Reza Ipchilar - Luxury Toronto Real Estate

How to Sell Your House for the Best Value

Do you like money? We like money. Selling a house can make you money.

It takes work and time, but if you understand the principles and costs of selling a home, you can make a pretty penny (the Canadian penny is extinct, but you get the point).

Here are some tips to selling a house that’ll help with your process.

1. The listing agreement

The listing agreement is a contract between you and your Toronto real estate agent’s brokerage that outlines all the forms and negotiations related to the sale of your property.

This agreement should clearly state the rights and obligations of you and your Toronto realtor, and that it is an accurate representation of your property details.

The listing agreement will outline:

  • The compensation for your Toronto realtor;
  • The duration of the contract;
  • The listing price of the property;
  • Mortgage details of the property, including the mortgage balance, mortgage monthly payments, and mortgage due date;
  • An accurate description of the property;
  • The amount of annual property taxes; and
  • Any easements, rights of way, liens or charges against the property.

Ask your listing Toronto real estate agent about disclosure. Disclosure is the seller's obligation to disclose any relevant facts about property for sale. Relevant facts can include material details about the property, or anything that could materially affect the sale price or influence a buyer's decision.

Defects and disclosure are the most often cited issues leading to post-sale disputes and lawsuits. These can be avoided through accurate and appropriate disclosures; purposefully withholding information on a property carries severe legal ramifications.

2. Determining the listing price of your property

You may want to charge $1B for your home (sentimental value can’t be quantified, you argue), but you should have a professional value your home. Pricing a property too high and it’ll never sell; price it too low, and you won’t make the most on your biggest life investment.

A Toronto realtor can review the listings at which similar properties in the area have sold, and help you determine a final listing price. Your Toronto real estate agent can also dig into market history for a greater holistic view, including the number of properties sold in your neighbourhood recently.

3. Marketing your property

MLS Listing

If your Toronto luxury real estate listing is on the MLS system, then all other agent members can find and view information about your property, and have the opportunity to sell your house. This increases the exposure of your property.

Open Houses

Your real estate agent may recommend hosting open houses. There are two types of open houses:

  1. An real estate agent’s open house, where agents from the listing company will be invited to view your house;
  2. A public open house, where anyone is invited to walk in and view your home.

Toronto open houses are an efficient way to show your home to many potential buyers at once. Your realtor will act as the host and answer any questions.

4. The waiting game

This is the most difficult step for sellers: waiting.

Relax, be patient, be persistent – but that doesn’t mean you have to sit around and twiddle your thumbs.

Selling a house can take longer than expected for three reasons: location, condition, and price. You can’t change location, but you can improve the condition of the home, and if becomes an extra lengthy wait, you can adjust the price of your home. Don’t be too hasty with the latter though.

On a regular basis, review your marketing strategy with your agent. Your real estate agent should provide you with updates on the following items while selling your house:

  • The number of showings;
  • Feedback from showings;
  • Updates on the marketplace;
  • Your property compared to the competition.

5. Accepting an offer (or making a counteroffer)

Your hard work has paid off: you have an official offer! Well, it’s official if it includes the buyer’s price, any conditions that may apply, the desired date of possession, and the date the offer expires.

You should also receive a deposit as an act of good faith from the interested buyer. At this point, you can counteroffer if the proposed number is unsatisfactory, and it may be a tug-of-war at this negotiating stage.

Once you’re both tired of the negotiation ritual and an offer is agreed and signed off on by all parties, the contract is binding. So, be sure you understand and agree to all terms before putting pen to paper. Your lawyer should also make sure that compensation is received for any prepaid expenses such as utility bills or property taxes. Once these expenses are paid, you will receive the money from the sale.

6. Possible requests from the buyer

Before closing, the buyer may ask you to provide a number of things such as:

  • A current survey that shows that the house sits on the property that you own;
  • The title to the property;
  • A certificate for a well or septic system, stating that the system meets standards; and
  • Access to the property for a home inspection.