I’ve put together some of the best questions I’ve received from Private Sellers out there, and will do my best to get you all the information that they would have liked to know when they were trying to sell their home. I should remind you that my answers are simply to the best of my knowledge and off the top of my head while I am here writing- it is very possible that I’ve missed a part or three. That being said – I’m sure I did a pretty good job.
Q: How do I coordinate my paperwork between lawyers, agents, lenders, inspectors etc?
A: Very Carefully. Lol. This is definitely a stress point for many private sellers, especially considering that the wrong info, or late info can turn a deal sour on a moments notice. This list is by no means complete, but should be pretty thorough. Consult with the various experts to double-check my guidelines.
Lawyers are going to want just about every piece of paper that either you (as the seller) and/or the buyer have signed relating to the agreement of purchase and sale. A good rule of thumb is that any and all parts of an agreement between the two parties should be sent to the lawyers – and MAKE SURE EVERYTHING IS IN WRITING! A good saying in Real Estate is “Verbal Shmerbal” – doesn’t count, never happened, unless it’s in writing. It might not be a bad idea to run ideas by your lawyer before you sign anything either, and if they are going to be specifically mentioned (i.e.: Lawyer to retain funds for repairs, or lawyer to approve of this or that), then you want to make sure you ask them if they will have time to fit you in before you tie yourself up. As the deal progresses and conditions are waived/fulfilled and/or the agreement is amended – send the paper trail to your lawyer.
Lenders, in my experience, are managed by the lawyers. They will touch base and coordinate necessary paperwork and fund transfers. You may want to request a letter of pre-qualification from the Buyer’s lender before accepting their offer, just to make sure they are able to afford your home. Private Buyers must work very closely with their lenders and will need to provide a great deal of paperwork to them. Hopefully there is at least one professional Realtor involved (on this side for our purposes) that can manage and coordinate the paperwork.
Inspectors will be working with the Buyer’s in most instances. If the Buyers come back and say that there are issues that need some attention, don’t be shy to request the pages from the report that outline the issues in question. Be sure no one is pulling your leg! You may choose to get your own inspection, either pre-sale or as a 2nd opinion, and either way you will need to keep your report. This is for your records only, and can be shared at your discretion.
Agents will want a variety of paperwork including a survey, an SPIS (talk to your lawyer about this one), permits for work performed, and manuals for any and all working parts of the home. Whether or not you have or even want to share these documents is up to you. Be sure to have copies of everything you hand out, and consider sharing only the copies when critical documents are being considered. Originals can always be left on the kitchen counter once you leave.
Those are the big four, and a few more come into the picture from time to time (appraisers, engineers, specialty inspectors, government bodies (MNE for example)). Paperwork for a private buyer is another story, and there is actually MUCH more paperwork for buyers to provide. If you do NOT have a professional Realtor on the Buyer’s end, then you could really be playing with fire. I’ve spoken to many private sellers who have gotten into agreements three times over and the deal has fallen through because no one has coordinated the sale properly.
Q: How do I set the price of my home?
A: NOT based on what “some guy down the street had his house for sale for”. Just as bad – not based on what other people in the area are asking. The thing is, FOR SALE is another way of saying NOT SOLD, so why would you base your prices on properties that have not sold? Are they what you are trying to mimic? NO – you want to SELL. This is where you have to call or email a Realtor for a Free and No-Obligation Comparable Market Analysis, or CMA. The Realtor will (should atleast) try to pitch you on why you should list with them (and handling that is up to you), but atleast you will get some good info on what sales prices are, what you can expect, and how you can price accordingly. Best Answer: Get three CMA’s. Some Realtors may be selective with their comparables, or might have missed something, and having a second and third opinion never hurts.
Q: What is the best way to market my home?
A: Marketing 101 says to know your target market, get the right kind of exposure (known as positioning), and that maximum exposure will create maximum demand leading to highest price.
Target market: who lives in your area? Better yet, who WANTS to live in your area? Tailor your marketing images and highlights to attract these buyers. You know who has lots of qualified buyers that are looking to buy? Realtors! Find out who the top-selling Realtors are for your type of home and target them!
Positioning: Had a look at the competition lately? How are they marketing themselves? How have the ones that have SOLD marketed themselves? Your goal is to emphasize the parts where your unit shines, avoid (where ethically possible) the areas where your property doesn’t compete so well, and LOOK BETTER than anyone else. Do your homework and put a plan together!
Exposure: Internet – do it. MLS and Grapevine are good – MLS is great actually – but there is much, much more. Kijiji, Used Ottawa, Zoocasa, craiglist, Google, MSN, Yahoo, Home Hippo, House Locator, Hotpads, Viva Real, Trulia, Home Finder, Second Space, Ebay, Kneedle, Second Space, Oodle etc. There are over 300 destinations out there, and you want to advertise on as many as possible. Keep in mind that certain marketing vehicles are LOCAL in nature, and if you are putting all your eggs in one local basket, you’re missing out on all kinds of great business. Print media is good as well. Ottawa Citizen classifieds, Ottawa Sun and local papers. Don’t forget lawn signs and directionals.
That’s it for this month. Other questions were about contracts and legal, and warding off un-ethical people and practices. Those topics are pretty thick, and may need their own entries. I’ve answered those specific questions but a response that covers everything is beyond the scope of this piece. There is some great information on the Ottawa Real Estate Board’s website here: http://orebweb1.oreb.ca/info.shtml
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