Seller's Guide: Getting Ready to sell your home, help from Fred Lerch Realtor Victoria British Columbia Canada

Choosing the right real estate agent, understanding market conditions and having all your documents in place will ensure the selling process runs smoothly.

A realtor can save you money

With a professional realtor on your side, you'll have access to the most current market conditions, appropriate pricing and the most buyers. Most people lack these resources that are essential to getting the best price on their home.

26 questions to ask a realtor

Perhaps your first agent didn't get the job done right. Here's 26 questions you must ask (and get satisfactory answers to) before you select your next realtor.

A realtor can be one of your most valuable resources

Why trust your valuable home equity to anyone other than a professional? When your home is placed before the most buyers, at an appropriate price, you win – the best price, in the shortest time on the market.

A realtor can protect your equity

Most homes sell for over $100,000. A professional realtor can help you retain the most of your hard-earned dollars.

Understanding market conditions

Buyer's market? Seller's market? Balanced market? The impact of these market conditions on the sale of your home.

Gather your documents

Paperwork is an important aspect of selling a home. Here's a review of the documents you'll need to ensure a smooth process.

How to determine your home's worth

While many factors determine the value of your home, in the end "worth" is really determined by what a buyer will pay. Here's how realtors use a number of factors to determine the value of your home.

Thinking of selling yourself? Think again: a realtor can save you money

At first glance, it seems like selling your home yourself is a simple matter. Why do those realtors have to charge those pesky commission rates? You could do the work yourself. Even better, you would even save money.

The reality: selling a home is a complicated process that is anything but easy. It can be time consuming and costly if you settle for less than your home is worth. In fact, national statistics indicate that only five percent of all for sale by owners (which represent about seven percent of the total market) sell without the assistance of a realtor. This means that only one out of 20 results in a completed sale. Furthermore, 93% of available homes are in the hands of realtors.

When you try to sell your home yourself, you're limiting potential buyers. A serious buyer wants to look at all available property. Sometimes, a seller will price his home incorrectly. If it's too high, it could stay on the market longer than necessary. Over time, the house may become viewed as defective or a "problem." The price may have to be reduced. You could wind up getting far less than you planned. If the price is too low, you've just wasted all your time and energy, along with valuable dollars.

For many for sale by owners, it's a familiar lament after an open house: "I got lots of people, but most were just looking." "They wanted it for a song." In fact, prospective buyers and bargain hunters may want a price reduction because there is no realtor involved? Finding qualified buyers – someone who is ready, willing, able and excited about your home – is a challenge.

Most of the errors made when individuals try to sell their homes themselves center around the following areas:

Incorrect understanding about market conditions and pricing.
Relying on inappropriate advertising and marketing that does not generate buyers.
Incorrect understanding of how both the home buying and home selling processes work.
Ineffective ways to determine qualified buyers

Why not consider a professional realtor? This individual can save you money. That's because he or she has the following credentials:

Understands market conditions and has access to the most current information.
Will place, and pay for effective advertising in the right places, for the best results.
Will price your home realistically, to give you the highest price.
Will create demand for your home.
Knows how to screen potential buyers, and eliminate the bargain shoppers.
Is experienced in negotiation.
Is always on call, and available at all times to show your home.
Remains objective when presenting offers and counter-offers.
Listens to your needs, respects your opinions and allows you to make decisions.
Understands the real estate industry, from both the buyer and seller perspective.
Will protect your rights.
Will handle the numerous details involved in the sale of your home.
Can recommend a real estate lawyer to take care of your interests.
Is experienced with resolving problems to ensure a successful closing.
Will use his network of real estate resources to place your home before the most qualified buyers.
Will adhere to a professional code of conduct, established by local and national associations.
Will recommend improvements that can increase the price you'll receive on your home.
Will submit offers, negotiate prices and handle paperwork of the transactions.

26 questions to ask your realtor before you sign on the dotted line

Before you even think about selling your home, read this important report. Ask these 26 critical questions before you sign!

Buying or selling a home is probably one of the largest investments you will ever make. That's why it is important to choose the correct real estate agent that will work to your benefit, to guard your equity and your future.

Which real estate agent should you choose? Some people have the mistaken notion that all real estate agents are the same. They sign with the first agent that comes along. Later, they realize they should have interviewed several people prior to signing.

This report will help you avoid this mistake by providing you with some selection criteria. When you are choosing a lawyer, doctor or health care practitioner you would interview several people before you select an individual you're most comfortable with. The same rule applies to a real estate agent.

When it comes to your next home, it makes sense to choose an expert. You'll save time, money and aggravation. Here's some of the areas to review when you're considering a realtor to represent your interests:

he/she must have the experience, qualifications and abilities to sell your home
he/she must have in-depth knowledge of your area and the market in general
he/she must work hard on your behalf
he/she must have the resources to support the sales effort
he/she must keep you informed during the process
you must be comfortable with his/her personality

To begin your search you might want to check with friends and neighbors. Satisfied customers are usually a reliable source. From this list of names, you may want to conduct some preliminary investigation and then an interview. Be sure you are completely satisfied with the answers to the following questions.

Question 1
Do you have any personal marketing materials I can review?
Everyone has an image that is portrayed in their personal marketing materials including brochures, direct mail, listing presentation books, etc. Call all the names on your list and ask this individual to send you information prior to your meeting. When you receive this information you'll get an impression about the person. Do these items look professional? If not, you may find yourself asking the question, "If they are not marketing themselves professionally, how will they market my home?"

Also, keep track of this person's communication with you. Do they respond to your request for information, quickly and in a friendly, helpful manner? Do they treat you with dignity and respect? What is your sense of this person? Do they appear pushy and overbearing? Are you comfortable with them? Trust your feelings. If this person handles your requests in a less than professional manner, it's likely they will also handle potential buyers for your home the same way. You could lose a sale and even worse – the best price for your home.

If you feel comfortable with this initial communication, invite the agent to make a listing presentation to you. You may want to meet with three or four agents from different companies before you make a final decision.

Question 2
Are you a full-time or part-time realtor? How long have you been working in my neighborhood?
Ideally, the realtor should be working full-time, with at least three to five years experience, preferably in your neighborhood. A part-time realtor may not be able to keep up with the pace or complexity of today's rapidly changing marketplace. They may not be available when you need them most. When you select an experienced realtor, you'll be getting a track record, a roster of contacts for any services you need, and a host of creative, time-tested ideas for marketing your home.

Question 3
How many homes have you listed in the past six months and the past year?
A realtor's record of longevity is important. Even more important is the quality and success of this time, as reflected in a large number of listings. At the same time, however, a realtor must have the resources and systems in place to market each of these homes successfully.

Question 4
How many homes have you sold in the past six months, and the past year?
A realtor may have demonstrated his/her ability to list homes. However, the real test is in the finding, negotiating and closing deals – that is, selling homes.

Question 5
How long do your listings remain on the market?
Some people assume that a shorter time on the market is to their advantage. However, this may not be in their best interests. Keep in mind: If the average time on the market is faster than the average for the neighborhood, ask why. Is the agent really effective, or is he or she low-balling the asking price to sell the home more quickly?

Carefully examine the original asking price compared to the selling price. This gap will tell you how effective the agent is at establishing and obtaining the right asking price.

Question 6
What professional memberships do you hold?
The minimum should be a fully licensed professional who is a member of the local real estate board and multiple listing service. Other affiliations are beneficial. However, the main focus should be the selling of homes.

Question 7
Do you have support staff working for you?
Depending upon the nature of his or her business, some agents hire additional staff. While this may not be an indicator of better service, it does suggest that an agent treats his efforts as a business. When an assistant handles the details, the agent is free to spend more time serving your needs. At the same time, however, you don't want to end up feeling like you're passed off to someone else. You should be kept informed of exactly what the agent is doing to get your home sold.

Question 8
Do you have any questions for me?
A realtor who is effectively working for you should ask pointed, specific questions about your home and situation. They should not simply fill in blanks on a form. By asking about your needs, a professional realtor can create a plan of action for you, rather than using a cookie-cutter approach.

Question 9
How will you market my home for my best advantage?
Realtors have many tools in their toolbox, which includes MLS (Multiple Listing Service, open houses, advertising, flyers, Internet, brochures, for sale signs and personal networking. A realtor shouldn't use the same plan for each client. What worked for yesterday's seller may not get you the results you want. A realtor should understand the effectiveness of each of these items, as it relates to your needs.

Question 10
Will you create a professional looking brochure and how will it sell my home?
A realtor should create a professional piece that makes the most of quality, design and words, so that your home's best features are presented. It should give the buyer all the information they need, at a glance.

Question 11
Can you explain your position on open houses? Will they be public, broker-only or by-appointment? How will this help to sell my home?
Selling your home for the best price involves more than placing a sign on the lawn and having an open house every Sunday afternoon. If too many open houses are held, a home could be perceived as a loser, making it ripe for low-ball bidders. Be sure that you agent has a reason for an open house.

Question 12
How do you plan to advertise my home?
Ask to see the plan (including ads) for your home, which should include the latest technology (Internet, fax, toll-free hotlines), combined with more traditional vehicles of newspaper and magazine advertising.

Question 13
How will other agents be advised of my home?
While a realtor uses the MLS listing service, he or she should have a network in place to present your home to additional agents. Exposure is the key to any home sale. Often, another agent's client is looking for a home like yours.

Question 14
How will you help me in staging my home?
To make the most of your home, you'll want to present your home in the best possible light for potential buyers. Your realtor should not be afraid to tell you about the positive areas of your home, while suggesting improvements to the negative areas. If he or she doesn't mention the subject, it's likely he doesn't have this in his toolbox. You should expect a confident and competent realtor to provide you with workable ideas to make your home more salable.

Question 15
How will you keep me informed?
Be sure to tell your agent how you'd like to receive regular communication, whether weekly, daily, via letters, Internet or phone. Or, would you rather meet in person? Since you're dealing with one of the most important investments of your life, you deserve all the time and attention you need and want.

Question 16
How did you arrive at the listing price?
The right or wrong listing price affects the length of time your home stays on the market and, ultimately, your net profits. If a realtor suggests too high a price, your home could languish on the market. At the same time, don't settle for a too low price, to sell too quickly. Your realtor should be able to justify the price with a comparison to other properties and the market.

Question 17
What if I need other resources?
Your realtor should have a network of professionals in place to assist you with other items you will need, including mortgages, home inspection, carpet cleaning and carpenter. While you're not obligated to choose any of these people, it's likely your realtor has established a relationship with these people that is reflected in the referral.

Question 18
Can you give me some references?
A realtor should be happy to provide you with several names of satisfied clients. Be wary if they are defensive when you ask the question. If they can't supply references then choose another realtor. Many sellers don't check references. But you should. This is one of the easiest and most important steps you can take. Talking to past clients is a good way of learning how an agent operates beyond what he says he's going to do. Here are some questions to ask your agent's past clients:

How long was your home on the market?
Do you feel the agent priced it realistically?
What was it originally listed at? What was the selling price?
What type of marketing did the agent do?
Did the agent suggest how to make your home more marketable?
Did the agent keep his promises? Did he do what he said he'd do?
Were you kept informed along the way? How often did you talk?
How many offers did you get?
During the closing process, did the agent have good follow-up?
What did you like most about the agent?
Was there anything about the agent that you didn't like?
Would you use this agent again?

Question 19
What is involved with the listing agreement?
This is a very important step. Before you sign, be sure you understand every detail of the contract. This is a legally binding document, which places responsibilities on both the realtor and the seller.

Question 20
When does the listing agreement begin and end?
Details and dates are important. In a dispute, these items could determine commission payments. Generally speaking, three months is sufficient for a listing agreement. Be wary of a realtor wanting a longer period without a valid reason.

Question 21
What are your commission fees?
These fees are negotiable. You should also weigh the merits of each agent's fee versus the benefits he or she provides. Be wary of a realtor who is willing to reduce their commission, up front. Perhaps he or she does not intend to spend the time, effort or money to sell your home.

Question 22
Do I need to consider any other fees or charges?
Additional items could be title insurance, closing costs, pro-rated insurance, taxes, rent, inspections, levies, etc. Be sure that your realtor explains any of these costs that could affect your bottom line.

Question 23
Do any disclosure laws or zoning restrictions apply to my home?
A realtor should be familiar with any provincial or civic laws and restrictions that apply to your home and neighborhood. They should also have the necessary disclosure forms required when selling or buying a property.

Question 24
How do you qualify potential buyers?
Your realtor should be proficient in determining whether a potential buyer has the desire, means and resources to purchase your home. This way, you won't be wasting your time with dead-end offers or deals that cannot be closed.

Question 25
What happens if my home doesn't sell in the specified time? What happens if I change my mind about selling my home?
These items should be clarified in the listing agreement. A listing contract may also contain a "liquidated damages" clause, meaning that you could be liable for a dollar amount, should you take your home off the market before the listing expires.

Question 26
Am I comfortable with this realtor?
You should ask yourself this very important question. Are you comfortable with his or her personality and how he conducts business? When it comes to your investment, don't settle for anything other than honesty, respect and integrity. If you don't like this person, choose another realtor. The last thing you want is a personality clash when you're trying to sell your home, and maximize your equity. Your agent should look after your interests!

A realtor can be one of your most valuable resources

Selling a home is a time consuming and complicated process. Why would you want to risk getting less than you deserve? Why take chances with your equity that you've worked hard to achieve? A real estate agent is a trained professional who understands the numerous details and factors that contribute to a successful sale, and your bottom line. In fact, with their background, education, contacts and experience, this person could be one of your most valuable resources. Here are just a few of the reasons why you should consider a professional, when it comes to selling your home. A professional realtor:

Understands market conditions and has access to the most current information.
Will place, and pay for effective advertising in the right places, for the best results.
Will price your home realistically, to give you the highest price.
Will create demand for your home.
Knows how to screen potential buyers, and eliminate the bargain shoppers.
Is experienced in negotiation.
Is always on call, and available at all times to show your home.
Remains objective when presenting offers and counter-offers.
Listens to your needs, respects your opinions and allows you to make decisions.
Understands the real estate industry, from both the buyer and seller perspective.
Will protect your rights.
Will handle the numerous details involved in the sale of your home.
Can recommend a real estate lawyer to take care of your interests.
Is experienced with resolving problems to ensure a successful closing.
Will use his network of real estate resources to place your home before the most qualified buyers.
Will adhere to a professional code of conduct, established by local and national associations.
Will recommend improvements that can increase the price you'll receive on your home.
Will submit offers, negotiate prices and handle paperwork of the transactions.

When it comes time to sell your home, a professional realtor can save you time and money. Most important, he or she will ensure that your home is sold fast, and for the best price!

A realtor can help protect your equity

The sale of your home affects many aspects of your life, including finances, children, your equity, and your future. This is one of the most important transactions of your lifetime. The average home sells for well over $100,000. For a small price, you can be assured that your investment is protected. When you're faced with a legal problem, you look to an experienced lawyer to represent your best interests. When it comes to the sale of your home, a professional realtor is your best investment. Here are a few more ways a realtor works to protect your equity:

Price enhancement. A realtor can recommend repairs or cosmetic work that can significantly enhance the salability of your home. You won't waste your time and money on non-recoverable repairs. He or she can also tell you what items may need to be moved or put away.

Right price guarantee. A realtor understands your neighborhood, as well as the overall city market. He or she is also familiar with current real estate values, taxes, utility costs, city services and facilities. Your agent should exercise diligence when it comes to providing an assessment of your home. This could include arranging for qualified professionals to conduct an investigation and prepare a written report. With a professional market evaluation, your home will be listed at the right price. You save time and trouble if your home is not listed too high or too low.

Your realtor will also assist you in obtaining a report on the title of the property. By doing this review initially, you'll avoid the costly and length process of sorting out the status of past owners or rights of access. While most properties have some limitations such as easements (access rights) for utilities, you'll want a title that is free and clear of any debts, liens or caveats.

Objectivity. Using a variety of informational resources, a realtor can provide community information on utilities, zoning, schools, shopping etc. Your realtor will place your home in the best possible light, highlighting features, benefits and the advantages a buyer would enjoy as a homeowner of "your" home.

Negotiation and representation. When it comes to protecting your investment, there are many negotiating factors, including price, financing, terms, date of possession, repairs, furnishings or equipment. A realtor will personally represent you during the presentation of the offer. You'll get the best price and conditions on the sale of your home.

Maximum marketing resources. A realtor has access to a wide variety of resources to market your property to other real estate agents and to the most buyers. This includes advertising, MLS, a web site, open houses, brochures, direct mail, network contacts and an existing and former client base. In many cases, the sale of a home is made because of an agent contact through previous client, referrals, friends and personal contacts. Your realtor is your personal marketing coordinator, ensuring your home receives maximum exposure to every avenue, and to utilize cooperative relationships for your benefit.

Up to date information. Your realtor will provide you with current information on what is happening in the marketplace, with respect to price, financing, terms and condition of competing property. These are important items in selling your home quickly, at the best price, hassle-free.

Smooth closing process. Details, details, details. Your realtor will assist you in the handling of the numerous items that must be completed before the sale is final. Your realtor will also objectively evaluate each buyer's offer without compromising your position. He or she is also trained to write a legally binding, win-win agreement. Your realtor can objectively handle all the closing issues and move the transaction to closing and settlement as quickly as possible.

Understanding market conditions

Numerous factors affect the real estate market. There may be more buyers than sellers. There could be more sellers than buyers. Interest rates, employment statistics, pricing, and supply of resale and new homes are also considerations when selling a home. Generally speaking, there are three types of markets that affect the sale of your home. Understanding each of these can make a difference to your bottom line.

Buyers' Market

Description: There is an abundance of homes on the market. Supply exceeds demand.

Characteristics: Many homes available for sale. Fewer buyers than homes. Homes remain on the market longer. Stable prices. Prices may also drop.

Impact: Less panic in buying. Buyers shop longer for homes. Upon negotiation, they often have more leverage.

Sellers' Market: There are more buyers than homes available.

Characteristics: Few homes on the market. Many buyers. Homes are sold quickly. Prices often rise.

Impact: Home prices are higher. Homes prices often rise. Buyers purchase quickly, and tend not to shop as much. Multiple offers are common. Sellers may prefer offers with no-conditions.

Balanced Market: There are roughly the same amount of buyers, sellers and number of homes on the market. Supply equals demand.

Characteristics: Demand equals supply. Sellers accept reasonable offers. Homes sell within a reasonable time period. Prices generally remain stable.

Implications: There is less tension among buyers and sellers. There is a reasonable number of homes to choose from.

Gather your documents

Selling a home is an involved process. There are numerous items to think about including choosing a professional realtor, preparing your home for sale, negotiating with possible buyers, handling details with a lawyer, and moving. When you're prepared the process can be much easier. In fact, you'll feel less stressed and more organized when you give some thought to organizing the paperwork you need. When you have everything in one place, you won't be scrambling to find documents at the last minute. Even better, you'll feel in control, and prepared for anything that comes your way.

Here's a list of the documents you should have on hand, both for your realtor and for any potential buyers.

Mortgage documents
Mortgage and any other related documents.

Property survey
This will inform your agent about any changes that have been made to the property.

Deed or transfer of title document

Tax assessment notice, taxes paid notice

Utility bills (gas, water, power)

If applicable, relevant condominium documents

Maintenance documents (repair receipts for any improvements completed on the property)

Additional sale enhancing items and information, such as:

photographs of your home in the summer, with the garden in full bloom
pool in the summer
proposals/sketches for renovations