Trading in Real Estate in the Province of Ontario, is governed under the Real Estate and Business Brokers Act (REBBA 2002). The Act outlines who can sell Real Property in the Province..and there are many groups excluded from the Act. Auctioneers, Lawyers, Banks and property owners can all trade in Real Estate to one degree or another. Yes, the majority of people do retain the services of a professional Realtor, but some homeowners decide, for either personal or economic reasons, that Selling Privately is the best way to go.
A private sale, if done correctly can not only result in the homeowner saving a bit of money, it can also be an extremely rewarding and educational experience. On an average $200,000 home sale, the commission may be anywhere from $6,000 to $12,000, perhaps higher, perhaps lower, depending on the circumstances and Realtor involved. You may not save the full amount of commission, but if you have the time, energy, the right tools and a bit of luck, you may be able to save thousands. The secret is to do it right!
The Top 10 things you can do to improve your chances of Selling your home privately.
1) Determine the market value of your home and discount it by 3% to 4%. Buyers will assume correctly that your house is more of a bargain than the MLS listings, where the home owners are paying various commission rates. One of the biggest mistakes a Private for sale makes is to list at the same price...if not more. People buying privately are looking to save! Ask a bit less...and you may just end up with more!
2) Pack away or remove anything of extreme value, such as jewelry boxes, expensive art work and collectibles. De-clutter, clean, polish and dust everything from top to bottom and get a professional home stager if necessary!
3) Take some time and view the competition. You can view it on line, during open houses, or even calling the listing agent for a viewing. Remember to always let the Agent know that you plan on putting your home on the market. He or she could be your best ally. They may just happen to have a buyer for you right then!
4) Prepare: Your advertising/marketing campaign. Where are you going to advertise to get the best response? How much are you going to spend? Spend some time researching your options and your budget. Also, address how you're going to handle inquiries. E-mail, phone or direct contact via open houses? Do you have a blank "Agreement of Purchase and Sale"? Have you discussed how you should handle things with your Lawyer? How much the Lawyer is going to charge to handle the Offer? How much of a deposit you would like? What safety precautions are you going to implement in showing your home? Make a list of qualifying questions you can ask over the phone. (ie..Where do you live now? Do you have to sell your home? Where do you work? Do you have your financing in place?) If a person is a serious buyer, they will provide you with the information you need to comfortably show them thru your home. **It does no harm to cross check a phone number to an address to verify identity. ( ww.canada411.ca ) In the world of cell phones, make sure you get a home phone number and home address before you allow anyone to view your home. Make notes.
5) Prepare feature sheets. Get as detailed as you like! Make sure you include things such as your legal description, lot size, current taxes, and room sizes. Write a brief owners statement, telling prospective Buyers when you bought the home, what you really find appealing about the house and why you are moving. Make sure you list the improvements you have made to the home and when you did them.
6) Prepare your ad copy. This is crucial. Advertising space is always limited, so choose your words wisely and make sure the most important features of your homes are mentioned. Allow your ad copy to work in your favour by filtering out people asking questions like "How many bedrooms?", "Is it Brick?", "How much?" How many bathrooms? An example of good filtering ad copy would be..."Fantastic 3 bedroom Brick 2 story single family home, in great South East area. Features new laminate flooring, new solid oak kitchen, updated 4 pc bath. Private side drive and garage! Immaculate inside and out! Only $xxxxxxx." By writing your ad copy like this, you are answering a lot of questions that a Buyer may otherwise have to call you for. When a buyer does call you, chances are they will be setting up an appointment to see it!
7) Co-operate with Real Estate Agents! One of the biggest mistakes, that a person selling privately does...is exclude Realtors. By doing this, they are also excluding the clients that those Realtors are working with. Yes, when a Realtor calls you to see your property, they may be more interested in persuading you to list with them then they are viewing your home, however, if you agree to pay Real Estate professionals for selling your home, it could very well be a winning situation for both of you. You may end up with a great offer, professionally written, plus save on the commission as well! It also gives you an opportunity to silently interview Realtors, giving you a good idea of who you would feel comfortable listing with if you're not successful selling privately.
8) Hire a professional to take your pictures, including a virtual tour. Good quality pictures make all the difference when marketing on line. Professional photographers not only have better camera's, they're also experts in lighting. This allows them to avoid shadows and dark area's which amateur photography is notorious for.
9) Obtain a Home Inspection Report. This is also very important. A Professional Home Inspection report will serve as a buffer between you and a potential buyer. It's a second opinion about your home and is totally objective. Good inspection reports will assess all the elements of your home, inside and out. Not only will the report serve as a form of disclosure and reassurance to a Buyer, it will also give you an idea of deficiencies that you have the time and money to rectify prior to selling.
10) Detach!!!! To sell your home affectively via Private for Sale, you must detach from it. After you've cleaned, polished, perhaps hired a professional stager, fixed all of the items the home inspector pointed out to you, you may have an overwhelming urge to stay put...or even ask more money! Try not to do this. Remember why you where planning on moving to begin with and give yourself a pat on the back for giving your home a competitive edge! Don't take anything a buyer says to you personally. Rehearse your showings, making sure that you point out important features along the way. A normal showing should last 15-20 minutes. Be cordial and personable, keeping the conversation focused around the sale of your home. Treat the showing in a professional manner, finishing at the front door, and let the Buyers know how you would like them to proceed if they want to give you an offer!
Selling your home takes time, dedication and money to do correctly and it isn't as simple as putting a "For Sale" sign on your front lawn and an ad in the paper or on line. The Internet is flooded with Private for Sale sites and deciding exactly which one to use can be a challenge in itself. Set a budget and set a reasonable time limit to get the job done. If you don't like the way things are unfolding, don't hesitate to call in a professional Real Estate Agent!
Happy Selling!
Donna...."Your Realtor with a Heart!"