Selling with Parkside by SageRealEstate

YO U R G U I D E TO

SELL

TA B L E O F CO N T E N T S

A B O U T PA R K S I D E G R O U P . . . . . . . . . . . . . . . 1 SELLING YOUR HOME ........................ 3 THE SELLING PROCESS ...................5 M OV I N G C H E C K L I S T . . . . . . . . . . . . . . . . . . . . . . 31 R E A L E S TAT E G L O S S A R Y . . . . . . . . . . . . . . 5 3

PA RK S I D E G RO U P

Parkside Group is a new age collective of client-forward real estate brokers based in Toronto. Founded by Rahim Jaffer in 2022, our mission is one of simplicity and focus - to ensure that the grass is always greener for our clients. By leveraging our best-in-class digital strategy, the unique marketing platform at SAGE Real Estate, and the collaborative ethos shared among our agents, Parkside Group endeavours to enable the real estate transaction to be a market-leading experience for clients on all fronts. Delivering exceptional results is just “our thing”. With 30+ years of combined experience, and over $750 million in transaction volume since 2012, our clients can rest assured that the highest level of experience and competence are in place to serve them better. We look forward to the opportunity to work with you!

S EL L I N G YO U R H OM E

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.

S T EP ON E 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.

S T EP T WO S H O U L D I H I R E A R E A LTO R ® ?

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 offers The Realtor’s ® negotiation expertise alone can save the seller more than the commission success fee. The trick is finding the right Realtor ®.

S T EP T H REE S E L L I N G CO S T S

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

S T EP F O U R H OW D O I F I N D A R E A LTO R ®

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: 14. Does the Realtor ® work for a reputable brokerage? 15. Is the Realtor ® familiar with your area? 16. Has the Realtor ® sold comparable properties to yours? 17. Is the Realtor ® professional, experienced, knowledgeable, a good listener, and organized? 18. Is the Realtor ® genuinely interested in helping you achieve your goals? 19. Is the Realtor ® responsive, quickly returning your calls/e-mails? 20. Does the Realtor ® take the time to explain things well? 21. Do you think the Realtor ® would be willing to diligently work on your behalf? 22. Does the Realtor ® work full-time? 23. Does the Realtor ® appear to be too busy? 24. Does the Realtor ® have a detailed marketing plan that includes a digital marketing initiative? 25. Does the Realtor ® have a communication procedure in place? 26. Are the Realtor’s ® selling ratios and days-on-market stats good? 11

S T EP FI V E S E L L E R E X P E C TAT I O N S O F A R E A LTO R ®

T WELVE 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. 13

S T EP S I X 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: EX TERIOR - 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

S T EP S E V EN R E S E A RCH I N G YO U R H O M E ’ S VA LU E

Valuations to consider: CIT Y 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.

S T EP EI G H T P R I C I N G YO U R H O M E

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 MARKETPL ACE 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.

S T EP N I N E S TAG I N G YO U R H O M E

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.

S T EP T EN L I S T I N G YO U R H O M E

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: EXCLUSIVE The property gets listed with one brokerage. The listing does not get the wide exposure of being distributed to every Realtor ® in town. MLS Every Realtor ® in the Toronto Real Estate Board immediately receives the listing’s details and access to the property.

S T EP EL E V EN M A R K E T I N G YO U R H O M E

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

S T EP T WELV E S H OW I N G YO U R H O M E

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.

CLUTTER: Homes should be decluttered to remove unnecessary items.

SMELLS

PETS: Try and minimize any evidence of pets.

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.)

OVERPRICE YOUR HOME: Market savvy buyers won’t waste time looking at overpriced homes.

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

THE REALTOR ® : Unavailable, hard-to-work-with Realtors ® scare off buyers.

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.

S T EP T H I RT EEN O F F E R N E G OT I AT I O N S

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.

S T EP F O U RT EEN T YPE 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.

S T EP FI F T EEN P RO P E R T Y N OT S E L L I N G?

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).

Change the price to reposition the property in the marketplace.

Have your Realtor ® refresh your marketing.

Introduce online advertising into premier online listing locations.

Check out your competition.

Take the property off the market.

Take corrective makeover steps.

Adjust your expectations.

Make showing times more flexible.

10. Replace the Realtor ®.

S T EP S I X T EEN P E R I O D F RO M O F F E R U N T I L CLO S I N G

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.

M OV I N G CH ECK L I S T

MORE THAN A MONTH BEFORE 1.

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

Get written estimates from at least two moving companies.

Hire a mover.

Ensure you have adequate insurance for goods in transit.

Contact provincial health insurance authorities.

Order new cheques.

Mail change of address cards.

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.

PACKING 1.

Throw out items you will never use again.

Consider renting Frog boxes for the move.

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

Empty gasoline from lawn mowers, etc.

Remove batteries from toys and appliances.

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.

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

Boldly mark fragile items.

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.

T WO WEEKS BEFORE 1.

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

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

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

Dispose of flammable items.

ONE WEEK BEFORE 1.

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

Dismantle and/or fasten anything that requires it.

Confirm the bookings for the freight elevator and moving company.

Defrost and air-dry the deep freezer.

Use up perishable food.

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

ONE DAY BEFORE 1.

Disconnect and drain the washing machine.

Disconnect, defrost and air-dry the fridge.

Account for all valuables.

Gather keys for the new owners.

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

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

MOVING OUT 1.

Meet with your movers.

Lay down plastic sheets.

Make sure movers understand all of your instructions.

Do a final check for forgotten items.

Check inventory for number of boxes.

Check mover’s bill of lading against your inventory.

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

Keep your kids occupied.

MOVING IN 1.

Get to the house before the movers.

Verify that the utilities have been turned on.

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

Give copies of your floor plan to the movers.

When your goods arrive, check off your inventory.

Note any damage.

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

Go out and have a nice dinner.

G LO S S A RY Adjustable Rate Mortgage (A.R.M.): Mortgage with a rate tied to the prime rate that is variable. Agency: Relationship a buyer or seller has with their real estate agent. Agreement of purchase and sale (aka offer): Legal document that outlines the terms of a real estate deal that will be signed by both the buyer and the seller.

Default: When a borrower is not able to make a debt payment. Deposit: Money that is put down after an offer has been accepted and is held in trust. Disbursements: Various expenses and costs that a lawyer will pay on behalf of a buyer to close the sale. Down Payment: Amount that the buyer puts down on the property in cash.

Appraised Value: Amount that a professional appraiser thinks a property is worth.

Equity: Value of the property minus any outstanding debt.

Canada Mortgage and Housing Corporation (CMHC): Institution which administers the National Housing Act and provides lenders with insurance against high ration mortgages.

Fiduciary Duty: Legal relationship between a buyer or seller and their agent.

Clear Title: A property with no claims.

Fixed Rate Mortgage: Mortgage that has a fixed amount of interest paid over a specific amount of time.

Closing Date: Date that the house exchanges hands from the seller to the buyer.

High Ratio Mortgages: Mortgage that exceeds 80%. These mortgages must be insured by the CMHC.

Cloud on Title: When a claim has been made against the title of a property.

Hold Back: When money is held back by the lender until a condition is satisfied.

Collateral: Tangible asset that is used as a guarantee of payment in a loan.

Homeowner’s Insurance: Protects homeowners against damage to their home.

Common Elements: Parts of a condo building that are owned by all owners of the building.

Home Inspection: Objective evaluation of a house by a home inspector.

Condition: Offer clause which outlines what has to happen before the agreement becomes binding.

Irrevocable Period: The period at the end of which an offer expires.

Condominium: Form of ownership where the owner has the title to a specific unit and a portion of the common elements of a building.

Legal Fees: Amount charged by lawyer to execute the purchase or sale of a property.

Conventional Mortgage: Mortgage from a traditional lender where the value of the mortgage does not exceed 80% of the value of the property. Cooperative: Type of ownership wherein the building is owned by a company. To be entitled to live in the building, you must buy shares. Deed: Document that officially transfers ownership of a property.

Land Transfer Tax: Tax paid to transfer a property.

Lien: Legal claim against real estate to guarantee payment of a debt. Listing Agreement: Formal agreement between the seller and a real estate brokerage company authorizing a particular piece of real estate for sale. Listing Broker: The real estate brokerage company that represents the seller. Lock-in: A buyer tells the lender that they accept a certain interest rate for a certain amount of time.

Maintenance Fee: Fee a condo owner pays each month towards upkeep of the common areas. Mortgage: An agreement between a lender and borrower where the real estate is collateral for a loan. Mortgage Broker: A professional who brings together borrowers and lenders. Mortgage Insurance: Also referred to as mortgage loan insurance or mortgage default insurance, this is offered through CMHC and covers the lender when a borrower has less than 20% down payment. Currently in Canada there are three major such insurers: CMHC, Canada Guaranty, and Genworth. Mortgage Life Insurance: Covers the mortgage value in the event of the death of the mortgage holder. Mortgagee: Lender.

Title Insurance: Insurance that assures that the real property remains the property of the buyer if a claim against the property is processed. Title Search: The process of checking records to ensure the seller has the legal right to sell the property. Trust Account: Bank account used by brokers to keep protected deposit funds separate from other funds. Underwriting: Calculation of risk involved for a lender. Variable Rate Mortgage: Mortgage with fixed payments but where the interest rate is adjusted to market levels. Warranty: Legally binding commitment to guarantee that the house is in good condition.

Mortgagor: Borrower. Pre-approval: A written commitment from a lender to lend a buyer a certain amount of money at specific terms. Principal: Base amount of money borrowed. Real 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. Refinance: When a new mortgage is obtained and used to pay off the old mortgage. Statement of Adjustments: Amount of money owed at the time of closing. Selling Broker/Cooperating Broker: The real estate agent who represents the buyer. Survey: Document that outlines the property line on a piece of real estate as well as the location of any fences, encroachments and buildings on the property. Term: Amount of time a lender lends funds to a borrower.

R AHIM JAFFER M A N AG I N G PA R T N E R , S A L E S R E P R E S E N TAT I V E R A H I M @ PA R K S I D E G R O U P. C A

ANNA EMMANOUIL PA R T N E R , S A L E S R E P R E S E N TAT I V E A N N A @ PA R K S I D E G R O U P. C A

ZOYA Z AJ AC PA R T N E R , S A L E S R E P R E S E N TAT I V E ZOYA @ PA R K S I D E G R O U P. C A

PAU L G R I S É S E N I O R A S S O C I AT E , S A L E S R E P R E S E N TAT I V E PAU L @ PA R K S I D E G R O U P. C A

CHRISTIAN DUFFIELD A S S O C I AT E , S A L E S R E P R E S E N TAT I V E C H R I S T I A N @ PA R K S I D E G R O U P. C A

S AG E R E A L E S TAT E LT D. , B RO K E R AG E 2 010 YO N G E S T R E E T, TO R O N TO, O N M 4 S 1 Z 9 416 . 4 8 3 . 8 0 0 0