Selling Your Home

How to Sell Your Home for the Highest Price

People always think their home is worth, well, more than it really is. That's because home owners value a home more for its memories than for its 2-by-4's.

But what's your home really worth? How much will someone actually pay for it? For what price have neighbouring houses sold? What's the housing market like for your home now? Six months from now? Getting answers to these questions starts right here.

Getting Top Dollar for your Home, Fast!

Your home is likely your largest asset, so selling it may be the biggest financial move you’ve ever made, one that requires significant thought and strategy.  However, once you’ve entered the market, the process may move very quickly:  your property has the best chance to sell within its first seven weeks on the market.  Studies indicate that the longer a property stays on the market, the less it will ultimately sell for.  So, you need to ensure you’re ahead of the game.  Get your property into top selling shape before it hits the market in order to increase its chances of selling within the desired window of time and drawing top dollar.

Use the following tips to seize control of the home-selling process before you begin:

• Establish the Reasons you Want to Sell your Home:

These reasons will direct the path you take in the home-selling process.  If, for example, you have already purchased a new home and your goal is to make a quick sale on your current home, this reason will chart your approach.  If, on the other hand, you aim to net the highest price possible for your home, you would need to prepare yourself for a potentially slower process.  Be clear about these reasons, as they will directly influence the amount of time and effort you put into preparing your home for sale, and the amount you set for your asking price.

• Pricing:

It is essential you list your property at a competitive market value right from the start.  The competitive nature of the market means that over-pricing by a few thousand dollars could make the difference between your home selling quickly or not selling at all.  Overpricing your home could potentially yield the following results:  minimized offers, fewer showings, fewer agent responses, limited financing, limited buyers qualified for your type of home, or a smaller net price.  You can avoid these outcomes by setting the price of your home at its market value when you first list. 

If you are unsatisfied with the current market value of your home and unwilling to list it as such, consider putting off the sale of your home at this time.

• Do your Homework:

Perhaps the most “hands-on” approach to educating yourself about the nature of the current market—what works and what doesn’t—is to explore other homes on the market.  Take advantage of Open Houses in your area, particularly in those homes similar to your own.  Take some notes.  Observe floor plans, lot size, appearance, location, and other features of the property.  Then compare asking prices.  Go through this process before setting your own asking price.  Remember:  you want to get a selling price as close to your asking price as possible.  And if you want to attract this price quickly, you won’t accomplish this by setting your price higher than your neighbour’s.

• Decide Whether to Invest in an Appraisal:

Getting an appraisal can be a positive or negative move, depending on the outcome.  It’s up to you to determine how it might fit into your personal plan.  Having an appraisal done can be a good marketing strategy, indicating to potential buyers that your home can be financed, which will increase the chances that your home will sell quickly and for more money.  On the other hand, however, there’s no guarantee you’ll like the final picture offered by the appraisal.  Also, it’s one more cost you’ll have to add to your budget, and an appraisal only lasts for a limited period of time. 

• Choosing a Realtor:

Your choice of Realtor will greatly influence your home-selling experience.  For better or for worse, this person will be with you every step of the way during one of the largest financial ventures of your life—and will make a difference in the speed with which your house is sold, and how much it sells for.  Don’t take this relationship lightly.  You should consider a few Realtors before you narrow down your choice.  Of course, one of the initial factors to consider will be whether the Realtor’s personality and enthusiasm is a fit for you and your family.  Also, each candidate should be able to provide you with information on the following areas:  the length of time s/he has been involved in residential real estate in your area, the marketing strategy s/he would use to sell your home, details on other properties in your area their company has sold (how much the property sold for and how long it spent on the market), and his/her philosophy or method of negotiation.  You might want to request a reference list of former clients as well.  Choose a few names on the list and call them.

• Cleanliness:

Make no mistake, prospective Buyers will be turned off by even a minimal lack of cleanliness, or an odour.  Sellers may lose thousands of dollars if they fail to thoroughly clean the house before they begin to show it.  Begin by clearing the house of excess junk, clutter, and furniture.  Create more space.  Make every room sparkle.  Eliminate odours.  You may be the last to notice a peculiar odour in your house, but it may be the first thing a potential Buyer notices.  So, air out your house prior to showing.  Keep pets in the yard as much as possible, and send any household smokers outside. 

• Access to your Home:

Agents will be more reluctant to show your home if it isn’t readily accessible.  They don’t want to waste their time running around, picking up and dropping off keys.  Rather, a key should be immediately available for agents at all times. 

Also, go through the following last-minute list to prepare for showing your home:  keep all lights on, doors unlocked, and drapes and shutters open.  If you can, leave the house while it is being shown.  Head to the local coffee shop, or take the kids to the park.  Prospective Buyers will feel more intrusive if the owner of the house is present while they are viewing.  If you can’t leave the house, be as unassuming as possible. 

• Updated Interior:

A fresh coat of paint may be one of your best investments when preparing your home for the market.  New paint can take years off the appearance of your home, dramatically increasing its perceived value.  Likewise, if your carpeting appears worn, old, or is an outdated pattern, consider replacing it.  The carpet or paint in one room could be the difference between a successful sale and your home being overlooked.

• Drive-Up Appeal:

If the buyer doesn’t like the outside of your house, s/he may choose to skip it entirely.  It is essential that your home possess a certain “drive-up appeal.”  Remember, a potential buyer’s first impression of your house is formed while s/he is still sitting in the realtor’s car.  Ensure the trees are trimmed, the walkway swept, the lawn cut.  Paint the door, and put out a new, plush door mat.  All of these little things will contribute to the overall effect of a well cared-for and welcoming home.

Buyer's Guide

How to Make the Best Choice When You Buy a Home

This is it! The most important investment you will ever make. A home has both financial value and human value. It's a matter of family assets and family memories.

The Home Rep Team gives you a guideline on what you'll need to make that big decision. Buying smart means buying easy and buying at the best price. The Home Rep Realtors can help you every step of the way. That help begins right here.

How to Buy a Home

Buying a home is complicated business. A qualified and experienced Realtor is invaluable to the process. But you also have an obligation to contribute to that process.

If your Realtor is going to work in your best interests, you have to do your homework. You won't be going through an exercise to just to help your Realtor; your lawyer and mortgage lender will demand answers to many questions too. Arm yourself with knowledge. It will give you power!

You'll need to outline your needs (must have!) and your wants (wish list!). So take a clean sheet of paper, ask yourself these questions, and write down the answers.

What kind of house do I want?

Where do I want to live?
Consider your family's needs.

• Municipality, area, and neighbourhood
• Distance to work
• Distance to school
• Distance to community and commercial services

How much can I afford?
Consider your combined household income. Remember, commission and part-time income are treated differently. You'll have to talk to your mortgage lender about how much you can borrow based on your income and assets.
Consider your family's lifestyle. Consider how much money you can devote each month to mortgage payments and housing costs without effecting the quality of that lifestyle.

• Down payment
• Mortgage payments
• Monthly services (hydro, heating, maintenance)
• Yearly services (taxes, insurance, repairs and renovations)

What type of home do I want?

• Townhouse or condo
• Single family, semi-detached, multi-family
• Acreage

What's the maximum age I want the house to be?

• Heritage home
• Older home with renovation possibilities
• Modern home
• New home

What size home do I want?
Consider how many people will be living in the home and what furniture and appliances you will bring from your old house.

• Square footage
• Lot size
• Number of bedrooms
• Number of bathrooms
• Allowance for an addition, in-law suite, or garage

What extra features do I want?

• Finished or unfinished basement
• Deck or patio
• Type of heating and insulation
• Family room or den
• Laundry room or pantry
• Central air conditioning
• Central vacuum
• Hardwood floors or carpets
• Appliances included

What kind of houses are available on the market?

Do I want to live in a brand new home?
New homes are usually sold by the building contractor or developer. So you're not dealing with an owner currently living in the house. A new house might also be one of many in a larger development. With a new home, there are a number of factors to consider.

• Value of "newness"
• Value of low, early-years maintenance
• Advantages and disadvantage of living in a new community
• Location of a new development to community and commercial services

Do I want to live in a resale home?

• Value of a warranty offered by the vendor
• Value of living in an established neighbourhoods
• Value of living close to established community and commercial services
• Value of mature trees and gardens
• Advantages and disadvantages of age (heritage charm verses potential repair, maintenance, and renovation)
• Future costs due to normal exposure to weather and settling

What should I look for when I tour a house?

When you attend an open house or visit a house with your Realtor, there are a number of things you should look for. If you don't feel confident to make on-the-spot judgements, hire a home inspection service to do it for you.

• Type of wiring; type of electrical panel (fuses or circuit breakers); the type and placement of outlets
• Type of heating
• Condition of the roof
• Condition of the foundation
• Condition of the plumbing

What do I need to know when I make an offer to buy?

In the offer you state how much you're willing to pay, suggest a closing date; propose conditions; and agree on the offer's expiry date. Your offer includes a deposit.

After the seller accepts your offer and agrees to your conditions, the offer binds both the seller and you the buyer. If you walk away from the deal, you may lose your deposit. You may also be sued for damages.

The conditions you attach to the offer may vary. The seller may come back with counter-conditions. You and your Realtor will have to negotiate conditions based on your comfort level with those issues. There are a number of common conditions.

• You won't buy unless you get a suitable mortgage. Include the amount you hope to secure and at what acceptable interest rate.
• You won't buy unless you sell your current home. The seller of the home you hope to buy may continue to look for other buyers, but you retain the right of first refusal.
• You won't buy unless the seller provides a current survey, or "real property report." It shows the location of the house on the property and proves that no encroachments exist.
• You won't buy unless the seller proves title to the property. Your lawyer will conduct a title search to learn if there are any liens, easements, rights-of-way, or height restrictions.
• You won't buy unless the septic system has a health inspection certificate.
• You won't buy unless the house is inspected for construction and safety.

How can I get a mortgage?

Before you start serious house-hunting, you should work with your Realtor to determine how much you can afford. In the end, of course, you'll have to work with your mortgage lender who will have a very definite set of rules and criteria to follow before approving your mortgage.

How can I figure out how much mortgage I can handle?
Use the gross debt-service formula (GDS): principal, interest, and taxes (PIT) and energy costs (and condominium maintenance costs) on your mortgage loan should not exceed 32% of your gross income. Example: if your monthly payment for these items is $1,000, you'll need a gross annual income of at least $40,000.

What types of mortgages are available?

• Pre-approved mortgages are granted in advance on a mortgage for a specified amount with a guaranteed interest rate.

• Conventional mortgages are granted with the property as security, normally with a 25% down payment. If you don't have the 25% down payment, you will need mortgage insurance to qualify for a mortgage.

• Vendor take-back mortgages are granted when the seller underwrites part of the purchase as a loan to be repaid by you as the buyer. These are often used as second mortgages to bridge any gaps or to make the property more attractive to the buyer. In some provinces the seller may also transfer the mortgage to the buyer.

• Open mortgages are granted with the option that you can make extra payments on the principal, reducing your borrowing costs. Because of this flexibility, interest rates for open mortgages are a little higher.

• Closed mortgages are granted on the condition that you must wait until the term has expired to pay your own mortgage. Because of this inflexibility, interest rates on closed mortgages are generally lower.

• Partially open mortgages are granted with some of the features of both open and closed mortgages.

What types of payment methods are available?

• Monthly payments
• Bi-weekly monthly payments
• Weekly payments
• Accelerated payments which allow you to make extra contributions
• Shortened amortization period which raises payments but shortens the mortgage term

What extra expenses can I expect to encounter?

These costs vary. There are a number of common extra expenses.

• Land transfer tax (a sales tax on property)
• Mortgage broker's fee (as much as one per cent on the principal)
• Appraisal fee
• Surveying costs
• Mortgage Insurance premiums
• Mortgage rate adjustment (in case mortgage rates rise)
• Reimbursement to seller of any unused portion of prepaid property taxes or utility bills
• Legal fees
• Realtor fees

Costs Worksheet

Typical One Time Closing Costs: (please print out for use)

Typical Monthly Costs

Your Next Step

Contact us to start the process!

Mortgage Guide

Market Guide