Effective marketing for your home
An agent can help you market your home by exposing
it to as many potential buyers as possible. The first
step is putting it on the MLS. But listing your property
is only the beginning; your agent will prepare a
personalized plan that includes everything he/she plans
to do to sell your property. At Royal LePage, your
property will be aggressively promoted through: A
posting on the Multiple Listing Service (MLS) Royal
LePage property advertising publications The Royal
LePage web site Other Royal LePage offices and real
estate professionals Mailings to potential buyers in
your area
Pricing your property right
If you price your property too low, it may sell
quickly, but you'll lose out on money. If you price it
too high, it may not sell at all. Your agent can help
you figure out the best asking price for your home.
The benefits of the right price
A well-priced property may generate competing offers,
which will drive up the final price. Other real estate
professionals will be enthusiastic about presenting your
property to their buyers. Your home will sell faster
because it is exposed to more qualified buyers.
Listen to the market
As part of your pricing strategy, your agent will put
together a comparative market analysis, which is a good
indicator of what today's buyers are willing to pay. It
compares the market activity of homes similar to yours
in your neighbourhood: Homes that have recently sold
represent what buyers are willing to pay. Homes
currently listed for sale represent the price sellers
hope to obtain. Listings that have expired are generally
overpriced or have been poorly marketed.
Don't overprice your home
Some sellers believe that if they price their home
high initially, they can lower it later. Instead of
making you more money, this strategy could end up
hurting you.
Early activity is key. As soon as a home comes on the
market, agents and potential buyers sit up and take
notice. If it's overpriced, interested parties will
quickly lose interest. By the time the price drops, the
majority of buyers are lost. When a home has been for
sale too long, buyers will be wary and may reject the
property.
You'll miss the right buyer. You may think that
interested buyers can always make an offer, but if your
home is overpriced, potential buyers looking in a lower
price range will never see it. And those who can afford
a home at your asking price will soon recognize that
they can get a better value elsewhere.
You could run out of time. You may end up having to
drop your price below market value if your home doesn't
sell initially. Price it right the first time, and you
won't end up having to sell it for less than it's worth.
The elements of an offer
Here's a quick reference to everything you need to know
about accepting on offer on your home.
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1. Price Depends on the market and the buyers, but
generally, the price offered is different from the
asking price.
2. Deposit Shows the buyer's good faith and will be
applied against the purchase price of the home when the
sale closes.
3. TermsIncludes the total price the buyer is
offering as well as the financing details. The buyer may
be arranging his/her own financing or may ask to assume
your existing mortgage if you have an attractive rate.
4. Conditions These might include "subject to home
inspection," "subject to the buyer obtaining financing,"
or "subject to the sale of the purchaser's property."
5. Inclusions and exclusions These may include
appliances and certain fixtures or decorative items,
such as window coverings or light fixtures.
6. Closing or possession date Generally, the day the
title of the property is transferred to the buyer and
funds are received by the seller, unless otherwise
specified (except in Manitoba and Quebec).
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Renovating for resale
Renovations don't have to be expensive or extensive
to offer you a good rate of return. In fact, a quick
coat of paint can go a long way to boosting your selling
price. Just make sure your new décor is tasteful, with
shades of white and tame versions of popular colours.
The kitchen and bathroom are your best bets for
renovation with the highest payback. Take a look at
these average rates of return for home upgrades:
Interior painting and décor - 73% Kitchen renovation -
72% Bathroom renovation - 68% Exterior paint - 65%
Flooring upgrades - 62% Window/door replacement - 57%
Main floor family room addition - 51% Fireplace addition
- 50% Basement renovation - 49% Furnace/heating system
replacement - 48% New lighting - 84%
As an expert on home sales trends in your
neighbourhood, your Royal LePage Sales Professional can
suggest which areas of your home could benefit from
renovation and increase its value.
Preparing your home for an inspection If you're
selling your home, be prepared for a visit from a home
inspector, who will be checking out the property on
behalf of possible purchasers. Take a look through your
home using these steps, and repair any problems to
ensure that your inspection is a success.
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1. Make sure the structure is sound. Check to see if
any renovations have damaged the structure. Look for
termite damage. Ensure that "settling" hasn't caused
damage to the foundation or support beams and joists.
2. Check if electrical and wiring systems are safe.
Loose wires or incorrectly installed or wired
receptacles, switches or electrical box problems are
hazardous and should be fixed. All homes should have a
minimum of 100 amp service.
3. Look for leaks. Water can leak into unexpected
places, causing extensive damage over time. Examine the
underside of sinks and dishwashers, along ceilings, on
floors or along basement walls. Plumbing fixtures,
water-using appliances, drain pipes, water supply inlets
and outlets, basements and roofs can all be causes and
sources of water damage.
4. Resolve safety issues. Make sure windows open
easily and lock securely, and entrances/exits can be
securely locked. Correct hazards such as hidden curbs,
loose railings and stairs, uncapped wells, etc.
5. Check plumbing. Faucets should run easily and shut
off completely, bathtubs should be properly caulked and
grouted, toilets should be bolted down securely, drains
should be clog free, and the water heater should be in
good working order.
6. Make sure your heating and cooling systems work.
Make sure they are up to date, clean, in good working
condition and have clean filters. Check refrigerant in
air conditioning units.
7. Have a friend take a look. A general, unbiased
overview of your home by a neighbour or friend may
reveal issues you might have overlooked.
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Glossary of terms
Amortization period: The actual number of years it
will take to pay back your mortgage loan.
Appraised value: An estimate of the value of the
property, conducted for the purpose of mortgage lending
by a certified appraiser.
Assumability: Allows the buyer to take over the
seller's mortgage on the property.
Closed mortgage: A mortgage that locks you into a
specific payment schedule. A penalty usually applies if
you repay the loan in full before the end of a closed
term.
Condominium fee: A payment among owners, which is
allocated to pay expenses.
Conventional mortgage: A mortgage loan issued for up
to 75% of the property's appraised value or purchase
price, whichever is less.
Down payment: The buyer's cash payment toward the
property that is the difference between the purchase
price and the amount of the mortgage loan.
Equity: The difference between the home's selling
value and the debts against it. High-ratio mortgage: A
mortgage that exceeds 75% of the home's appraised value.
These mortgages must be insured for payment.
Interest rate: The value charged by the lender for
the use of the lender's money, expressed as a
percentage.
Land transfer tax, deed tax or property purchase tax:
A fee paid to the municipal and/or provincial government
for the transferring of property from seller to buyer.
Maturity date: The end of the term of the loan, at
which time you can pay off the mortgage or renew it.
Mortgagee: The financial institution or person that
lends the money.
Mortgage insurance: Applies to high-ratio mortgages.
It protects the lender against loss if the borrower is
unable to repay the mortgage.
Mortgage life insurance: Pays off the mortgage if the
borrower dies.
Mortgagor: The borrower.
Open mortgage: Allows partial or full payment of the
principal at any time, without penalty.
Portability: A mortgage option that enables borrowers
to take their current mortgage with them to another
property, without penalty.
Pre-approved mortgage: Qualifies you for a mortgage
before you start shopping. You know exactly how much you
can spend and are free to make a firm offer when you
find the right home.
Prepayment privileges: Voluntary payments that are in
addition to regular mortgage payments.
Principal: The amount borrowed or still owing on a
mortgage loan. Interest is paid on the principal amount.
Refinancing: Paying off the existing mortgage and
arranging a new one or renegotiating the terms and
conditions of an existing mortgage.
Renewal: Renegotiation of a mortgage loan at the end
of a term for a new term. Second mortgage: Additional
financing, which usually has a shorter term and a higher
interest rate than the first mortgage.
Term: The length of time the interest rate is fixed.
It also indicates when the principal balance becomes due
and payable to the lender.
Title: Legal ownership in a property.
Variable rate mortgage: A mortgage with fixed
payments that fluctuates with interest rates. The
changing interest rate determines how much of the
payment goes towards the principal.
Vendor take-back mortgage: When the seller provides
some or all of the mortgage financing in order to sell
their property.
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