FOR
SALE BY OWNER
Before you consider
selling your house yourself, ask yourself
if you are going to have the time needed to
sell your house - even if you just cover the
basics.
The
Basics
• Complete
an extensive research of local market conditions,
including:
• the listing and selling price of all
houses in your area for the last six months,
• the listing price of houses currently
on the market, and
• the listing prices of houses that
were on the market but did not sell.
Tips: Begin your research on the Internet.
Follow-up by visiting the county tax records
office to determine the selling prices of
houses.
Put
together a marketing plan
• How will you market your house to
Realtors? Most buyers use a Realtor, so marketing
to Realtors is essential. At a minimum, you'll
want to send a letter and sales flyer to all
Realtors within a 30 mile radius.
• How much money can you afford to devote
to advertising? Call the local newspapers
to determine how much it will cost for advertisements.
You'll want to run daily and Sunday ads in
the newspapers.
• Who will create your sales flyers?
Buyers expect fact sheets to take with them
when they drive-by or tour a house for sale.
• Where will you place signage? In addition
to your front yard, is there areas leading
in to your neighborhood where signage would
be appropriate?
• How will potential buyers find information
about your house on the Internet? You'll want
potential buyers who begin their house shopping
on the Internet to find your house. Be sure
to build a website to help sell your house.
• Who will take inquiry calls and schedule
appointments? You'll want someone to be available
to answer inquiry calls and schedule appointments.
Be sure to schedule showings as quickly as
possible - even the same day.
Tips: Ask newspapers for a discounted advertising
rate for multiple placements. Be sure to check
with local officials to determine if there
are any restrictions on where you place signs.
Pre-qualify buyers before showing
your house
• Confirm
that the potential buyer has pre-qualified
for a mortgage loan.
• If the buyer is buying with cash,
confirm that they have the necessary resources.
• If the purchase is contingent on the
buyer selling their own house, confirm that
the buyer's house is on the market. (You may
also want to determine how long the buyer's
house has been on the market.)
Negotiations,
Contracts and Closings
• Are you prepared to negotiate the
contract?
• Do you know what the legal responsibilities
of the seller are in your area?
• Who will write the contract? Will
you need to hire an attorney? If so, what
will be the attorney's fees?
Tips: In addition to the sales contract, you'll
need to complete a Seller's Disclosure and
a Lead Based Paint Disclosure.
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Article
THE
9 STEPS TO HOME OWNERSHIP
Step
- 1 Make the Decision to Buy
It seems obvious, but it's good to note that
the first step to buying a house is making
the decision to buy. Consider the reasons
you want a new house and write them down.
Determine how long you want to live in the
new house - does buying still make good financial
sense? Can you afford a house that will meet
your list of requirements? A good rule of
thumb is your mortgage payment should not
exceed 1/3 of your net monthly income.
Step 2 - Seek Professional Guidance
I'd like to schedule a time to meet with you
to hear the reasons you want to buy a house
and your plans for the future. We'll talk
about neighborhoods, schools, economic factors
liable to affect the market today and tomorrow,
as well as how you would like your house and
neighborhood to grow with you. At this time,
I will also help you get pre-qualified for
a mortgage loan. Pre-qualification is a written
statement from a loan officer indicating his
or her opinion that you will be approved for
a mortgage loan up to a certain amount. The
fact that you are pre-qualified will help
us when we are negotiating the deal.
Step 3 - Begin the Hunt
After our initial meeting, I'll search all
my resources for houses on the market that
fit your criteria. I'll preview these houses
to eliminate the duds. Then, I'll schedule
appointments to tour the houses at times convenient
to you. As we tour houses, I'll point out
positive features and negative features. I'll
ask you to tell me what you like and what
you don't like. You'll probably amend your
"wish list" as we tour houses, some things
will become more important and others less
important. With this new information, I'll
refine our search criteria to narrow in on
the house of your dreams. Step 4 -
Know the Market
My knowledge of the local market is an essential
factor in the house search. I'll let you know
when the market in a particular neighborhood
is "hot" and requires immediate action or
when the market is "cool" and allows for thoughtful
consideration. As we tour houses, I'll let
you know when the asking price has negotiating
room and when the house is "priced to sell".
My unique market knowledge will keep you a
step ahead of the "house hunting competition".
In a "seller's market". It is not unusual
to see multiple offers on a property, full-price
offers and even above-price offers. On the
flip side, during a "buyer's market" there
are more houses for sale than buyers. This
gives us more negotiating room as houses are
taking longer to sell.
Step 5 - Find Your Dream House
I'm confident we'll find your dream house.
When we do, I'll put together the purchase
offer tailored for your needs including appropriate
contingencies (such as obtaining financing,
favorable home inspection, clear title, etc.).
The offer is normally presented with "earnest
money". This is a cash deposit made to a home
seller to secure an offer to buy the property.
The amount is applied to closing costs. If
the seller accepts the offer, generally closing
is held 30 to 60 days from the offer date
(generally dependent on the turn around time
of your mortgage financing).
Step 6 - Negotiate the Deal
It is not uncommon to receive a counter offer
when the initial purchase offer is submitted.
Don't let this discourage you. We will discuss
the counter offer and decide whether or not
to accept the counter offer, submit our own
counter offer, or reject the counter offer
and move on. Market conditions will play a
role in how aggressively we negotiate the
deal. We will also work within your limits.
Emotions can lead to buyer's remorse. It is
better to set limits prior to negotiating
an offer and stick to these limits.
Step 7 - Get a Loan
During the closing period, you will be working
with your mortgage lender to close the loan.
Since you pre-qualified for the loan before
starting your home search, you will be that
much closer to the end. I'll gather the necessary
property information your lender will need
to close the loan. Step 8 - Close
the Deal
You will receive a "Good Faith Estimate" of
closing costs at the time the loan application
is submitted to the lender. The estimate is
based on the loan officer's past experience
and may not include all the closing costs.
I will be glad to review the "Good Faith Estimate,"
answering questions and highlighting missing
costs and estimates I believe to be low.
Step 9 - Move In
Congratulations! It's time to move into your
new house and make it your home. Enjoy this
exciting time. I'll give you a checklist to
help you remember the numerous details that
will make your moving day a pleasure.
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Article
TORONTO
MARKET WATCH - OCTOBER 2005
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