The process of selling a home begins with choosing a Realtor. In Canada, we employ a database called the Multiple Listing Service (MLS) that is shared among 10s of thousands of qualified professionals to help homeowners sell their homes. Because the MLS database holds all the information regarding listed properties, it doesn’t matter which brokerage or Realtor you choose as information is freely distributed. Instead, the Realtor you choose should meet your standards of quality service, proven competence and most importantly the compatibility of personalities.
Once you have chosen a Realtor you are comfortable with, you will enter into a multiple listing contract or an exclusive listing contract, both of which are legal binding documents signed by all involved parties which outlines conditions including, but not limited to, the duties of the Realtor, the seller’s obligations, compensation paid and services being offered.
One element of the Multiple Listing Contract includes pricing the property. The Price shall be decided by the Seller after reviewing a Comparative Market Analysis or a CMA which includes sold, expired and actively listed properties in the subject property’s immediate area within the past 3-6 months.
Comparable Marketing Analysis or CMA
A Comparable Market Analysis consists of three parts: Active listings, Sold listings and Expired listings. When pricing your home, it is important to look at all three aspects objectively as they each tell a different story. The sold listings express what people are willing to pay for that type of home at that time. The expired listings show what price buyers are not willing to pay, for that type of property, at that time. Active listings show you who your competition is in the current market. The more recent the data, the more accurate your CMA is.
After pricing your home, your Realtor should have the documents submitted to the appropriate real estate board to put the property on the MLS. Once on the MLS, every licensed realtor can now see the information of your home and promote to their buyers. Within a few days, prospective buyers from around the globe can now inquire about your home through websites such as Realtor.ca, Realtylink.org, and MLS affiliated personal Realtor websites.
There are many ways a buyer may emerge. Through Realtor initiatives such as social networks (social media and personal sphere in influence), online marketing (virtual tours, personal websites & classified) and offline marketing (open houses, personal showings and brochures).
*OUR EFFECTIVE MARKETING METHOD*
- Online Virtual Tour
- Professional Real Estate Photos
- Visual Floor Plan
- Multi-colour 4 Page Brochure
- First page of search parameters on REW.ca
- Online Ads including Classified Ads & Boosted Social Media Posts
- For Sale Signs
- OPEN HOUSE
- Personal Showings
With sufficient exposure, you should begin to receive written offers from qualified buyers either through another Realtor or working together with yours.
Upon receiving offers, communication has opened for your REALTOR to begin negotiating the terms and conditions that are acceptable to both the Buyer and the Seller. A few examples of terms include price, deposit, and dates for completion, possession, and adjustments. There are a range of conditions that might be requested such as time to arrange financing, entry to conduct an inspection report and sellers responsibility to provide supporting documentation for the property ie. Title search, survey certificates and strata documents.
Once the terms and conditions are agreed upon, the buyer and seller will agree to accept the contract and proceed to the next step.
The due diligence period is for the Buyer to fulfill the conditions negotiated in the contract and is typically, but not always, negotiated for a period of 5-10 business days. For the sellers, it may involve multiple requests to provide access for inspectors and appraisers.
If all the conditions are fulfilled and is satisfactory to the Buyer, the conditions may now be removed in writing and delivered to all parties. At this point, the deposit cheque must also be submitted to be held in trust with either a real estate firm or a lawyer/notary office.
Choose a Lawyer or Notary Public to represent you in handling the land title transfer process. It is worth noting that the Buyer and Seller should have separate representation unless mutually agreed upon.
This procedure involves registration at the Land Title Office, disbursement of mortgage charges and payment adjustments of all other applicable fees and taxes. Typically, the Lawyer/Notary Public requires 3 weeks to complete this service but can accommodate shorter dates for a fee. Once complete, you will be called to the legal office to sign off on all closing documentation to finalize the transfer and receive your net proceeds.
COST of SELLING
- LEGAL FEE: $600 – $1000
- REAL ESTATE COMMISSION: 7% on 1st $100,000 + 2.5% on Balance of the purchase price
- GST: 5% on all services including commission
- MORTGAGE DISCHARGE FEES: (if applicable) Can range anywhere from 3 months of interest to balance of interest on the term of the mortgage. Consult with your Lender to clarify.