Listing your home with an agent who specializes in your area is the best ticket to getting maximum exposure of your house to buyers. Agents who have worked a locale for several years are going to be well versed in the area’s price trends, recent comparable sales history, the neighborhood’s strengths and weaknesses, and how to work these factors to your advantage. Also, local agents tend to support one another by bringing buyers to the listed properties of colleagues. As area specialists, they have a strong interest in making as many local sales as possible. Because out-of-town listing agents are not part of the local sales network, your property could be at a marketing disadvantage. To find a good local agent, interview several candidates.
- Ask how many homes the agent has sold in the neighborhood in during the past year
Get a list from the agent; it is a good measure of the agent’s familiarity with the area and should include list price, sales price, square footage, number of bedrooms and bathrooms, and time on the market.
- Gauge the depth of the agent’s knowledge of neighborhood price and marketing trends
Scary Godmother: The Revenge of Jimmy buy Knowing where local prices have been can help you set an appropriate listing price. A non-local agent may suggest a higher list price. But if it doesn’t match prices of comparable homes in the area, and isn’t backed by marketing that fits local custom and current prices, you could lose potential buyers.
- Ask to contact the agent’s last three to five sellers
Find out if they were satisfied customers and if not, why not. Good agents will be happy to let former clients add ballast to their sales pitches.
Your negotiations were successful and you have a legally binding agreement. But, is the house truly sold? Not quite yet. It’s time for the vital final steps known as “closing”.
Your REALTOR® and lawyer will do most of the work
Thank goodness. Closing a deal involves many, many complicated and time-consuming legal maneuvers. That’s why you’ve 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 drivers licence or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca/
Your closing checklist.
You still have plenty to do yourself, and here’s a comprehensive list.
- Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
- Immediately begin satisfying any conditions of the agreement that require action on your part. They have definitive dates for completion and failure to do so can result in a lot of hassles, or even spoil the whole deal.
- Notify your lawyer and lending institution if the buyer is assuming your mortgage.
- Contact the utilities, telephone and cable companies about transfer or removal of service. Note: 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.
Congratulations!I hope this was helpful. For more information on the Brampton real estate market or selling your Brampton house drop me an email.
All of your hard work has paid off, even with all the competing homes in Brampton you managed to get an offer, but you won’t know exactly how much it’s paid off until you actually see the offer. This is an exciting, often emotional time, so be prepared.
Your REALTOR will walk you through the process.
- You’ll see every offer. It’s required that your REALTOR show you every offer that’s submitted. They’ll call for an appointment to discuss the offer.
- The buyer’s REALTOR will probably be there too. They are there to represent the buyer’s best interests in the negotiation. The buyer will not be there, so you can review and respond to their offer without any awkward pressure. Sometimes offers are done through fax. Your Brampton agent might recommend that as well because then there is no pressure from the buyer’s agent.
- 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. Listen to the REALTORS before making any judgments.
- You’ll probably ask the buyer’s REALTOR to leave the room. Now you and your REALTOR are alone to discuss 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 spouse.
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 and remember in mind the Brampton real estate conditions.
- You want to change the closing date. Maybe your buyer has already sold their previous home and has no place to live. They want to move in soon; sooner than you’d like. Maybe you haven’t even started looking for a new home! In the same way that you can “sign back” a higher dollar amount, you can also “sign back” a compromise closing date. Perhaps the buyer is willing to offer more money to compensate you for the inconvenience of living in a motel for a few weeks. Welcome to the world of negotiation and compromise.
- 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 conditions that buyers place on their offers.
- Buyer to obtain financing. they will often put in this condition. The sale will only go through if the buyer can get the mortgage they want. For some sellers, this is too big an “if”, but the buyer’s REALTOR® will be candid about their odds of approval and keep in mind even if they are preapproved the bank still wants their own appraisal done on the property. Unless there are competing offers (not happening so much anymore in Brampton) this condition is pretty standard in every offer.
- Approval to assume mortgage. You have a great mortgage rate on the property and the buyer only wants your home if they can also take over your easy payments. Will this potential buyer qualify?
- Sale of purchaser’s home. The buyer hasn’t sold their existing home yet and they want to be protected from the expense of owning two properties. Maybe their house will sell in a flash. Maybe it won’t sell at all. Maybe you don’t want the sale of your home riding on so many maybes. Time to consult their REALTOR® about the other home and its odds of selling soon.
- Property Inspection This condition is becoming standard practice. Hopefully, you have followed the suggestion of your REALTOR® and disclosed every detail of your home’s faults, so there won’t be any surprises. 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 they are free to walk away. Thankfully, your REALTOR® is an expert and seasoned negotiator, and will help you every step of the way.
Happy negotiating, and best of luck!
For questions on the Brampton real estate market drop me an email.
If the time has come to sell your Brampton house then either you will try it on your own or get the help of an agent. In order to be listed on the MLS you will have to sign a listing agreement with the agent’s company. Here are the main highlights of what’s included in a typical listing agreement just so you are not surprised when it comes time to sign one. Hope it helps!
Highlights of the Listing Agreement
- Authority. This describes the legal relationship between you and the real estate brokerage, and it 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 the MLS®, and they can spread the word to other REALTORS (not just in Brampton but worldwide) to help find you a buyer. A listing on the local Multiple Listing Service gives your home maximum exposure and your commission stays the same. It really is the better way to sell.
- Price. The real key to attracting buyers. You have the final say over this magic number, but your REALTOR® will have very useful advice. If your house is in Brampton then be sure to pick an agent who specializes in Brampton. He will know market trends and exactly what the property can sell for.
- Real estate commission. This is usually a percentage of the final sale price, and you only pay once your REALTOR has found you an acceptable offer. The percentage is agreed upon between you and the individual brokerage. This can also be a fee arrangement.
- A physical description of your property. Your REALTOR® will itemize the lot size, the age of your home and the style of construction. They’ll list the style, number and size of the rooms. They will also be sure to include any outstanding selling features of your home such as “backs onto ravine” or “fabulous kitchen renovation”.
- Legal information The Uninvited dvd such as the lot number, land surveys and the zoning code will be included.
- Financial information like the minimum deposit you require with any offers. If you have a mortgage that can be assumed (taken over by a buyer) that information should be listed because it could make your home more desirable, especially if you’re locked into a lower interest rate than what is presently available.
- Completion date. This lets everybody know how long you need to move out, once your home is sold. The standard time is 60 or 90 days, but if you can be flexible be sure to make note.
- How the home will be shown. Normally your REALTOR will arrange appointments. Any specific instructions, such as “make sure the cat stays in” can also be noted. There are so many houses listed in Brampton at anytime it is vital that you not put many restrictions on when the house can be shown.
- What exactly is included in the price? Chattels and Fixtures.
Chattels are moveable items like washers and dryers, microwaves and window blinds. Chattels are not automatically included in the sale, but sellers will often include them to sweeten the deal. Any chattels you wish to include should be clearly noted.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 and you wish to take it with you. The line between chattel and fixture can get blurry, so leave nothing to chance! Go over every item with your REALTOR and make sure it’s accounted for in the Listing Agreement.
So there you have it. Hightlights of a typical listing agreement. Brampton real estate prices have taken a hit recently so get opinions of 2-3 agents on what the house can realistically sell for. Go with someone with the realistic price and a good marketing plan. All the best!
For questions on the Brampton or Georgetown real estate market drop me an email.
Because of the constant changes in Brampton real estate market conditions, more sellers are competing for fewer buyers. And most buyers are not jumping at the first property they fall in love with.
“The initial asking price is NOT that important because it can always be lowered later.”
Wrong! The original asking price is very important. Specially when working with the new generation of buyers who are well informed on the market conditions. But many homeowners still believe over pricing a listing is the way to go. And they couldn’t be further from the truth. It is a myth. It’s a time wasting myth.
Find out more…
But most buyers are now looking at prices online, to get an idea of what is for sale and at what prices. Even if they saw your ad for the first time because of another type of advertisement (newspaper, sign in your front yard, flyer, etc) as soon as they decide to make an offer they will make a Market Comparison Search and find out the home is over priced compared to other Brampton properties. What would happen next? The homeowner will most likely receive a low ball offer from the buyer.
When the buyer comes with another agent
That buyer’s agent knows the current market and will know of other properties that DOES fit their needs.
Buyer’s agents are not swayed by advertising. They look at their client’s needs; location, condition, and most importantly … PRICE
If your house is overpriced, agents are going to show similar homes in Brampton that are priced more attractively and as a result, your listing will get passed over.
Agents pay MOST attention to homes newly on the market, and since they new ones are fewer, it is easier to keep an eye out for what is NEW, compared to the vast number of current listings. New listings are on the “hot” sheet circulated in real estate offices. The MLS computer identifies new listings. A lot of attention is focused on what is NEW. With agent’s looking at newly listed homes so aggressively, a properly priced home gets attention.
An overpriced home gets passed over.
You may be thinking, “But I’m willing to negotiate!”
Buyers aren’t thinking in advance about how much you are willing to negotiate. They are comparing your asking price to other asking prices. Plus, when your house is new on the market, you may not be willing to negotiate as much as you will later, once you’ve realized your error.
So what happens if you overprice in the beginning and get more realistic later?
A price reduction later in the listing cycle often gets overlooked. It is just one of many listings, not one of a few new listings. As time passes, you could actually become desperate to sell because perhaps you now really NEED to sell. That is a recipe for receiving lowball offers, so you could end up selling for less than if you had priced the home correctly in the first place.
Agents know this stuff, but many sellers still mistakenly believe they should “price it high” because they can lower the price later, if necessary.
Overpricing a listing is NOT the best strategy.
To get an idea on how much your Brampton or Georgetown house is really worth drop me an email.
Do you see a lot of open house signs in Brampton? The weekend open house is a time-honored tradition in real estate sales, but has it outlived its effectiveness? Quite possibly, according to a new survey conducted by the Real Estate Center at Texas A&M University. The survey results hint at the notion that public open houses may be more beneficial for the agents themselves than for the home sellers.
Almost all the agents who responded to the survey (97 percent) had held public open houses, but only 41 percent believe those events help sell the home that’s being showcased. Thirty-two percent believe public open houses attract many potential buyers for other Brampton properties, but nearly three-fourths also believe those buyers are more likely to buy a home other than the one being held open. And 62 percent say most people attending open houses aren’t serious buyers at all.
Also, nowadays everyone is searching for real estate on the internet. An internet lead is more qualified then an open house lead. An internet lead already knows the price of the house, the size, how it looks (from the pictures / virtual tour) before they call the agent. An open house visitor has no idea about any of those things when he walks into the house. Just to be polite they’ll make compliments and usually leave a wrong phone number.
Even though open houses may be of only marginal benefit for Brampton sellers, they aren’t necessarily a total loss for sharp agents. In addition to bringing in buyers for other homes, open houses create opportunities for agents to sign listing agreements with neighbors who stop by to see the open home. Fifty-five percent of the survey respondents agreed with the statement that open houses help them generate new listing contracts. Public open houses also present a security issue for home sellers and agents. “Whether or not to hold an open house is a concern among agents,” says Jack Harris, a research economist with the Texas A&M center. “Agents must be on-site for the duration of open houses. Safety is a growing concern because there is no way to know whether a visitor is a serious buyer, just curious or has more sinister motives.”
Despite the potential for meeting prospects, many agents find open houses troublesome, dangerous and generally a waste of time. The first lesson for home sellers is: Unless your home in Brampton is unusual (i.e., difficult to sell), you might want to spend your weekends enjoying your own backyard, rather than turning your home over to your real estate agent.
A lot of the times you will just get nosey neighbours wanting to see how your house is decorated or people just out for shopping in Brampton will drop by because they want to know how much to price their house when it’s time for them to sell. MLS is the most effective way to get qualified buyers.
For questions on the Brampton or Georgetown real estate market drop me an email.
When the time comes to price your Brampton home for sale, you may be tempted to start with the price you paid for it, add a healthy markup and call it a day. Unfortunately, that strategy is unlikely to result in a true reflection of your home’s market value.
Here are six strategies to help you figure out how much your home is worth:
1. Abandon your personal point of view. How much will a ready, willing and able buyer be willing to pay for your home? Buyers don’t care how much you paid for the home, how many memorable moments you and your family shared in the home, how much cash you need for the downpayment on your next home or how much time and money you’ve invested in your home’s hardwood floors, fresh paint, lush landscaping or other improvements.
2. Get a couple of CMAs. Invite at least three real estate agents to visit your home and give you their opinion of its likely selling price. Ask for a “comparative market analysis” (CMA), which shows the prices of comparable recently sold homes, on-the-market homes and homes that were on the market, but weren’t sold. The on-the-market homes are the “competition” for your home. Ask the agents why each home was included in the CMA and whether any other comparable homes were eliminated from the CMA. Price recommendations based on CMAs aren’t gospel. Some agents will tell you to under-price your home in hope of sparking a bidding war. Others will suggest a flatteringly high price to “buy” your listing only to demand a price reduction a few weeks later. There are many really good agents in Brampton, finding 2-3 to interview wouldn’t be difficult.
3. Do your own market research. Go to open houses in your Brampton neighborhood and try to make an impartial assessment of how those homes compare to yours in terms of location, size, amenities and condition. Assuming all the asking prices were the same, would you buy your home or someone else’s? Also keep in mind that these homes are currently for sale and they haven’t really sold yet. The sold price is what you are after. Ask a local Brampton agent for sold prices of specific properties.
4. Calculate the price per square foot. The average price per square foot for homes in your neighborhood shouldn’t be the sole determinant of the asking price for your home, but it can be a useful starting point. Keep in mind that various methodologies can be used to calculate square footage.
5. Consider market conditions. Are home prices in your area trending upwards or downwards? Are homes selling quickly or languishing? Will your home be on the market in the spring home-buying season or the dead of winter? Are interest rates attractive? Is the economy hot or cold? Will you be selling in a buyer’s market or a seller’s market? Is the local job market strong or are employees fearful of staff reductions?
6. Sweeten the transaction terms. Some buyers have needs that go beyond the bottom line. If you’re willing to close quickly, you’ll attract buyers who want to move in right away. If you can offer seller-financing, your home will appeal to buyers who need to stretch their financial resources. A lease-option can help first-timers who need downpayment assistance. The more creative and flexible you can be in meeting the buyer’s needs, the more success you’ll have in pricing your home to sell.
For questions on the Brampton or Georgetown real estate market drop me an email.
Confused about real estate commissions? You’re not alone.
There’s no question a good real estate agent can be a valuable resource when it comes to buying or selling a home. But how much is that help going to cost?
First of all, if you’re the one buying the home in Brampton ( or actually anywhere in the GTA), it isn’t going to cost you anything. The agent’s commission comes out of the selling price. That means it’s deducted from the amount the seller receives, not added onto the amount the buyer pays. Of course, it can be argued that as a buyer you are indirectly paying the commission by virtue of the fact that it’s included in the price. But following that logic, all homes for sale by owner should cost less than those being sold through an agent, and if you’ve called on FSBO ads in Brampton you know that certainly isn’t always the case.
Second, if you’re the seller, you don’t have to pay an agent anything up-front to market your home. A real estate agent generally doesn’t receive any commission until closing, at which time they will receive the amount stipulated in their contract — commission rates vary from city to city and from agent to agent. But chances are (unless you’re in a particularly hot market) your agent is going to have to work hard to earn that commission by investing a lot of time and effort into marketing your home. And they’re going to have to give a cut of that commission to both their brokerage and the buyer’s agent (unless they represent both the buyer and the seller).
To help take the mystery out of real estate commissions, we provide the following answers to a few of your most common questions.
Q. Who pays the commission?
A. The seller. It is paid out of funds received from the sale of the home.
Q. Does the commission go entirely to the seller’s real estate agent?
A. No. The broker whose firm lists the house sets the commission. The listing broker then offers part of the commission — to the broker whose firm represents the buyer. Both brokers then share their portion of commission with the agents who work with the seller and buyer. The agents’ share may be as little as 50 percent or as much as 100 percent, depending on their arrangement with the broker. If either brokerage is part of a franchise, it may also pay part of the commission as a franchise fee. Bigger Franchisees such as Remax and Royallepage may charge monthly Franchise fees but the agents get the benefit of being associated with the top brands in real estate.
Q. Is it possible to negotiate the real estate commission?
A. Yes. An agent may be willing to negotiate his or her commission in order to get your business. This is especially true if the agent is independent and doesn’t have large operating costs. In some cases, both agents might agree to cut their commissions in order to bring down the price of the home if the buyer’s offer doesn’t quite meet the asking price. From my experience in Brampton I’ve seen and heard everything.
Q. Will I pay less if I buy a house without using a real estate agent?
A. You might be able to negotiate a reduced price. Since the listing broker won’t have to share the commission with another agent and broker, he may agree to a reduced commission and pass the savings on to you. This may also be possible if you use the same agent as the seller — for example, if you toured an open house in Brampton and retained the listing agent. This is called dual agency. Yes there is a chance that if you went to the listing agent direct you might save some money because that buyer’s agent commission can now be negotiated in the price. But keep in mind that at the end of the day the listing agent is still working for the seller. So be sure to double check everything you sign.
Q. Is a real estate agent likely to push me to buy a more expensive home so he can make a higher commission?
A. There isn’t a big incentive for an agent to push you to buy a more expensive home because of the way commissions are divided. For example, your agent may be entitled to 65 percent of his broker’s share of the commission — perhaps 2.5 percent of the sale price. Under that scenario, if you were to buy a home for $260,000, rather than $250,000, your agent would earn only an additional $195. That is really not a money, and certainly not enough for the agent to lose your trust over.
I charge one percent commission for myself and 2.5 percent for the buyer agent (industry standard – especially in Brampton). Therefore, the total commission you pay with me is 3.5% for full service. For questions on the Brampton or Georgetown real estate market drop me an email.
