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Some Helpful Tips Before Listing Your Home

Putting your home on the market can be an emotional and time-consuming ordeal. Will you get enough for the property? How long will it take to sell? What is the best way to market the property? These are just a few of the questions that can keep you awake at night. To help make your experience easier, we have tried to answer the more common questions asked by real estate vendors.

If you sell your home through a real estate agent, you will have to pay a sales commission. This commission usually is in the range of 5 per cent of the final selling price and is the major cost associated with selling a home.

You may also have to pay some legal fees and land survey fees. If you are paying off a mortgage early, you may have to pay a penalty.

When is the best time to sell?

For everything there is a season, a time to reap a time to sow. Selling a home is no exception. Aside from the size, condition and location of your home, the main factor influencing the price you will get for it is the state of the economy. If the economy is not doing well, the property will likely spend more time on the market and will fetch less than if the economy were strong.

Economic conditions aside, certain seasons are better to sell than others. The premier selling season has been the spring, says Robert Storring, president of the Ontario Real Estate Association. "It's a physical thing. People have just come through a long Canadian winter and they are more in a mood to buy." Buying in spring also means when the house closes in summer and it comes time to move, the kids won't have to be taken out of school.

The worst time to sell, for obvious reasons, is during the Christmas holiday season when people have other things on their minds than buying a home.

Even though some seasons are better than others, it doesn't mean that real estate transactions drop to zero during the other times of the year. "There are always houses being bought and sold."

What is the asking or "list" price?

The list price is the amount of money a homeowner would like to get for their property.

What is a listing agreement?

A listing agreement is a contract between the seller and a real estate agent. Aside from the list price, this agreement should be an accurate description of your property, which also states what is and isn't included in the sale of the property. It also outlines the realtor's obligations to the seller and vise versa.

The listing agreement stipulates how long the real estate agent has the right to sell your house.

A listing agreement is a binding contract. If you have a lawyer, you might want to have them take a look at the agreement before you sign it.

Types of Listings

With a listing the seller gives exclusive right to a real estate agent or real estate firm to sell the property.

How to Set a Listing Price

Setting the right price for a home is one of the trickiest things about selling a home. If you set the price too high, people may look at the home, but you will not have any serious offers. Your house could languish on the market for months. If you set the price too low, you will not get the fair market value for your property.

The best way to set the price is to compare your home to other similar homes that have sold in the area. If you contact a real estate agent, they will be able to help you do this. When setting a price, it is a good idea to contact several agents to get different opinions on what they think your house is worth.

When having a real estate agent suggest a list price, ask the agent to justify the price by giving you examples of similar homes that have sold in your area. Ask to see the full MLS listings. An MLS listing gives detailed information about the property. Seeing them will allow you to see how the sold houses compare to your own.

Since the demand for homes fluctuates from month to month, also take a look at the list prices of homes in your area that are currently for sale.

How long will it take to sell your home?

There is no hard and fast rule to determine exactly how long it will take to sell your property. You could list your home tomorrow and it could be exactly what someone was looking for - or it could stay on the market for months.

The best way get an idea of how long your house will stay on the market is to determine the average sale time of houses in your area. To get this number, take all the homes that have sold in your area in the last 12 months. Then add together the number of days it took each one to sell and divide that number by the number of houses.

Rather than pouring through entries in the land registry office, a quick way to find the average selling time in your area is to call a few real estate agents who work in the area. Remember to ask them to only include homes that are in the same price range as your own. Also, to give you an idea of what is not selling, ask them to tell you about the homes in your area that have been withdrawn from the market.

Average selling time applies only if your home is near the average price for a home of its size and condition. If the home is more expensive than the average, expect it to take longer to sell.

If you want to sell your home quickly, try listing it slightly below the average price of a house of its size and location. Upgrading the quality of your home should also decrease the amount of time it stays on the market.

What is an open house?

An open house is a chance for potential buyers to walk through and take a look at your home. Your real estate agent will be present to answer any potential questions. Although open houses can generate a lot of traffic, real estate agents give mixed reviews on their usefulness. Some think it is just an opportunity for your neighbors to get a close look at the inside of your home, while others think it is a useful selling tool.

A word to the wise: if you do decide to have an open house, remember to put all your valuables in a safe place. It is also a good idea to leave the house and let your realtor do his/her job.

Presentation Tips

Once you have made the decision to sell, have found a real estate agent and listed your home, it is a good idea to get your home ready to show to potential buyers. Presenting your home to would-be buyers is probably the most critical stage in the selling process. A well-presented house can make the difference between a quick sale at your asking price and a house that generates very little interest from potential buyers.

Although there is no surefire way to sell your house, there are a few easy things you can do to make your house more attractive to potential buyers:
Make the outside of the house appear neat and tidy. Keep the lawn trimmed and the garden weeded. Get rid of any clutter and repair any broken fences. Ditch the old lumber.
Paint the front door. If it needs it, paint the whole house.
Make the inside of the house inviting. Paint the walls a light neutral color. Remove any excess furniture and strip off any old wallpaper.
Replace any worn kitchen tiles or countertops. If you have dark kitchen cabinets, paint them white.
Make sure the house is clean, neat, and free of clutter.
Tidy all closets. They need to look spacious.
Clean the basement and the garage. Throw away any old tools, car parts or other miscellaneous odds and ends that will clutter up the space. If you have a large amount of items that you cannot dispose of, it may be worth your while to rent storage space for a short time to make your basement and garage appear larger and cleaner.
Clean the carpets.
Clean the windows and remove any dark draperies.
If you have dogs or cats, make sure they are not around when your real estate agent is showing your home, and be sure all litter boxes are clean and fresh smelling.
Don't cook fish or other smelly foods within eight hours of a showing. However, it can be helpful to bake something that smells delicious an hour before the showing, such as bread or cookies.
Don't be in the house when your agent is showing the home.
If you live on a noisy street, put on some soft classical music.

What is an offer?

An offer is a bid, usually in writing, of how much a buyer is willing to pay for your property. The offer will also include when they would like to take possession and any conditions.

Normally, a deposit -- about five per cent of the purchase price -- accompanies an offer. The deposit shows that the buyer is making a serious bid for the property.

You can either accept or reject the offer. If you reject the offer, you can make a counter offer - which they can then accept or reject.

If you accept the offer, it is a binding contract and you must abide by its terms or risk being sued.