Preparing Your Property and Finances

Advantages and Disadvantages of Renovations When Selling Your Home.

Considering renovations before putting your home on the market is a common dilemma faced by many of my sellers. While remodeling can enhance your home's appeal, it's essential to weigh the advantages and disadvantages to make an informed decision. On the plus side, renovations allow you to modernize outdated features, enhance functionality, and potentially increase your home's value.

Renovated homes often stand out in the competitive market, attracting more potential buyers thus receiving higher offers. However, it's crucial to remember that renovations can also be time-consuming and costly. Depending on the scale of the project, the return on investment may not always be immediate. Additionally, timing is vital, as renovating too close to the sale may not allow enough time to enjoy the improvements.

Ultimately, think strategically about your target buyers, your budget, and the specific upgrades your home needs, keeping in mind both the favorable outcomes and potential drawbacks of renovating before selling.

Typical renovations and updates to consider before selling can include:

· updating your kitchen appliances and fixtures;

· updating bathroom fixtures;

· replacing any flooring or roofing that’s in disrepair; and

· replacing dated fixtures such as lights and light switches, cabinet handles, doorknobs, etc.

Find out more about a seller’s responsibilities for closing:

Sellers’ Responsibilities During Closing

Stigmatized Homes: What You Legally Have to Disclose When Selling

Managing your money before selling

There are also costs and financial implications to consider when selling a home, dependant on the type of mortgage you have.

Discharge mortgage

This refers to using the proceeds from the sale of your home to discharge or pay off your current mortgage. In an open mortgage, you can pay it all off without any penalties. If you have a closed mortgage, be prepared to pay a penalty.

Portable mortgage

A portable mortgage means you can take your mortgage money with you and buy a new home, without penalty.

Capital gains tax this may or may not be applicable to you.

If you had tenants living in part of your home, such as the basement, you’ll pay capital gains tax on a portion of your profits. You may also owe capital gains tax if you’re selling a vacation or investment property, speak to tax specialist if in doubt.

Listing Agreement

Some of the terms that are included in a Listing Agreement are:

• Authority—This describes the legal relationship between you and the real estate brokerage.

• Price— I will bring comparable properties in your neighbourhood to help show the current market values of properties in your area,

• A physical description of your property—I will write a description highlighting your property’s best features.

• Legal information—This includes the lot number, land surveys and the zoning code.

Marketing Your Home

Before I take the photos, make sure you’re presenting your home in its best light. Below are a few typical tasks homeowners can do before putting their home on the market.

• Paint—A fresh coat of paint can go a long way in refreshing a space!

• De-clutter—This is a great opportunity to make your home more appealing to buyers by getting rid of unwanted items packing your belongings.

• Clean—Make sure your floors and fixtures, especially in your bathroom and kitchen, are clean for viewings and open houses. Consider hiring a professional cleaner.

• Improve curb appeal—Consider weeding and mowing your lawn, in winter clear the snow from the driveway and entrance of your home.

• Staging—Rearranging pieces in your home in a way that will help buyers envision themselves in their new potential home.

Marketing your listing

When you choose me to sell your home, I will advertise your home on

• Social media and Realtor.ca

• Traditional marketing—A for sale sign outside your home can attract potential buyers as they pass by.

• Walk throughs—I will coordinate with potential buyers to give a private walkthrough of your home.

Receiving an Offer

Negotiating a purchase price is one of the most intimidating aspects of the home buying and selling process. I will work with you to ensure you’re getting the best price and are accepting an offer that’s in your best interest. I’m here to help you every step of the way.

Consult with a lawyer

When selling, it’s essential to have a real estate lawyer handle all the various legal documents that change hands. Your lawyer will review important documents that require your signature.

Responding to an offer

When you receive an offer, I will advise you on the merits of the offer and the asking price, closing date, and conditions. Please take some time to consider the offers you’re presented! In general, there are three options when responding to an offer:

• Accept the offer

You settled on the price you were hoping for, maybe even more. The closing date looks good and there are reasonable or no conditions. If you are happy with the offer, you will formally accept the offer, and you’ll start to move on to the closing process.

• Reject the offer

If you receive an offer that’s not close enough to your asking price, or that has unreasonable conditions, you can reject the offer. I will communicate this to the buyer or buyer’s representative.

• Provide a counter offer

The offer is close, but something’s not quite right. I can help with the delicate art of negotiation by “signing back” or sending a counteroffer. Some of the most common reasons for a sign back include:

• you want a higher offer price;

• you want to change the closing date; or

• there may be some undesirable conditions in the offer (these could include a requirement for the buyer to obtain financing, approval to assume mortgage, sales of purchaser’s home, or a property inspection, etc.).

Closing the Sale

Congratulations, the negotiations were a success! Before your house is truly sold, it’s time for the vital final steps, known as “closing”. Your lawyer will take care of the complex legal maneuvers.

Closing tips for sellers

• Your lawyer will be advised that an agreement has been signed. Make sure your representation is ready to close the transaction.

• Immediately begin satisfying any conditions of the agreement requiring action on your part before the set date of completion.

• Contact your telephone, internet, and cable companies about transferring or removing service.

• Inform your property insurance agent and arrange cancellation or transfer of your homeowner’s insurance.

• Contact a moving company to arrange your move on, or prior to, the closing date. (You can always ask friends and family to help you move, but the process can be quite labour intensive.)

• Send out your change of address notices and advise the post office.

• I will coordinate with you to arrange the exchange of keys.

Find out more about a seller’s responsibilities for closing: · Sellers’ Responsibilities During Closing · Stigmatized Homes: What You Legally Have to Disclose When Selling

How your lawyer helps with the closing process

• If you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will obtain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you will have to pay to discharge the mortgage.

• If you are transferring your mortgage and the buyer is assuming your mortgage, your lawyer can liaise with your lending institution.

• A few days before closing, your lawyer will ask you to sign the paperwork enabling the title to be transferred to the buyer.

• On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds.

Moving out

If you can, start packing early and spread it out over many days. Label all your boxes by room (and especially if the boxes carry anything fragile) so the movers know where to put them and how to treat the boxes. If you intend to hire professionals, contact a moving company, or truck rental company well in advance and ahead of the exchange of keys.

Tip: Set up mail forwarding from your previous address, and ensure to change your address in your records, especially for banking, the Canada Revenue Agency and government accounts.