Seller Information

Selling a House with an Agent

The majority of home sellers take on the task with an ally: a Real Estate Agent. They feel that it is better to entrust the sale of their biggest investment to a professional, rather than attempting to learn about selling a house in a trial and error method. In addition, many people would rather use an Agent due to the complexities of modern Real Estate transactions since they usually incorporate legal and financial attributes, which takes them well beyond more simple transactions, such as the sale of an automobile.

Some of the other advantages of working with Agents that home sellers will list include: access to the Multiple Listing Service (MLS) so that large numbers of buyers will have access to the seller's property, the fact that the Agent absorbs all of the cost of advertising and marketing, and the screening that will be done of potential buyers by Agents. In addition, the Agent handles the lion's share of the details of negotiation.

Deciding whether to use an Agent or not has a great deal to do with what you feel the level of your capabilities are. If you feel fully confident that you can handle all of the details, then you may well want to attempt selling your house on your own. If not, you most likely will want to use an Agent and leave the details to them.

So how do you choose an Agent who will be effective? What is important to know about an Agent to determine whether you feel they will do a good job? The following questions should be asked of any prospective Real Estate Agent in order to assess their capabilities and philosophies.

The Buyer - Seller Relationship

Documents Required Before Meeting an Agent

Before meeting with a Real Estate Agent, you must have the following documents in hand in order to facilitate the sale of your property:

• Deed of Sale
• Certificate of Location (within the last 5 years)
• School Tax Bill
• Municipal Tax Bill
• Hydro Electric Bills
• Heating Bills
• Mortgage Papers (if any)
• Septic Tank Information (if applicable)
• Chimney Certification
• In case of illness or succession, the notarized mandate

What to Look for in an Agent

• A sense of professionalism
• full time Agent who is committed to the profession (and who will be committed to getting your house sold!)
• A familiarity with the area in which your home is located
• A familiarity with the price range in which your house will be listed
• Evidence of advertising and marketing ability.
• References from previous sellers

Questions to Ask a Prospective Agent

• Are you a full time Agent?
• How long have you been in the Real Estate business?
• Are you an MLS (Multiple Listing Service) Member?
• How familiar are you with the area where our home is located?
• How many homes did you sell in this area in the last year?
• Can you supply 3 names and addresses of recent clients for whom you sold a home that we can contact for reference purposes?
• How did you arrive at the suggested listing price for our home?
• What is your specific marketing plan for our house? 
• How do you plan on keeping us informed of the progress of the sale of our home?

Important Tips for the Home Seller

The effort put into repairing and cleaning your property is likely to be returned in a fast sale at an attractive price

• As buyers approach your property the first time, impressions are formed quickly.
• Paint house - this can do more for sales appeal than any other factor.
• Yard - Remove all toys, garbage, garden tools and other items from view.
• Mow lawn and keep edged.
• Close garage doors.
• Put colorful flowers in front of house.

Often, while waiting to be let in, the first thing a buyer looks at closely is the front door

• Put new paint on the front door.
• Buy a new door mat.
• Buyers take a close look at the basement of a home. They will look for bad wiring, leaky pipes and signs of decay.
• Clean out basement and dispose of everything you are not going to move.
• Ensure that there is plenty of lighting.
• Sweep or vacuum floor.
• Stack items neatly against walls.

The kitchen is often the most important room in the house. Make it bright and attractive

• Put a vase of fresh flowers on the table.
• Replace curtains or clean existing ones.
• Remove appliances from counters.
• Create a pleasant fragrance in the kitchen (i.e. vanilla, cinnamon).

It is important that bathrooms are clean, bright and smell fresh

• Install a new shower curtain and replace worn throw rugs.
• Polish all fixtures.
• Open windows.
• Hang bright, fresh towels.
• Remove stains from toilets and bathtubs.
• Use air freshener.
• Display colorful soaps.

The living room

• Clean out the fireplace and place logs in it.
• Polish all woodwork.
• Put big furniture in storage so rooms are not cluttered or crowded.

The Seller's Responsibilities

The following is a list of some possible work orders. The work orders must be completed prior to closing and the seller is responsible for having them done. Check with your local authorities for specific requirements.

The following conditions may require a work order:

• Broken windows.
• Debris in crawl space.
• Dry rot or deteriorated wood.
• Earth-wood contact.
• Overgrown shrubbery.
• Electrical not in working condition.
• Gutters and downspouts blocked or missing.
• A hot water tank without a 3/4" discharge line.
• Inadequate foundation ventilation.
• Inadequate attic ventilation.
• Less than four feet of waterproof material around tub enclosures (tile, formica, etc.).
• Less than 18" clearance between soil and floor joists under entire house.
• Peeling or missing paint.
• Plumbing not in working condition.
• Single oil or gas space heaters to heat entire house.
• Water damage inside home.

You might have to:

• Paint the exterior and interior if in bad condition.
• Hook up to public water or sewer if available.
• Get county certification if home is on septic or well.
• Remove unused oil tanks or fill with cement-slurry or polyurethane foam.

Other items to remember:

• Inspectors will need access to the attic.
• Leased equipment cannot be included in the sale (i.e. hot water tank, alarm system, etc.).
• All assessments must be paid.
• Joint maintenance agreements will be required for common road easements for maintenance on home where property line is within 3' of structure.

* Check with local authorities for specific requirements.

Showing Your Home

Before Your House Is Shown

• Tag or remove items not included in sale (i.e. water conditioner, chandeliers, plants, drapes).
• Open shades and curtains to let in light.
• Turn on enough lights so home is well-lit during showing.
• At night, turn on porch light and outdoor lighting.
• Tidy all the rooms. Neatness makes a room easier to view.
• Clean dirty dishes in the sink and put away any dishes on counter.
• Keep toys in the children's rooms.
• Put away items in the yard such as bicycles, gardening tools and skateboards.
• If fall or winter, light a fire in the fireplace.

While Your House Is Being Shown

• When possible, leave while the property is shown. If not, remain in an area not being shown by the sales associate.
• Let the real estate expert show your house. Answer questions candidly when asked, but avoid questioning potential buyers.
• Refer inquiries about seeing your house to your Realtor to take advantage of the agent's professional skills in selling your home.
• Don't mention items you wish to dispose of unless asked.
• It is best to be away when your agent is holding an open house.
• Keep pets outdoors or in one area.
• Keep children quiet and in one area.
• Keep radio, stereo or TV on low volume.
• Keep money and other valuable items out of sight.

Frequently Asked Questions

What is title insurance?
Title insurance protects the named insured against loss because of defects, liens, encumbrances, adverse claims or other matters not shown or disclosed to the new owner that attach before date of policy.

What is a wood-destroying organism inspection report?
A wood-destroying organism inspection report is a written opinion by a qualified state licensed structural pest control inspector based upon what was visible and evident at the time of inspection. The inspection report does not in any way represent or guarantee the structure to be free from wood-destroying organisms or their damage, nor does it represent or guarantee that the total damage or infestation is limited to that disclosed in the report. Wood-destroying organisms include subterranean termites, dampwood termites, carpenter ants, wood boring beetles and wood decay fungus.

What are the hazards of lead-based paint?
All buyers and sellers are required by law to receive and read a pamphlet outlining the hazards of lead-based paint for homes built before 1978. Be sure to ask your real estate agent for a copy.

What are closing costs?
Closing costs are an accumulation of charges paid to different entities associated with the buying and selling of real estate. For sellers, they are usually about 9.5-10% of the total sales price of a property. Some of the closing costs you might encounter are: discount points, escrow fee, documentation fee, homeowners' association fees, pest/rot inspection, real estate commission and title insurance premium.

What is the difference between "pre-qualified" and "pre-approved"?
If a buyer is "pre-qualified" it has been determined, with a loan officer, what price the buyer can afford based on the down payment, debts and the amount the mortgage company will approve for the mortgage. Being "pre-qualified" is only a determination of probable credit. If "pre-approved", credit, employment and funds have been approved by the lender.

What should a home inspection include?
Every inspection should include, but not be limited to, an evaluation of the following:

1. Foundations

2. Roof

3. Heating and air conditioning systems

4. Ventilation

5. Common areas (for condominiums)

6. Septic tanks, wells or sewer lines*

7. Insulation

8. Plumbing and electrical systems

9. Ceiling, walls and floors

10. Doors

11. Hazardous materials concerns*

* There may be an additional fee for this.

What property details are usually included by Listing Services?
Usually, properties listed will include the following details:

• Location
• Photograph
• Price
• Utilities
• Amenities
• Annual property tax
• Current financing (when assumable)
• Listing company

What pages are generally included in the Purchase and Sales Agreement?

• Agency Disclosure
• Financing Addendum/Clause
• Earnest Money Receipt
• Inspection/Clause
• Conditions/Disclosures Addendum
• Contingency
• Addendum Outlining Special Conditions
• Lead-Base Paint Notification
• Property Disclosure Form (completed by Sellers)

What is the difference between a REALTOR® & Real Estate Agent?
REALTOR® identifies real estate professionals who are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. Not every real estate agent is a REALTOR®. A REALTOR® may be an appraiser, property manager or involved in some other aspect of the real estate business.

8 Home Selling Mistakes

1. Basing asking price on needs or emotion rather than market value. Many times sellers base their pricing on how much they paid for or invested in their home. This can be an expensive mistake. If your home is not priced competitively, buyers will reject it in favour of other larger homes for the same price. At the same time, the buyers who should be looking at your house will not see it because it is priced over their heads. The result is increased market time, and even when the price is eventually lowered, the buyers are wary because "nobody wants to buy a house that nobody else wants". The result is low offers and an unwillingness to negotiate. Every seller wants to realize as much money as possible from the sale, but a listing priced too high often eventually sells for less than market value.
2. Failing to "Showcase" the home. A property that is not clean or well maintained is a red flag for the buyer. It is an indication that there may be hidden defects that will result in increased cost of ownership. Sellers who fail to make necessary repairs, who don't spruce up the house inside and out, and fail to keep it clean and neat, chase away buyers as fast as Realtors can bring them. Buyers are poor judges of the cost of repairs, and always build in a large margin for error when offering on such a property. Sellers are always better off doing the work themselves ahead of time.
3. Over-improving the home prior to selling. Sellers often unwittingly spend thousands of dollars doing the wrong upgrades to their home prior to attempting to sell in the mistaken belief that they will recoup this cost. If you are upgrading your home for your personal enjoyment - fine. But if you are thinking of selling, you should be aware that only certain upgrades are cost effective. Always consult with your Realtor BEFORE committing to upgrading your home.
4. Choosing the wrong Realtor or choosing for the wrong reasons. Many homeowners list with the agent who tells them the highest price. You need to choose an experienced agent with the best marketing plan to sell your home. In the real estate business, an agent with many successfully closed transactions usually costs the same as someone who is inexperienced. That experience could mean a higher price at the negotiating table, selling in less time, and with a minimum amount of hassles.
5. Using the "Hard Sell" during showings.  Buying a home is an emotional decision. Buyers like to "try on" a house and see if it is comfortable for them. It is difficult for them to do if you follow them around pointing out every improvement that you made. Good Realtors let the buyers discover the home on their own, pointing out only features they are sure are important to them. Many sales are lost by overselling. If buyers think they are paying for features that are not particularly important to them personally, they will reject the home in favour of a less expensive home without the features.
6. Failing to take the first offer seriously. Often sellers believe that the first offer received will be one of many to come. There is a tendency to not take it seriously, and to hold out for a higher price. This is especially true if the offer comes in soon after the home is placed on the market. Experienced Realtors know that more often than not the first buyer ends up being the best buyer, and many, many sellers have had to accept far less money than the initial offer later in the selling process. The home is most saleable early in the marketing period, and the amount buyers are willing to pay diminishes with the length of time a property has been on the market. Many sellers would give anything to find that prospective buyer who made the first, and ONLY, offer.
7. Not knowing your rights and obligations. The contract you sign to sell your property is a complex and legally binding document. An improperly written contract can allow the purchaser to void the sale, or cost you thousands of unnecessary dollars. Have an experienced Realtor who knows the "ins and outs" fully explain the contract you are about to sign to you, or have your lawyer review it before acceptance.
8. Failure to effectively market the property. Good marketing opens the door that exposes the property to the marketplace. It means distinguishing your home from hundreds of others on the market. It also means selling the benefits, as well as the features. The two most obvious marketing tools (open houses and print advertising) are only moderately effective. Just 1% of homes are sold at open houses, and advertising studies show that only 3% of people purchased their home because they called on a print ad! Agents use these tools to attract future prospects, not to sell the house. The right Realtor will employ a wide variety of marketing activities, emphasizing the ones believed to work best for your home.

Homeowner's Calendar

The weeks leading up to the day you take possession of your new home can be as exhausting as they are exciting. Keep track of the details as you count down to closing day.

Information Sources

• www.ourfamilyplace.com/homeseller/agent.html
• www.home-value-info.com
• www4.bmo.com/personal/0,4344,35649_36742,00.html
• www.2c.com/wb_hrpages/hr_gen_sellers.htm