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Sell Your Home in Canada

Sell Your Home in Canada

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Published by Richard Day
Want to sell your Canadian home and unsure about the steps you should take? This book, written by a professional, will show you what to do, and how to do it yourself, without an agent.
Want to sell your Canadian home and unsure about the steps you should take? This book, written by a professional, will show you what to do, and how to do it yourself, without an agent.

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Published by: Richard Day on Jun 13, 2009
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06/12/2010

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SELL YOUR HOME IN CANADA
Geraldine Santiago

Self-Counsel Press (a division of) International Self-Counsel Press Ltd. Canada USA

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CONTENTS

INTRODUCTION

xi 1 3 3 4 4 4 5 7 7 8 8 8 9 9

PART 1: WHERE SHOULD I BEGIN?
1 WHAT TYPE OF MARKET IS IT? Buyer’s Market Seller’s Market Balanced Market When Is the Best Time to Sell? 2 3 WHO WILL BUY YOUR HOME? KNOWING YOUR HOME IS THE KEY Types of Homes Title and Ownership Co-ownership Strata title Co-operative Timeshares

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Freehold Leasehold Positive and Negative Aspects of Your Property Selling the Neighbourhood and the Community Selling a Condo Selling a Rental Property Selling an Older Home 4 GATHERING DATA AND LEGAL DOCUMENTATION Title Search Survey Certificate New Home Warranty Information Property Condition Disclosure Statement (PCDS) Oil Tank Removal Zoning Information City Assessment Other Information for Strata Property Other Documentation Measuring Your Property Pre-Sale Building Inspection 5 SELLING YOUR HOME: WHAT IS IT WORTH? Why Are You Selling? What Is Your Home Worth? What is a comparative market analysis (CMA)? Increasing or decreasing your price Pricing land only Renovation value What If You Have a Mortgage? Getting a new mortgage Bridge loans Portable mortgage Vendor take-back mortgage Assumable mortgage

9 9 10 11 11 12 12 15 16 17 17 19 22 23 23 24 25 25 27 33 33 33 34 39 40 40 41 41 42 42 43 43

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Sell your home in Canada

PART 2: SHOULD I SELL MY OWN HOME OR GET HELP?
6 SELLING ON YOUR OWN OR WITH A REAL ESTATE AGENT What Are the Costs of Selling a Property? Do You Have What It Takes to Sell Your Own Home? What Are the Pitfalls of Selling without an Agent? What Are the Benefits of Going with an Agent? Should you get a full-service agent or do you want to be involved? Choosing the right agent for you What about a team of agents? Types of listings The listing agreement Responsibilities of listing agents Legal and professional requirements for agents The Agent’s Commission Full commission on a quick sale How can you save on commission? Bonuses and other incentives for agents What Is the MLS System and What Can It Do for Sellers?

51 53 53 54 55 57 58 59 60 60 61 62 62 65 66 66 67 67 69

PART 3: HOW DO I GO FROM MARKETING TO COMPLETING THE SALE?
7 MARKETING YOUR HOME What Do You Do to Market a Property? Print advertising and websites Signage and tools of the trade Marketing to friends, relatives, and neighbours Advertising 8 SHOWING YOUR HOME Protecting Yourself and Your Family Showcasing Made Simple Showing a Rental Property Showing a Vacation Home Open Houses and Agent Tours

71 71 72 73 73 74 77 78 78 80 81 81
Contents

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THE OFFER The Buyer Separating qualified buyers from the lookers Who can be legally bound by a contract? When You Receive an Offer Condition precedents Time clauses Financing When You Receive Multiple Offers, Low-ball Offers, or Agent Offers Competing offers, multiple offers, and back-up offers Identical or nearly identical offers Low-ball offers Offers from salespeople to purchase for themselves Negotiating a Sale What to negotiate Selling your furniture When You Reach an Agreement Deposits and down payments What if the building does not pass inspection? Showing after accepting an offer When Condition Precedents Are Met

85 86 86 87 87 87 88 88 89 90 90 91 91 92 93 93 94 94 95 96 96 103 103 104 105 107 107 107 108 108 109 109

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CLOSING, COMPLETION, AND POSSESSION The Closing Procedure What Happens at Completion? Completion must be done on a weekday Hiccups at completion Possession When do you hand over the keys? What should you leave behind on possession day? What should you not leave behind? Doing a walk-through with the buyer or buyer’s agent A special touch

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CONCLUSION APPENDIX 1 — REAL ESTATE ASSOCIATIONS AND BOARDS APPENDIX 2 — RESOURCE LIST FOR OIL TANK SAFETY APPENDIX 3 — PROVINCIAL MINISTRIES AND DEPARTMENTS OF HOUSING APPENDIX 4 — CANADIAN ASSOCIATIONS OF HOME AND PROPERTY INSPECTORS GLOSSARY CHECKLISTS 1 2 3 Documents and Information The Contract Service Arrangements

111 113 117 121 125 127

30 97 110

SAMPLES 1 2 3 4 5 6 7 8 9 Title Search Property Condition Disclosure Statement Inspection Summary Summary Appraisal Report Comparative Market Analysis Listing Agreement Agreement of Purchase and Sale Addendum Seller’s Statement of Adjustments 18 20 28 35 44 63 99 101 106

TABLES 1 2 Types of Buyers and How to Target Them Provincial Associations of Home and Property Inspectors 6 29

Contents

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Chapter 1

WHAT TYPE OF MARKET IS IT?
Before you put your home up for sale, it is important to look at the larger market conditions, such as local and national housing prices, mortgage rate movements, and new home construction. The Canada Mortgage and Housing Corporation (CMHC) helps people selling their homes understand how the housing market is evolving. The CMHC’s regional offices and Market Analysis Centre are great sources for finding out about the current housing market. The CMHC regularly publishes local market analysis reports and provides information on recent trends in housing market conditions across the country. Your regional CMHC market analyst can tell you if it’s a buyer’s, seller’s, or balanced housing market. Contact information for market analysts is available on the CMHC website at <www.cmhc-schl.gc.ca/en/contact/contacten_021.cfm>, or you can order the most popular housing reports online from the CMHC site <www.cmhc-schl.gc.ca/> and they will be e-mailed to you in PDF, Lotus, or Excel format.

Buyer’s Market
In a buyer’s market, the number of homes available for sale exceeds the demand, so prices will either stabilize or drop. With

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fewer buyers and more homes, buyers have greater negotiating leverage, so sellers should price their homes competitively if they want to sell.

Seller’s Market
In a seller’s market, relatively few homes are on the market, so the number of buyers exceeds the number of sellers and the seller dictates the price. In this situation of low inventory, sellers often get their price (sometimes more than the asking price) because of a bidding war, in which there are many competing offers.
A recent poll showed that Canadians feel that April, May, and June are the best times to sell a home.

Balanced Market
In a balanced market, there is an equal number of buyers and sellers. If you are a seller in this market, you will probably not experience a bidding war because there are enough properties listed on the market.

When Is the Best Time to Sell?
The busiest times in the real estate industry are usually the spring and summer. This is when many companies relocate their employees, and as a result there are more properties to choose from. Because of this availability, many buyers tend to do their home shopping at this time, so there is the most competition among buyers. A recent poll showed that Canadians feel that April, May, and June are the best times to sell a home and December and January are the best times to buy a home. If you are selling your home in order to move up to a new house, another major influence on deciding when to sell is the mortgage interest rate. What rates are available now? Will they fall or will they rise in the near future? If they rise, how much will they go up? It can be hard to answer these questions, but CMHC’s Market Analysis Centre can help by providing you with both an analysis of the current mortgage market and an outlook for future mortgage rates.

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Sell your home in Canada

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