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.

1. 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!

1. You can reject the offer. This offer isn’t even close.
2. 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.