            There are 3 main relationships ….

 

Seller’s Agent – a listing contract establishes this relationship. The Seller’s Agent must do what is best for the Seller.

 

Buyer’s Agent – a Buyer agency contract establishes this relationship. The Buyer’s Agent must do what is best for the Buyer.

 

Dual Agent – this is established when one Real Estate company is the Agent for both the Buyer and Seller. The agent then must try and do what is best for both the Seller and the Buyer.

 

            As a potential Seller, make sure to ask your Realtor how these various relationships impact you, especially when appointments for showing your home begin.

 

 

The Listing Contract

 

            Many people don’t know that when you list your home it’s with the Real Estate Broker (office) and not just the individual sales representative. That means if you are not satisfied with the individual you can contact the Broker and ask for another sales representative to work with.

 

Highlights of the Contract :

 

Price – it should state the asking price of your home

 

Commission – this will tell you the fee for service you will pay for selling your home. This is generally represented as a percentage (%) of the final selling price. The contract should also state what percentage of the total is going to the company who brought in the Buyer.

 

Expiry Date – this is the date your contract expires. It is generally 3 to 6 months long. Any expiry date longer than that better have a strong reason and a written acknowledgement signed by you.

 

Holdover Clause – this is generally 90-180 days long. The purpose of the clause is there to protect the Broker from Seller’s who attempt a private agreement with individuals introduced to the property during the duration of the listing contract. Be sure you understand this clause, it could cost you money.

 

 

 

 

Showing your home to potential Buyers

 

            Normally most appointments to see your home are placed through the agent’s office. Most appointments are booked with a range between ½ to 1 hour . (eg show 1-2 pm or 3-4 pm )

 

            You have the right to restrict appointment times, but remember the more open you are to visiting times, the more opportunities will be created for more buyers to see your home.

 

            You can also have a lock box and key installed (where possible). This allows you the normal freedom of coming and going without restricting showings of your home. Some buyers even prefer to view the home without the owners being there to have a serious look.

 

            You will come across two types of visits to your home. A “showing” (when a Realtor is bringing potential buyers to your home) and an “inspection”. (when a Realtor visits without a client to view the home and see if the home meets their buyer’s needs.)

 

 

Offer on your Home – What to expect ?

 

            Someone has been to your home and now decides they would like to buy your home. They tell their Agent and together they draw up an “offer” to buy your home.

 

            There are 2 types of offers – a conditional offer (one that requires certain conditions be completed before your home is reported sold. (ie – conditional on the buyer getting a mortgage arranged or the home looked at to their satisfaction by a Home Inspector) The second type is a firm offer ( one without any added conditions beyond the agreed terms of the written contract) With this type of offer, once accepted your home can be reported as sold.

 

            Generally the offer presentation takes place at the Seller’s home. Although, today many offers are presented by fax and the meeting place could be the Broker’s office.

 

            Once you review the offer with your Agent and see how it aligns with your needs, you have 3 options.        1) accept the offer as is

2) make the changes needed to best suit your needs and send it back to the Buyer (counter offer)

3) refuse to do anything (this rarely happens)

 

            Option 1 means your home has sold (either firm or conditional depending on the terms of the offer) Option 2 allows the Buyer the same 3 options you had. This process continues back and forth until both sides can either agree to changes or let the offer expire without coming to an agreement. If the latter happens you continue along until the next Buyer presents an offer.

 

            Sometimes “Multiple offers” occur (when more than one Buyer wants to present an offer on your home at the same time). This is generally good for the Seller, but can be tricky to manage. Be sure to ask your Realtor for details of the process and options available to you when “Multiple offers” occur.

 

Your Home is SOLD – now what ?

 

 

            So your home has sold and all (if any) conditions have been met, now what ??

 

            Here are some things to be thinking about while preparing for the closing date.

 

-         contact a lawyer

-         hire a mover

-         talk to your mortgage company (if mortgage is involved)

-         contact utility companies and order final bills (closer to closing)

-         remember other contracts – ie phone, cable, alarm, satellite etc.

-         change of address notices

-         contact any subscriptions (ie magazines) or any other person/company who needs to know you are moving and where you are going

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Michael J. Wilson – Sales Rep.

Royal LePage Connect Realty – (905) 683-1790

 

“ Make the Move with Mike “