From A Woman's Perspective: August 16th, 2024 "The Roadmap to Downsizing "From start to SOLD!" Part2"

The Roadmap to Downsizing "From start to SOLD!" Part2

 

Good morning, Marilyn. The last few weeks I have been sharing my “Realtor’s eye view” of the downsizing process. From the kinds of home improvements that can add to resale value, to the actual sale process itself. Last time I shared part one of “The Roadmap from Start to SOLD!” If it’s been literal decades since you last bought or sold a property, a lot has changed. Consider this your refresher course.

Speaking of refresher, let me quickly summarise what we covered in part one. Selling your home whether house or condo begins with an in-person consultation. The primary purpose of this meet and greet is for me to know your motivations, obstacles, and timeline for making a move. Perhaps you already know where you’re heading next, or maybe we’ll work together on that destination as we move forward. (Pun intended!)

From here we move to step two: the three Ps of listing your property for sale: preparation, pricing and promotion. Each home is unique and deserves tailormade attention, so we’ll create a custom plan to make sure your home looks its best and is market ready.

When the home is prepared and the print, digital and social media marketing pieces are ready, we will launch your property listing on the Toronto Regional Real Estate Board’s “multiple listing service,” giving it exposure to tens of thousands of potential buyers. 

Step 4, as we covered last week, is negotiating offers on your property. Price is an obvious consideration, but there is also the amount of the deposit the buyer’s are willing to make, their desired closing date, and whether the offer is subject to certain conditions or is being made firm. Each of these components of the offer is subject to negotiation, so sellers should never feel that they have to accept an offer - even an offer that is 100% or more of asking price. At the end of the day, you are always in the driver’s seat. However, once you do accept the offer, it’s important to know that this is a legally binding contract and cannot be revoked without serious consequences. 

So what happens once a deal is struck that is acceptable to both parties? The next step is for the buyer to submit a deposit for the amount included in the offer. This is usually 5% of the purchase price. These funds are held in a trust account by the listing agent’s brokerage, and credited towards the purchase at time of closing.

If the purchase was conditional, the buyer will have a set number of days in which to fulfil the conditions. Typically we see the condition that the buyer requires time to finalise their financing arrangements with their bank or mortgage broker. Another possible condition is for the buyer to do their due diligence to ensure that the property is sound. This involves the buyer hiring a property inspector to examine the key components of the property such as roof and attic, electrical, heating and cooling, windows, foundation, grading etc. If the inspection reveals major defects, the buyer’s agent may request that the seller do repairs or make a price adjustment to cover the cost of fixing the existing issue. 

A condition we only occasionally see is the condition that the buyer’s previous property is sold. As a listing agent, I can tell you that this condition is the most problematic from a seller’s point of view. The reasons are several, but for now let’s just say I would advise my seller clients to understand the risks of accepting this kind of condition.

Once the buyer has satisfied their conditions, they will submit documents removing or fulfilling them and the deal is firm. The contract has been finalised, it will now be sent to both brokerages, and eventually to the lawyers for both parties. Making sure documents are accurately completed, tracked and submitted is a crucial part of my service to my clients. We want the transaction to be as smoooooth as the sale. 

The seller and buyer can start making preparations for move day since the sale is now firmed up. The closing date (or date of completion, as it’s called in Realtor speak) is usually 30 to 60 days in the future so there is a bit of time to relax until the next bit of heavy lifting. 

A few days before the closing date, the lawyers for both parties will reach out to their respective clients and set up an appointment to review and sign the necessary documents. Up until the last few years this was always done in person at the lawyer’s office, but now some law firms also offer virtual signing or house calls for their client’s convenience. On the actual day of closing there is a flurry of activity on the lawyer’s part with coordinating the transfer of funds, registering the new property title, and liaising between the seller and the buyer for delivery of the keys. Once money, title and keys are arranged, the process is complete. Congratulations! You are sold and closed!

At SMART Realty Solutions, our service to our clients doesn’t end there. We keep in touch, check in to make sure everything is to your satisfaction, and remain a resource for all things real estate. Need a contractor to handle a repair down the road? We want you to reach out! Have a friend looking to move, we DEFINITELY want you to reach out! 

So there you have it, Marilyn. The complex process of selling a home simplified into six straightforward steps. There’s been a ton of information shared over the last few weeks, and I am certain listeners have questions. So that’s my special offer this week, Marilyn: Ask Me Anything! (About real estate that is,) and if I read your question on air next week, I’ll send you a coffee card as my thanks. Submit your questions by visiting our website smartrealtysolution.com or by calling me, Sharon, at 416-460-5636. You can also text that number if you prefer. 

I’ll share your questions, and my answers, next week. 

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