for sellers

What are Market Conditions?

The real estate market is always changing. It helps to understand how market conditions can affect your position as a seller.

Your agent can provide you with current real estate market conditions and explain their impact.

Buyer's Market

The supply of homes exceeds the number of buyers (supply is greater than demand). In this market, prices tend to drop and the homes stay on the market longer. Thus your home may take longer to sell and you will have less negotiating power in terms of the selling price. Fortunately, you will be in the driver's seat when making an offer on your next home.

Seller's Market

The number of buyers exceeds the number of homes on the market (demand greater than supply). In this market prices are increasing and homes sell quickly. As a seller, you will probably have more negotiating power and obtain a higher selling price for your property. Unfortunately, you will be on the other side of the fence when purchasing your next home.

Balanced Market

The number of homes on the market is equal to the number of buyers (supply equals demand). In this market, prices are stable and homes sell within a reasonable period of time. It is a calm atmosphere with buyers having a satisfactory number of homes from which to choose.

Should I overprice my home?

Many sellers believe that if they price their home high initially, they can lower it later.

Often, when a home is priced too high, it experiences little activity. Gradually the price will come down to market value, but by that time it's been for sale too long and some buyers will be wary and reject the property.

On occasion, the price is dropped below the market value because the seller runs out of time. The property sells for less than it's worth.

Missing The Right Buyer

You may think that interested buyers "can always make an offer," but if the home is overpriced, potential buyers looking in a lower price range will never see it. Those who can afford a home at your asking price will soon recognize that they can get a better value elsewhere.

Early Activity

As soon as a home comes on the market, there is a flurry of activity surrounding it. This is a crucial time when Real Estate Professionals and potential buyers sit up and take notice. If the home is overpriced, it doesn't take long for interested parties to lose interest. By the time the price drops, a majority of buyers are lost.

What is a listing agreement?

The first formal step in marketing your property is to enter into a Listing Agreement - a contract that commits me as your Real Estate Professional to actively market your home for a specified period of time. It also commits you to a pre-established marketing fee that is to be paid upon the successful closing of the sale.

We may also require the following documents:

• Plan of Survey or Location Certificate - A Survey of your property which outlines the lot size and location of buildings as well as details of encroachments from neighbouring properties. This may be required in certain areas to complete the sale of your home. Your legal professional may recommend a survey, especially if significant changes have been made to your property.
• Property Tax Receipts - Most Listing Agreements require that the current annual property tax assessments be shown.
• Mortgage Verification - Few homeowners know the exact balance of their mortgage as it is paid down. You will be asked to authorize your mortgage lender to provide the figures required.
• Deed or Title Search - This document is a legal description of your property and the proof that you own it.
• Other Documentation - In some instances, it may help the sale of your property if you can provide prospective buyers with information on such items as annual heating, electrical, and water expenses, as well as any recent home improvement costs.

What are the elements of an offer?

There are six key components to the elements of an offer. They are:

Price

Depending on the local market conditions and information provided by me, your Real Estate Professional, the price you set may be different from the buyer's offering.

Deposit

The buyer's deposit shows good faith and will be applied against the purchase of the home when the sale closes. As your Real Estate Professional, I can advise you on an appropriate amount.

Terms

Includes the total price offered and the financing details. The buyer may arrange their own financing or ask to assume your mortgage, especially if it has an attractive interest rate.

Conditions

These might include "subject to home inspection", "subject to the buyer obtaining financing", or "subject to you selling your property".

Inclusions and Exclusions

These might include appliances and certain fixtures or decorative items, such as window coverings or mirrors. These items would remain in the house after you vacate the premises.

Closing or Possession Date

Generally, the day the title of the property is legally transferred and the transaction of funds finalized.