Should we buy or sell first?
This question can be answered by knowing what kind of real estate market you will be transacting in. If you are in a Seller's Market (more Buyers than Sellers) there is a shortage of homes in market place and your home will sell quickly. Therefore, you should look for a home to buy first before you sell, as it will take some time to find a new home to purchase. It is the exact opposite in a Buyer's Market (more Sellers than Buyers). You should sell first as this will be the longer time frame of the buy-sell cycle and there will an abundance of homes to choose from to buy.
How long does it take to get a home ready for sale?
Typically, it takes approximately two weeks to prepare a house for sale. Staging, photos and floorplans need to be co-ordinated with respective professionals, as well as a pre- listing home inspection, if applicable. If personal decluttering, interior painting and curb appeal work needs to be done, this may delay the date we go to market, which is why it's better to plan ahead to sell your property so that it is truly real estate ready.
Should I be home for showings?
Most buyers prefer to view a home without the Sellers present so that they may speak freely with their agent about their needs in the context of the home they are viewing. Sometimes this is not possible, in which case, you can stay in the house but out of the way, so that the potential buyers feel comfortable.
Are public open houses necessary?
Not always. I like to take into account the Sellers circumstances and their preferences. They often need to be done to gain more market exposure and especially if we have been on the market for longer than expected.
What happens at offer presentations?
When an agent has a signed offer from a potential buyer, he formally registers it with the Sellers agent and their brokerage. The offer is then presented to the Sellers by the Buyers agent in person or emailed to the Sellers' agent for presentation. Once the offer has been reviewed by the Sellers, it can be accepted as is, rejected outright or changes made to it and sent back to the Buyers agent for further review. This is called a sign back or counter offer. The negotiations may go back and forth several times until an agreement is reached or negotiations fail.
Should I set an offer date?
The setting of an offer date is dependent upon many things but primarily if the decision has been made to list the property well under market value in order to elicit multiple offers. Something we might consider as a reason to under-list a property's value is a completely renovated property or a prime location that would attract more than the usual number of buyers.
What are bully offers?
Pre-emptive or "bully" offers can be made in advance of a pre-set offer date. The Sellers are at liberty to view offers at any time even though they have set a specific offer date. Buyers that make a bully offer usually try to make the offer worthy of acceptance by the sellers.
What is the difference between Sold and Sold Conditionally?
When the Agreement of Purchase and Sale has been fully signed and initialed by both parties and there are no conditions to be fulfilled by either party, the property is considered to be sold firm. If, on the other hand, one or both parties still have some conditions to attend to, like getting a home inspection or making sure they can get their mortgage confirmed, the property is considered to be sold conditionally until those conditions are fulfilled in the time allowed in the condition clause.
What happens after the house is sold?
When the agreement of purchase and sale has been duly signed by all parties, the contract is now firm. Both Buyers and Sellers now hire a real estate lawyer to do all the closing documents for each side respectively. There may be several access visits requested by the buyer in the agreement, which will be arranged by the Sellers' agent at mutually agreeable times. There will also be a mortgage lender's request for an appraisal access visit which will be arranged by the Sellers agent.
What happens if the deal falls apart during the conditional period?
If a deal falls apart because the conditions cannot be fulfilled, both parties sign a mutual release from the contract and the deposit is returned to the Buyer.
What happens if the deal falls apart after the deal is firm?
In this case, it depends on which party cannot close and the reason why they cannot close. At this point the lawyers become involved to decide what to do about the deposit and mutual release and if this situation should become a further legal matter if there are any damages to one side or the other. A mutual release from the Agreement of Purchase and Sale must be signed by both parties in order for the property to be resold.
Do I have to pay land transfer tax?
No, land transfer tax is paid by the Buyers upon closing. In the City of Toronto, there are two land transfer taxes, provincial and municipal, and the Buyers lawyer is responsible for dealing with this.
Where does the commission go?
Our agreed upon commission is usually a percentage of the purchase price of your home. A portion automatically goes to the Buyer's agent brokerage for their involvement in the transaction. The remaining portion goes to our brokerage to pay for our services. Each agent splits the fees with their brokerage according to their individual contract.
What does your portion of commission cover?
The portion we receive from our brokerage is used to pay for the preparation of the legal listing forms, professional photos, professional video tour, floor plans, feature sheets, staging consultation and a pre-list home inspection. It also pays for the time we spend doing the agent open house, any public open houses, numerous hours spent responding to other agents regarding feedback and questions regarding your listing, negotiating the Agreement of Purchase and Sale on your behalf and as your real estate advisors.