Selling Real Estate is quite a simple process if we break it down into small steps. We can break this down to 8 steps:
- Prepare Ahead
- Find a Realtor
- Sign Listing Documents
- Show the Property
- Review Offers
- Fulfill Obligations
- Sign Completion Documents
- Give Procession
1) Prepare Ahead
Selling a property is not as difficult as one may think. If you are prepared well, and understand what is to be expected, this process can be pretty straight forward.
To begin the process, it is a good idea to do some preliminary research. Start by looking around for listings around your area. Some good resources include www.realtor.ca and www.rew.ca. Look at how much similar properties are being listed at. After you see a few, you will start to know roughly how much your property can be sold for. If you are comfortable with the price range, or if you need to sell for other reasons, then it might be a good time to contact a Realtor.
2) Find a Realtor
A Realtor can guide you through the process and market the property for you. When you have one in mind, make sure to first discuss with them about your expectations, or what you can expect of them. This includes the selling process, what cost are involved, and what service will be provided to you. If you have any other special criteria, it is best to talk about them right now so you know the Realtor is capable of fulfilling your request.
3) Sign Listing Documents
After you have confirmed that you are using that Realtor, then you are ready to get down to business! This part may seem complicated at first, but once the Realtor explains everything, it is quite simple.
First of all, when you work with a Realtor, you will have to sign something called “Working with a Realtor” brochure. This brochure provides information on agency relationships. Regardless of what kind of relationship you are with your agent, you will have to initial and sign this, as this is required by law. Then there will be the listing agreement. This is where you decide on price, commission payout, listing duration, and marketing instructions (also called Schedule A). There will also be a Property Disclosure Statement (PDS) that you will have to fill out to disclose any known problems and defects. We understand that such defects, if disclosed, could affect the property value. However, by disclosing them, you are relieved of potential liability because the Buyers were made aware of these problems before they bought the place. Litigation costs usually outweighs the small price increment that you get by hiding these facts. Other than these main forms, there may or may not be some other supplemental forms that are required by their own brokerage. They will also require some form of government ID to confirm your identity.
With all these forms signed, the contract stuff is done for now. The Realtor will probably ask you for information on the property so they can fill out the listing details. They would also require some pictures for the listing. They would typically either take it themselves or hire a photographer. You should provide them with whatever you can to ensure the accuracy of the listing. They will also discuss their marketing schedule with you, such as open house, or appointment times.
4) Show the Property
This part is done entirely by the agent, so you do not need to do much other than give the agent a set of keys, and set a time for the showing. To entice potential buyers, it is usually a good idea to clean the place before an appointment. Vacating the property at the appointment time would also make it less awkward for the buyers.
5) Review Offers
After a few appointments, offers would eventually be submitted by potential buyers. If you are not receiving any offers for a long time, it usually means that the price is too high, or the market is just really slow. At this point, you can discuss with your Realtor for potential strategy changes.
Anyways, when an offer is submitted, the Realtor is obligated by law to present them to the Seller. At that point, they will explain the contract terms with you. As a Seller, you can either accept, reject, or counter the offer. Once an agreement is reached, then the offer is said to be accepted. The buyer will have a period of time dictated by the contract to remove subjects. When that happens, or if contract has no subjects to begin with, the contract becomes firm and binding until completion.
6) Fulfill Obligations
Before the completion, the Seller will have to make sure they fulfill whatever they promised on the contract. If they said they will fix an appliance, for example, they will have till before completion to have it fixed.
7) Sign Completion Documents
At this time. you should also make sure to find a lawyer or notary to prepare for conveyancing. They will deal with all the money transactions at completion, so you don’t have to worry about that at all. They would also subtract any fees owe from the proceeds automatically, so you don’t have to write a separate cheque to pay for the services. All you have to do is to meet with them a few days beforehand to sign the closing papers. You should also make sure that the funds are transferred properly to your bank account after completion.
8) Give Possession
Then of course, you will have to give the keys away. Simply hand them to your Realtor, and, in turn, they will transfer them to the new owners.
And that’s it! Simple isn’t it? If it is not immediately clear, feel free to to leave a comment! We will do our best to answer any questions that you may have. Good luck selling!