Frequently Asked Questions from Home Sellers The following are the most frequently asked questions by condo/home sellers. If you have additional questions or need to discuss your individual situation, please send me your questions by selecting "Contact" or call me at (647) 207-8466 and I will respond to you:
Q I have been living in my current property for the past five years. When is it a right time to sell and move up?
A Selling one's condo/home is a very personal decision and needs to be analyzed by looking at all the pros and cons. For example, you need to ask yourself the following questions and discuss your responses with your REALTOR®:
What are my short term and long term housing needs and those of my spouse/partner/family?
What is the equity on my current property?
What are the mortgage/financial implications of selling and moving up or moving down?
Do I need to reduce my current mortgage?
What is the cost-benefit ratio of selling my current property and buying another?
Will my agent be able to sell my property at the best price?
Will my agent be able to find me a property within the area that I am looking for, i.e. near school, shopping, public transit, etc.?
Q Once I decide to sell my condo/home, what questions should I be asking prospective REALTOR®s before deciding to engage one?
A Most REALTOR®s will profess to be the best one for you and try to convince you to engage their services. However, you can ask the REALTOR®s the following questions to find out who will represent you entirely and successfully sell your home:
Do you provide a detailed "Home Selling Plan" that lists all the services you will provide to arrange the successful sale of my condo/home?
Do you provide a "Home Selling Commitment"?
I currently have a huge mortgage on my home. Can you show me how I can reduce my mortgage?
What special techniques would you use to improve the appeal and value and motivate buyers to buy my home since I have tried to sell my home on my own and also used other agents, but, the home did not sell?
Other agents have advertised that they will buy my home if they are not able to sell it within a month. Does this really benefit me and what are the hidden costs?
Why do some REALTOR®s charge a full 5% commission and some advertise only 2.5% commission?
Alternatively, I strongly suggest that you evaluate the prospective realtor based on the Test - What is the 20-Point Test to Evaluate a REALTOR®?
Q I have read a lot about real estate and title fraud in the newspapers. How do I go about preventing this from happening to me?
A Title Fraud has been taking place since some time. However, the incidents were not reported in the news media before. Now that you are reading about these scams, you do not have to panic. Just realize that it is possible and you can take preventive measures. The government of Ontario has introduced new legislation and lawyers are waiting to see the outcome. However, kindly read my article "Real Estate/Title Fraud - Are you at Risk?" available upon request.
Q Can I recover my mortgage payment by selling my current home and buying a home with a finished basement apartment and a separate entrance?
A You have to weigh all your options and make a decision on what is beneficial to you personally and your family. A free and frank discussion with your REALTOR® will provide the answers you are seeking.
Q Can I sell my condo and buy a home since I would like to run a business from my home?
A In most cases, depending on the local regulations, the answer is "Yes". But, you need to determine that from the local municipality. However, very often, having your own townhome or semi/detached home is conducive to having a home based business and your clients are not inconvenienced as they would be in a condo apartment. Further, you have ample space either in the basement or the garage to carry on a home based business.
Q Can you please explain to me what do you mean by saying that one can sell their home at 0% commission?
A Indeed it seems "too good to be true" when you hear realtors say they can sell homes at zero percent commission to the sellers. Please contact me directly if you would like to have more information about whether you qualify for 0% commission from seller.
Q What happens if I sold my condo or a home and moved up, but, unfortunately, a year later, I may loose my job, or for some reason I cannot afford to pay the mortgage?
A First of all, nobody can predict the future. Secondly, when dealing with a professional mortgage specialist, he/she will ensure that you are given the right advice with regard to the value of the home you can afford and the mortgage that you can pay. However, if due to circumstances beyond your control you are placed in a certain predicament; you are advised to consult your real estate agent and your mortgage specialist immediately, who collectively will try to find a solution. In an extreme case, it is possible that you could sell your home and due to the equity that has built up, you may not incur a loss. Every situation is different and you need to consult the right people, when you have a problem. Remember, there is a solution to every problem. You have to find the right person to speak to.
Q Do I need the services of a REALTOR® when selling my condo or a home when in fact I heard people sell their own homes?
A That's a good question and many sellers had that thought as a first step. However, 80% of sellers who start off to sell on their own end up using the services of a REALTOR® and the reasons are given in the matrix below. When people venture to sell their own homes, they are doing so with limited information and high risks. Did you know that if there was some problem with your property and you sold it to someone without disclosing that problem, the buyer could sue you if the problem was detected later?
When selling your home, you have at least two options:
§ Sell your home yourself; or
§ Use the services of a licensed REALTOR®
The following are the list of differences between selling your own home or using the services of a licensed and reputed REALTOR®:
| Risks and Issues when selling your own home | Benefits of Using a Licensed REALTOR® |
•1. | You may not have the resources to have your property exposed and publicized to a wider audience so that someone out there will buy your home. It is purely a question of numbers - the more exposure you get, the greater are your chances of your home being sold faster and at a better price. | When you list with a licensed REALTOR®, your property gets accessed by more than 25,000 realtors. Each REALTOR® has on average 1-5 buyers who are looking to buy homes. This means that your property gets exposed to approximately 100,000 prospective buyers and therefore your home could sell faster and at a better price than if you sold on your own. |
•2. | You may not be aware of the technique to best present your home, so that potential buyers are impressed when they first step into your home. | A licensed REALTOR® offers several tips to improve the appearance of your home, etc. to help you sell your home faster. These include: •· Informal re-arrangement of the furniture, improving curb appeal, paint touch up, cleaning and fixing of areas that are damaged or visually unimpressive, landscape improvement, fluffing, etc. •· Home Staging professional advice •· Value added services |
•3. | You will not have all the information to prepare a proper market analysis of your property or to arrive at a realistic price for your home. | A licensed REALTOR® will prepare a professional CMA of your property to arrive at a realistic price. |
•4. | You will have to bear the cost of a pre home inspection when required (due to various reasons), if you arrange one without a REALTOR®'s input. | Depending on the terms of your engagement, a licensed REALTOR® could arrange a pre-Inspection of your home by a qualified home inspector. |
•5. | Many FSBO prospects believe that a lawyer will take care of all the paper work and assist them to complete the real estate transaction. However, did you know that a lawyer is allowed to charge a tariff of upto 1˝% of the value of the property to prepare the paperwork and review the same with you? It is only AFTER receiving the final bill, people have been surprised for what they have been charged. So, in reality, you may save a few hundred dollars by selling on your own, but, the risks, challenges and uncertainties of "what happens next?" will leave you with sleepless nights. | A REALTOR® holds your hand while going through the maze of the red tape that is involved with selling your home. This includes, but, not limited to: •· Agreement of Purchase & Sale (the "offer") •· Home Inspection and waiver thereof •· Mortgage approval and waiver thereof •· Amendment to the Agreement if required due to changes in the terms of the contract •· Disclosures as required under the law |
•6. | When submitting for mortgage your offer that has not been prepared by a REALTOR®, the bank could insist on an appraisal and charge you for it. Further, banks may not easily give buyers the discounted rate for mortgage, which means buyers have to pay more for your home when sold by you. This offsets the savings in commission, since actually; the buyer pays the commission and not the seller. | A REALTOR® will ensure that the buyer has options with various lenders so that they get a discounted rate and lenders will respond favorably when a realtor is involved with a buyer. |
•7. | •· You may not be aware that even after the home is sold the seller could be liable for damages. •· You may have the inconvenience of strangers who have not been screened or pre-qualified entering your home. •· You may not have the technique to close the sale after someone sees your home. •· You may have to take the trouble of having "open houses" and provide information to strangers who may be only "visiting", but not serious to buy. All your efforts of providing them with printed information may be wasted. •· You may have to respond to calls from a number of real estate agents. | When working with a REALTOR®, buyers are screened/qualified before they come to see your home. This safeguard is much better than someone who sees a FSBO sign on your lawn calls you up and comes into your home. Or someone who comes to your "open house", cases the place and could possibly return when you are not there. P.S. Are you willing to save a few thousand dollars by having "strangers" enter your home and expose your family and belongings to a huge risk? |
•8. | Very often buyers who venture to buy directly from the seller are "bargain hunters" trying to save money on the selling price. Correct? A seller who is trying to sell on their own is also doing the same thing because they want to save the commission. Correct? But, in reality, both parties to a deal cannot save, because, when one tries to save, the other has to suffer a loss and vice versa. For example: If and when the home is sold by you and the buyer arranges a home inspection, due to "buyer's remorse", if something small like a crack in the wall, etc, is found, the buyer will want to get out of the deal or demand a big reduction in the price, which will offset any savings in the commission that you are trying to achieve. | When dealing with a REALTOR® the situation is a lot different. For example, after a home inspection is carried out by a professional home inspector, if some issues are identified, the REALTOR® will work with the buyer to calm them down and find a "workaround" the issue that may come up. Since it is in everybody's interest to have the deal go through, all parties are encouraged to compromise. This is not prevalent in the absence of a licensed REALTOR®. |
Select WANTED A HOME IN YOUR NEIGHBOURHOOD if you would like to know more about the program.
