The Agency Relationship
I am a member of the Winnipeg Real Estate Board, the Manitoba Real Estate Association and the Canadian Real Estate Association. More importantly to you, I have access to the Multiple Listing Service (MLS) and am bound to adhere to a strictly enforced Code of Ethics and Standards of Business Practice.
When you sign a listing agreement I become your agent for the purpose of selling your home with the following duties:
1) Undivided loyalty to protect your negotiating position at all times, and to disclose all known facts that may affect or influence your decision.
2) To obey all lawful instruction.
3) An obligation to keep confidences.
4) The exercise of reasonable care and skill in performing all assigned duties.
5) The duty to account for all money and property placed in my hands while acting for you.
In Manitoba, it is assumed that, unless one or both of the parties otherwise disclose, the agent and the firm representing the seller is the seller's agent and the agent and firm representing the buyer is the buyer's agent.
It may arise that RE/MAX Real Estate Inc. also represents the person who wants to buy your home (or represents the owner of a home you wish to buy). RE/MAX can only continue to represent both parties when both consent to the joint representation, in which case we must treat both in a fair and evenhanded manner. We would be unable to represent the interest of either party over the interest of the other. In such a case as this, an "Acknowledgement of Limited Joint Representation" must be executed.
You can expect competent service knowing that RE/MAX is bound by ethics and the law to be honest and thorough in representing a property listed for sale.
Once you have signed a Multiple Listing Agreement, over 1200 sales people in Winnipeg subscribing to the MLS are advised your home is for sale and given the details necessary to sell it. They will be paid from the commission you pay RE/MAX Real Estate Inc., unless otherwise disclosed.
RE/MAX and it's Sales Associates
Things you should know about
RE/MAX is a world leader in residential real estate with over 4,159 full-service offices in the United States, Canada, Europe, Caribbean, Mexico, South Africa and Hong Kong.
Today RE/MAX associates proudly number close to 69,825 full-time, professional sales associates worldwide.
The typical RE/MAX associate is among the most experienced in the industry, averaging over 11 years of service.
These associates are also distinguished by earning, on the average, more real estate educational designations than its industry competitors, a commitment to professional improvement.
Because of these industry high educational and experience achievements, the average RE/MAX associate outsells the competition by an incredible 3 to 1.
Over 70% of RE/MAX sales associates business comes from repeat business or referrals from past customers and friends. More than twice the industry average.
RE/MAX sales associates make a personal financial investment in every listing.
RE/MAX sales associates completely control the marketing programs for each of their listings.
In Winnipeg, RE/MAX is the leading real estate organization with a market share of over 35%
In Canada, RE/MAX is the leading real estate organization with a 40% market share across the country.
RE/MAX is Canada's largest corporate and exclusive real estate sponsor of the Children's Miracle Network. Annual donations from RE/MAX exceed $1,000,000 annually in Canada alone.
Marketing Plans Play A Key Role in Selling Homes
Comparative Market Analysis
I will prepare a professional Comparative Market Analysis that will consider recently sold, comparable homes as well as homes with which your home may be currently listed for sale. It will help establish the appropriate pricing for your home. Once that is established I can list the property on MLS and begin our marketing activities.
"For Sale" Sign
When your home is ready to be sold, the RE/MAX "For Sale" sign, the most direct marketing tool of all will go up in front of your property to catch the attention of people walking or driving by. People who enquire about your home after seeing a "For Sale" sign are likely to be interested in your neighbourhood and already like the look of your home. A "For Sale" sign also lets your neighbours know you are selling and they may know someone who is interested in the area. Your neighbours might even be interested in buying themselves; plenty of people move on to bigger and better homes in the area they have lived in for years.
Advertising
As part of the marketing plan, I will determine the appropriate type of advertising from classified ads in daily and weekly newspapers to ads in specialty realty publications such as the Winnipeg Real Estate News. Your property may also be part of a mailer sent around the neighbourhood to let people who may be thinking of a move know what is available nearby, to former customers who may be ready for another move, and to clients who already have their homes up for sale but might not have found a new house yet.
Internet
The Winnipeg Real Estate Board has all residential listings on the World Wide Web on the internet, at website http://www.mls.ca. People from all across the country and the world looking in Winnipeg will see your listing. Exposure of listed properties on the internet is now greater than ever before.
www.kimfyles.com Your home will be displayed on my website with interior digital photos and all the details about your listing. I get several thousand hits on my website every month. This is a way for potential purchasers to view your home ahead of time, so when they make an appointment they already know what they are coming to purchase.
RE/MAX Sales Associates
At RE/MAX, sales associates generate 70% of their business from personal and business referrals. We sell over 35% of the homes sold in Winnipeg. I will ensure your property is exposed to these sales associates and their waiting buyers.
Other Agents
I am skilled in promoting my listings to agents from other companies who work in your area. Once a feature sheet is prepared on your home, I convert it to a PDF file and do a mass email to hundreds of agents in the city so they can then forward the feature sheet to their potential clients.
My Buyers
Once the listing is complete, I will check my contact lists and begin trying to pinpoint and pre-qualify potential purchasers for your home. I will also forward these clients the PDF file of the feature sheet on your home so they can view the inside and all the details before they make a decision to view your home.
Teamwork
As the owner, you will be responsible for trying to assist in the marketing of your property where possible without actually becoming physically involved in showings. I will tell you about preparing the house, arranging showings or open houses and what is involved in an offer to purchase (when you get to that stage).
Progress Reports
Whether the response is good or bad, I believe you should be aware of what steps are being taken to market the home on your behalf, and to report feedback from other agents and buyers who have viewed the home.
There are many other specific marketing activities that may be undertaken. I will review these with you so you have a good understanding of the process to be followed.
Open Houses
An open house may or may not be recommended for your home. This will depend on the particular marketing strategy devised, the amount of privacy you desire, the ability to conduct one without risk to contents, etc.
An open house for the public is held on a weekend afternoon, when buyers make a point of walking or driving around neighborhoods they are interested in.
Once we have decided on a date for an open house, there are a number of things you can do to make your property as attractive as possible to give the best first impression. Remember, first impressions are lasting impressions.
The Day of the Open House
Try to find somewhere else to be during the open house. People are more comfortable looking around and poking into closets and cupboards when the owner is not present.
Take your pets with you when you leave for the open house, they may intimidate or bother prospective purchasers.
Put all personal property like jewelry, money and medication out of sight and in a safe, secure place. Think about moving fragile items to less exposed areas to minimize the chance of breakage.
Once you are sure you've done what you can to maximize your homes appearance, go on your way and let me handle the rest.
When It's Over
On your return when the open house is over, I will tell you how many people attended and whether there was any special interest shown by anyone. Feel free to ask questions. If you do not make it home at the end of the open house, I will leave you a note with comments, and telling you how many people came through etc.
You may not find a flood of offers as a result of the open house, but its very possible that the eventual purchaser first saw your home during the open house. Who knows, the purchaser may want to come back for a second, closer look. Whatever it was, an open house is usually worth the extra effort it takes to prepare for it.
Pricing it Right..At the Beginning
How to sell your home for the BEST PRICE, in the SHORTEST TIME, with the MOST FAVOURABLE TERMS and CONDITIONS ? ? ? ? ?
By pricing it right...INITIALLY ! ! ! !
A well priced home is the most important factor in marketing your property for top price. Naturally, listing a property too low will preclude the opportunity for getting top dollar. On the other hand, setting the price too high discourages showings and tends to eliminate the most likely buyers from viewing the property.
The prime selling time occurs during the first few weeks of your listing going on the market. This is when buyers currently looking for a home in your price range will look and compare your home to others they have seen on the market. They will know if your home compares favourably as to price and if so will make an offer if the home meets their needs. These buyers look in price ranges they can afford and if your home is priced outside the range it will be ignored. When your home goes on the market these buyers will want to see it as soon as possible in case it does meet their needs and before others see it. Homes sell closer to their asking price during the first few weeks. Don't miss your prime marketing period by setting a price higher than justified by the Comparative Market Analysis (CMA). If it is priced correctly, buyers will make an offer quickly in order to beat out others who also may be interested. So don't be surprised if your home does sell quickly. If you do have a lot of showings without an offer, this may indicate a price outside the market. I will speak to the other agents to obtain their feedback and advise you on any necessary price adjustments. An overpriced home runs the risk of selling for less later. You do not want your property to become "stale" as it causes buyers to question its suitability. When this happens you often will end up selling for less than you would have had it been priced right from the very beginning. Remember, a brand new listing is a) exciting b) shown more c) generally SELLS FOR A HIGHER PRICE than older listings. The longer a property is listed, fair or not, prospective buyers begin to wonder why it hasn't already been sold.
The Real Estate Listing
When you list your home, you are entering into a binding agreement in which you give me the authority to act as your agent in offering your property for sale or lease. The listing agreement sets out details, terms, and conditions, on the property to be sold and the commission to be paid.
The listing agreement gives RE/MAX the authority to distribute the listing information to members of the Winnipeg Real Estate Board Multiple Listing Service (MLS).
The listing provides that you will allow showings to prospective purchasers during reasonable hours and for a sign to be placed on the property. It also allows for a caveat to be registered on your property to secure payment for monies owed under the contract.
You will be asked for documentation on taxes, surveys, title and mortgage information. It will be helpful if you know where your documents are. The listing allows us to obtain this information if you are unable to provide it.
The listing provides for a circumstance where your listing with RE/MAX has expired but a purchaser who saw your property while it was listed comes to you with an offer to purchase the property. You should be aware that there is a "holdover" clause in the listing, which provides that if a purchaser who was introduced to the property during the time it was listed buys the property within ninety days after the listing has expired, you will still owe a commission to RE/MAX . The reason is that the purchaser would not have known about the property without the marketing actions provided by RE/MAX .
Some items on the property such as water heaters or water softeners are sometimes provided on a rental basis. If this is the case, you should indicate this on the listing and exclude the items from the purchase price. The purchaser should be asked to assume the rental.
Finally, the agreement sets out an expiry date. This must be 60 days or more after commencement for MLS listings. Please read the listing agreement carefully and call me with any questions you may have.
Sellers Property Condition Statement (SPCS)
What Is the Seller's Property Condition Statement?
The SPCS is a detailed, in-depth disclosure of a property's defects or lack of defects. In completing the form, the onus is on the seller to tell the truth about a property. Disclosing material information about a property for sale is not a new concept. The duty to tell the truth has always been with me in the various forms such as listing agreements we complete. It doesn't take much imagination to understand that buyers rely very heavily on material representations about the property they are looking to purchase as their home. It also comes as no surprise liability claims made by buyers surround allegations of misrepresentation of some material fact and result in monetary damages.
Whenever you or I provide information about a property to potential buyers, we are exposed to the possibility of a lawsuit. Courts have extended my duty to include the disclosure to purchasers of any knowledge that I have about latent or material defects in a property.
A seller can greatly minimize the risk of being made a party to, or being found liable in, a misrepresentation lawsuit by encouraging, where appropriate, buyers to seek their own professional opinion or advice in the investigation of specific components of a property. Clearly, another very good way to avoid liability is to use the SPCS.
Benefits Of Using The Seller's Property Condition Statement
The SPCS assists in reviewing the condition your property. It is a very helpful checklist which will allow you to avoid inadvertent or innocent failure to disclose a material fact for which you later could be liable. Use of the form will encourage you to thoroughly investigate your property and remind you that if defects exist they can be properly disclosed and/or repaired. If disclosed, the form can then act as a solid defense to litigation because the buyer will have purchased the property knowing of the defect or will be negligent on their own part for not having read the information in the statement.
The form only requires you to disclose knowledge you have about your property at a given point in time. You do not warrant or guarantee the future condition of the property. The form does remind you, however, you must inform the buyers of any important changes to the information noted in the form which might occur between the time the form is completed and the possession date.
An example of how the statement can protect you is found in a recent court case from the jurisdiction using a similar disclosure form. The seller had completed a disclosure statement indicating that the sewer line had to be cleaned out annually because of tree roots growing in to the line. The disclosure statement was not included with the Offer to Purchase but was provided separately to the purchaser. After the first summer of occupancy, a sewer back up caused damage to the property. The buyer sued the realtor and seller for allegedly failing to disclose this defect. The written disclosure statement proved this information had in fact been disclosed to the purchaser and as a result the case was dismissed.
A conscientiously completed SPCS will increase the attractiveness of your property and will reduce the risk of a subsequent complaint. For the selling home-owner, truthful answers will provide a defence to an action by a purchaser who alleges that misrepresentations were made by the seller or by the seller's agent acting with the authority of the seller.
Use Of The Seller's Property Condition Statement Is Voluntary
The SPCS has been introduced to Manitoba on a voluntary basis. The form itself makes it very clear that while the completion of this form is not mandatory, it does identify several areas of importance to prospective purchasers and provides clarification which is beneficial to all parties to a real estate transaction.
The Legal Ramifications Of The Use Of The Form
While on the one hand the Latin maxim of Caveat Emptor (let the buyer beware) still applies to real estate transactions, the courts have gone to great lengths to provide remedies to disgruntled buyers if they have been victims of a material misrepresentation or a lack of disclosure of a defect which is not easily discovered upon a normal inspection. It may y should be noted. If a new building location certificate and zoning memorandum have not been prepared since these items were constructed, you may have to obtain a new survey and zoning memorandum in order to be satisfied that the property is in compliance. If it is not practical or desirable for you to obtain one at this point, the possibility exists that the purchaser may detect a non-compliance after a new survey and zoning are obtained. This puts you into a state of uncertainty because, depending on the circumstances, if a variance is required but cannot be obtained, the purchaser may choose to rescind.
Title Representations
It is important that your title and the disclosure of any easements, encroachments and building restriction violations be represented correctly to prospective purchasers.
A title search may be ordered as it will show active title charges that will stay on the title and appear in the purchaser's new title after closing caveats for easements, zoning agreements, encroachment argeements, building restrictions, right of way agreements, leases, option to purchase, etc. If you know of any charges (often these can be found in the solicitor's reporting letter when the property was purchased) you should provide them.
Building Location (Survey) Certificate
A copy of your survey or building location certificate should be provided. This can help identify encroachments and confirm house and lot dimensions. Please advise if any structures have been erected since the certificate was completed.
Any air conditioning units in the side yard, decks close to side or rear yards, garages or carports within the front, side or rear yard restricted areas which have been erected since the date of the survey should be noted. If a new building location certificate and zoning memorandum have not been prepared since these items were constructed, you may have to obtain a new survey and zoning memorandum in order to be satisfied that the property is in compliance. If it is not practical or desirable for you to obtain one at this point, the possibility exists that the purchaser may detect a non-compliance after a new survey and zoning are obtained. This puts you into a state of uncertainty because, depending on the circumstances, if a variance is required but cannot be obtained, the purchaser may choose to rescind.
Zoning Memorandum
A zoning memorandum will identify any non-compliance with front, side and rear yard restrictions and also determine if the property is subject to any existing zoning variance or tolerance.
Tax Statement
This identifies any encroachment licenses and fees in addition to property tax information.
Mortgage To Be Assumed
If your mortgage will be advertised as assumable please provide a copy.
Zoning Memorandum
A zoning memorandum will identify any non-compliance with front, side and rear yard restrictions and also determine if the property is subject to any existing zoning variance or tolerance.
Tax Statement
This identifies any encroachment licenses and fees in addition to property tax information.
Mortgage To Be Assumed
If your mortgage will be advertised as assumable please provide a copy.
Seller's Checklist
Please provide me the following items as soon as possible.
Documents
_____ Evidence of Title
_____ Building Location (Survey) Certificate
_____ Most Recent Property Tax Bill
_____ Mortgage Document
_____ Lenders Name, Address, Phone, Contact Person, Mortgage Account Number, and Present
Balance
_____ If there are other loans/mortgages against the property, supply same information as above
_____ If property is held in trust, provide name of trustee, trust account number and contact information.
_____ Your Lawyer's Name, Address and Phone Number
_____ House Keys
For Condominiums or Townhouses
_____ Association Declaration and By-Laws
_____ Current Financial Statements
_____ Party-wall Agreements
_____ Condominium Disclosure Statement
Chattels and Fixtures: What are They?
When you are thinking of selling your home, you may be wondering whether you should take the custom made window coverings with you, or whether that entertainment unit you had specially made for your family room should be sold with the house.
Undoubtedly, these items may be hard to part with. On the other hand, they will probably make your home much more attractive to potential purchasers if you include them in the sale. In fact, it is quite common for vendors to include some items that would normally be considered as "chattels" - such as drapes and appliances in the sale of their home as an extra incentive to buyers.
Simply stated, chattels are things that can be removed from a property because they are not attached to the walls or to the property. Fixtures, on the other hand, are things that are attached to the property things like light sockets, a hot tub or electric wall heaters.
The law is not always crystal clear about what is considered a fixture, I as your sales associate, will help you decide and clarify what you want to include in the sale of your home.
Special Circumstances
There may be special circumstances where something that might ordinarily be considered a fixture is not to be included in the sale, like the antique crystal chandelier you had imported from France. Make sure this is clearly stated in the listing agreement and, more importantly, in the offer to purchase. If you are careful to note things you wish to exclude in the listing, other sales representatives will be in a better position to point out the various items that are not included in the sale to their prospective purchasers before they even make an offer.
Remove From Sight
If you are absolutely certain you want to keep certain items, you may even want to remove them from your home before you put it up for sale. That way, potential purchasers will not see them, fall in love with them and insist that they be included in the sale.
Describe Items To Be Included
Items that are to be included should be described along with their location in or on the property.
Chattel or Fixture? Tests
A number of tests have been developed by the courts to decide whether an article is a chattel or a fixture, but the difficulties in applying the tests to specific articles continues.
An item unattached to property except by its own weight, which can be removed without damage or alterations, which will require repair to the fixture or land to which the item is attached, is a chattel. A walk-in freezer, or a large item built inside a structure that cannot simply be taken out of a door or window is a fixture, unless it can be removed without damage or alteration to the premises. Removal or replacement of a door jam or window would not constitute damage or alteration.
An item such as a telephone, toaster, or computer that can be removed by merely taking the plug out of the outlet is a chattel, while the electrical outlet, telephone or computer jack attached to a wall is a fixture.
An item that cannot be unplugged and which is attached even slightly so that it requires the, "removal of screws, nails, bolts, detachment of plumbing or the cutting or capping of hardware," is a fixture.
If a piece of equipment which is attached to a structure can be removed, but would be useless in its separate state, then it is a fixture. Conversely, if it could be removed without damage or alteration and could be used even though not part of the structure to which it was attached, then it will be a chattel.
Pictures hanging onto the walls suspended by their own weight by a hook, a television set or stereo speakers mounted upon brackets attached to the wall are chattels. The nail or bracket is the fixture.
An item that is a fixture, but which is shown to be a tenant's fixture, can be removed during the tenancy, "provided that the tenant leaves the premises in exactly the same condition as he or she received them."
It is only in exceptional circumstances not covered by these rules that the purpose for which the object is affixed to property be examined.
Examples
Fixtures. The electrical unit of the garage door opener, although it could be unplugged, it could not
easily be removed from the brackets holding it and, in addition, was attached to another portion of the
garage door opener. By itself it would be useless. (Item 3 & 4) A display shelf attached to the wall be screws, because the removal of the screws would damage the wall. (Item 3) A Jenn-Air cooktop on a range which was built onto a counter top, was an essential part of the range. (Item 4).Chattels A built-in Frigidaire convection oven, because it could be removed by unplugging it from the electrical outlet. (Item 2).
What Does Your Home Look Like
Through the Eyes of a Buyer
This is an important question to ask yourself when preparing to sell your home. The following checklist will give you an idea of what should be done to your property so that it looks its best.
Basement, Attic and Garage:
Clean out the attic, basement and garage and dispose of everything you are not going to move. Package everything you won?t need until you?re settled in your new home.
Make sure there is plenty of light on the stairs to the basement.
If your basement is dark and gloomy, paint ceilings and walls a light colour.
Repair cracks in the basement floor with ready-mixed concrete.
Vacuum garage floors and rafters.
Stack items neatly against walls to make the room appear larger.
Kitchen:
The kitchen is the most important room in the house. Make it bright and attractive. If dull, paint cabinets and put up perky new curtains.
Clean the ventilating hood, stove, microwave and refrigerator in the kitchen.
If the kitchen floor is badly worn, put down new flooring. If a single tile is loose, apply heat to the tile with an iron covered with a soft cloth, soften the adhesive then replace the tile.
Remove any appliances that you keep on your counters, like a toaster, coffeemaker or can opener. Clean counters to make the room look larger.
Leave a luscious smell in the kitchen (i.e. vanilla, cinnamon, apple tea, etc.).
Bathroom:
Repair dripping faucets.
Keep fresh towels in the bathroom.
Use special cleaning products to remove stains from toilets, bathtubs and sinks; keep sinks and mirrors shining.
If sink and bathtub drains too slowly, unclog them.
Keep a solid deodorizer in the bathroom area.
Replace old caulking around bathtubs.
Living Areas:
Have all plaster in top shape. Cracks (or nail-pops, visible seams in dry walls) are easy to fix.
Check ceilings for leak stains. Fix the cause of the damage, repair the ceiling and repaint.
In painting and re-decorating, stick to conventional white and easy-to-work-with neutrals.
If you have a fireplace, clean it out and lay some logs in it to make it look inviting.
Wash windows and replace any broken glass; make sure all windows will open and close.
Replace burned-out light bulbs. Use brighter bulbs.
Be sure every light switch works.
Make the floors shine, clean and/or wax floors. Fix creaking boards or stair treads (drive long finishing nails at opposing angles through the floor and sub-floor into the joist).
Straighten up the closets, get rid of excess, store out of season clothes so closets look larger. Use room deodorant to eliminate musty odors.
Lubricate any sticky or squeaking doors. For doors that stick slightly, rub a block of paraffin against the surface that shows signs of wear.
For sliding doors that stick in their tracks, rub the tracks with paraffin or candle wax.
Have carpets shampooed.
Outside:
Invest in landscaping where it can be seen at first sight. A well-manicured lawn, neatly clipped shrubbery and cleanly swept walks create a good first impression.
Cut back over-grown shrubbery that looks scraggly or keeps light out of the house.
Paint your house if necessary. This can do more for sales appeal than any other factor. If you decide against painting, at least consider painting front shutters and window frames.
In winter, walks should be free of snow and ice.
Inspect the roof and gutters. Any missing shingles to replace?
Consider putting flowers outside the front door.
Repaint the front door. Repair broken outdoor steps.
Keep lawn closely cut and edged.
Create a Good First Impression
It pays to make your home as appealing as possible, give it "curb appeal" - to attract prospective purchasers once they notice the "for sale" sign on your property.
Keep your lawn neatly trimmed and edged during the spring, summer and fall. The driveway and paths should be kept clear of snow and ice in the winter and free of leaves, mud and litter at other times of the year.
Trim trees and shrubs to get rid of overhanging branches that might obscure a potentially good view of your home, or the pathways leading to the front door.
Turn over and weed your flower beds. If there is little colour in your front garden, make a splash with a display of inexpensive annuals. Flower boxes, wooden tubs and clay and plastic pots can also be filled with flowers and small shrubs and displayed in the yard or by the front entrance.
Bird houses and feeders, dried-flower wreaths and hanging baskets on the front porch can give your home "country" curb appeal.
Keep your porch, driveway and front yard clutter-free. Remove garbage and recycling bins as soon as possible after pickup, and avoid any build-up of junk mail in your mail box.
Try to keep the driveway free of tricycles, bicycles and children's toys. If the driveway is badly damaged, doing a few repairs would be of benefit.
Repair or replace broken steps or walkways. You might be used to the uneven paving or rickety stairs outside your home, but they are unsightly and could be hazardous to visitors.
Your home's roof, chimney and exterior should look sound and well-cared-for. Freshly painted woodwork is often well worth the time and money invested in it.
If painting is unnecessary, your home will still benefit from a good spruce-up. Wash down window frames and clean your windows to make them sparkle. Scrub the front door, wand polish the house numbers, mailbox, door knob and knocker.
Open blinds and curtains or shutters to give your home an inviting, welcoming look. In winter months, keep inside and outside lights on and during the rest of the year turn on interior and porch lights at dusk.
Preparing For a Showing
Homes tend to sell more quickly and for higher prices when they show their best. I am also aware that it can't always be perfect. Develop a routine that will allow you to pick up and be prepared to show in a reasonable period without duress...a 45 minute countdown. This means that certain things must be done in advance. For example. Beds should be made up first thing in the morning and dirty dishes placed in the dishwasher after use. This way you can prepare for each showing in an organized, un-hassled routine before each showing.
Pick Up Every Room
Check counters, floors, halls and stairs. Straighten up or remove newspapers, magazines, mail, toys, clothing, recreation gear, snack glasses and dishes. Neatness makes a room look bigger. Avoid clutter.
Turn On All Lights
Even those in closets and storage rooms. Electric lights have an amazing capability for creating an illusion of lightness, airiness and largeness. At night, turn on porch lights and outdoor lighting in back if you have it.
Open All Drapes, Shades and Blinds
Do all that you can to create a bright and light ambiance. The bedrooms, make up the beds, neatly and attractively, early in the morning.
The Kitchen
Be sure all counter tops are "squeaky clean." Wipe down appliances. Be sure all dishes are in the dishwasher or put away. The sink should be clear and clean.
Clean Air
Keep air fresheners in closets, bathrooms and kitchen. Be especially careful to keep kitchen odors fresh.
This brings up the issue you may have been avoiding: painting. If some of your walls are too dirty to come clean with a through washing, you may want to consider a paint job. You don't have to go overboard, but obviously yellowed or stained walls should be refurbished. This task may be the least enjoyable, but it will pay big dividends in your home's ability to sell.
Wallpaper is another concern. If the pattern predates Woodstock or is frayed and peeling, replace it or remove it. Carpets and area rugs should also be clean and in good repair.
To Renovate Or Not To Renovate
Usually, most renovations don't translate into an increase in selling price of more than the cost of the renovations themselves. Painting, wallpapering and modest landscape improvements usually recover their costs, but major projects such as new patios, decks or additions rarely do.
Outside:
The House
Take a close look as you walk the property. Clean anything that looks un kept or dirty and repair or replace anything that looks loose, dingy, rusted or broken. Make sure the door bell works. Replace a tired-looking mailbox, clean the exterior light fixtures and wash the windows. Try to spot hanging or rusty gutters, loose shingles or shutters.
The Yard
Mend the fence and fix the gate latch. Pick up litter. Consider a landscaping/lawn service.
Outdoor Furniture
Examine and spot paint your outdoor furniture. If it's rusty or un-repairable consider disposing of the pieces.
Front Entry
It's the first thing your buyers see as they stand and wait for the door to open. It's worth the extra effort to spruce it up.
The Garage
The time has come. Discard virtually everything in the garage that hasn't been used for a year. Wash it down.
Think in terms of a home that is sparkling clean, uncluttered and spacious.
Prepare well for your showings! Set the stage to make the best impression on each prospective buyer.
Music, Music, Music
Soft, pleasant background music is appropriate.
Fireplace
A warm, cozy fire may be just the extra touch that does the trick.
Air Conditioning
If the weather is warm and sultry, have it operating.
The Bathrooms
Keep a set of fresh, attractive towels in each room that you can change instantly.
The Entry way
It's the first and last impression that your buyers will have of your home, make it a good one! Check it regularly for sharpness.
The Showing
Everything is going to be fine. The agent has called in advance and you have made your last minute preparations as indicated in "Preparing for a Showing." The agent may have several home showings scheduled and he or she may be a bit early or late.
What Should You Do? - The best thing you can do when your home is being shown is to leave. Purchaser's are much more comfortable when you are not there. They will stay longer if they are interested, vs leaving because they feel uncomfortable because you are there.
You've done all that you can. Now, relax as I do my job. Soon, I'll be calling you to say "Congratulations...we have an offer to present to you."
When an Offer is Made
Three Options To Consider:
Accept the offer exactly as presented and your home is SOLD, (subject to any and all conditions being fulfilled).
Make a counter proposal, propose changes to the offer, i.e. price, personal property, closing or possession dates, etc. so that it is acceptable to you.
Reject the offer.
Delivery Of The Contract
A copy of the finalized contract will be delivered to both buyer and seller by their respective real estate agents. All pertinent legal documents can be delivered to your lawyer, if you desire.
Finalizing All Conditions
If the contract states that financing will be provided by a lender, it is the buyer's responsibility to make an application for the mortgage loan as soon as possible. The buyer will have a set number of days to procure the loan, as stated in the contract. The lending institution will verify the buyer's credit, work records, and determine their ability to meet the monthly obligations. Since the buyer's mortgage loan is to be secured by the house itself, the lending institution may assign an appraiser to visit your home to determine that its value is enough to secure the loan that they are making to your buyer. When all the information is received, the mortgage loan underwriter will either approve or disapprove the loan.
Once the loan is approved, more legal work is necessary, though you will have very little involvement. The land title will be searched, title insurance will be ordered and an updated survey of the property may need to be ordered. If the property is a condominium, your Association may have to be contacted.
One of the conditions in the Offer may be that it is subject to a building inspection or engineer's report satisfactory to the buyer. An appointment will be set up through our office. Keys will be delivered to the buyer at possession.
The Cost of Selling
Legal Fees And Disbursements
The difference between legal fees and disbursements is analogous to the parts and labor you pay when getting your car fixed. The mechanic is paid for his labor (fees) and is reimbursed for the parts which had to be bought (disbursements).
Legal Fees
Many lawyers are charging a flat rate, which varies, a typical range for a simple average sale transaction might be $250 to $500.
Legal Disbursements
The following are common disbursements for most sale transactions: several land titles searches, discharging the seller's existing mortgage at the Land Titles Office, a Certificate of Search from the Land Titles Office, and photocopying, postage and courier charges. (Most legal documents and monies are transferred between law firms and banks by courier). You can consider $50 to $75 for disbursements in an average sale.
Realty Tax Adjustment
A seller or purchaser of a property pays taxes for only the portion of the year that they own the property. If the possession date is October 1, the seller pays for 9 months and the purchaser pays for 3 months. If the seller has not paid the tax bill, they will be responsible to pay their portion of the taxes to the purchaser. But if they have already paid the whole tax bill, they will be entitled to a refund credit from the purchaser. However, many home owners use the TIPP program & there is little interruption in that case.
Home Improvement Contracts
These represent improvements made under government programs which are paid over time through hydro or gas bills. They must be paid out on a sale of a property and cannot usually be transferred to a new property.
Mortgage Balance
The actual balance remaining on an existing mortgage must be paid at the time of sale by the sellers lawyer. However, since this mortgage will not be paid out until Land Titles registration are completed (usually approximately 2 weeks after possession date at the time of this writing) interest will continue to accrue until finally paid out.
Mortgage Penalties
Depending on the type of mortgage, a penalty may have to be paid to the mortgage company for discharging the mortgage before the term is up. This penalty may be 3 months interest or it may be an Interest Rate Differential or loss of interest to the lender in respect to the prevailing interest rate as of the date the mortgage is paid out.
Mortgage Tax Account
Where the seller has been paying his taxes with his mortgage, he will generally have a pool of funds to his credit. However, if the seller is purchasing another home, these funds will be needed for the tax account on the new property.
Interim Financing
Interim or bridge financing is required to bridge the gap when a purchaser must provide a down payment on a purchase prior to the funds becoming available on the sale of their property. The delay depends on the Land Titles Office and will take, at the time of this writing, 3 weeks. The precise costs of interim financing requires detailed consideration of the interest being earned and being paid on both the sale and purchase. As a general rule however, the interest that the seller receives from the purchaser on the unpaid balance of the purchase price generally comes close to offsetting any interest that is paid, with the rates of interest charged on the interim financing being generally 2 to 4% above that which is being paid to you by the purchaser of your home.
All of these items must be considered when a seller tries to determine the equity of the net sale proceeds that they will receive from the sale of their home.
Lawyers & The Real Estate Transaction
Anyone who has ever bought or sold a house will tell you there is an amazing amount of paperwork involved. Once you put your signatures on any of the many documents you will be presented with, you are legally bound to honor whatever obligations and conditions that particular contract contains.
So do you need a lawyer in a real estate transaction? The better question might be "can you afford not to have one?" With a good lawyer on your side, you will be able to make sense of the legal jargon that turns up on every page. You will also have someone to take care of every time-consuming step or complicated issue involved in completing the deal, as well as someone to look after your particular rights and interests.
How do you go about finding a lawyer? If you don't already have one, probably the best way is to ask around friends, family and business acquaintances for recommendations. Question your prospective lawyers about their experience with real estate transactions and also discuss their fee scales and the services they will provide for the money they charge. Ask about whether there could be other legal fees and, if unexpected costs arise, at what point can you expect to hear from them? I can also refer you to one or several to chose from.
When Selling A House, A Lawyer Will:
a) Gather all necessary documents to complete the transaction and transfer the title to the new owner.
b) Let the buyer's lawyer know that your mortgage, if there is one, will be paid off or "discharged" - with the proceeds from the sale, and obtain a statement of the outstanding loan balance at the closing date from your lender.
c) Draw up a statement of adjustments that itemizes proceeds from the sale and shows how they will pay off all the costs involved in that sale. He or she also distributes the money to pay off these costs and discharges your mortgage from the property title. Any money left over is money you have made from the sale and your lawyer will write you a cheque for the net amount, and
d) Arrange to file all the paperwork necessary to transfer the property title.
You can see why it is so important to have a lawyer on your team when selling a home!
Deducting Your Move
Generally, you can claim moving expenses if the move meets the following criteria:
You have moved within Canada because the location of your business or employment has changed.
The distance between your new residence and your new work location is at least 40 kilometres less than the distance from your old residence and the new work location. Revenue Canada previously measured the 40 kilometers distance "as the crow flies" but the Courts have stated that it is to be measured using the shortest normal route available to the traveling public.
The expenses were not paid on your behalf by your employer.
You include in your income any reimbursement or allowance received in respect of the moving
expenses.
Students may also apply moving expenses against income, including scholarships and bursaries, in excess of the $500 exempt amount, and research grants.
Moving Expenses Include:
* Reasonable travel costs, including meals and lodging for the members of your household.
* The costs of selling the former residence, including legal fees, advertising costs and real estate commissions. Penalties for canceling a lease or discharging a mortgage may also be claimed.
* Transportation, and related storage, costs for moving all household effects from one location to the other, including boats, cars, trailers, etc.
* The cost of temporary lodging near either the old residence or the new residence for a period not exceeding 15 days.
* Where the old residence was sold, legal fees incurred as a result of the purchase of a new residence and any taxes, other than GST, paid on the transfer or registration of title to the new residence.
The moving expenses must be deducted in the year of the move but are limited to the income earned from employment or carrying on business at the new location in that year. If the expenses exceed the amount deductible in the year of the move, a deduction may be claimed for the excess in the immediately following year, but again this is limited to the employment or business income earned in that year.
Moving Tips Checklist
Send Change of Address To:
Post Office: Give forwarding address.
Charge accounts, credit cards.
Subscriptions: Notice requires several weeks.
Friends and relatives.
Bank: Transfer funds, arrange check-cashing in new city.
Insurance: Notify new location for coverage: Life, health, fire and auto.
Automobile registrations: Transfer of car title registration is necessary, also driver's license and motor club membership.
Utility Companies: Gas, electric, water, telephone and cable company, arrange in new town for immediate service.
Route people: Paper delivery person, changeover of services.
School records: Ask for copies of transfer of childrens records.
Medical, dental and prescription histories: Ask doctor and dentist for referrals, transfer needed prescriptions: Eyeglasses, X-rays, etc.
Church, club and civic organizations: Transfer memberships and get letter of introduction.
Pets: Ask about regulations for licenses, vaccinations, tags, etc.
And Don't Forget To:
Empty freezer: Plan use of foods.
Defrost freezer-refrigerator: Place charcoal to dispel odors.
Have appliances serviced for moving.
Call cable company and/or leave satellite equipment.
Clean rugs or clothing before moving.
Check insurance coverage, packing and unpacking labour, arrival day, various shipping papers, method and time of expected payment.
Plan for special care needs of infants.
And On Moving Day:
Carry currency, jewelry and documents yourself; or use registered mail.
Plan for transporting pets; they are poor traveling companions if unhappy.
Carry traveler?s checks for quick, available funds.
Let close friends or relatives know the route and schedule you will travel including overnight stops; use them as a message headquarter.
Double check closets, drawers and shelves to be sure they are empty.
Leave all old keys needed by new owner with your lawyer.
