There is a set of steps a Realtor needs to take in order to sell a property for its highest value in the most efficient amount of time. Although there are a number of variations on this procedure the following steps are needed to achieve the best result. Make sure to review this list and evaluate the Agents answers when you speak with them.
Step 1: Agent Interviews
Interview several Realtors, the most satisfied clients are the ones who have interviewed other Agents; by knowing who else was out there they are confident right from the outset that they have made the right decision.
Step 2: Sign an Exclusive Listing Agreement
Once you have decided on your Agent it is standard for them to ask you to sign an exclusive listing with them. This document will reassure the Realtor that the homeowner has made a decision and will be loyal to the selected Agent. Once the Agent has this reassurance they will start to invest their time and money into marketing the property.
The property is listed ‘Exclusively For Sale’ at 5% or 6% commission. The exclusive period usually lasts a week or two while the prep-work is done (pre-inspection, photography, home staging, floor plans, decor etc…). If the home is “double-ended” and the Agent is not in competition, the Agent will normally be receptive to discussing a reduction in the commission. Double ended means that the listing Agent sells it to a client during this exclusive period.
There is a specific set of rules that will allow the Agent to negotiate in good faith on behalf of both parties. I believe that this is actually not fair to the Seller since you sign a listing with them vowing to work in their best interest. It is appropriate to ask the listing Agent’s Broker to negotiate on behalf of the purchaser. This way both parties still receive fair representation.
Step 3: The House is Staged
There are many different things that have to happen before a property can be properly marketed. Most of these items have to do with getting the property shined up and ready to be photographed and subsequently shown. This process is typically referred to as ‘Staging’ a home.
Staging can mean anything from a new coat of paint and some fresh flowers to entirely re-decorating and furnishing a home. There is great value in staging because it helps market a home to a broader audience then the current owner’s individual taste. This can be a very touchy subject because most people take great pride in their home, as they should, and think that it already looks its best. Unfortunately a lot of Buyers might not have the same appreciation for lime coloured paint or they may have trouble seeing how big the room is past all the boxes of receipts and tax papers from 1976.
It is usually the clutter and minor deficiencies that the home owner doesn’t notice anymore. They tell themselves they will get around to fixing it eventually and just never do. This is where the Agent has to be cautious not to overstep their boundaries, but make it clear that the goal is to sell the home for the most amount of money and it is therefore necessary to appeal to the widest audience possible. Quite often an agent will recommend a “Fluffer” or “Stager” to do this because that way they don’t have to be the bad guy. The goal of staging is to make the house desirable to everyone who would be looking in their market.
The Agent should shoulder the costs of all the marketing, but the homeowner is expected to pick up the costs of staging and any pre-inspections. These are suggestions that will net them more money at the end of the day and stay with the house after sale.
Next week part 2 of this 4 part series will be released. You can look forward to learning about making necessary disclosures, drawing up floor plans, and the importance of having your home professionally photographed.
Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog. Evan’s web site is located at www.evansage.com.
In many Central Toronto neighbourhoods – even in this market – we continue to see homes sell at or above the asking price. “But,” you may be thinking, “Does it make sense to pay more than the asking price?”
By Robert Hogue
Toronto Real Estate Market Close to Reaching Boiling Point Again
By Rosalin Smith-Carr
As we look at the unexpected upswing of home sales, parts of the Toronto market go from famine to frenzy. Even bidding wars have returned, to the joy of sellers and annoyance of buyers.
In the first two weeks of May, housing sales in the Greater Toronto Area (GTA) were in positive territory for the first time since the market’s tailspin last fall, chalking up a healthy 3 per cent increase over the same period last year.
Housing analyst and economist, Will Dunning, explains that the current mini-boom is what he calls a return to reality of sorts. “Buyers have returned to the market with the realization that apart from manufacturing and construction, the GTA economy is holding up well.”
Indeed, the Toronto real estate market has been more than encouraging of late. A lack of homes on the market and record-low mortgage rates have lured buyers back into the game.
And game they are. In May 2009 in Davisville Village and Leaside, 41 per cent of homes in the 500,000 to 950,000 range sold for the full asking price or above, while a property on the Danforth listed for $549,000 sold for $715,000, or 130 per cent of the asking price.
However, despite these promising signs, some analysts are already warning the mini-boom won’t last and that average existing home prices will drop 5 per cent by the end of the year. And while consumer confidence is buoyed by the more positive economic news, the seas ahead could be choppy.
Once again, the word here is caution. Dunning tempers his enthusiasm over the mini-boom by looking ahead at the long-term implications. “Improved affordability generally results in a short-lived wave of buying. So we may see several good months, but there could be another slowing in the second half of the year. I remain skeptical.”
High demand for housing has already caused a rise in mortgage rates. We are well advised not to experience a second round of Irrational Exuberance, as the title of Robert Shiller’s book so aptly describes it.
Rosalin Smith-Carr is a Sales Representative with Royal LePage R.E.S. Ltd., Johnston & Daniel Division. Rosalin can be reached at rsmithcarr@sympatico.ca or visit www.primetorontoneighbourhoods.com
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Posted in Commentary, Market Information
Tagged Central Toronto Real Estate, Real Estate, Toronto Real Estate Market