Tips for Home Selling: 4 Steps to Sell Fast

Tips on home selling

I Before the selling

Reasons to sell

There are many reasons why homeowners want to sell their property in Ontario. For example, moving out for a new job, financial stress, having hit the investment target, family changes, etc. Those reasons may exert an influence on the strategy to sell.

Hire an Agent or DIY or in a Hybrid

It depends on your realty knowledge and experience, and your willingness. You can choose homes for sale by owner, i.e. sell your house privately. You can also hire a realtor for selling a house in Ontario. Realsav offers a unique package to lower your cost to sell a home while avoiding the disadvantage of selling without a realtor.

Sell or buy first

If you plan to buy a new home at the same time and you need the existing sale for downpayment or closing, you may have to think it over whether you buy first or sell first. It may have a large impact on you financially or mentally.

When to sell

When is the best time into the market, is there any pattern to follow, what are the factors you need to know?

Cost to sell a house

To calculate your net proceed of home selling in Toronto, a home seller may encounter the following costs:

Home preparation cost: Cleaning, minor fixes, painting, finish

Pre-listing home inspection if needed $300~$500
Status certificate for a condo only if needed: $100 for regular, a couple of more hundred add-ons for expediency.
Home Staging if required: $2500~$3000 on average.
Real estate commission: listing agent commission $2000~2% of the home selling price, less than $1000 if For Sale By Owner but you still require the MLS promotion. Buyer agent commission: most commonly 2%~2.5% of the home sale price

Legal fees: lawyer fees to sell a house are cheaper than that of buying a house with a bit less than $1000 on average.
Mortgage penalties and bridging financing cost if any
Moving cost: varies by DIY or a moving company.
All the above cost is subject to 13% HST

Mortgage Financing

Porting your mortgage

You may take your existing mortgage, along with its current rate and terms, from the current home to the new home if you're doing both transactions at the same time.
Mortgage portability may save you the penalty since the application fee is usually lower. You may also gain possible interest saving if there is a rate increase.

Mortgage Penalties

It may cost you 3 months mortgage

An assumable mortgage

When the interest rates have arisen, the buyer may want to take over the seller’s mortgage by assuming the original loan.
The mortgage assumption may save you the mortgage penalty and may be a venue to attract the buyer.
But you need to ensure your new mortgage if you happen to buy a home.

Bridge financing

You may need temporary financing to bridge the gap between the time your existing home is sold and your new property is purchased. Please consult your mortgage specialist on the qualification and the total amount you can borrow.

II Preparation

Documents to be provided

The realtor may need a list of documents to verify and to fill in MLS, such documents include

Your current utility bills, property tax, survey, and permit if you have,
Floor plans, proof of the renovations or improvements,
Rental contracts including water tank and warranties
Ongoing home-related problems or past issues that need to be disclosed.
Maintenance fees, any correspondence on a special assessment, and pending lawsuits are required in case your property is a condo.

Paperwork to sign

Working with a REALTOR FORM810 (Required by RECO to illustrate the relationship among the brokerage, agent, client and customer )
Listing Agreement FORM200 (the agreement between you and the listing brokerage)
MLS Data Information Form 290 or Form 291 for Condo (required to list your property to MLS)
Agreement of Purchase & Sale FORM100 or FORM101 for Condo (offer from the buyers)
Confirmation of Cooperation (commission agreement between your agent and the buyer’s agent)
Seller’s Direction Re: Property/Offers FORM244 (your preferences on offer notification)
Lockbox Authorization Form
Open House Authorization Form

Listing price

Setting the listing price strategy is one of the crucial components of the selling process. Joined with factors, it impacts how fast you can sell and how much you sell.

Home staging

Home staging facilitates home selling, but at a cost. Gather the basic knowledge to make a rational decision.

Home renovations

Not all home renovations make sense for investment purposes. You certainly would spend your money on those with the best return and on those necessities.

Marketing

MLS, Open House, Online and social media promotion

Photograph and 3D Tour

Professional Photo would arouse the potential buyer’s interest and attract more bookings for showing.

3D tour would present the buyers with a better view of the place and may increase the efficiency by screening out the obviously mismatching buyers.

III Showing and Offering

Showing homes

It is a normal practice that the sellers are not around while an agent is showing homes.
The showing time would be flexible.
If there is a tenant, the showing coordination would be preferably smooth.
You also would keep your place clean and safe
Depersonalize any items if you could
Keep your private and valuable items in an appropriate place.

Offers on a house

Your realtor will walk you through the details of the offer delivery method (in person or email).

The offer types (regular, bully or multiple offers),
Your option of negotiation (accept, counter, reject)
How to weigh the conditions, price, and your circumstances.

IV Closing Checklist for Seller

Once the offer is chosen, you have to wait for the condition fulfilled, and the possible renegotiation for minor things from the buyer.
You have a list of things to do before and on closing day, with the help of the real estate lawyer. Such as reviewing documents from the lawyer, cleaning properties, address changes, etc.
please review the complete checklist for details.