Before Selling your home

DETERMINE MARKET VALUE

The market ultimately determines the true value of your property. Before you compare your home to similar properties and establish a competitive list price, the following points should be considered:

1. Location
2. Size
3. Style
4. Condition
5. Community Amenities
6. Buyer Supply
7. Financing Options

Getting to Know Your Market

A comparative market analysis is an indicator of what today's buyers are willing to pay for a home. It compares the market activity of homes similar to yours in your neighborhood. Those that have recently sold represent what buyers are willing to pay. The homes currently listed for sale represent the price sellers hope to obtain. And those listings that have expired were generally overpriced or poorly marketed.

Carole will prepare a comparative market analysis for your home based on the most current market information. Together you and Carolel will establish the proper list price for your home.

AGREE ON A MARKET PLAN

Your property is not something you sell everyday. In fact, for many people it is their largest asset. A house is very complex to market and the process needs to be well organized. To do the job properly a plan is needed.

Carole can prepare a personalized plan for you containing all activities intended to market your property. At Royal LePage, your property will be aggressively promoted through Royal LePage's own property advertising publications and Internet site, other Royal LePage offices and Real Estate Professionals, the MLS information library (unless it's an exclusive listing), and mailings to potential buyers in your area.

PRICING YOUR PROPERTY

The single most important decision you will make with Carole is determining the right asking price for your property.

Once you've achieved a realistic sales price, you can count on your property being professionally marketed and promoted to bring more buyers to your door. You can also expect to sell your home for the best possible price in the lease amount of time.

The Benefits of Pricing Right

• Your property sells faster, because it is exposed to more qualified buyers.
• Your home doesn't lose its "marketability."
• The closer to market value, the higher the offers.
• A well-priced property can generate competing offers.
• Other Real Estate Professionals will be enthusiastic about presenting your property to buyers.

Helpful Information

RENOVATING FOR RESALE

When it comes to home renovations, one plus one does not necessarily equal two. The money invested in improving your home will not always translate into an equivalent return in the selling price of your home. However, with planning it is possible to both increase the salability of your home and even profit from your home renovations. Renovations do not have to be extensive or expensive to earn a high rate of return. In fact, one of the cheapest and simplest improvements yields one of the highest paybacks. According to a study (1999 Renovations and Home Value Survey) by the Appraisal Institute of Canada (AIC), a fresh coat of paint on interior walls returns an average 73 percent payback. So, a $1,500 paintjob could be expected to increase a home's selling price by $2,625 (a $1,125 profit).

To maximize salability ensure that your new décor is modern and tasteful. Choose shades of white and tame versions of popular colours. Steer away from too many personal touches and custom work if you plan to re-sell. It is unlikely that your investment will be recouped and it may prevent the quick sale of your home. Also, try to keep renovations in harmony with the fashion of your neighbourhood.

The kitchen and bathroom are key areas to focus your renovation attentions. With average paybacks of 72 and 68 percent respectively, new fixtures, cabinets and tiles could be well worth the money and/or time and effort. The AIC's study highlighted the top ten renovations and the average rate of return:

Interior painting and décor - 73%
Kitchen renovation - 72%
Bathroom renovation - 68%
Exterior paint - 65%
Flooring upgrades - 62%
Window/door replacement - 57%
Main floor family room addition - 51%
Fireplace addition - 50%
Basement renovation - 49%
Furnace/heating system replacement - 48%

According to another study (Prepare to Sell by HomeGain.com in California) smaller changes to a home can also reap hefty rewards. Any addition that brightens your home (such as new light fixtures) should be returned in the selling price by an average 84% of the cost of the renovation.

SIGNING A LISTING AGREEMENT

As an expert on home sales trends in your neighbourhood, your Carole can suggest which areas of your home could benefit from renovation and increase its value and salability.

The first formal step in marketing your property is to enter into a Listing Agreement - a contract that commits Royal LePage to actively market your home for a specified period of time. It also commits you to a pre-established marketing fee that is to be paid upon the successful closing of the sale.

Carole may require the following documents:

• Plan of Survey or Location Certificate - A Survey of your property which outlines the lot size and location of buildings as well as details of encroachments from neighbouring properties. This may be required in certain areas to complete the sale of your home. Your legal professional may recommend a survey, especially if significant changes have been made to your property.
• Property Tax Receipts - Most Listing Agreements require that the current annual property tax assessments be shown.
• Mortgage Verification - Few homeowners know the exact balance of their mortgage as it is paid down. You will be asked to authorize your mortgage lender to provide the figures required.
• Deed or Title Search - This document is a legal description of your property and the proof that you own it.
• Other Documentation - In some instances, it may help the sale of your property if you can provide prospective buyers with information on such items as annual heating, electrical, and water expenses, as well as any recent home improvement costs.
  Note: In many provinces you will be required to sign a property condition disclosure statement.

Preparing for Inspection

One step which is inevitable in the home selling process is a visit from a professional house inspector.The following are steps which should be taken to ensure your inspection is a success. It is a good idea to be aware ahead of time of any serious problems which may be present in your home so you will be prepared to deal with them.

1. Ensure that past home renovations have not damaged the structure the home. Other structural damages to look for are whether termites have caused extensive damage, if settling of the home over time has caused damage to the foundation, and/or whether support beams and joists are strong and sturdy or cracked or otherwise damaged.

2. Ensure that the electrical and wiring systems are safe and acceptable. Loose wires or incorrectly installed or wired receptacles, switches or electrical box problems are all hazardous and should be corrected. All homes should have a minimum of 100 amp service.

3. Ensure there are no leaks evident. Water can run and leak into odd and unexpected places, causing extensive damage over time. If there are signs of water leakage, they can quite be often spotted by examining the underside of sinks and dishwashers, along ceilings, on floors or along basement walls. Plumbing fixtures, water-using appliances, drain pipes, water supply inlets and outlets and basements and roofs can all be causes and sources of water damage.

4. Ensure that safety issues are resolved in your home. Trim foliage which may impair a safe view of the area around the home, ensure that windows open easily and close and lock securely and that entrances/exits to the home are able to be securely locked. Hazards such as hidden curbs, loose railings and/or stairs, unused wells which are not capped, etc., should be corrected.

5. With respect to plumbing, ensure that all fixtures are in good working and free from large cracks. Faucets should run easily and shut off completely, proper grouting and caulking should be present around bathtubs, toilets and other fixtures should be bolted down securely and drains should be clog free. The home's water heater should be in good working condition also.

6. All heating and cooling systems may have to be checked to ensure they are relatively up to date, clean, in good working condition and have clean filters. Refrigerant should be checked in any air conditioning units and may require proper servicing.

7. Also, a general, unbiased overview of your home by a neighbour or friend may reveal matters which need to be dealt with that you may overlooked.

Could you sell your own home? Of course you could!

Whether you should or whether you'd want to will depend largely on your answers to the following questions:

1. Do you have sufficient knowledge of current (and ever changing) market conditions to price your home properly, to put it on the market at a price that will be attractive to both yourself and prospective buyers?
2. Do you have the skills to advertise and market your property effectively? Do you know how much advertising costs?
3. Do you have a network of contacts who can produce potential buyers for your home?
4. Are you a good negotiator? Will you be unnerved by aggressive buyers looking for bargains?
5. Do you have time to show your home to prospects? They'll want to look around when it's convenient to them, not necessarily to you.
6. Even if you have the time, can you deal objectively with negative comments prospects may make about your home? Not everyone will share your taste in decor or appreciate your improvements.
7. Can you determine who among prospects is serious and has the necessary assets to buy, as opposed to someone who is merely making frivolous inquiries? You could be stuck with a buyer who can't get mortgage financing when the deal is about to close.
8. And speaking of mortgages, are you able to help a prospect arrange the necessary financing?
9. Are you conversant with the many laws and regulations that affect property ownership? you could find yourself in some difficulty with a buyer to whom you've disclosed certain facts because you didn't know about them.

Most people feel they have neither the time nor the skills to undertake the sale of a home. They prefer to rely on Realtors, trained and licensed real estate practitioners who are members of their local real estate board.

Realtors can answer "yes" to all of the above questions. They provide a variety of services designed to make the transfer of property from one owner to another as painless as possible for all concerned. They can put an army of salespeople to work selling your home through the Multiple Listing Service (MLS), but you need deal with only one person, the Realtor you select. What's more, you'll pay that Realtor not one cent unless or until your house is sold, not matter how long it stays on the market.

Realtors subscribe to strict Code of Ethics. They work in the communities where they live. The most successful among them do well because they generate repeat business from satisfied clients.