Selling?

When is the Best Time to Sell Your Home?

Everyone seems to have specific ideas on when the right time is to sell. Some base their theories on the overall economy, while others will tell you that there are key buying months that you'll want to capitalize on.

If you're not buying and selling strategically or for investment, the best time to sell is really when you feel your existing home will not meet your future needs. The best reason to purchase a new home is to take advantage of your family and lifestyle changes. Do you wish to be closer to a school? Are you switching jobs? Do you have an aging parent to care for?

In Canada, weather and holidays do play a factor. Almost no one goes house hunting around Christmas, and few give up their summer vacations. Of course, those with school-aged children are less likely to move during the school year and summer is an ideal time. In some areas, there is a definite "spring cycle" -- perhaps it's a bit of spring fever and a wish to break out of the bonds of winter.

Some gamblers look for winter bargains and then try to sell their homes during the spring cycle. But overall, that could be more tension and aggravation than you wish. And the monetary results may be disappointing.

Another key factor to consider is the economy. Are interest rates higher or lower in comparison to your current mortgage? If they are higher, you may want to stick with your current home, as your new mortgage payments could be uncomfortable. If rates are lower, you might be able to trade up to a more expensive home without a significant increase in your monthly mortgage obligation.

What's more, if it's a buyers' market, you may be in a strong position to purchase a new home, especially if you have accumulated some equity in your current property.

Are There Costs Involved in Selling?

Unfortunately, the answer is yes. Even if you think your home is perfect, you may have to do some minor repairs or upgrades to make your home more attractive to potential purchasers.

• A professional home inspection may be a condition of the offer. If the inspection points to problems, your purchaser may ask that you make the necessary repairs or choose not to close the deal.
• Closing costs, such as lawyers' fees or unpaid taxes, will also have to be paid.
• Mortgage discharge fees may be levied by your lending institution.
• Sales commissions must be paid as defined by your listing agreement.

Determine Your Asking Price

Before you put your home up for sale, you must set the price. And before you can do that, you must know what the house is worth. That doesn't mean what you paid for it, or how you upgraded it. Determining worth is simply finding out what someone would pay for it.

The steps in determining worth are:

1. Understanding market conditions
2. Getting the details about recent sales in your neighbourhood

RE/MAX agents have access to all of this information. Plus, they can objectively see the big picture and tell you what makes your home unique.

Once you've determined you home's worth, you and your agent will determine the asking price. Most often, the price of a home is set slightly higher than its worth, to give a little "bargaining space." Of course, if it is set too high, it may deter prospective buyers.

If you're in a rush to sell your home, setting the asking price a little lower than what your home is worth will attract a lot of attention. But beware, if the price sounds too good to be true, buyers may be skeptical. They may even offer less than the asking price anticipating problems with the home down the road.

You will have a legal relationship with your agent. When you complete the listing agreement, you are giving your RE/MAX agent the authority to put your house on the market for a specified period. If your house is sold during that time, you will pay the agreed to commission. What's more, if the house sells shortly after the specified period because of your agent's efforts, you are still obligated to pay the commission.

The Offer from the Seller's Viewpoint

Interested buyers will submit an offer to your real estate agent through their agent. Your agent will take you through the offer to ensure that you understand all aspects of it. Before you accept or sign back the offer, you may wish to take the offer to a lawyer and make certain that ever detail is legally accurate and in your best interest.

Your offer will contain:

• The names of the potential purchaser.
• Your name.
• A description of the property.
• The conditions they wish to attach to the purchase:
• price
• closing date
• chattels
• survey
• home inspection
• An irrevocable date (you have until this date to accept, or sign back a counter offer).
• It may also contain mortgage details (for instance, the purchaser may wish to assume your mortgage or may wish you to discharge it).

Very often, the first thing vendors look at is the offer's purchase price. Remember that it is not all yours. You'll have to pay your:

• lawyer
• real estate agent
• bank (for the balance of your mortgage and for any prepayment or discharge penalties)
• taxes (if there are any outstanding)

On the bright side, you'll probably have pre-paid a number of things like utilities, and taxes, so you'll be getting additional funds as well.

Evaluating the Offer

Before the first offer even comes in, you should have in mind, how low you'll go on price, what conditions you'll accept and what terms would be agreeable. Then, when an offer comes in, you have a set of criteria by which to evaluate it.

Scrutinize all of the details, chattels, closing date, conditions, address and description of your property, provisions and deposit.

You and your agent will thoroughly go over every detail. If there's anything you don't understand, ask!

Accepting the Offer

Once you're satisfied that offer has met your criteria, you'll want to accept it. To ensure that your purchaser won't get cold feet, you'll want a deposit. The deposit will be held by your RE/MAX agent and when the deal is closed it will be applied to the commission owed.

Just Because Your House Has Sold, That Isn't the End

Chances are you've bought a new home, or are in the process of looking for one.