2018 CALGARY SELLERS GUIDE
Here is a brief summary to help you understand the steps to selling your home. Please discuss any details that you are unsure of with us, we are here as professionals and have help clients make this journey many times.
Buy or Sell first?
Deciding whether to buy or sell first can be tricky. If we find a buyer for your existing home, before you've found a new one, you may find yourself living out of a suitcase if convenient closing dates cannot be negotiated. If you find your dream home before you sell your old one, you may be forced to carry two mortgages at the same time. We have to get the timing right!
We can meet you for a marketing Consultation at your home and walk you through the process of selling your home.
We can assist you whether you've already bought your next home or if you're still looking. The use of clauses in the Purchase and Sale agreement such as, "sale of your existing home" or "purchase of a new home" can be added as conditions to agreements to ensure that you are not without a place to live. Using the "sale of your existing home" can affect your negotiating power as it is a difficult decision for many sellers to agree on.
Our Sellers Guide will help you realize that there are many reasons why people choose to sell their homes, but every seller has one thing in common: To sell their home for the highest amount possible, in the shortest amount of time.
When you are ready to sell your home, take inventory of the reasons why you are choosing to sell. These factors will help play into looking for your new home, as well as give ideas for staging and small upgrades.
When Should You Sell?
Everyone wants to take advantage of the housing market when it comes to selling your home. Unless you are buying and selling strategically for investment, the best time to sell is when your existing home does not meet your current or future needs.
A key factor to consider is the economy. The economic health of a country affects many factors related to real estate. Mortgage rates are often influenced by the state of the economy. A higher interest rate may encourage you to stay with your current home as the increase in mortgage payments may change your financial situation. A lower interest rate may mean that you can upgrade to a larger home with a minimal impact to your current mortgage.
Keep in mind that holidays and weather may impact the sale of your home. Winter holidays and the peak summer season keep many potential buyers busy and not looking for homes. Buyers with school-aged children often choose to move during the summer to minimize the challenges with changing schools in the middle of the year.
Costs involved with selling your home (but not restricted to)
There are costs involved with selling your home. Extra costs could be minor repairs and upgrades that can make your home more attractive to potential buyers.
Here are some costs to consider with selling your home:
- A professional pre-home inspection (For discussion)
- Closing costs (lawyers' fees or possible unpaid taxes)
- Mortgage discharge (fees may be levied by your lending institution)
- Sales commissions as agreed in the contract
- On- going Staging based on recommendations from us (for discussion)
Choose an experienced professional.
The purpose of this Sellers Guide is to help you with the steps you need to consider before listing. We have extensive knowledge of your neighborhood and experienced enough to negotiate the sale of your home. Experience in the market means we are able to answer questions from potential buyers about the area. One of our main objectives is to attract QUALIFIED buyers to your home and give them an excellent idea of what your home and it's location have to offer.
Exclusive and Non-Exclusive Listing Arrangements
An exclusive listing arrangement means that you are granting us exclusive access to find a buyer for your home.
With this type of agreement, no other agent will bring potential buyers to your home, because only the listing agent is entitled to the commission. You can arrange an agreement with us and then have your listing posted to the MLS after an agreed period of time.
A non-exclusive listing arrangement means that your listing will be posted to the MLS system and other real estate agents have the ability to bring potential buyers to your home. Today Social Media coverage is huge and we use to our advantage all today's technology. Your home is also syndicated to various websites, in the U.S./North America and Europe our affiliate is Luxuryhomes.com (multi lingual), to reach the Chinese market we show your home on Juwai.com see our Listing Presentation for the full maximum exposure list. Non- exclusive listings are the most common type of agreements in the Canadian real estate market.
Local market conditions can affect the sale of your home. Understanding the current real estate trend can assist you in making decisions while selling your home. We can set up an email showing you relevant activity in your neighborhood with our complimentary Market Snapshot. There are three market states:
When there are more homes on the market than there are buyers.
In this type of market, buyers will spend more time looking for homes. There are more homes on the market, giving the small number of potential buyers more to choose from. The prices of homes can be stable or perhaps dropping. Seller's will find that buyers have stronger leverage when negotiating.
Seller's Market -
There are more buyers than there are homes for sale.
With fewer homes on the market and more buyers, homes sell quickly in a seller's market. Prices of homes are likely to increase, and there are more likely to be multiple offers on a home. Multiple offers give the sellers negotiating power, and conditional offers may be rejected.
Balanced Market - There are about the same amount of homes for buyers & sellers.
There is equal competition between buyers and sellers. This means that there are reasonable offers given by buyers, and homes sell within a reasonable time. With less tension between buyer and seller the prices of homes remain stable.
Your Asking Price
Before you put your home up for sale, you must first know what your house is worth. To determine your asking price you must consider comparable sales in your area and the current market condition.
We can gather information about sales in your neighborhood, and based on that information they can assist you in determining an asking price that will accurately reflect the market and comparable listings.
Depending on the agreed strategy your listing price may be slightly higher than the value of your home, however this allows for some negotiating space between you and potential buyers. If you are in a rush to sell your home, setting the price slightly lower than what your home is worth will attract attention.
Are you ready to list ?
We will draft a listing agreement with the details of your home. This will give a comprehensive insight of your home for prospective buyers. At the listing we will all other acceptable conditions and closing dates. Plus if you have any additional terms that you want to discuss, we will go over these. Our experience will help us work with the potential buyers's agent to create an offer with conditions and price that will be acceptable to you.
Room sizes and the age of the home are just some details required to list your home. With this information we can list your home, and begin to post this information to various websites previously mentioned, for maximum exposure!
Condition of Your Home
With our professional help and our in-house stager we will examine your home inside and out. Together we will determine if there are any small repairs or underlying problems that you need to address. Any small repairs that you are able to complete will help negotiate with buyers, remember a buyer see’s a quick fix as far more expensive than it actually is. If there are any major repairs, please bring them to our attention.
Kitchen and Bathroom
Put extra emphasis on your kitchen and bathroom. Replace moldy shower curtains and clean mold and mildew off of bathroom tiles. Caulk if necessary. Repair leaky faucets and replace cracked toilet seats. Ensure that the toilet flushes properly. Make certain that the drains are unclogged. Everything should sparkle -- faucets, floors, counters, mirrors. What can be cleaned should be!
In the kitchen, clean the stove and refrigerator, organize the cupboards and wash the floor. Make certain your appliances work. Wipe the walls, touch-up paint or re-stick wall paper if necessary. Clean the sink and ensure that it drains properly and the faucet doesn't leak. (When your home is shown, make sure there are no dirty dishes in the sink and don't forget to take out garbage!)
Floors and Stairs
Check your floors and stairs for anything that needs to be repaired or replaced. You are able to remove and replace damaged tiles individually, and there are plenty of DIY fixes available at your local hardware store.
Doors and Windows
Exterior windows and doors quickly get a weathered look from exposure to the Canadian climate. Consider repainting any surfaces that appear faded or damaged. Also, review your interior window trim to see if a quick coat of paint can resolve any scuffs and smudges.
If your basement is finished, present it in the same manner as the rest of your home. An unfinished basement is an opportunity for you to showcase the potential your home has to a potential buyer. If you currently use your basement as a storage area, organize any clutter and store boxes neatly to best showcase your home. Show the potential buyer lots of space!
An organized and clean home will appear larger. Ensure that clutter is not just hidden, but organized is the best approach. Buyers will look in drawers, cabinets and closets. Hiding the clutter in those places will make them seem smaller and overcrowded.
Part of our service to you
Before our professional photographer takes the photo’s of your home, we will give you an impartial analysis of your home, and give advice on how the buyer will see it. We give you our professional opinion on how your home relates to "competing" homes for sale in your area.
To assist in selling your home we market your home using a variety of tools. A search of the local Multiple Listing Service (MLS®) is the primary tool for all Calgary Real Estate agents. The MLS® system allows all buyers and their agents to view your listing. On the new Matrix system the MLS is able to display 50 photos and extensive remarks on the features of the home.
Realtor Showings & Open Houses
Your home as a new listing will be announced to Realtors in your neighborhood. The buyers agent will arrange a time with us and we will confirm the time with you that will be convenient for you. Before showings begin a lockbox is placed on your home which requires an agent to pre-call us to get the CBS (Call before showing) private code, and then use their own code to open it. You will receive an email as soon as the Realtor opens the lockbox. We can also ask for “Day before notice“ to show your home if required. Open Houses are discussed with you at the listing appointment to see if you would like them or not. Today they are becoming more popular because a buyer is able to be “arms length” to view the home, before bringing in their Realtor. We will act as their guide through the home, while informing them about the neighborhood, and attributes of your home.
If buyers are interested in your home they will not always provide “feedback” because they do not want you to know what they ‘really” think in case they submit an offer!
In the event of an offer we will review the offer with you to ensure that you understand and are good with all the conditions, or we will counter the offer and negotiate what is acceptable to both sides, usually within a time frame.
The offer will contain: (but is not always restricted to)
- The names of the purchasers
- The Sellers names (Those on Title)
- What is to be included in the purchase (Chatels)
- The conditions within the offer
- Condition period
- Initial offer Price
- Finance condition
- Proposed possession date
- Finance approval from buyers lender
- Home inspection date
* Rural acreages can have more conditions to include (but not restricted to) Well Test, Septic Test, Water analysis, Real property report review etc.
*Remember that out of the purchase price agreed, you will have to pay for (but is not restricted to:) lawyer services, Real Estate commission, the balance of your mortgage and outstanding taxes. Some utilities and taxes will have been prepaid, meaning you may have some additional funds at adjustment day. *Call to change over utilities for possession day.
Evaluating the Offer
Decide on the lowest acceptable price before you receive the first offer. When you receive the offer you will be able to take into consideration the price, as well as the other terms that the purchaser is requesting. We will carefully look over all terms and conditions with you to ensure that the offer is understood. Any questions about the proposed offer can be clarified.
Accepting the Offer
Once you're satisfied with the terms and conditions of the offer, you can accept it. The purchaser will pay a deposit to solidify the agreement. The deposit will be held in a Trust account with our Brokerage and when the deal is closed it will be applied to the commission owed.
The lawyers part of the purchase (but not restricted to)
- Review the purchase agreement
- Prepare transfer of title documents and inform the purchaser's lawyer
- Review mortgage transactions
- Close the transaction
- Pay the appropriate commissions
- Pay any outstanding claims against the property
- Arrange for the mortgage to be paid (if necessary)
- Forward the balance of the money from the sale to you
- A complete statement reporting all of the transaction
Congratulations! The closing of your home means that you’ll be busy packing up your belongings and ensuring that you have all your arrangements made to move into your new home. Anything you agreed to sell in the offer you accepted must be left behind in the same condition at the time of sale.
If there is any major change in the state of the home or other items agreed upon, you are responsible to disclose it, immediately tell your lawyer, he will then discuss the outcome with the buyers lawyer and explain the liabilities and implications to you. Do not make any repairs without talking to your lawyer and taking legal advice.
Once the agreement is signed you and the purchaser are under legal obligation to close. If you decided not to sell your home, the purchaser has the right to sue.
If the purchaser decides to walk away from the deal, you can claim the purchaser’s deposit or sue for damages.
Chances are you’ve already bought your new home, or are in the process of looking for one. If you need assistance with the home buying process, check out the Buyer’s Guide for more details on finding your next home!
If you are considering selling, we provide
- A Full Marketing Consultation
- Professional Photographer
- Drone aerial shots on Rural
- Glossy full-colour brochures
- Full Floor Plans & RMS Measurements
- Custom Yard Sign
- Magazine exposure
- Massive local online exposure
- Very Active Social Media Presence
- Constant Communication
- Free Home Valuation
Please call us when you are ready to move forward!
Stu & Lora