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Archive for the ‘ Selling a Home in Edmonton ’ Category

Edmonton Home Sales – Process in Brief

Thursday, February 7th, 2013

If you are one of those people in Edmonton Alberta, Canada, which is thinking about selling your home, the first thing that you should do is familiarize yourself with the selling process. Selling a home is a much more involved process than most people think. Most people think that the selling of a home is as simple as putting a sign up in the yard and waiting for the day to arrive to sign the paperwork and collect the check. That rosy picture is far from the truth.

First of all putting together a team of professionals to help ensure the sales process is easy and fruitful. Your team should be based around a licensed real estate agent and a real estate lawyer, but you may also consider using: an accountant,  home appraiser, home inspector, and renovation contractors.

In determining what price to sell your home for you need to investigate the local area market and determine what the “average” home in your area is selling for. Your agent will gather information on the prices of listed, recently sold, pending, and expired listings. Then, after determining what the “average” price adjustments may be made to sales price based on your homes condition, age, number of bedrooms and baths and any improvements you have made. This is commonly refereed to as a CMA. It helps to be impartial and dispassionate view. We know this is your home and that there is an emotional value attached to it, but emotional value is not a sellable item. This is a very important step because you do not want to price yourself right out of the market and of course, you do not want to leave any money on the table by selling to low.

Next, your real estate agent will pull your homes title to make sure that you have no skeletons in the closet like: leans, caveats, or mortgages. You will also need to your current real property report; a real property report shows all the improvements and buildings on your property. Something as simple as part of a fence on city or a neighbors land can end up costing you thousands of dollars in encroachment agreement fees. Take care of any issues before hand.

Next, once you have determined your fair market value sales price, you need to determine if there are going to be any tax liabilities upon the sale of your home. In Canada, there are provisions under the law for a Capital Gains Tax. However, each individual is different so it is important to seek professional advice. Better to know ahead of time and plan for it that to be blindsided by a tax bill that leaves you no money in your pocket.

Now, once you know your sales price and your tax liability, the next step is to determine if you want to sell your home yourself or if you want the services of a real estate agent. Some key points to consider:

  • How do you individuals in your area see a for sale by owner property? Do they feel that since you are not using a realtor that they should be entitled to a price break, which in turn removes any financial advantage to you?
  • How familiar are you with the real estate laws? The fact is that they are complicated and changing constantly.
  • How will you market your property? The vast majority of home buyers use the MLS® system search at some point. Did you know only a REALTOR® can place homes on the MLS® system, and not all real estate agents are REALTORS®.
  • Most important; do you have the time necessary to dedicate to the sale of your home? It is a long, arduous, drawn out process and dealing with potential buyers at all hours of the day is difficult at best.
  • Are you a skilled negotiator? Can you sell, or are you way to nice for your own good which could result in an unscrupulous buyer taking advantage of you?

Your real estate agent and you will have to take care of some preliminary paper work such as a listing contract for services with a REALTOR® or the paperwork necessary to market your property. Next you are going to need to take the time to prepare your home to sell. Many people refer to this as “staging” the home. Remember, you are often see your home though “emotionally” filtered lenses as well as a “desensitized” lens. You have been seeing the same thing over and over for years, so you probably don’t even notice those “little things” that can be deal breakers, anymore.

Here are some key points to remember:

  • Try viewing your home through the eyes of a potential buyer, or better yet, have a friend or a neighbor walk through the house with you! Be prepared for some criticism and do not take it personally. Remember, this is about selling your home, not about how you live.
  • You have got to get rid of the clutter. Buyers want a “spacious” home, but walking through a home filled to the brim with years of accumulated memories can turn off a potential buyer. Renting a storage unit is a great way to clear out the house…and please, don’t forget the garage!
  • Clean, Clean, Clean. Our advice to you is to hire a professional cleaning service. Believe us when we tell you it will be worth the couple of hundred dollars. Don’t forget the carpet/floors!
  • Repairs are a must; that leaky faucet, the running toilet, that hole in the wall. We would recommend that you hire a professional “home inspector.” Having home pre-inspected is not only a great way to prevent nasty surprises but it also shows confidence in your home which is advantageous in negotiations.
  • Make the home as universally attractive as you can. If at all possible, paint the interior of the home. A new paint job will go a long way in revitalizing the home and making it much more appealing.
  • We would also recommend that you watch a few home improvement shows to give you some ideas. But be very realistic, do not perform any home improvements unless you are sure it is worth the investment. And always use a professional unless you are qualified to make the repairs.

BONUS TIP: Once the home is “staged” your real estate agent should take some high quality pictures and video and post them on the web. Using You-Tube to post a sales video walk through of your home is a great way to market and sell your home.

Finally, if you have done everything right you will have a buyer and the next step is to sign a binding “purchase and sale agreement.” Your real estate agent will help negotiate you the best deal. Remember there are other aspects to negotiate on other than price; often a buyer will want a specific possession date, conditions, or deposits. You as the seller can help close the sale by offering “a sellers incentive” such as agreeing to pay certain closing costs.

Once the purchase and sale agreement is signed the sellers will then be on their own to obtain financing and fulfilling their conditions. You often will have to make your home available for a home inspection. Once you have a firm deal, conditions have come off, your lawyer will be involved in completing the transaction, transferring the title, and the like.

Of course everyone’s situation is different, and with a fast paced real estate market like Edmonton, it is always recommended to seek advice about your situation from a professional.

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The trademarks MLS®, Multiple Listing Service® and the associated logos are owned by The Canadian Real Estate Association (CREA) and identify the quality of services provided by real estate professionals who are members of CREA. Used under license.

The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license. REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.