Monthly Archives: March, 2014

Selling your Kawartha Lakes Home – 5. Sign a listing agreement

selling real estate kawartha lakesChances are, if you’ve lived in your home for more than a few years, you can likely turn a tidy profit. That’s great news. But sealing the deal requires more than just a handshake. You’ll have to consider if now’s a good time to sell? What’s the best way to get the word out? How do you get top dollar for your property? These are just some of the questions that a REALTOR® can help answer.

5. Sign a listing agreement

Signing the listing agreement officially gives your REALTOR® the green light to start selling your home. See what’s involved.

The “Listing Agreement” authorizes your REALTOR® brokerage to market and sell your home. This agreement serves three purposes.

It defines your relationship, including the limits of your REALTOR®’s authority.

It provides detailed information about your home which can be placed on a real estate Board’s MLS® System to help potential buyers find you.

It forms the basis for drafting offers on your home.

Highlights of the Listing Agreement

Authority

This describes the legal relationship between you and the real estate brokerage, and sets a time limit for the REALTOR® to sell your home.

Exclusive or Multiple Listing Service®?

“Exclusive Listing” means that only your brokerage can find a buyer for your home. REALTORS® generally recommend a “Multiple Listing”, which allows them to put your home on a real estate Board’s MLS® System – a great tool to market your home and help find a buyer.

Price

You have the final say over this magic number, but your REALTOR® will have very useful advice on what price will attract buyers. Learn more about choosing the right asking price in Step 4: Determine your home’s asking price

Real estate commission

This may be a flat fee or a percentage of the final sale price. The compensation is agreed upon between you and the individual brokerage.

A physical description of your property

Your REALTOR® will itemize the lot size, your home’s age, the style of construction, number and size of the rooms, and any outstanding selling features such as “backs onto ravine” or “fabulous kitchen renovation”.

Legal information

This includes the lot number, land surveys and the zoning code.

Financial information

Let people know the numbers like the minimum deposit you require or if you have a low-interest rate mortgage that can be assumed.

Completion date

This lets everybody know how long you need to move out once your home is sold. 60 or 90 days is typical, but if you can be flexible this may help sell your home faster.

How the home will be shown

Your REALTOR® can make the arrangements for viewing appointments. Any specific instructions, such as “make sure the cat stays in” can also be noted.

What exactly is included in the price? Chattels and fixtures

Chattels are moveable items like washers and dryers, microwaves and window blinds. They’re not automatically included in the sale, but sellers will often include them to sweeten the deal.

Fixtures are permanent improvements to a property like central air conditioning, installed lighting and wall-to-wall carpeting. Fixtures are assumed to be included in the sale of the home unless you note otherwise. Maybe the dining room chandelier is family heirloom that you wish to take with you. The line between chattel and fixture can get blurry, so go over every item with your REALTOR®.

via howrealtorshelp.ca – Listing your home.

Selling your Kawartha Lakes Home – 7. Let your REALTOR® market your home

selling real estate kawartha lakesChances are, if you’ve lived in your home for more than a few years, you can likely turn a tidy profit. That’s great news. But sealing the deal requires more than just a handshake. You’ll have to consider if now’s a good time to sell? What’s the best way to get the word out? How do you get top dollar for your property? These are just some of the questions that a REALTOR® can help answer.

7. Let your REALTOR® market your home

It’s time for your REALTOR® to do their thing with a few old-fashioned, and some new-fashioned, marketing tools.

The “For Sale” Sign

Despite our leaps in technology, the “For Sale” sign continues to be an extremely effective way to advertise. Anybody responding to your sign is a solid lead because they’ve seen your home with their own eyes.

Traditional media

Your REALTOR® may choose any or all of the following: classified ads in the newspaper (often with a photo), ads in real estate publications, property listings on cable television and good old-fashioned mail. Neighbourhood mailers can be incredibly effective.

The power of the Internet

If you decide to have your home listed on a real estate Board’s MLS® System, you can also have your home advertised on http://www.REALTOR.ca, Canada’s most popular Internet research tool for residential real estate, and a big reason why over 85% of Canadians who search for a home start their search on the Internet.

REALTORS® really know how to network

Your REALTOR® is part of an extensive community of REALTORS® who collectively represent hundreds of eager buyers. REALTORS® can call other REALTORS®, who can call other REALTORS®, who can call other REALTORS®.

Ultimately, your home itself becomes a selling tool

Start with an open house for REALTORS®

A REALTOR® Open House is an efficient way to attract REALTORS® to see your home with their own eyes. If your home is perfect for one of their buyers, you can be sure they’ll rush right out and tell them! Your REALTOR® can organize everything and get the buzz started.

Next, an “Open House” for everybody

Many buyers want to get a feel for your neighbourhood before they start working with a REALTOR®. That’s why Open Houses to the public are so important. They usually last a few hours on a Saturday or Sunday, and there are a few simple but important rules to follow.

Make sure your home looks its finest

Your best buyer may just walk in off the street!

Lock away valuables

Most folks are decent, courteous and honest, but it’s wise to stash away jewelry, cameras and other small valuables. You can ask your REALTOR® to request a name and phone number from every visitor for added security.

Attend to any hazards

Is there an electrical cord somebody could trip on? Is there a chair that will collapse if somebody actually sits in it? Fix it, or lose it.

Avoid cooking foods with strong aroma

Almost nobody’s dream home smells like smoked herring!

The best way you can help: Don’t be there

You want people to feel relaxed and daydream that your home is their home. This just isn’t possible with you there. Go see a movie, or take your pets on a field trip.

A “lock box” makes it easier to show your home

A “lock box” is a small, secure box that’s affixed to your front doorknob. It’s a mini safe with a key to your house inside. REALTORS® are given a combination to the lock box, so they can show your home to interested buyers.

Be patient with visits. Hopefully they will lead to a great offer, soon.

via howrealtorshelp.ca – Listing your home.

Selling your Kawartha Lakes Home – 9. Receive an offer

selling real estate kawartha lakesChances are, if you’ve lived in your home for more than a few years, you can likely turn a tidy profit. That’s great news. But sealing the deal requires more than just a handshake. You’ll have to consider if now’s a good time to sell? What’s the best way to get the word out? How do you get top dollar for your property? These are just some of the questions that a REALTOR® can help answer.

9. Receive an offer

All of your hard work has paid off, but you won’t know exactly how much it’s paid off until you see the offer. This is an exciting, often emotional time, so be prepared.

Your REALTOR® can walk you through the process

You’ll see every offer

Your REALTOR® will present you every offer that’s submitted.

The buyer’s REALTOR® may be there too

He or she represents the buyer’s best interest in the negotiation. The buyer will likely not be there, so you can review and respond to their offer without any awkward pressure.

Your eyes will be immediately drawn to the price!

Here’s where emotions can really kick in. This isn’t a poker match, but remain calm. Your REALTOR® can provide advice before any judgments are made.

Discuss the offer

You may want to ask your REALTOR® for advice on the merits of the offer. Maybe it’s time for a high-five, or maybe it’s time to plan your counter offer. You may also wish some private time to discuss things with your partner.

Three options when responding to an offer

You can accept the offer

You got the price you were hoping for, maybe even more! The closing date looks good and there are no fussy conditions. Sold!

You can reject the offer

This offer isn’t even close.

You can “sign back” the offer

This offer is close, but something’s not quite right. Now the delicate art of negotiation begins, by “signing back”.

Reasons why you may want to “sign back”

You want more money

This is by far the most common reason people “sign back”. Everybody wants to get the most for their home, and as the saying goes “if you don’t ask, you don’t get”. Go for it, but don’t get too greedy and insult someone who has made a fair offer.

You want to change the closing date

Maybe your buyer wants to move in sooner than you’d like. Maybe you haven’t even started looking for a new home! You can “sign back” a compromise closing date. Perhaps the buyer will compensate you for the inconvenience of living in a motel for a few weeks.

There may be some undesirable conditions on the offer

Conditions are points of contention that must be fulfilled in order for the sale to go through. Here are some common ones.

Buyer to obtain financing

If the buyer doesn’t have a mortgage lined up, he or she will often put in this condition. The sale will only go through if the buyer can get the mortgage he or she wants.

Approval to assume mortgage

You have a great mortgage rate on the property and the buyer only wants your home if he or she can also take over your easy payments.

Sale of purchaser’s home

The buyer hasn’t sold their existing home yet and he or she wants to be protected from the expense of owning two properties. You might want to ask their REALTOR® about the other home and its odds of selling soon.

Property Inspection

This condition is becoming standard practice. Refusing a home inspection before sale is highly suspicious to a buyer, and may spoil the deal.

The art of counter-offers and negotiation

A successful negotiation is one that leaves both you and the buyer feeling satisfied with the outcome. This is a highly emotional time, so be sure to regularly “check your head”, and ask yourself “How important is this particular detail to me? Am I willing to jeopardize a sale over this?” Remember once you “sign back” an offer, you are releasing the buyer from their offer and he or she is free to walk away. Your REALTOR® can help you every step of the way.

via howrealtorshelp.ca – Closing the sale.

Selling your Kawartha Lakes Home – 10. Close the sale

selling real estate kawartha lakesChances are, if you’ve lived in your home for more than a few years, you can likely turn a tidy profit. That’s great news. But sealing the deal requires more than just a handshake. You’ll have to consider if now’s a good time to sell? What’s the best way to get the word out? How do you get top dollar for your property? These are just some of the questions that a REALTOR® can help answer.

10. Close the sale

Your negotiations were a success. But before your house is truly sold, it’s time for the vital final steps known as “closing”. Your REALTOR® and lawyer will take care of the many complicated and time-consuming legal maneuvers. That’s why you hired pros.

Canada’s money laundering reporting requirements

By the time you accept an offer, your REALTOR® will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations.

Your REALTOR® is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a driver’s license or passport. You can find out more on the FINTRAC web site at http://www.fintrac-canafe.gc.ca.

You still have plenty to do. Your closing checklist should include:

Advise your lawyer that an Agreement has been signed. Make sure your lawyer is ready to close the transaction.

Immediately begin satisfying any conditions of the agreement that require action on your part before the set date of completion creeps up on you.

Notify your lawyer and lending institution if the buyer is assuming your mortgage.

Contact the utilities, telephone and cable companies about transferring or removing service. Your lawyer will often handle the transfer of utilities.

Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.

Contact a moving company to arrange your move on or prior to closing date.

Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.

Notify your REALTOR® immediately if anything changes about your property or your situation.

Contact with your lawyer

If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.

A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.

On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.

via howrealtorshelp.ca – Closing the sale.

Selling Your Fenelon Falls Home | Bobcaygeon Real EstateBobcaygeon Real Estate

Selling Your Fenelon Falls Home | Bobcaygeon Real EstateBobcaygeon Real Estate.

Port 32 Bobcaygeon Resale Homes – Average Selling Price

Port 32 Bobcaygeon Resale Homes – Average Selling Price.

BENEFITS OF PROPER PRICING


BENEFITS OF PROPER PRICING

 

 The pricing triangle

  • FASTER SALE:  The proper price gets a faster sale, which means you save on mortgage payments, real estate taxes, insurance, and other carrying costs.

 

  • LESS INCONVENIENCE: As you may know, it takes a lot of time and energy to prepare your home for showings, keep the property clean, make arrangements for children and pets, and generally alter your lifestyle. Proper pricing shortens market time.

 

  • INCREASED SALESPERSON RESPONSE: When salespeople are excited about a property and its price, they make special efforts to contact all their potential buyers and show the property whenever possible.

 

  • EXPOSURE TO MORE PROSPECTS: Pricing at market value will open your home up to more people who can afford it.

 

  • BETTER RESPONSE FROM ADVERTISING: Buyer inquiry calls are more readily converted into showing appointments when the price is not a deterrent.

 

  • HIGHER OFFERS: When a property is priced right, buyers are much less likely to make a low offer, for fear of losing out on a great value.

 

  • MORE MONEY TO SELLERS: When a property is priced right, the excitement of the market produces a higher sales price in less time. You NET more due to the higher sales price and lower carrying costs.

 

 

 

DRAWBACKS OF OVERPRICING

 

 

  • REDUCES ACTIVITY: Agents won’t show the property if they feel it is priced too high.

 

  • LOWER ADVERTISING RESPONSE: Buyer excitement will be with other properties that offer better value.

 

  • LOSS OF INTERESTED BUYERS: The property will seem inferior in amenities to other properties in the same price range that are correctly priced.

 

  • ATTRACTS THE WRONG PROSPECTS: Serious buyers will feel that they should be getting more for their money.

 

  • HELPS THE COMPETITION: The high price makes the others look like a good deal.

 

  • ELIMINATES OFFERS: Since a fair priced offer will be lower than asking price and may insult the seller, many buyers will just move on to another property.

 

  • CAUSES APPRAISAL PROBLEMS: Appraisers must base their value on what comparable properties have sold for.

 

     LOWER NET PROCEEDS: Most of the time an overpriced property will eventually end up selling for less than if it had been properly priced to begin with, not to mention the extra carrying costs.

 

 

PRICE is the #1

most important factor

in the sale of your home.

 

PRICING GUIDELINES

 

  • What you paid for your property does not affect its value.
  • The amount of money you need to get out of the sale of your property does not affect its value.
  • What you think it should be worth has no effect on value.
  • What another real estate agent says your property is worth does not affect its value.
  • An appraisal does not always indicate what your property is worth on the open market.

The value of your property is determined by what a ready willing and able buyer will pay for it in the open market, which will be based upon the value of other recent closed sales. BUYERS DETERMINE VALUE!!

 

 

DO NOT automatically list with the agent that gives you the highest price.

Consumer Reports, July 1990 stated…

“Expect the agent to suggest a price range, but don’t let that frame you in. Be aware that some devious agents will, at first, suggest a very handsome price. Then, after they have the listing and the house hasn’t sold, they’ll come back with a pitch to lower the price.”

BIGGEST HOME SELLER MISTAKES | Kawartha Lakes Real EstateKawartha Lakes Real Estate

Picture8Kawartha Lakes, Ontario: The most common reasons that a house will not sell in a good market are often well within the control of the home seller according to a recent survey by the ActiveRain online real estate community. In a poll of over 1,000 real estate agents, it was revealed that the top six ways home sellers turn potential home buyers away are:

1. The home is overpriced

2. It is difficult to set a showing time

3. The seller is unwilling to depersonalize or de-clutter the home

4. Unpleasant odours

5. The seller is unwilling to negotiate with buyers

6. The seller refuses to make repairs

Brad Nelson, a local REALTOR with Century 21 Pinnacle Realty Ltd, confirms that these same findings hold true for homes in the Kawartha Lakes. “It is up to the agent to educate the seller on aspects of the home selling process that can instantly turn off a potential buyer,” stated Brad Nelson. “However, some sellers get on the defensive when you point out pets, odours, and housekeeping, so it is a very fine line to walk!”

Nelson reflects on a time he was showing a conservative couple homes in the Bobcaygeon area and was met with a very unexpected surprise. After ringing the door bell and calling out their entrance, Brads’s clients were shocked to find a man in his underwear fast asleep on the living room couch. Needless to say, the couple decided to move on the next home in their search!

“I wish stories like this weren’t common in my line of work. A good real estate agent spends plenty of time with their sellers before their house ever goes on the market to avoid these expensive mistakes.”

via BIGGEST HOME SELLER MISTAKES | Kawartha Lakes Real EstateKawartha Lakes Real Estate.

Top 7 Reasons to Use a Buyer’s Agent When Purchasing Your KAWARTHA LAKES Home

Purchasing a home or vacation property in the Kawartha Lakes is a big step, and a big decision. The average person spends around 1/3 of their income on their home. The home that you choose has a big impact on your life, and can have a big impact on your finances, as well. It always surprises me when Buyers attempt to “go at it alone” because of the possibility of mistakes. A good Buyer’s Agent is invaluable to a Buyer, and can be the difference between a wonderful transaction, and a nightmare.

1) Full Access to the MLS
The Multiple Listing Service (MLS) is a powerful tool that only Realtors have access to. When listing agents market a home for sale, they typically allow any Realtor to present the home to potential buyers, and to present contracts for purchase. The MLS is a database of all homes listed by Realtors, and represents roughly 99% of the homes for sale in any given market. As technology advances, so does the MLS. It has evolved into an extremely powerful search engine that allows your buyer’s agent to enter in search criteria, and returns only homes that match those specific parameters. Buyers can find a lot of this information online through IDX feeds available on many websites, but this information is a “watered down” version of the MLS because the IDX search engines aren’t quite as powerful, and don’t return as detailed profiles as the MLS.

2) Maximize Your Time
While driving neighborhoods is an excellent idea to help you decide which
locations you prefer, it’s not a very efficient way to find your new home. Gas is
expensive, and your time is valuable. Your Buyer’s Agent will listen to your
needs, make fantastic suggestions based on your likes & dislikes, and provide
you with a list of homes that ALL match your wants & needs. Your Buyer’s Agent
has helped MANY new homebuyers through MANY purchases, and will help you
better organize your search & decision making process – saving you valuable
time.

3) Representation
Listing Agents enter into legally binding agreements that require them to
ALWAYS act in the best interest of the seller. They are the seller’s “coach” and
will make sure that their clients’ best interests are looked after. Luckily, your
Buyer’s Agent is there to make sure YOUR best interests are accounted for. With
your expert Buyer’s Agent in your corner, you can rest assured that you’re on, at
least, even ground with the home seller. A football team would be at a pretty
significant disadvantage without a coach – just as you would be without a Buyer’s
Agent.

4) Negotiating Power
The MLS maintains a record of, not only all homes listed by Realtors in a given
market, but also the sales price of those homes. Your Buyer’s Agent will run a
Comparative Market Analysis (CMA) to determine a prospective home’s Fair
Market Value (FMV). In simpler terms, your Realtor will look at similar homes in
the same neighborhood that have sold recently. This way, you will know whether
or not the seller has their home priced fairly. If the home is priced over Fair
Market Value, your Buyer’s Agent can present your “under asking price” offer
with plenty of firepower – and a greater chance that the offer will be accepted.

5) Experience
The average person buys 3-5 homes in their lifetime. A good Buyer’s Agent will
assist in 3-5 home purchases every month. What might seem complicated and
intimidating to you is fairly common and familiar to your Realtor. Your Buyer’s
Agent will know what to expect, and will know when to alert you if anything out of the ordinary occurs.

6) Industry Contacts
It takes a lot of people to close a real estate transaction – Buyer’s Agent, Listing
Agent, Loan Officer, Inspector, Appraiser, Insurance Agent, General Contractors,
and sometimes more! A good agent will come with a strong closing team that has
performed in the past, and will continue to perform. A transaction is only as
strong as its weakest link – with your strong Buyer’s Agent & their closing team,
you can rest assured that you will have plenty of support.

7) Piece of Mind
If you are like most people, your home is the largest purchase you will ever
make. The average person spends around 1/3 of their total monthly income on
their home. This is a big decision and you don’t want to go at it alone. When you
use a trusted Buyer’s Agent, you know that your best interests are accounted for,
and that you can feel confident in your purchase.

Purchasing a home can be a fun and exciting process. However, the home
buying process can be intimidating, and mistakes are possible. A Realtor who
specializes in working with Buyers can help alleviate the fears & possibilities for
mistakes. Make sure and use a Buyer’s Agent on any real estate transaction, and
you will help ensure that you are making the right decisions.

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