1. How does an agent set the asking price?
There are different ways to determine the value of a property. Most agents use the comparative sales approach to determine market value. They study all of the most recent comparable sales and also look at the listing price of other similar homes on the market and then, with the vendor, decide what their asking price will be.
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2. What can I do to my house to make it more appealing to buyers?
We have numerous free reports that will help you prepare your house for showing but generally a good agent will spend a couple hours with you, and sometimes with an interior decorator, to get your house ready to show. You only have one chance to make a good impression.
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3. What’s a good time of year to sell?
Traditionally the end of January until the end of May are the best times to get top dollar for your house.
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4. When is the best time to buy?
I believe that July, August, November, and December are the best times to get the most house as cheaply as possible. The spring market will offer more variety and choices but the odds of competing with another buyer for your dream home are also higher. ____________________________________________________________________
5. Do you have any tips for open houses?
Yes. The first thing you should do is put all of your valuables away. Personally, I have never had a problem but I have heard of others who have. Open houses are a good way to expose your house to the market when you first list but don’t be surprised if a lot of unqualified people or nosy neighbours "looking for a friend" drop by. ____________________________________________________________________
6. Negotiating—how do I get the best price?
Select an agent based on their negotiation abilities. A good negotiation can be the difference between $5,000 or $50,000 of your sale price. It is important for the agent to have good experience while able to remain emotionally uninvolved during negotiations.
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7. What are my closing costs?
As a buyer you should set aside 2% of the purchase price to cover land transfer tax, legal fees, buiding inspection, appraisal, disbursements and all other closing costs. ____________________________________________________________________
8. Are commissions negotiable?
Some agents negotiate their commissions while some don’t. It is important to ask every agent what their fees are and what service you can select. Also ask them if they have an Easy Exit Guarantee so that if things aren’t working out you can cancel your listing and go somewhere else. ____________________________________________________________________
9. Do I need a lawyer?
Making Sure It's All Legal
When buying a new home it is wise to seek the help of experts. There are several legal procedures that are involved in the purchase of a home, and any error or oversight could cost you money or even result in the loss of your home. Why should I engage a lawyer?
It’s not a legal requirement to hire a solicitor, however, registering your purchase and protecting your interests requires knowledge of the law. The fees involved are a small part of the total cost of home purchase, and a lawyer can take care of a lot of important matters for you at a time when you have many other things to think about. The cost of these services will vary from home to home. Ask you lawyer for an estimate of the cost. There is a lot of paperwork involved in the purchase of a house and it can be quite complex. There are at least three documents required for the purchase of a property.
First, there is the Offer to Purchase, a written contract stating that the vendor agrees to sell his property with the purchaser agreeing to buy it at a set price. This binds both parties to the terms of the document. Traditionally, your Realtor draws up this document although you may want your solicitor to examine it before offer presentation.
Second, there is the transfer of the title of the property on closing - the deed. Make certain you check with your legal advisor. He/she will ensure that you have clear title to the property you buy. If the deed is taken in the name of more than one Purchaser such as a joint tenancy and one of the owners dies, the survivor automatically holds the title.
And third, the mortgage document records the mortgage loan in the case where a new mortgage has been arranged.
Closing Day
When you made your Offer to Purchase, you agreed on a date for taking possession of the property. In selecting the date it is important to give your lawyer time to carry out the necessary title search. You can, of course, et the closing date as far ahead as you like, provided the seller agrees.
By closing day, the Agreement of Purchase and Sale has been transformed into a number of legal documents to be signed by the buyers, sellers and witnesses.
On closing day (or usually the day before) the buyer pays the balance of the purchase price to the lawyer who holds it in trust. The mortgage company pays the sum of money that they have agreed to advance into the same trust account. The legal representative then pays the seller the price agreed for the home. Normally the legal fees, which consist of professional fees plus out-of-pocket expenses, become due on closing and will approximate $1000 in total. Be prepared to pay all expenses with certified cheques because of the time required for a normal cheque to clear the lawyer’s trust account.
If you are selling your previous home at the same time as you are buying your new home, your lawyer can handle both transactions simultaneously. ____________________________________________________________________
10. Why does the bank need to do an appraisal?
Most banks require independent appraisals to be done on every sale to ensure that it was a clear, arms length transaction. The banks generally have no idea of what a house is worth so they hire appraisers to give them their own market value.
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11. What did my neighbour’s house sell for?
Simply e-mail me your address and we’ll send it back as soon as possible. ____________________________________________________________________
12. How do I get out of a bad Realtor relationship?
Explain to the agent's broker that you want a release because the agent is not living up to his/her promises or not providing adequate service such as marketing, advertising, following up with showings, market condition feed back, staying in touch and showing any interest. ____________________________________________________________________
13. I've seen a house that looks great! What do I do now?
If you have found a house that you're interested in, I strongly suggest that you find an agent to represent your interests. Many people call the agent who is on the for sale sign, but this is a huge mistake. The listing agent has a contract with the owner to sell the house for the most money possible and not to disclose details that may affect the vendor. You must get your own agent to represent your interests, do a market value analysis of the property and to advocate on your behalf while negotiating the lowest price and best terms possible. ____________________________________________________________________
Should you have any questions now or think of any later on, please feel free to contact me at your earliest convenience. Simply click on the "contact Me" button and send me an email or use the old but best way, call me on the telephone.
Vik Krikorian
Associate Broker
MVA, RRS, SRES, CCIM ____________________________________________________________________
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