How do I set the asking price?
Setting the asking price for house is one of the most important determinants of how quickly your house will sell. The consequences of making the wrong decision can be difficult. If you price your house too low, you will be giving away thousands of dollars that could have been in your pocket. If you price it too high, your house will sit unsold for a lengthy period, and may develop a reputation that something is wrong with the property.
To estimate the appropriate list price and likely selling price of your home, your REALTOR® will analyze a data report called a Comparable Market Analysis or CMA. Comparable homes (also referred to as “comps” ) will be looked at in the immediate neighbourhood that are relevant to being compared to your home and that have sold within the past 3-6 months. All data will be verified to be accurate. From this data, you will sit with your to REALTOR® determine an asking price. The asking price will be your decision.
What should I do to make my home ready to be listed?
First impressions matter. It’s best to think of the process like a first date or job interview. A fun way to understand how to prepare your home for a sale is to visit a few open houses, on your own or with your REALTOR®, so you can see what catches your eye in both a positive and negative way. At a minimum, you should declutter, touch-up paint, organize closets, and complete all deferred maintenance.
When should I sell?
There are many factors that determine a prime selling season, including the state of the economy, interest rates and inventory levels for similar properties. The best time to sell your house is when you are ready to move. You can then look at the extraneous factors and decide if you feel you would like to list.
What disclosures do I need to make?
Ontario law makes a distinction between patent defects – problems with a home that are easily observable by the untrained eye during a property inspection – and latent defects, problems that are not easily observable or even detectable, even by an expert.
A patent defect could be a large, visible crack in a foundation wall, a broken staircase, or missing bathroom fixtures, to give a few examples. Patent defects are visually obvious, so you aren’t required to disclose them to potential buyers. It is their responsibility to inspect the property.
Latent defects are a different story. As a seller, you are required by law to disclose any known latent defects that could make your home dangerous or unfit for habitation. Examples of latent defects could include a basement that floods during heavy rainfalls, a structural problem with a wall or a chronic mould outbreak. If a seller knows about a latent defect that makes the home dangerous or unfit for habitation and fails to disclose it, they put themselves at risk of being sued by the buyer.
What is the commission I need to pay?
There is no pre-determined commission fee and often the total commission will depend on the list price of the home. As a general rule, a brokerage firm charges 5% commission, sharing 35 to 50% of their commission with a buyer’s agent.
Why do I need a REALTOR® to sell my home?
You are not required to use a real estate agent to sell your home. But a REALTOR® will ensure you get the best price and deal terms for the sale and make certain you get to the closing table. Studies have shown that using a REALTOR® vs an organization such as Purple Bricks will bring you an agreed sale price 3.6% above that of Purple Bricks, in addition to take the closing details checklist away from your plate.