Seller's Guide

Before you decide to sell, it is important that you focus on your goals and motivations. If you live in the home or condo you are selling, think about when you would like to move & where you would like to move to. Your motivations can affect everything from setting a price to deciding how much time and money to invest in preparing your home for sale. Get some help deciding on and fine tuning these goals. Experience helps tremendously. Have Marc point you in the right direction and help with appropriate resources..

When you are ready, Marc will want to come visit your home or condo. This usually involves two sessions.

During the first visit, you can expect to:

• Discuss any or all topics concerning the sale of your home.
• Discuss the importance of careful pricing and marketing.
• Inspect the home in preparation for a market evaluation.
• Discuss various marketing techniques and their effectiveness.
• Discuss the procedures of showing your home.

The second visit will be to:

• Use all of the gathered information to mutually decide on a list price.
• Complete the necessary paperwork.
• Discuss how to prepare your home for showings.
• Answer any of your questions or concerns.

The two most important aspects of selling a home are price and marketing.

Pricing

• Don't over or under price your home! Getting the price right is critical to a successful sale. If the property is priced low, it may sell quickly, but you could end up leaving money on the table. On the other hand, pricing a property too high may force you to sit on the property for months. Each property has an appropriate price range. Often, in a sellers’ market, a house that is priced low will correct itself upwards with proper exposure and marketing that is in turn aided by the attractive price. Ask Marc for details on this.

Marketing

• The primary goal is to get the most people to see your home. Maximum exposure is crucial in getting top dollar for your home. Most realtors just rely on a yard sign & the MLS service to sell homes. Don’t expect the MLS alone to sell your home. The more interested parties, the higher the potential sale price. More buyers than ever before use the internet to search for housing and spread the word. Marc will talk about strategies to create the best and broadest marketing approach for your home.

Marketing Comparison… All realtors are not equal

• What Marc does:
  • MLS Listing Service which has 2 parts. The first is solely for registered Realtors which gives us access to property information which the general public cannot access such as the owners’ names, details on showings, statistics and past sales. The second is the public MLS site now called REALTOR.CA. A buyer from anywhere in the world can search the city for your home, see photos and certain details of the property including the asking price.
  • Unique websites accessed through search engines and advertising. If appropriate, the house or condo can have its own website such as www.106Alcina.com so the public can access floor plans, photos, neighbourhood information and many other specific topics. Urbanthink.ca and Bosleyrealestate.com also have more info on the place and these are linked back to each other to increase the likelihood of a visit.
  • Advertise in major newspapers such as the Globe and Mail, The Toronto Star, The National Post and perhaps local periodicals.
  • Send emails directly to hundreds of Realtors who work the area the house or condo is for sale in.
  • Direct postcard marketing to houses in the neighbourhood
  • A “For Sale” Sign on the property.
  • Well advertised open houses on weekends for the public as well as one during the business day for other Realtors.
• The more people who are aware your property is for sale, the higher potential selling price.

Getting a broader market overview will give you additional helpful information when pricing. It’s like stepping into a room versus peeking through a window. By finding out the total inventory of homes similar to yours and the average amount of time these homes remain on the market, you’ll be better equipped to price your home competitively. Once you’ve done your homework, you should have a good idea of the range in which your home should be priced. Which end of that range you should be on will depend on some other factors.

Be aware that some realtors will take over-priced listings for their own advertising benefit. A sign on the lawn is good marketing at your expense.This will only cause frustration for you and an expired or cancelled listing in the future. Consider that you are ultimately responsible for the successful sale of your home. Welcome the insight outsiders can give you, but be informed enough to make your own decisions.

Multiple Listing Service Agreement

• This is the document that you need to sign to hire Marc and Bosley to sell your home. Points to discuss and agree upon are:
  • Listing Price: As discussed in the pricing section.
  • Listing Term: Decide on how long to put your home on the market. The minimum term is 60 days for the Toronto Real Estate Board.
  • Real Estate Agent's Commission: The rate of commission is based on the comparative rates in your neighbourhood. Some sellers will offer a higher commission than usual (i.e. 3% or more to the cooperating broker) to provide an incentive to realtors to sell their home. Similarly, some sellers will offer less than the usual rate of commission, but this can create a disincentive for the buyer’s agent to show and sell your property. There is no standard commission, but Marc will discuss this with you.

• Seller’s Property Information Statement or SPIS
  • This is a standard form that Bosley Real Estate Ltd. has all their sellers complete. It asks you to answer questions honestly about the home you are selling.

• A standard form, which we will complete together. The purpose of the form is to provide detailed information of your home to the Real Estate Board. The Bosley office administrator, then inputs the data into their database, which is then available to all the realtors and somewhat to the general public.

• Explains the different possible relationships between the Realtor, Brokerage and the client.

General Procedure

• Marc gets a call from a potential purchaser or a realtor. They request a time and day to view your home.
• The Bosley office staff contacts you to confirm if that time is convenient for you.
• The purchasers, who would always be accompanied by a registered realtor, view your home at the mutually convenient time.

• Nobody is home

  • This is the situation where your home is on a lock box system. A lock box is a like a mini safe that is locked on to an immovable object at your home. Your house key is in the lock box, and only realtors can access the key with their special key pad and passwords. This means that if your house is empty, the purchaser and their realtor can let themselves in and are free to take their time and have a thorough look through your home.
    
    Note: All of the entry details are given to the realtor via the real estate office for security reasons.
    
    Pros: Many purchasers like this situation because they are free to see the house at their own pace without the pressure.
    
    Cons: Some people are uncomfortable about having to vacate their home, even for a short period of time.

• Seller is home

  • This situation is when you are at home when the purchasers come to view your home. Marc or another Realtor will be with you as well.
    
    Pros: You know your home better than anybody which can be good or bad. You can point out the positive points of your home and answer any questions they may have.
    
    Cons: Most sellers find it uncomfortable talking to potential purchasers, and they often ask some questions you may not want to answer. Most Buyers find it awkward having the seller looking over their shoulders. Best not to be there on the first visit.

• Seller is not home; Marc shows your home

  • In this situation you vacate your home for a short period of time and have Marc show your home.
    
    Pros: Marc is there to point out the positive features of your home and answer any questions they may have.
    
    Cons: You will have to vacate your home for a short period of time.

• Open House

  • In this situation you vacate your home for a few hours and have Marc hold an open house.
    
    Pros: Many purchasers like going through an open house, so this method may attract some unexpected purchasers. Word of mouth often sells homes.
    
    Cons: Open Houses can attract many "lookers"", which means they are there just to see the house and have no intention of purchasing. There may be security concerns, although you can rest assured Marc is watching the house and theft is rare..
    
    Everybody’s situation and preferences are different. Discuss with Marc the best situation(s) for you.

The Key Elements of an Offer:

• Price: Depends on the market conditions.
• Deposit: Shows good faith (typically 5% of the price). The deposit is due at the time the offer is accepted. Often a certified cheque for the deposit is provided.
• Conditions: These are the "Subject to's", and are conditions that must be met before the offer becomes binding on both sides. Usually five working days are written in the contract to meet all conditions. These conditions may include obtaining financing with acceptable terms or that the purchaser obtain and approve a status certificate (in the case of condominiums), or that the purchaser be given time to hire a qualified home inspector to view the house. An offer is called "conditional" until waivers are presented by the purchasers removing the conditions afterwhich the deal is "firm"
• Inclusions and Exclusions: These are the items on the property to be either included or excluded from the purchase price. These may include things like appliances, fixtures, etc.
• Offer Acceptance Time Frame: This is the deadline for the purchasers or sellers to accept or counter the purchaser’s offer. Usually it is 24 hours or less.
• The Possession or Completion or Closing Date: : The day the money changes hands, the title of the property is legally transferred and you give up the keys to the purchasers.The property is no longer yours. The possession date usually falls 2 months after the date of the offer but can be negotiated.

The Negotiation Process

• The purchasers’ realtor presents the offer to you and Marc in a convenient location
• You are left to discuss the offer. Your options are to accept, counter or refuse the offer outright.
• If you counter the offer (which means you make changes to your original offer and send it back to the purchasers as a new offer), the purchasers and their realtor will discuss the details of the counter-offer. They will now decide whether to accept, counter or refuse the counter-offer.
• When you and the purchasers agree, and both parties initial all the changes, you have an accepted offer. The last party to accept the offer without making any changes, will sign the confirmation of execution. The offer is now either conditional or firm.

• Have your home available for a home inspector to check your home for the purchasers.
• If necessary, sign an amendment to allow more time to fulfill the conditions.
• Fulfill any conditions, or "subject to's…", for your benefit.
• If necessary, sign an addendum to the contract or waiver removing all conditions. Marc or the purchaser's agent will provide this documentation when necessary. Once all conditions have been removed, you will have a firm offer, which is a legal, binding contract.

• Choosing a lawyer.
• Verify that you have signed the necessary mortgage documents.
• Contact us with your lawyer information.
• Gather all manuals for any appliance, security system, etc. you are leaving for the purchasers. Leave them with the home.
• Gather all keys and leave them with the home.

Some Moving Tips (Not all may be applicable)

• Book the movers: It is a good idea to obtain estimates from several different companies.
• Book the elevator: If you are moving in to a highrise complex, it may be necessary to contact the Property Manager to reserve the elevator for your move.

If You Own Your Present Home

• Arrange to have your gas and electric meters read on the day you leave and have the bills forwarded to your new address.
• Disconnect your telephone, cable TV, Internet, and any other utilities.
• If you rent your present home, give the necessary written notice to your landlord and make arrangements for the return of any money you have on deposit.

At Your New Home

• Make arrangements for the gas, hydro, telephone and cable to be connected on the possession date.

In General

• Get "Change of Address" cards from the post office and send them out well before the moving day.
• Have the post office forward your mail to your new address.
• Cancel any contracted services and pre-authorized cheques.
• Inform the newspapers and other subscription services of your move and arrange for services at your new address.
• Cancel or transfer memberships.
• Notify insurance companies and check with your agent regarding coverage en route.
• Change the address on your driver's license(s) effective the day of the move.
• Make special arrangements for the moving of perishables, such as plants.
• Make special arrangements for moving your pets
• Safely dispose of all flammable liquids (such as spray paint), as it is illegal for movers to carry them.

Real Estate Agent's Commission

The real estate agent's commission is the fee paid to your real estate agent for the sale of your home. The buyer’s agent will receive their share of the commission plus GST from your real estate agent. The rate of commission is based on the comparative rates in your neighbourhood

Legal Fees

The fees paid to your lawyer. Costs are typically from $400-$1000.

Costs of Clearing Title

An example of this cost is your mortgage pre-payment penalty. Check with your lending institution for the details of this charge.
Note: This is just a guide to some of the expenditures home sellers can incur. Expenses will vary depending on your situation.

Buyer's Market

The supply of homes on the market exceeds the demand. Fewer buyers compared to availability of homes means that homes may be on the market longer. Prices tend to drop in this type of market, and your home may take longer to sell.

Seller's Market

The number of buyers wanting homes exceeds the supply or number of homes on the market. Homes tend to sell quickly, and prices usually increase. You may have more negotiating leverage and obtain a higher selling price for your property. Often there are multiple offers for the good houses.

Balanced Market

The number of homes on the market is equal to the demand or number buyers. Homes sell within an acceptable time period, and the prices are generally stable.
Ask Marc for the current market conditions at the time you are considering selling your home.

Specifically, the agent has the following duties:

• Undivided Loyalty: The agent must protect the principal’s negotiating position at all times, and disclose all known facts which may affect of influence the principal’s decision.
• To obey all lawful instructions of the principal.
• An obligation to keep the confidence of the principal.
• The exercise of reasonable care and skill in performing all assigned duties.
• The duty to account for all money and property placed in an agent’s hands while acting for the principal.

Dual Agency

• Dual agency occurs when a real estate agent is representing both buyer and seller in the same transaction. Since the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously, it is necessary to limit these duties in this situation, if both parties consent. If you find yourself involved in a dual agency relationship, before making or receiving an offer, both you and the other party will be asked to consent in writing, to this new limited agency relationship.
• This relationship involves the following limitations:
  • The agent will deal with the buyer and the seller impartially;
  • The agent will have a duty of disclosure to both the buyer and the seller except that they will not disclose that the buyer is willing to pay a price or agree to terms other that those contained in the offer, or that the seller is willing to accept a price or terms other than those contained in the listing.
  • The agent will not disclose the motivation of the buyer to buy or the seller to sell unless authorized by the buyer or the seller; and the agent will not disclose personal information about either the buyer or the seller unless authorized in writing.
  • The agent will disclose to the buyer defects about the physical condition of the property known to the agent.

When there is no Agency Relationship

• You may also choose to use the services of a realtor without having any kind of agency relationship. This might occur, for example, when you are being shown a property by the seller’s agent. The realtor you choose to work with in this manner has a legal and ethical duty to provide you with accurate, honest answers to your questions and can provide all these services.
  • Explain real estate terms and practices.
  • Provide and explain forms used.
  • Assist you in screening and viewing properties.
  • Inform you of lenders and their policies.
  • Identify and estimate costs involved in a transaction.
  • Assist you in establishing your range of affordability.
  • Prepare offers of counter-offers at your discretion.
  • Present all offers promptly.

A REALTOR who is not your agent cannot:

• Explain real estate terms and practices.
• Provide and explain forms used.
• Assist you in screening and viewing properties.
• Inform you of lenders and their policies.
• Identify and estimate costs involved in a transaction.
• Assist you in establishing your range of affordability.
• Prepare offers of counter-offers at your discretion.
• Present all offers promptly.

You should not provide a realtor who is not your agent with any information that you would not provide directly to his or her principal.

Members of the public are aware that in most cases properties offered for sale by members of the Real Estate Industry have a commission or fee that the seller has agreed to pay to the listing agent.

The listing agent traditionally shares this commission/fee with the cooperating agent.