Do You Want To Sell Your Home On Your Own?

Excerpts From Moneyville

Back to Selling a home on your own: 5 things to consider
Selling a home on your own: 5 things to consider
November 05, 2010
Mark Weisleder

Selling your home without an agent can save you money, but requires work.

As a result of the new deal between the Competition Bureau and the Canadian Real Estate Association, more choices are now available to sellers who wish to sell a home by themselves. You can use the for-sale-by-owner websites, or you can now use a real estate agent to just post your home on the MLS (Multiple Listing Service) system, and then, for an additional fee, ask for assistance with marketing, open houses, staging or negotiating any agreement. There are also agents who are advertising flat fees for the entire service, instead of a percentage of the sale price, so there will be more options available. Remember to ask what everything will cost.

If you are considering selling your home by yourself, here are five issues you need to understand in advance:

Pricing: This will require you to conduct research, on the Internet at sites like www.realtor.ca as well as touring your neighbourhood to look at what homes are selling for. You will not have the same up-to-date access to what properties have sold for as an agent does, but you can get a general idea as to what your home is worth. You will also need to visit the ‘competition’ to look at how they compare to your home. Most sellers think of their home as unique, or special. Not true. You need to be realistic when setting a price. Most buyers will expect a discount since you are not paying real estate commission. As an alternative, you can get a professional appraisal for $300 to $500 to obtain a more accurate idea of what your property is worth. Go to www.aicanada.ca to find an appraiser in your area.

Screening Buyers: This is a real challenge. Most who sell by themselves depend on open houses to invite potential buyers in to see their property. You don’t know who is coming. Many people who attend these open houses cannot afford your home. They are just coming to look, and in extreme cases, to steal from your home while you are distracted. To protect against this, check the license plate and car of everyone who comes to your home, and ask questions such as: “Where do you live? Do you own a home now? When are you thinking of moving?” to get a better sense whether these are legitimate buyers. Make sure valuables are safely locked up and that there are two or three people with you to observe everything going on,inside and outside your home.

Disclose Defects: Sellers need to understand that if they know about major problems to the home that are not visible, such as a basement or roof leak, mould behind the walls or a problem with the foundation, then this must be disclosed to potential buyers. If you do not disclose them, you can be sued by the buyer after closing. A good strategy is to have your house inspected by a professional home inspector before you put it on the market, then give a copy of the report to any potential buyer. You can find a home inspector at www.oahi.com

Staging Your Home: Home stagers can provide useful information on making your home more attractive to buyers. This could include de-cluttering, removing or replacing furniture, repainting or minor renovations, and exterior lawn care to give your home more curb appeal. If you plan on selling by yourself, Consider hiring a home stager, or possibly a landscape designer, to assist you.
Negotiating the Agreement of Purchase and Sale: The fine print in a standard real estate contract is complicated. The buyer may also include conditions, representations and warranties, any of which could permit her to back out of the deal at the last minute, or cause you to have to pay for something unexpectedly after closing. Ask for a deposit of 5 per cent to make sure an offer is serious. You will need a lawyer to assist you. Since multiple offers may come in, not always during business hours, you should try ensure your lawyer will be available to assist you when needed.

If you are not comfortable dealing with the issues raised above, or if you find yourself in a buyer’s market where there are more houses for sale than available buyers, consider retaining a professional real estate agent to assist you.

Toronto lawyer and author Mark Weisleder is a consultant to the real estate industry. His latest book is Put the Pen Down! What Homebuyers and Sellers Need to Know Before Signing.