SELLING YOUR HOME
Q & A’s for selling real estate
Q. Can I sell my property with out using a real estate agent?
A. Yes there people who sell their homes privately. There are two types of FISBO (For Sale By Owner).
1. They have the buyer lined up before selling the house. For example, a family member or a neighbour. However they never know whether they got full market price for the home.
2. Some sellers do not have a buyer and expose the property to the public paying for their own marketing such as signs, advertising, legal advice and so on. They also field all inquiries and arrange and attend all showings. Again although they may save on real estate commission after deducting their own marketing expenses, they can never be sure that they obtained full market price for the property. Statistics show that 90% of FISBO’s eventually list with a real estate agent after failing to sell their property.
Q. What is the difference between “discount listers” and full service real estate brokerages?
A. “Discount Listers” have lower fees than Full Service Brokerages and naturally provide limited service from just providing a sign to providing so called “full service at discounted fees.” To use a cliché, “you get what you pay for.” Full service real estate brokerages have been around for over a century and are still the primary method for selling real estate. Everyone would like to save on real estate fees, however how many houses in your neighbourhood do you see listed with “discount listers” compared to Full Service Brokerages?
Q. What is an Exclusive listing compared to a MLS listing?
A. The MLS system is the most powerful marketing tool available to real estate agents. Today it is even more powerful because it is an Internet based system available to buyers and buyer agents across the globe.
Some times an Exclusive listing is preferable. For example when the seller wants confidentiality and/or in the case of a unique property that would be of interest to a very select clientelle.
Q. Our house is in good condition but is dated. Should we update before selling?
A. There is no easy answer. Much depends on who the anticipated buyer will be, the neighbourhood, the cost of the updates and so on. My advice is to be very cautious in spending money on improvements and only with the advice of a experienced real estate agent that is familiar with your local neighbourhood market. Do not be taken in by TV shows that make remodeling a house look easy. Another way to look at it is if you spend $30,000 on house improvements you need to raise your list price by at least $30,000 for you to break even.
In general painting with light, up to date colours and making sure everything is repaired and good working. Most important - declutter the house. You want to give the buyer the impression that this has been a well cared for home with good “bones.” The new owners can decorate or improve to their own taste.
Q. How do I find a good Real Estate Agent?
A. Referrals from family or friends are the best source. They will not recommend someone that they feel confident will not do a good job. Agents that are well publicised are not necessarily good agents, they are agents that do a lot of advertising.
You should interview the agent with a check list for standard items such MLS, advertising, house photos and/or videos, agent and public open houses etc. Also assess the agent’s familiarity with your neighbourhood and type of house.
- Have they explained agency to you such as buyer agent, selling agent, multiple representation?
- How well do they explain the selling process from listing to conditional offer, to firm offer to closing?
- Do you like and trust the agent?
- One of the most crucial items that will sell your house is to have it priced correctly. A good agent will come well prepared that information on comparable recent sales and current listings in your area and will work with you so you can both decide on the appropriate price to list your house so that it SELLS.
- Avoid agents that are over optimistic about price just to get the listing.
Q. When is the right time to sell?
A. The simple answer is when you are ready to sell according to your life cycle needs and convenience. Your home should not be an instrument for speculation. Trying to guess the future of the real estate market is a hazardous occupation.