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Seller's Manual
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Let's Get Started
There are many moving parts and important decisions to make when it comes to Selling a home or investment property. Choosing an effective price, deciding which upgrades are actually worth investing in before selling, gathering the documents potential Buyers will be asking for… it can be a lot to take in, that’s why we made this guide.
If you come up with any questions as you read through our Home Sellers’ guide, give us a call or send us a message. You Have Questions…We Have Answers.
CENTURY 21 All Points is a small but mighty, family-owned real estate brokerage serving Nova Scotia. Teamwork is one of our core values. Every individual on our team works together to ensure our clients receive excellent care from the first meeting, to Closing Day, and beyond.
With decades of experience in real estate sales and customer service, nobody knows the Halifax real estate market like our team.
A Note From David
In my more than three decades of selling real estate in Nova Scotia, I have discovered some interesting constants in the process!
The question is frequently more important than the answer. By this, I mean that a well framed question literally forces a well thought out answer. But here is the problem, even if you are an experienced home buyer, or a first time buyer, each transaction is different; things and times have changed.
For example...
“Is there internet access available?”
“Is there High Speed internet access available?”
“What type of High Speed internet access is available?”
Asking the right question is crucial! Our job is to help you ask the right questions, not just give answers to the questions that you ask.
The following pages should help you ask “better questions” on the way to buying your new home.
It should be mentioned, that if you have to ask a question more than once, it is not your fault. On the contrary, it is our fault,. It means that we did not answer the question properly or in such a way that you were able to understand it…”Our bad”
Always Remember, You Have Questions...We Have Answers.
Understanding the Market
As a seller, understanding current local market conditions helps you make educated decisions and gives you an indication of what you can expect in selling your home.
Our team constantly keeps on top of the latest market news and trends to help you make informed decisions. We'll put together a comparative market analysis of homes in your area that have recently been sold, been listed, and expired. This information will help us determine the optimal list price for your home.
Balanced Market
A Balanced Market refers to when the number the of homes available for sale is equal to the number of buyers.
Sellers' Market
A Sellers' Market occurs when the number of homes available for sale is less than the number of buyers. A Seller's Market typically results in homes selling quickly and an increase in prices.
Buyers' Market
A Buyers' Market refers to when the number of homes available for sale is more than the number of buyers. A Buyers' Market typically results in homes staying longer on the market and prices decreases.
Pricing Considerations
Listing your home at an appropriate price optimizes the amount of qualified buyers to be exposed to your property, resulting in a quicker sale and receiving top dollar for your home.
Perils of Overpricing
When a property comes on the market at a price higher than what it's worth, it loses the attention of potential buyers during the listing's most critical time - the first few weeks on the market.
The price can be lowered as the property sits on the market, but by this time many qualified buyers would have moved on, potentially leading you to having no choice but to settle for a price that may be less than what it's worth.
Preparing Your Home
First impressions are lasting impressions. You will want to make sure that buyers looking at your home (in person and online) are left with the best possible impression. We can help you achieve that goal. Start by taking a critical look at your property, inside and out. Make a list of things that need to be fixed up.
Home Preparation Examples
Interior:
- Chipped or marked gyprock-plaster and paint touched up and repaired
- Inside of closets and cupboards tidy and doors properly closed
- Leaky taps and toilets repaired
- Burned out lightbulbs replaced
- Squeaky doors oiled
- Mirrors, fixtures, and taps cleaned and polished
- Seals around tubs and vanities in good repair
- Appliances cleaned
- Countertops de-cluttered
- Consider a dehumidifier to combat any dampness
House Exterior
- House exterior in good repair
- House numbers easy to read
- Eavestroughs, soffits, fascia, and downspouts in good repair
- Garbage/carport clean and tidy
- Garbage picked up, including pet messes
- Cracked or broken window panes replaced
- Lawns and hedges cut
- Gardens weeded and edged
- Walks shovelled and salted
- Doorbell and door hardware in good repair
- Mailbox in good condition
Once you have assessed your home, make a list of the items that you feel need to be addressed before the house is put on the market. We will discuss this list with you and help you prioritize what must be done vs what would be nice to have done.
Another key factor in getting ready to sell is to make sure that everyone in the household is on board with the okay to sell and that they understand it will take effort on everyone's part to make sure the home is always ready to be viewed.
Signing A Listing Agreement
The first formal step in marketing your property is to enter into a Seller Brokerage Agreement; this is a contract that outlines the relationship between you and your team here at CENTURY 21 All Points. It allows us to put your property on the MLS® system and to actively market your home for a specified period of time.
The Agreement also outlines the responsibilities of all parties including the amount of commission to be paid by you, the seller to all parties. Commissions are paid at the time of Closing and are +HST
When we set up the appointment to sign the Listing Agreement, we will ask that you collect the following information so we will have it available for any potential buyers:
- Survey or location certificate
- Utility Account numbers - Power, Oil, Water, Natural Gas
- Information about any Leased Equipment - hot water tank, propane tank, heat pump
- Dates and information about any renovations that you have done
- Restrictive Covenants (if applicable)
- Condo Documents (if applicable)
- Alarm Codes
Once we have the documents signed and the information that we need collected, we will set up a time for the media day-photoshoot-360 Tour of the property and begin the process of getting it listed on the MLS® system and installing the yard sign. Once it is listed, we will put our Marketing Plan into action to help you get the property SOLD!
Documents Needed
It can be a pain pulling together all of the documents that we request, but there is a very good reason.
Surprisingly, most agents do not ask for this information up front, however, it is becoming more the norm that buyers are requesting this information, even before they look at your property.
It kind of goes with having everything online, buyers expect immediate satisfaction to their question. This is how we satisfy them, we know how to respond right when the questions get asked, which they seem to, more and more.
Our job is to market your home, to the public, but also to the other active agents in town, and one way we do that is by having the information they need...even before they know they need it!
We noticed this trend a couple of years ago, and incorporated the gathering of documents into our marketing plan.
Our Marketing Plan
Our team's comprehensive marketing plan will get your home seen by thousands of motivated buyers.
The Right Price
We'll quickly put together a custom marketing plan with an effective price. Our market analysis takes into account the most actively searched prices and home values throughout your area, including expired listings and properties still on the market.
The Right Exposure
In marketing your home, we also develop a listing that emphasizes its unique and sellable aspects. We then put your home in front of buyers, establishing it on the local MLS® as well as broader ones, new listings sheets, and real estate publications. Our nation-wide network of professional real estate contacts and buyers will also have the opportunity to check out your listing.
Effective Internet Marketing
In addition, we'll use the Internet and our innovative website to make your listing highly visible. With more than 80% of buyers checking the web first when looking for a home, this is a part of your marketing strategy that you can't afford to miss.
The Best Deal
When you start to get offers, we represent you during the emotionally charged negotiating process and ensure that you get the best price, and favourable closing terms that are clearly spelled out. As your professional aides, we also oversee all paperwork related to the sale.
It may surprise you, but many people don't know who pays for what when you are selling a house!
The Buyer pays for the following:
- Building Inspection
- Sewer-Septic Video Inspection
- Water Tests
- Radon Tests
- Thermal Scan
- Mortgage Appraisal
- Oil-Propane Adjustments
- Seller fills up the tank(s), buyer pays for full tanks on closing
- Oil tanks are adjusted to 850 litres even though are 910 litre tanks, they need air space to operate
- Tax Adjustments
- If your taxes are paid, the buyer owes you, it your taxes are unpaid, you owe the buyer
- Your Lawyer will explain further
The Seller is Responsible for the Following:
- Oil-Propane Tanks must be filled for closing day and receipts given to your lawyer. You will be compensated for full tanks
- Septic Fields, seller pays to have clean-out areas dug up for inspection
- Inside sewer-septic clean-out needs to be exposed
- Oil-Propane Adjustments and possible pumping
- Seller fills up the tank(s), buyer pays for full tanks on closing
- Oil tanks are adjusted to 850 litres even though they are 910 litre tanks, they need air space to operate
- Tax Adjustments
- If your taxes are paid, the buyer owes you, it your taxes are unpaid, you owe the buyer
- Your Lawyer will explain further
Who Pays for What
Major Elements of an Offer
There are multiple elements of an offer to understand. We will go over all offers you receive with you so that you know exactly what each element means for you as the seller.
Price
The price offered is typically either more or less than the asking price.
Deposit
The buyer's deposit is a representation of their good faith, and will go towards the purchase of the property once the sale closes.
Terms
The terms of an offer state the total price the buyer is offering and the financing details. The buyer can choose to either arrange their own financing or take over your current mortgage if you have one.
Conditions
The offer may be subject to certain conditions being met by a specified date. Included may be a clean home inspection, the buyer obtaining financing etc.
Inclusions & Exclusions
Inclusions & exclusions lists appliances, fixtures, or decorative items that are either included, or excluded in the sale of the property.
Closing Date
In Nova Scotia, the closing date is the date that the title of the property is legally transferred, the Buyer takes possession and the transaction of funds finalizes.
Phase 2: Due Dilligence
Once you've had an accepted offer, everything starts! This is when the clock starts ticking.
This is the time the buyer has available to accomplish their due diligence: financing, inspections, insurance etc. This period is normally 10 days, including weekends.
2.1 Approvals & Reviews
The buyer gets the documents to the Professionals that they have selected. We get the documents to the people you have selected (Legal etc.)
2.2 Financial-Mortgage Approval
Legal Review of the Purchase and Sales Agreement by the lawyers to ensure you and the buyer are legally protected.
Property Taxes: Depends on the Property, but Here is How it Works...
If you have paid your property taxes for the current tax period (twice a year, in Apr & Oct), and for arguments sake, let's say that they are $1,200 per year, and your property closes on June 30th, then they would owe you 4 months taxes (July-October) or 4x$100=$400. Your lawyer calculates this for you.
Insurance Coverage
The buyer doesn't pay or have insurance until the closing date.
DO NOT CANCEL YOU INSURANCE UNTIL THE DAY AFTER CLOSING
Inspections
The inspections can take 3-4 hours, REALTORS® try to get them all completed in one day, but this is not always the case.
- Building Inspection
- Water Quality
- Sewer-Septic Scope
- Radon Gas
Leased Items
Leased equipment…Propane tanks, hot water tanks, ductless minisplits are part of contract negotiations, and vary from transaction to transaction. Usually buyers always assume propane tank leases, the rest vary.
The inspection is designed to do a couple of things. One, to let the buyer know the condition of the home at this point in time, and two, to let them know what they can expect in the short term future.
Inspectors do not have crystal balls though. For example, wooden decks by their very nature, do not last forever, and neither does brick and vinyl. Inspectors view the home as it is right now.
Houses need to be maintained, and improved upon. We frequently talk about the “nominal age vs the effective age” of a home. For example, if the major systems have been replaced, i.e. wiring, plumbing, heating etc, then while a house may be 50 years old nominally, the effective age would be much newer.
Building inspections let the buyer know if major issues exist, they are not about decorating, painting, etc. They are about structural, safety, systems.
Inspections are also about not having any surprises, so approaching the inspections with this frame of mind is a good thing. The buyer will usually be in attendance at the inspection as it gives them an opportunity to speak with the inspector and understand the inspection, rather than simply read the inspection with no specific frame of reference.
I always say that I have the most important job at a building inspection...I UNLOCK THE DOOR! Then I get out of the inspectors way and let them do their job.
Types of Inspections:
- Building Inspections, including thermal camera imaging - Perhaps the most vital inspections
- Sewer-Septic Video Inspection - Definitely Recommended
Inspections
10 Questions to Ask When Hiring A REALTOR®
Homeowners should interview a few potential REALTORS® before deciding on one to sell their home. Here are some smart questions to ask:
1. How Long Have You Been in the Business?
A freshly-licensed REALTOR® can do a wonderful job and will have up-to-date training; those in the business longer bring more practical experience to the table.
2. What is your average list-to-sales price ratio?
A competent listing REALTOR® should hold a track record for negotiating sales prices that are very close to list prices.
3. How will your marketing plan meet my needs?
Specifically, how will you sell my home? How will your “Marketing Plan” maximize the price and timing of the sale of my home? Will you show me a sample flyer? Explain your “Online Presence”
4. Will you provide references?
Ask if any of the references are related to the REALTOR®. Ask if you can call their references with additional questions.
5. What separates you from your competition?
Key phrases to listen for: assertive, available by phone or e-mail, analytical, professional, reliable, and able to maintain a good sense of humour under trying circumstances.
6. May I review documents that I will be asked to sign?
A good REALTOR® makes forms available to you before you are required to sign them. Ask to see agency disclosure, the listing agreement and seller disclosure.
7. How will you help me find other professionals?
Ask for a written list of referring vendors. Get an explanation if you see the term “affiliated”. It could mean the REALTOR® is getting compensation from vendors.
8. How much do you charge?
You don’t have to ask if the fee is negotiable, since all real estate fees are negotiated. It may be a good idea to ask what their commission fee is for your reference.
9. What kind of guarantee do you offer?
If you sign a listing agreement with the REALTOR® and later find that you are unhappy with the arrangement, will the REALTOR® let you cancel the agreement?
10. What haven’t I asked you that I need to know?
Pay close attention to how the REALTOR® answers this question, because there is always something you need to know - always.
Why We Must Ask for ID
Because It's The Law
It is the federal Proceeds of Crime (Money Laundering) and Terrorist Financing Act (PCMLTFA) that requires financial institutions and real estate agents, among other professionals and services covered by the legislation, to obtain information about individuals and corporations who conduct financial transactions. These include depositing funds or buying and selling real estate. The Act also requires real estate agents to keep these identification records for five years.
Canada has had substantial anti-money laundering and terrorist financing legislation since 2001. Since then REALTORS® have had a legal responsibility in Canada’s efforts to combat money laundering and terrorist financing.
In addition to these original legal requirements, REALTORS® must document personal information,
including occupation, and proof of the identity of their client in each and every transaction. If the client is a corporation, REALTORS® must obtain official corporate documents, and the names of directors.
REALTORS® may also ask additional questions if they have dealt with the client before. If the buyer or seller is in another city, REALTORS® must use an agent or “mandatary” to identify the buyer or seller or use other non face-to-face methods to ID the client.
REALTORS® are required to report cash transactions of $10,000 or more to FINTRAC and complete a report of all funds they receive.
The compliance requirements affect even a buyer or seller not using the services of a licensed real
estate practitioner. If there is a real estate agent involved in the transaction, they are also required
by law to verify that private buyer or seller’s information as well.
REALTORS® must also complete a record for ALL funds they receive during the real estate transaction, not just those of $10,000 or more.
Information deemed reliable, but not guaranteed. Not intended to solicit sellers or buyers under written contract with another REALTOR®.
David Yetman
Broker - Owner - Realtor ®
Century 21 All Points
Independently owned and operated.
Independently owned and operated.
1212 Hollis St Unit 608, Halifax, NS B3J 0B3