Buy or Sell First?

Buy or sell first? That’s tricky. After all, if you find a purchaser for your existing home, before you’ve found a new one, you may find yourself living out of a suitcase if convenient closing dates can not be negotiated. On the other hand, if you find your dream home before you’ve unloaded your old one, you may be faced with carrying two mortgages for a time.

So how do you manage? Easy. Do your homework and have a good idea about the neighbourhood and type of home you’re looking for. Do an honest evaluation of your family’s needs and budget.

Speak to your REALTOR® and start your new home search as soon as your existing home hits the market.

If you’ve found a home, before you’ve sold your existing one, using a “sale of your existing home” as a condition on your offer may be an option. If you don’t sell your house within a fixed period of time, you can choose not to go through with the offer. This, however, is a difficult condition for many Sellers to agree upon and you may find that you have to forgo your price negotiating power.

Purchasing a home before you sell could be a risky strategy if you’re counting on the proceeds from the sale.

If you’ve found a purchaser before you’ve found your next home, using “purchase of a new home” as a condition could be an option as well when you sign back the agreement. Again, it will only be for a fixed time. Even if you have not found the ideal next house by the time the deal closes, you may still wish to proceed with the offer. As a buyer with a “sold house” you will be in a better position to negotiate price.

Make Your House More Sellable

While we all believe that our home is our castle, our personal tastes may not appeal to everyone. Your Realtor® will work with you to give you an impartial analysis of your home – how it relates to other “competing” homes on the market and how your home reflects current design and style trends. Your Realtor® will also take a good look at the general condition and upkeep of your dwelling.

Overall, your Realtor® will work with you to position your home on the market so that your sales experience will take place as expeditiously as possible.

Advertise Your Home on MLS®

This service is only available to real estate Sales Representatives. It is a database of all the homes for sale through Realtors®. Details about your home will be available to other Realtors® searching for homes in your area, in the range of your asking price. Details from MLS® listings are also showcased on Realtor.ca where thousands of buyers search everyday. 

Arrange Showings

In addition to giving your home the once over with a mop and dust cloth, have your Realtor® prepare a home feature sheet. This is a one page synopsis of your home that highlights lot size, room dimensions, features and upgrades as well as utility costs and taxes. Prospective buyers will take a sheet and refer to it while viewing your home. Plus, it makes for a great reference sheet when the buyers are comparing properties.

The open House:

Open Houses are a great way to get more traffic through your property. Your Realtor® will schedule with you a time that suits, usually on a weekend and sometime mid-day and then advertise the time on MLS®. Open Houses advertised on MLS® will also appear on Realtor.ca, meaning you don’t have to rely solely on an Open House sign or a Realtor® to bring buyers to your property. 

The Viewing:

Most people don’t buy properties sight unseen so the viewing tends to be where people decide whether or not the home is for them. Appointments will be made through your Realtor® and they will have a discussion with you about the best times of day etc. for potential buyers to come through your home. Anyone coming to view your property will always be accompanied by a Realtor® so there’s no need to worry. It’s best to keep your home in tip top shape for this stage of the selling process.

Your Realtor® is a trained professional who knows all aspects of the real estate market. A Realtor® will save you time, money and aggravation.

As with purchasing a home, you will want to list with a Realtor® who is an expert in your location. After all, potential purchasers will be calling this same “area expert” to inquire about houses for sale. You should interview any Realtor® who is both knowledgeable about your neighbourhood and you think would be a good fit for your own personality. After all, you will need to feel comfortable with them as they will be working for your best interests. 

Should You Go With a Non-Exclusive or Exclusive Listing Arrangement?

An exclusive listing refers to a listing that is not placed on the MLS® system. You are relying solely on your Realtor’s® buyer pool as the listing will not be advertised anywhere. Your Realtor® is able to tell people through word of mouth only for this type of listing. 

You may consider this type of arrangement in a Sellers’ Market during which time there are more people interested in purchasing a home than there are homes available. 

A non-exclusive listing is a listing is one that is placed on the MLS® system for a wide exposure of your property. Your Realtor® is also able to advertise this property through any print or web-based media that they have discussed with you. 

This type of listing is the most common and tends to get your home sold faster. 

Understand Market Conditions

The real estate market is in constant flux, not only as a whole but in particular areas as well. Knowing what is going on in the overall and local real estate markets will help you understand how these conditions can affect the sale of your home. We’ve designed the following comparison to help give you an overview of the three significant market positions. When you meet with your Realtor®, ask about the current state of the market.

Buyers Market:

The supply of homes on the market exceeds demand.

Characteristics:

High inventory of homes. Few buyers compared to availability. Homes stay on the market longer. Prices are stable or perhaps dropping.

Implications:

Buyers spend more time looking for a home, and when they negotiate, they usually have more leverage.

Sellers Market:

The number of potential buyers exceeds the supply of homes on the market.

Characteristics:

There is a smaller inventory of homes with many buyers. Homes sell quickly. Prices usually increase.

Implications:

Prices may be higher or perhaps climbing. Buying decisions must be made quickly. Conditional offers may be rejected.

Balanced Market:

The number of homes on the market is roughly equal to the demand.

Characteristics:

Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.

Implications:

There is less tension among buyers and sellers. There is a reasonable number of homes to choose from. It simply makes sense to clean up both the interior and exterior of your home before listing it for sale. However, that doesn’t mean you have to undertake major home renovation projects in order to sell your home. With a little effort you can increase the perceived value of your home by a great margin.

Here are some simple things to keep in mind that you can do to increase the perceived value of your home and make the perfect first impression.

Exterior of Home

• Keep lawns cut
• Trim hedges and bushes
• Weed and edge gardens
• Clear driveway and clean stains
• Clean out garage
• Power wash home exterior
• Touch up paint
• Plant colourful flowers

At The Front Door

• Clean porch and foyer
• Ensure door bell works
• Repair any broken screens
• Fresh paint or varnish front door
• Repair any damages to the door and/or locks

Setting the Right Mood

• Make sure your home smells fresh and clean
• Turn on lights
• Turn on air conditioner/heater
• Open the drapes
• Light the fireplace

Maximize Open Space

• Clear halls and stairs of clutter
• Clear kitchen counter and stove top
• Clear closets of unnecessary items
• Remove empty boxes and storage
• Put away personal photos so buyers can envision the house as theirs

Maintenance

• Repair leaking taps and toilets
• Clean furnace and filters
• Tighten door knobs and latches
• Repair cracked plaster
• Apply fresh coat of paint or touch up where necessary 
• Repair seals around tubs and basins
• Replace defective light bulbs
• Oil squeaking doors
• Repair squeaking floor boards

Squeaky Clean

• Clean and freshen bathrooms
• Clean fridge and stove
• Clean around heating vents
• Clean washer and dryer
• Clean carpets, drapes and window blinds
• Eliminate pet odours and stains

Closing is a time of packing and organization. Any fixtures attached to the house, unless specifically mentioned in the agreement, must remain in place. 

You are responsible for handing over the home in the same condition it was at the time of closing. This applies to everything that was in the agreement. If the home suffers a major disaster, you are responsible for telling the buyer, at which point the buyer may walk away from the deal and have the deposit returned. The buyer may also choose to close and receive any insurance proceeds. In this unfortunate event, remember not to make any repairs until you find out what the buyer wants to do.

The Closing

Once signing the agreement, both the seller and buyer are under a legal obligation to close. If you decide not to for whatever reason, the buyer has the right to sue.

If the buyer decides to walk away from the deal, you can claim the buyer’s deposit and/or sue for damages.

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