Gilbert Real Estate Seller's Guide

SELLER’S GUIDE

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MEET MICHELLE GILBERT

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SELLING YOUR HOME

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THE SELLING PROCESS

45 - 52

MOVING CHECKLIST

53 - 54

GLOSSARY

MEET MICHELLE.

When it comes to purchasing or selling property in Toronto, Michelle is an expert. Her passion for real estate stems from shadowing her mother, a real estate investor, where she learned the ins and outs of the market, negotiation, and most importantly, investment forecasting. Many years later, Michelle is dedicated to matching people and families with properties, buildings, and neighbourhoods that best suit their needs. She is well acquainted with Toronto’s vast neighbourhoods as well as the pros and cons within each, and is always up to date with new build opportunities within the city.

Beyond her extensive industry knowledge, her analytical and detail-oriented approach leaves clients feeling informed and in charge of the process. As a Certified Negotiation Expert, her goal is to ease the stress off your shoulders while achieving maximum results and ensuring that your needs are addressed, met, and exceeded with honesty and integrity.

SELLING YOUR HOME

Selling a home can be a complex endeavor. This booklet has been developed to help sellers understand the process of selling a home as a supplement to the guidance of an experienced Realtor. The goal is for readers to be able to make informed decisions regarding their home sale.

STEP ONE

TIMING

Realtors are available to provide their advice prior to an actual pending transaction. For example, when:

• Renovating to learn which improvements offer the greatest return on investment.

• Painting to find out which colours are most widely accepted.

• Moving to plan for your housing goals.

• Buying to find out what is on the market.

• Making additions to the home such as new bedrooms or in-law suites

• Determining appropriate market timing.

• Wondering about the prices of a neighborhood homes for sale

• Determining the current equity in your home.

WHEN IS THE BEST TIME OF YEAR TO SELL?

Prudent sellers sell when the market is busy. Historically, the Toronto real estate market has been busy in the spring and fall. However, the best time to sell is when it is needed to meet your goals.

SHOULD I SELL FIRST OR BUY FIRST?

Would it likely be more difficult for you to sell your home or more difficult for you to find a home to buy that fulfills your needs? Then do that which is most difficult, first.

ADVANTAGES TO SELLING FIRST INCLUDE:

• No need to sell for an amount lower than you desire.

• Know precisely how much money you have for a new home.

• Time the closing of your own purchase to match the closing of your sale.

• Avoid the stress over not being able to sell.

DISADVANTAGES TO SELLING FIRST INCLUDE:

• Not having found a place to buy.

• Perhaps needing to rush your home purchase.

ADVANTAGES TO BUYING FIRST INCLUDE:

• You don’t have to make a hurried buying decision.

• You can wait to find the perfect house.

• Can make repairs and renovations to your current home while looking for a new one.

DISADVANTAGES TO BUYING FIRST INCLUDE:

• Don’t know exactly how much money you’ll have from the sale of your home.

• Pressure to sell within a defined period of time.

STEP TWO

SHOULD I HIRE A REALTOR?

Choosing the right advisor is important. A Realtor’s counsel, direction and expertise can minimize your stress while maximizing the home’s selling price.

There is more to selling a home than putting up a sign and listing it in the MLS system. The only way know you’ve gotten full value for your home is to use a Realtor.

A GOOD REALTOR:

• Positions the home for maximum exposure

• Handles negotiations

• Provides staging recommendations

• Helps set the price

• Knows the local market

• Has relationships with other realtors to find all potential buyers

• Holds open houses

• Provides timely feedback

• Pre-qualifies potential buyers

• Drafts and negotiates agreements

• Understands legalities

• Acts as a liaison between buyers and sellers

• Presents, reviews and evaluates all offer

The Realtor’s negotiation expertise alone can save the seller more than the commission success fee.

The trick is finding the right Realtor.

STEP THREE

SELLING COSTS

The costs involved in the sale of a home include:

• Home repairs

• Staging costs

• Pre-inspection reports

• Penalty for potential early discharge of mortgage

• Legal fees

• Real estate brokerage fees

• Moving costs

STEP FOUR

HOW DO I FIND A REALTOR?

Invest the time to interview and evaluate Realtors. Meet with as many as it takes until you feel the fit is right.

Start by getting recommendations from friends, relatives, and acquaintances that have recently sold a home. You can also contact Realtors selling homes in your area.

QUESTIONS TO ASK REALTORS

Here are some questions you can ask to see if they are right for you:

1. How many properties have you sold over the last two years?

2. How many were similar to my home?

3. May I speak to past clients?

4. What specific services will you provide?

5. Will I be dealing personally with you throughout the process?

6. How would you go about pricing my house?

7. Do you work full-time?

8. How long should it take to sell my house?

9. What will you do to prepare and market my home?

10. What team support do you have?

11. What are your fees?

12. How do you communicate with your sellers? How frequently?

13. May I see your statistics for days on market and asking price/selling price ratios?

REALTOR REVIEW QUESTIONS

Here are some questions you can ask yourself about each candidate afterwards:

1. Does the Realtor work for a reputable brokerage?

2. Is the Realtor familiar with your area?

3. Has the Realtor sold comparable properties to yours?

4. Is the Realtor professional, experienced, knowledgeable, a good listener, and organized?

5. Is the Realtor genuinely interested in helping you achieve your goals?

6. Is the Realtor responsive, quickly returning your calls/e-mails?

7. Does the Realtor take the time to explain things well?

8. Do you think the Realtor would be willing to diligently work on your behalf?

9. Does the Realtor work full-time?

10. Does the Realtor appear to be too busy?

11. Does the Realtor have a detailed marketing plan that includes a digital marketing initiative?

12. Does the Realtor have a communication procedure in place?

13. Are the Realtor’s selling ratios and days-on-market stats good?

STEP FIVE

SELLER EXPECTATIONS OF A REALTOR

TWELVE THINGS YOU SHOULD EXPECT FROM YOUR REALTOR

1. Honesty.

2. Information. Anything they know about your house, you should know.

3. Accurate, uninflated pricing.

4. A creative marketing plan with specific tactics pertaining to the sale of the home.

5. Cutting edge technology and social media.

6. Uses more than MLS by reaching out to specific local Realtors and brokerages.

7. Provides you with regular progress updates at agreed upon times

8. Provide reports of what prospective buyers thought about the house.

9. Works continuously towards the goal of selling the property.

10. Overall professionalism.

11. Knows what to do to get an offer and how to professionally handle the negotiation process.

12. If the property is not selling, the Realtor accepts responsibility for making recommendations in order to get the job done.

TEN WAYS TO REALIZE THE BEST SELLING EXPERIENCE

1. Be truthful about your motivation to sell and information about the house.

2. Tell your Realtor about material defects in the property.

3. Keep the lines of communication open and advise them of any changes in your expectations.

4. Listen.

5. Be flexible to address buyer’s concerns.

6. If you are unhappy, tell your Realtor so they can take corrective actions.

7. Keep your house clean.

8. Accommodate all showing requests, if possible.

9. Do not be present during showings.

10. Keep pets out of the house during showings.

STEP SIX

MAKING AN OFFER

To get the best price for your home, you need to make it attractive to the widest number of potential buyers. Since today’s consumers prefer turnkey properties, we recommend that you outline anything that needs fixing or updating and determine those items that can be addressed.

Kitchens and bathrooms provide the greatest return on your money. Additionally, consider:

EXTERIOR

• Paint

• Fix damaged windows, lights, walkways, fences, etc.

• Paint porch and front door; add plants and a new doormat

• Door locks

• Appealing landscaping; mowed lawn

• Power wash

INTERIOR

• Paint

• Organize storage areas

• Clean thoroughly

• Shampoo carpets

• Fix broken appliances

• Bathroom tiles free of mold

STEP SEVEN

RESEARCHING YOUR HOME’S VALUE

Valuations to consider:

CITY OF TORONTO EVALUATION

The city has established a Market Value Assessment (MVA) on every residential property.

PROFESSIONAL VALUATIONS

A professional appraiser determines an estimated value for your home. Professional valuations tend to be conservative.

REALTOR APPRAISALS

Realtors can interpret current market conditions, apply local market knowledge, and use expert judgment to determine your home’s value.

STEP EIGHT

PRICING YOUR HOME

YOUR HOME HAS MANY VALUES:

• Municipal tax assessor

• Real estate appraiser

• You

• Prospective buyer

The selling price, however, is determined by the marketplace

COMPARATIVE MARKETING ANALYSIS (CMA)

Your Realtor will perform a Comparative Market Analysis (CMA). This compares your house to similar properties that have recently sold and those that are currently listed for sale.

FACTORS CONSIDERED INCLUDE:

• Property Features: Location, size, lot, conditions, and unique features.

• Market Conditions: Supply and demand, interest rates, and seasonal demand.

• Competition: Price, location, features, and condition, market activity, time on market, price changes, and expires.

BUYERS KNOW THE MARKETPLACE

Buyers view many properties before making an offer, making them experts in the marketplace. If a new listing’s price is wrong, they will back away.

Pricing a home appropriately right at the beginning is a critical component of selling quickly and for top dollar. The longer a home sits on the market, the more the selling price decreases.

STEP NINE

STAGING YOUR HOME

HERE ARE THINGS TO CONSIDER:

• De-clutter. Cluttered homes appear smaller and unappealing.

• De-personalize. You want buyers to envision themselves in the space.

• Clean.

• Add fresh towels, well-made beds, etc.

• Staging furniture if your furniture does not fit the space.

STEP TEN

LISTING YOUR HOME

The main document to sign before your home can go on the market is the Listing Agreement. This authorizes the brokerage to sell your home.

The most common listing agreements fall into one of two categories:

1. EXCLUSIVE

The property gets listed with one brokerage. The listing does not get the wide exposure of being distributed to every Realtor in town.

2. MLS

Every Realtor in the Toronto Real Estate Board immediately receives the listing’s details and access to the property.

STEP ELEVEN

MARKETING YOUR HOME

Your Realtor should have a comprehensive marketing strategy customized to your specific property. The goal of the marketing campaign should be to get the greatest number of buyers interested so that it will sell for top market value.

MARKETING CAMPAIGNS SHOULD INCLUDE:

• Professional photography

• Website

• Sign with URL

• List of syndicated sites

• Feature sheets

• E-mail blast to local Realtors

• Just-listed post cards

• Interactive 3D tour

• YouTube Video tour

• Google/Facebook Pay-Per-Click Advertising

• Open Houses

STEP TWELVE

SHOWING YOUR HOME

TIPS FOR GREAT SHOWINGS

1. Clean.

2. Eliminate odors.

3. Leave lights on, as pre-determined in consultation with your Realtor.

4. Appropriate temperature.

5. Sparkling clean swimming pools and hot tubs.

6. Have blinds, curtains or drapes open or closed, as pre-determined in consultation with your Realtor.

7. Re-set the security alarm code for the time the house is on the market.

8. Leave the premises during a showing.

9. Remove your pet from the house.

WAYS TO TURN OFF BUYERS

1. Dirt, Grime, and Filth

The house should be neat and clean.

2. Clutter

Homes should be decluttered to remove unnecessary items.

3. Smells

4. Pets

Try and minimize any evidence of pets.

5. Have Bad Listing Photos or No Photos at All Bad photos scare off buyers before they even see the home. (Houses need to be sold twice; the first time is online.)

6. Overprice Your Home Market savvy buyers won’t waste time looking at overpriced homes.

7. Temperature

Make certain that the temperature of the house is appropriate for the season.

8. The Realtor

Unavailable, hard-to-work-with Realtors scare off buyers.

9. Sellers Who Hang Around During Showings

Sellers should leave their home while it is being shown. If sellers are not able to vacate the house during showings they should remain isolated and quiet.

10. Misrepresentation

Exaggerating the cost of your renovations, maintenance costs, etc. creates mistrust in buyers.

11. Poor Curb Appeal

Sellers should take steps to present the outside of a home in its most positive light.

12. Converted Bedrooms Not Turned Back Into Bedrooms

Bedrooms converted into other rooms should be reverted back at the time of the sale.

13. Numerous Personal Items on Display

A seller’s personal items make the fit difficult for buyers to feel like the home could be their own.

14. Poor Furniture Placement

If furniture impedes the natural flow, it can discourage buyers.

15. Outdated Fixtures

Even minor updates can have a huge impact.

16. Old Wallpaper Remove before selling.

17. Showing Time Restrictions

Be as flexible as possible when offering showing times.

STEP THIRTEEN

OFFER NEGOTIATIONS

The sale of a house often entails considerable negotiation. A seller can accept the offer as is, decline the offer outright or make a counteroffer.

Here are parts of the offer you should understand:

BUYER COVENANT

Is the buyer qualified to buy your home and close the deal?

PRICE

Accept the price or counter with a position acceptable to you

MORTGAGE CONDITION

Provides time for non-pre-qualified buyers to get financing in place.

HOME INSPECTION CONDITION

Gives the buyers time to have the property inspected by a licensed home inspector to determine current building status and identify potential structural or material problems.

DEPOSIT

Buyer-submitted good faith money submitted with the offer. In Toronto an amount equal to five percent of the purchase price is considered a good deposit.

COMPLETION DATE (CLOSING DATE)

Date when ownership of the house changes hands to the buyer.

STEP FOURTEEN

TYPE OF OFFERS

MULTIPLE OFFERS

Should two or more offers be registered on a property before the property has been sold, then a multiple offer scenario or “bidding war” ensues. A professional Realtor will assess the current market conditions and suggest the appropriate strategy to induce multiple offers.

Here are the key ingredients:

1. Meet buyers beforehand if possible.

2. Know the market so you can accept or negotiate with best offer.

3. Be available to review and authorize documentation on offer night.

4. Carefully analyze each offer.

5. Don’t send buyers back to improve their offers without confidence that you will not lose the best offer.

6. Have in mind what date your ideal possession date would be.

7. Look for few, if any, conditions in the offers. Typical conditions to expect are building inspection and financing.

8. Removed conditions. Can they close without that condition they removed or were they pressured into removing it in order to get the deal?

9. Buyer covenant. See if the buyer has proven their overall ability to close the transaction.

10. Have they asked for things in the offer that you have not already included in the listing?

PRE-EMPTIVE OFFERS (BULLY OFFERS)

When sellers list a property in a hot market, they are often hoping that their property will generate a bidding war. This strategy dictates setting a date five to seven days away for all buyers to submit offers. Any buyer may choose to ignore that request and submit an offer earlier than the ‘offer date.’ This is called a bully offer.

SHOULD A SELLER ACCEPT A BULLY OFFER?

The basic question to answer is: What is the likelihood that there will be a better offer on offer night.

Although it isn’t possible to know for sure, your Realtor will look at:

• How many showing appointments are scheduled.

• How many Realtors or clients have expressed interest.

• The attractiveness of the offer price.

• Realtor feedback about the asking price.

• Current market.

• Length of the irrevocable on the offer.

• Risks of refusing to accept the bully offer.

STEP FIFTEEN

PROPERTY NOT SELLING?

If your home has been sitting on the market without any offers, here are some things to do:

1. Commit yourself to take corrective action(s).

2. Change the price to reposition the property in the marketplace.

3. Have your Realtor refresh your marketing.

4. Introduce online advertising into premier online listing locations.

5. Check out your competition.

6. Take the property off the market.

7. Take corrective makeover steps.

8. Adjust your expectations.

9. Make showing times more flexible.

10. Replace the Realtor.

STEP SIXTEEN

PERIOD FROM OFFER UNTIL CLOSING

A “Sold” sign will be placed on the lawn and the sale gets reported to MLS. Then you can expect the following to happen:

• Your Realtor will distribute copies of the Agreement of Purchase and Sale and related documents to lawyers and all relevant parties.

• An appraiser will inspect the home to verify the purchase price for the mortgage lender.

• The buyer may also inspect the home to measure for furniture placement, choose paint colours, or obtain quotes.

• Rate your realtor on Yelp and Google Reviews.

MOVING CHECKLIST

MORE THAN A MONTH BEFORE

1. Start a moving expense book. Save receipts for tax purposes.

2. Get written estimates from at least two moving companies.

3. Hire a mover.

4. Ensure you have adequate insurance for goods in transit.

5. Contact provincial health insurance authorities.

6. Order new cheques.

7. Register your change of address.

8. Mail change of address cards.

9. Schedule the change/termination of service for utilities.

10. Gather important documents or schedule their transfer.

11. Resign from organizations that are not active in your new community.

12. Send out items to be cleaned or repaired.

13. Cancel home services such as cleaning, etc

14. Have a garage sale.

15. Fill a small toolbox with a utility knife, scissors, tape measure, sharpie, and one of every screwdriver type in order to keep basic tools handy.

MOVING CHECKLIST (CON’D)

PACKING

1. Throw out items you will never use again.

2. Consider renting Frog boxes for the move.

3. Get packing paper, a pad for inventory, marking pens, boxes, heavy twine, and wide box sealing tape.

4. Empty gasoline from lawn mowers, etc.

5. Remove batteries from toys and appliances.

6. Keep an inventory list. Mark the contents of each of the boxes. Make two copies of the contents list for each box. Keep one with your inventory list, put the other inside each appropriate box just before you close it up.

7. Clearly mark cartons you want loaded last, unloaded first, and where they are to go in the new house.

8. Boldly mark fragile items.

9. Liquids in bottles should have tops secured.

10. Large mirrors, glass tabletops and valuable pictures can be crated.

11. Books should be packed on edge in small boxes.

12. Carton weights should not exceed 60 pounds.

13. Table lamps should be packed. Pack lamp shades in boxes by themselves.

14. Do not leave shelves loose in refrigerator or stove.

15. Small appliances should be wrapped and packed in the bottom of boxes.

16. Place heavy china items at bottom of boxes.

17. Small items should be packed in a small box inside a larger one.

18. Move clothes and drapes in wardrobes supplied by mover.

19. Large power tools should be dismantled.

20. Take down any fixtures not included in sale that are fastened to walls.

21. Clean rugs and drapes.

MOVING CHECKLIST (CON’D)

TWO WEEKS BEFORE

1. Book the freight elevator if you are moving into or out of an apartment.

2. Make a floor plan of the new house and plan where everything will go.

3. Return all items that you have borrowed, get back what you have loaned.

4. Dispose of flammable items.

ONE WEEK BEFORE

1. Prepare a list of all items you want to take with you personally.

2. Dismantle and/or fasten anything that requires it.

3. Confirm the bookings for the freight elevator and moving company.

4. Defrost and air-dry the deep freezer.

5. Use up perishable food.

6. Buy bottled water, garbage bags, paper towels, and cleaning supplies for move-in day.

ONE DAY BEFORE

1. Disconnect and drain the washing machine.

2. Disconnect, defrost and air-dry the fridge.

3. Account for all valuables.

4. Gather keys for the new owners.

5. Change security code to something simple like 1-2-3-4-5.

6. Pack all of the items that you will take with you personally.

MOVING CHECKLIST (CON’D)

MOVING OUT

1. Meet with your movers.

2. Lay down plastic sheets.

3. Make sure movers understand all of your instructions.

4. Do a final check for forgotten items.

5. Check inventory for number of boxes.

6. Check mover’s bill of lading against your inventory.

7. Leave all keys and the code for the security systems inside the house.

8. Keep your kids occupied.

MOVING IN

1. Get to the house before the movers.

2. Verify that the utilities have been turned on.

3. Lay down plastic sheets or painter mats on high traffic areas

4. Give copies of your floor plan to the movers.

5. When your goods arrive, check off your inventory.

6. Note any damage.

7. Top priorities will be the children’s rooms, your bedroom, and a basic kitchen.

8. Go out and have a nice dinner.

GLOSSARY

AGENCY: Relationship a buyer or seller has with a real estate brokerage company.

AGREEMENT OF PURCHASE AND SALE (OFFER): Legal document that outlines the terms of a real estate transaction that will be signed by both the buyer and seller.

APPRAISED VALUE: Amount that a professional appraiser thinks a property is worth.

ASSESSED VALUE: Amount at which a property is valued for taxation purposes.

BRIDGE FINANCING: Loan that covers a borrower in-between the purchase of their new home and the sale of their existing home.

CHATTELS: Contents of the home belonging to the owner that are not included in the sale of a home unless specifically outlined in the offer.

CLOSING DATE: Date that the house actually exchanges hands from the seller to the buyer.

CONDITION: Clause written into the offer which outlines something that has to happen before the agreement becomes binding. Should the condition not be met, the negatively affected party has the option to terminate the transaction.

CONDITIONAL OFFER: Offer that has one or more contingencies that must be fulfilled.

DEPOSIT: Money that is put down after an offer has been accepted and is held in trust.

HOME INSPECTION: Objective evaluation of a house by a home inspector.

IRREVOCABLE PERIOD: The period at the end of which an offer expires.

LISTING AGREEMENT: Formal agreement between the seller of a property and a real estate brokerage company authorizing the Brokerage to offer a particular piece of real estate for sale.

LISTING BROKER: The real estate brokerage company that represents the seller.

MORTGAGE: An agreement between a lender and borrower where the borrower puts up a piece of real estate as collateral for a loan on that property.

MULTIPLE REPRESENTATION: Occurs when a Brokerage represents more than one client in a single transaction.

POSSESSION: The date the new buyer takes control (ownership) of a property.

PRE-APPROVAL FOR A MORTGAGE: A written commitment from a lending institution to lend a potential buyer a certain amount of money at specific terms.

R EAL ESTATE AGENT (BROKER): The brokerage company that represents either a buyer or seller in the process of buying or selling real estate.

REALTOR: A registered real estate sales representative or broker.

SELLING BROKER/COOPERATING BROKER: The Realtor who represents the Buyer in the Agreement of Purchase and Sale.

SUB-AGENT: An agent who finds the buyer for a property but has a fiduciary responsibility to the seller.

TRUST ACCOUNT: Bank account used by brokers to keep deposit funds separate from other funds.

WARRANTY: Legally binding commitment that the seller provides to the buyer to guarantee that the house is in good condition.