SELLING GUIDE

Your home is either your castle or a source of investment – it is special to you even as you are about to sell it. Naturally, you want to walk away a winner with the most money in your pocket as possible so chances are you have asked yourself some questions, a few very important ones would be

1. What is my property’s worth?
2. Do I sell or buy the next property first?
3. Is this the best time to sell?
4. How do I prepare the property for sale?
5. What costs are involved?
6. Do I list with a REALTOR® or sell privately?

These questions are also asked of REALTORS®. For a seller to achieve a gratifying and satisfactory sale of their property they need to be answered realistically and without bias, which is often difficult to do when you are the property owner. Taking my obligation to act in the best interest of my clients very seriously requires I equip them with the information one can only obtain from straight answers:

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1) What is my property’s worth?

Your property’s worth. The bottom line is it is worth what a willing and informed buyer will pay in the current market given a reasonable amount of exposure of the property to the market place. Attracting that buyer necessitates a pro-active effort to properly price and market your property and to be an informed seller:

Be objective with value - Recognize that there was at least one intrinsic value which caused you to purchase the property, and that every potential purchaser will have their own measure of intrinsic value. While you may have made your purchase because the partitioned basement with a kitchen was ideal for your mother-in-law; some potential purchasers will prefer the exclusive use of a more open area. Recognize too that you decorated, refurbished, rejuvenated the property to your specifications, needs and taste, and while you are very proud of your hard work and your choice of materials, the value you place on that will not necessarily be in accord with potential buyers.

Put location into perspective - Often used to support the reason for a quick sale and ‘top dollars’, is the term: location! location! location! And while this is true in that there are popular pockets everywhere, it is foremost true that buyers with the resolve and means to live in a specific postal code will not be pursuing properties in another. Every piece of real estate is a viable location especially if the property is occupied. If you thought enough of the property to make the purchase, so too will someone else. Location won’t sell a property near list price if it is advertised well over market price. So let us put that term in its place where it rightfully belongs – behind competitive pricing.

Know your competition - Many buyers choose a geographic area in which to live rather than a specific mail route. These buyers when given the opportunity to purchase a like and similarly priced home in a pricier and more in demand area two kilometres away  will most probably take the opportunity. Familiarity with market value, that is what similar properties in your immediate neighbourhood sold for; measured against what similar unsold properties are listed for, and compared against pricing in a slightly broader area, will minimize the chance of prospective buyers being lured away. It is essential to keep abreast of the competitions results – seize for yourself the advantage of opportunity.

Price competitively – You, as seller, solely hold the right to set your list price. And so with the necessary information in hand you are ready to set it, but what will it be? You have heard of setting a price significantly lower than market value in order to generate multiple bids. You could reap the benefits of buyers vying for your property but this REALTOR® advocates you proceed with caution in this regard. A property in demand whether by any or all of: superior location; lack of availability or outstanding amenities, when competitively priced, can also generate multiple offers. Pricing well below market value does not guarantee a superior selling price over the other and can sometimes lead to disappointing results.

Caution too is advised before setting a price too high. Often this is done for two reasons – the seller perceives their property to be worth considerably more than the market suggests or the competition’s and/or the seller has ample time with which to leave the property on the market. Lucky is the seller if it sells and frustrated and angry is he when it does not. Keep in mind – the higher the price, the fewer the potential buyers.

Pricing affects the days on market (dom) – Allow a reasonable amount of time to market the property where ‘reasonable’ means subject to market conditions, property type, location and demand. Any number of factors can affect the amount of time needed to sell a competitively priced property, for example, cottage property listed in December, and high end properties should be granted more time. Alternatively, the competitively priced, properly marketed property in an established area during a good market should require less time. Statistics available on the Toronto Real Estate Board’s website for MLS® activity Dec/08, gives an average dom. of under 60 days for the majority of districts making up Toronto and York Region . Equip yourself with the dom for similar properties in your area. DOM represents the length of time from the day of listing to the day the sale became firm. Think of it as the ‘best before date’ and set your sights on it.

Overpricing is a loss of time and money! A non-competitive price will add to the days your property remains on the market. Every day will bring with it a cost to carry your property which affects your bottom line.

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2) Do I sell or buy the next property first?

To sell or buy the next property first - Consideration must first be given to the impact on your finances and the potential for stress should you find yourself owning two properties. If your purchase is a new home being built, chances are you have an adequate timeline within which to sell, however a builder can extend by months the possession date of a new home and purchasing a resale prior to selling may not be as accommodating to the timeline of your sale. Gauging the timeline for selling in either case is crucial since it is in your best interest to vacate one and take possession of the other simultaneously. Often, the burden on finances and the stress involved when it is evident the buy and the sale will not coincide causes the seller to forfeit equity in the property being sold.

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3) Is this the best time to sell?

The best time of year to sell - Without a doubt there are seasonal markets motivated by demand which influences pricing. Factors to consider should include the current economic outlook; the type of property you are selling and the current real estate conditions and annual trend of the district in which you are selling. If you are planning on moving up in price, be mindful of the possible differential between the extra value you may realize from selling during peak season, and the extra value your purchase may also require from you.

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4) How do I prepare the property for sale?

Preparing the property for sale - First things first – You’re selling and you’re moving adopt the mindset that soon the property will belong to someone else and you will be putting your personal stamp elsewhere. Nothing says house proud more than clean and tidy. Prepare the property to appeal to a broad audience by making it impersonal; uncluttered and somewhat neutral with fresh paint. Repair problems; stage inside and groom the outside. Every potential buyer will be looking for the one feature that will cause them to purchase the property, since you cannot know what that would be the positive attributes should be visually evident and readily accessible. Even well folded towels and sheets will showcase a linen closet or as buyers see it - necessary storage space. Sometimes it is worthwhile to have an inspection performed by a qualified property inspector to identify areas of concern. Last but not least, put on your buyer’s cap and scrutinize your property from their perspective - if a potential buyer wants your property, they will also be looking for bargaining power.

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5) What costs are involved?

The costs involved - These may include: Decorating, staging, repair and storage costs; inspection, legal and commission fees (if utilizing a real estate professional), GST applies on all fees and may apply to proceeds received for certain resale properties. Private sellers may in addition, incur advertising costs and additional legal fees.

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6) Do I list with a REALTOR® or sell privately?

List with a REALTOR® or sell privately? - The answer to that will ultimately rest on the results you expect to realize. There are successful private sales and unsuccessful private sales which are then placed into the hands of a real estate professional. And, not to be misleading the same can probably be said for the reverse. It is your right to sell privately, I want you to be successful regardless of which method you choose, and I respect that right enough to recommend the selling and buying parties involved in a private sale engage the use of attorneys to represent them in all aspects of the offer to purchase. Selling a property comes with caveats you need to know how your property may be affected by these.

Employing a REALTOR® has its advantages. We are registered professionals studied and trained in the selling of real estate and we have at our disposal an array of tools to utilize to your benefit. Those tools for example enable us to provide comparative information.

You want to place your trust in a professional committed to delivering Higher Performance Standards, Quality of Service and Customer Satisfaction. One who has a proven plan of action which puts all of these tips into play; is an advocate for you; skilfully negotiates in your best interest* and delivers the results you expect.

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PENNY’S ACTION PLAN.

Build a relationship of trust

! Listen to and take heed of your objectives

! Tell you all you want to know about: me, my full service program, the HomeLife brand and
  Homelife/Bayview Realty Inc., as well as the roles* and responsibilities* of a REALTOR®

!!! I want you to know that selling your house is all about you and your best interests!

Share knowledge

! Learn about the property from all that you can tell me and familiarize myself with it.

! Review with you two types of available listing arrangements – exclusive and multiple service; the
  process of a sale from listing to closing day; the terminology you will encounter in the listing
  agreement; the offer to purchase and relevant documents; other outside services you may require;
  an estimate of costs associated with selling your property.

! Provide you with a complimentary market report on any similar sales and listings, their days on
  market to a firm sale, along with an estimated comparative price range for your property.

! Show you the competition. (restrictions may be imposed by the seller).

Set the goal

! And establish the strategy to achieve selling your property sooner rather than later without having to reduce your price.

Prep for success

! In addition to my input, a complimentary limited consultation with a stager⁄decorator will be offered
  to you. The stager will suggest how to maximize your property’s appeal by utilizing the resources
  you have on hand so every potential buyer might find intrinsic value in your property not the
  competition's!

Market for success

! If you have chosen the multiple listing, your listing is placed on the Multiple Listing Service through
  the Toronto Real Estate Board (TREB) affording the maximum reach to potential buyers searching
  the toronto.ca listings and all member REALTORS®. It is important to attract every potential
  internet searching buyer!

! A lawn sign. Neighbours can spread the word to their house hunting contacts!

! Open house sessions planned or impromptu will be held. Public open houses will be a minimum of
  2 hours to the preferred 3 hours. With the exception of the impromptu, open houses will be
  advertised on the internet and in print. This gives buyers viewing other open houses the time to
  view yours!

! Your property will be advertised via the www.homelife.ca and www.homelifebayview.com internet
  portals and the REALTOR.ca web site if multiple listing is selected. Every one of the HomeLife  
  clients, customers and representatives will have the opportunity to know about your property!

! Noticeable printed advertisements will promote your property in the real estate section of a leading
  news publication and⁄or a leading GTA distributed real estate specific publication with additional
  internet marketing provided through their websites. Non internet searching potential buyers looking
  to move into your community search the papers.
  
! Colour brochures containing information important to buyers and promoting the merits of your
  property will be made available to all potential buyers. It is important for every potential buyer to
  have a lasting memory of your property on hand for immediate reference!

Follow Through

! You will receive periodic updates on market activity.

! You will be provided with: comments received from potential buyers and other REALTORS®;
  statistics on the number of potential buyers who have viewed your property on the internet or
  requested information.

! Your calls and queries from interested parties will be responded to in timely fashion.

! All offers, counter offers and pertinent documents will be delivered to you without delay.

! Negotiating any offers and counter offers will be done in your best interest* and with your approval.

! From the time the firm sale is negotiated and the documents forwarded to your attorney, to the
  day of closing I will be following the process and remain at your service.

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