Thinking about selling your home? You've come to the right place. This section takes you through the steps of selling your property, and offers valuable information and resources for sellers.
 
Thinking | Preparing | Listing | Closing

Thinking

Selling a home takes preparation, organization and professional marketing. This section will walk you through all the things you need to know to be fully prepared to sell your property, from understanding the market to choosing a REALTOR^®.

Market Analysis
Local market conditions will have an impact on the amount you can get for your home – and on how quickly you can sell it.

• Buyer's market – More homes on the market than buyers. Lots of competition from other sellers. Prices drop. Houses take longer to sell.
• Seller's market – Lots of buyers. Not that many houses for sale. Prices increase. Homes sell quickly (just the market you want).
• Balanced market – Sellers accept reasonable offers. Homes sell within an acceptable time period. Prices are generally stable.

Pre-listing Preparation
To prepare your property for listing, take a look at your home with the eyes of a potential buyer. What's your first impression? What needs to be cleaned, painted, repaired, or tossed out to make your house as attractive as possible? A small investment in repairs, decoration, and organization can add thousands of dollars to your property value.

To find out the best ways to get your home ready for sale, take our Homeowner Quiz. It's a quick, fun quiz that will analyze your homeownership style and give you advice on how to ensure your property appeals to more potential buyers.

What makes a good REALTOR^®?
Good REALTORS^® will save you time and money. They know your community, what buyers want in a home, how to negotiate the best price, and how to close the deal.

A Royal LePage REALTOR^® will:

• Recommend a competitive price for your home
• Develop a marketing strategy to bring in as many potential buyers as possible
• Take care of all the details (so you don't have to)
• Advise you about your rights, options, and obligations
• Negotiate to get you the best price and the best terms

What kind of homeowner are you?
Take the quiz and find out your personalized tips for preparing your home for sale.

1) After finishing your dinner do you:
a. Leave everything on the table and come back to clean up later.
b. Take the dishes off the table, put away the leftovers and pile the dishes in the sink or dishwasher for later.
c. Clean the table, put away the leftovers and wash the dishes right away.

2) Your home office has a desk that is:
a. Covered with papers, receipts and random objects. 
b. A pile of stacks.  There is enough free space to do your work and you can still find what you're looking for.
c. Clean and neat.  Everything has its place and papers are filed right away.

3) You've just finished your laundry, do you:
a. Leave the clothes in a pile on a chair.  It's easier to find them later this way.
b. Fold and put the clothes in any drawer with available space.
c. Fold and put away your clothes in their appropriate drawers.

4) In your household you have:
a. A dog or cat that is allowed indoors.
b. A smoker who often/always smokes indoors.
c. None of the above.

5) How do you accessorize your home?
a. I like to display personal mementos, souvenirs and family photos around my home.
b. I love decorative accessories and like to feature eclectic ethnic artifacts and antique items around my home.
c. I prefer clean and tidy surfaces and display few decorative or personal items around the house.

6) Which of the following best describes your home?
a. My home is eclectic and fun with bright colours and accessories throughout.
b. My home is traditional with warm paint colours and lots of dark wood.
c. My home is in a modern and simple style with neutral colours and few accessories.

7) Spring has arrived and your yard is in need of some maintenance, do you:
a. Rake the yard and generally get rid of debris.
b. Clean the yard of debris and mow the lawn.
c. Clean the yard of debris, mow the lawn, clear the weeds, apply fertilizer and plant new flowers.

8) Which best describes your home:
a. I haven't had the time to properly decorate most of my home and a couple of the smaller rooms are used only for storage.  Some minor repairs are still waiting to be done around the house.
b. The main areas of my home are decorated and furnished but I never got around to properly decorating and furnishing the basement or guestroom.  Some minor repairs are still waiting to be fixed around the house.
c. I have taken the time to properly furnish and decorate every room.  I have also undertaken several renovation projects throughout the years. 

Give yourself a score of 1 for every "a", a score of 3 for every "b", and a score of 5 for every "c" answer.

If your score is between 8 and 16, you need to roll up your sleeves and get working to prepare your home for sale.  Based on your responses, your home will need deep cleaning and de-cluttering before showings start

Deep clean your home making sure each room and surface is spotless.  Make sure to remember your appliances and windows too.

Get rid of the clutter to allow buyers to properly see your home.  Pack away unnecessary items and make sure counters and tables are free of appliances and personal items. If any rooms are used for storage alone, pack away the items and properly furnish the rooms.  Don't leave them empty as buyers will have a hard time visualizing living in a space without any furniture.

Put away collectibles and family photos to help de-personalize your home.  Buyers will be able to imagine themselves in your space better without your personal items around. 

Although your fun sense of décor and colour may suit your personality, go neutral for the sale.  Adding a fresh coat of neutral paint and getting rid of unusual accessories will ensure that your home appeals to a larger pool of buyers. 

If pets or a smoker reside in your home, remember that you probably won't notice the smell if you're around them all the time.  Have a trusted friend give you an honest opinion and deep clean to get rid of the odour.

And lastly, don't forget curb appeal.  First impressions count, and buyers begin to form an opinion as soon as they pull into your driveway.  Keep your yard neat and tidy with your lawn and shrubs trimmed, and flower beds weeded.  Store away your children's toys and garbage bins, and give the exterior of your home a good wash or a fresh coat of paint.

If your score is between 17 and 32, there are a few easy steps you can take to make your home more appealing to buyers.

Clean your home from top to bottom, making sure you pay special attention to kitchens and bathrooms.  Make sure to de-clutter and reorganize your home.  Remove any excess furniture to enhance the feel of openness and space.  Storage space is a top priority for buyers, so clean and organize your closets and storage areas.  Get rid of anything you don't need and make sure your closets are not overflowing with items.

Brighten and lighten up your home with a fresh coat of neutral coloured paint.  Soft neutrals such as pale yellows and grays can give a house a nice sophisticated look that appeals to most buyers. 

Store away your eclectic accessories and create more room on your counters and tabletops.  Your unique items may be an expression of your personality but they might also make it hard for buyers to visualize themselves in the space.

And last but not least, fix that leaky faucet and any other minor repairs that you've been neglecting around the house.

If your score is between 33 and 40, your home is in top shape and will only need a little bit of work to bring in that sale.

One great way to stimulate buyers' imaginations is to set the scene.  Put fresh flowers on the mantle and set the dining room table for a formal dinner.  If it's a cold day, light a fire in the fireplace.  Look at your home through the buyers' eyes and create an atmosphere that will help them envision themselves living there.

To further enhance your home's curb appeal, spruce up your flower beds with new flowers and ground cover to give the home additional touches of colour.

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Preparing

How should I prepare to sell my home?
An attractive, well-maintained home sells quicker and for a higher price. When you prepare your home for sale, take a critical look at the exterior and interior of your property.

What should I do to the interior of my property, before I list it for sale?
Every room should look as spacious, bright, and warm as possible.

• Wash walls, ceilings, and trim. Consider painting with light, neutral colours. Repair cracks.
• Tighten loose knobs, towel racks, switch plates, and outlet covers.
• Fix tight doors and windows, squeaky floorboards, and loose stair banisters.
• Clean and repair caulking around tubs and sinks. Fix leaky faucets; remove water stains.
• Clean and organize the basement and attic. (This is a good opportunity to throw out all the bits and pieces you don't want to move.)
• Organize closets. Get rid of the clutter. Limit the number of items stored overhead or on the floor.
• Clean out kitchen cabinets, and remove clutter from countertops.
• Clean drapes, blinds, and curtains. Shampoo carpets, and wax floors.
• Now's a good time to spray for bugs.
• Arrange furniture to make rooms appear as spacious as possible.
• Remove any items you're taking with you, such as chandeliers and mirrors.

What renovations will give me the greatest return when selling my property?
The top three renovations that get you the most money* are:

1. Bathrooms (75 to 100% return)
2. Kitchens (75 to 100% return)
3. Interior and exterior painting (50 to 100% return)

*Appraisal Institute of Canada's 2004 Home Renovation Survey

Other renovations and their average rate of return (the value they add compared to what they cost) include:

• Replacing roof shingles (50 to 80%)
• Replacing the furnace and heating system (50 to 80%)
• Renovating the basement (50 to 75%)
• Adding a recreation room (50 to 75%)
• Installing a fire place (50 to 75%)
• Up-grading floors (50 to 75%)
• Building a garage (50 to 75%)
• Replacing windows and doors (50 to 75%)
• Building a deck (50 to 75%)
• Installing central air conditioning (25 to 75%)

How important is the exterior look of my property?
First impressions really do count. If the impact of your curb appeal is strong, people will want to see what is inside.

• Cut the lawn.
• Cut and trim the shrubs.
• Remove dead tree limbs and other yard debris.
• Brighten up the garden with fresh shrubs and flowers.
• Get rid of the clutter. Put away toys and gardening equipment.
• Touch up peeling paint on doors, siding, and trim.
• Repair and paint the fence.
• Fix damaged roof shingles and flashing.
• Clean windows, replace broken panes, and fix torn screens.
• Clean gutters and downspouts.
• Wash the driveway and sidewalk. Patch cracks or holes.
• Clean up the garage and shed.
• Have the gas grill ready for use.
• Make sure outside lights and doorbells work.

How is the market value of my property determined?
The market sets the price. Your local Royal LePage REALTOR^® will help you set a realistic price to match market conditions.

Your REALTOR^® can give you a comparative market analysis based on similar homes in your area. It will show current listings, recent sales, and expired listings (a good thing to check because these houses are usually either overpriced or poorly marketed).

Your REALTOR^® will help you develop a competitive price based on:

• Location
• Size
• Style
• Condition
• Community amenities
• Financing options
• Market conditions (Is it a buyer's or a seller's market?)

Remember: The market determines price. Avoid the urge to price your home based on considerations that do not affect its market value. For example, the following do not affect the market value for your property:

• How much you need to purchase your next home
• How much you paid
• How much you spent on improvements
• The value of a similar home in a different community
• The cost to build the same home today
• Your personal attachment to your home (Yes, it's your house and you're proud of it, but this makes no difference to potential buyers.)

Why is listing my property at market value so important?
A realistic competitive price means:

1. Your property will sell faster. People don't bother looking at over-priced homes.
2. Your home doesn't lose its "marketability."
3. Offers are higher when a property is closer to market value.
4. A well-priced property can generate competing offers.
5. Realtors will be more willing to present your property to buyers (and be more enthusiastic when they do so).

How should I prepare for showings and open houses?
Your house should be ready to show at all times. Make sure it is kept clean and clutter-free. And, those last minute touches before someone comes to look at your home can make all the difference:

• Turn on all the lights, even during the daytime, including outside entrance, closet, basement, and attic lights. Open all the drapes and blinds.
• Turn off the television, stereo, and radio (easy listening music is OK).
• On cold days, light a fire. If not in season, make sure the fireplace is clean.
• Put pets in a fenced yard. Better still, ask friends to look after them. Some people may be allergic, others may be afraid of animals. Clear any pet odours.
• Clean the kitchen and bathrooms. Leave windows and mirrors sparkling.
• Set out fresh flowers, hang decorative hand towels in the bathroom, and place an attractive tablecloth on the dining room table.
• If possible, leave! Some buyers are uncomfortable when the owner is in the house. In their hurry to get away, they may miss important features, or fail to ask important questions. If you must remain, be courteous, but try not to make conversation. The buyer's Realtor knows what the buyer is looking for. He or she can discuss features and answer questions.

Men (41%) more likely to put a premium on decor than women (30%)
TORONTO, February 16, 2006 – The old adage that you only get one chance to make a first impression rings true for sellers showing their homes in today's competitive market.  With the spring market quickly approaching, many homeowners are wondering what they can do to help get their homes ready to sell. A poll of potential buyers released today by Royal LePage Real Estate Services, found that sellers ought to do more than just look after required renovations before showing their home. In fact, décor improvements help make a strong impact on buyers and can ultimately affect a home's market value.

The 2006 Royal LePage House Staging Poll (conducted by Maritz Research) revealed that renovations can often boost a home's value but sometimes too much of a unique style can be detrimental when it's time to sell.  Thirty-six percent of potential buyers said that they would be willing to pay a premium for a home with updated décor. Surprisingly, more men than women viewed décor as a necessity with 41 per cent of men versus 30 per cent of women claiming they were willing to pay a premium for this feature.

"First impressions are key in real estate as buyers often make up their minds about a home within the first few minutes of entering the front door," said Dianne Usher, senior manager, Royal LePage Real Estate Services. "As the real estate market begins to moderate in many markets across the country, the need to impress buyers becomes even more crucial. A combination of the right renovations with modern and tasteful décor is the best way to do that."

Usher added: "A contemporary and minimalist space with neutral coloured walls and a limited number of personal items appeals to most buyers and ensures the best results when selling a home."

When asked which home improvement they would pay a premium for, 79 per cent of buyers indicated that they would be willing to pay more for a home with a renovated kitchen.  However, when asked if they would still pay a premium for a renovated kitchen if it was done in a style that was not to their taste, less than half of those (42%) who originally said they would pay a premium responded favourably (score of seven or higher on a scale of one to 10, with 10 meaning "very likely to still pay a premium").

In addition, while 47 per cent of buyers said that the need for major renovations would most negatively influence their buying decision, a significant proportion of buyers (11%) thought that décor requiringmajor changes had the most impact on their decision.  Only six per cent of buyers said that the need for minor renovations would most negatively influence their buying decision.

"The way you live in your home is not the way you sell your home.  If you are renovating primarily to increase the value of your home for a sale, you need to ensure that it is done in a style that is pleasing to most buyers," said Timothy Badgley, interior designer and owner of Acanthus Interiors in Port Hope, Ontario. "Not all renovations are created equal. Style and décor are especially important with large renovations, as these features will be costly to change for a buyer and they can be a major factor in buying decisions."

People don't buy houses, they buy homes
The act of grooming and decorating a home to properly showcase its features and make it more attractive to potential buyers is referred to by industry experts as house staging. Its simple techniques can be employed by anyone to make a dramatic impact in their home, and can make all the difference when it comes to selling a home quickly and for top value.

While creating an illusion of space is an important part of house staging, too much empty space can work against you.  When asked how they would prefer the property under consideration to be, the majority of buyers (56%) said that they would rather view an empty property, while 23 per cent of buyers said that they would rather view a furnished property. However, Badgley says that not staging empty spaces with appropriate furniture is a mistake.

"People don't buy houses, they buy homes," said Badgley. "People often mistakenly think that viewing empty properties will give them an accurate sense of the space available, but, in fact, it's hard to really understand the size of a room without furniture and other objects as reference points."

Badgley added: "An empty room also allows buyers to focus on negative details instead of getting a sense of the overall space and the flow of each room to the next."

Also, in oddly shaped spaces, it can be very hard for buyers to visualize furniture arrangements.  The need to stage empty spaces becomes especially important in smaller properties where it can be hard to gauge how well furniture will fit.

"With the growth in condominium projects, we see a real trend emerging in staging empty condominium properties," said Usher. "The newer units tend to have much smaller spaces and buyers often have a hard time visualizing how their furniture will fit.  Staging really helps buyers envision themselves in the space."

It's about pleasing all the senses
Most sellers know that overall cleanliness and tidiness are important when showing their homes; however, the importance of eliminating smells is sometimes missed. According to the poll, 53 per cent of buyers believed strong odours such as pet and cigarette smells had a stronger impact on their impression of a home over overall tidiness and cleanliness, strong wall colours, outdated façade and landscaping.

"Often, people who smoke or who have pets are so accustomed to the smells that they don't notice it," said Usher. "We always recommend that our sellers get a second opinion of their home to know how potential buyers may see it."

Buyers willing to spend the money for an 'ideal' home, but not the time to renovate
According to the poll, buyers are willing to spend what it takes to find their dream home and the majority would rather pay more for a home than spend the time to renovate themselves after purchase. The poll showed that 63 per cent of buyers preferred a higher priced home that does not require any renovations over a lower priced fixer-upper.

In addition, while 65 per cent of buyers thought that one should have to spend over five thousand dollars on updating a newly purchased home to get it to a state in line with their tastes, the majority of buyers (57%) were merely willing to spend up to six months updating a newly purchased home while nine per cent of buyers would only consider buying a home that did not require changes.

Other poll findings:

• Fifty-eight per cent of buyers surveyed revealed that they were willing to make a decision after viewing 10 homes or less, while only 11 per cent of buyers thought they would have to view over 20 homes in order to feel comfortable making a decision.
• An overwhelming majority of people (83%) surveyed said that they would regard their REALTOR^®'s assessment of the home as somewhat or very important. As such, sellers need to impress both potential buyers and REALTORS^®, who are local market experts. This dynamic raises the bar for everyone selling a home.
• When asked which room of the house had the most significant impact on their purchasing decision, 52 per cent of buyers said the kitchen and 25 per cent said the living room.  A surprisingly low five per cent of buyers thought the bathroom had the greatest impact.
• Twenty-seven per cent of those polled were looking to purchase a home or condominium in the next five years.

The Royal LePage House Staging Poll was conducted by Maritz Research between January 26^th and January 31^st, 2006. The poll is based on a randomly selected sample of 2,002 adult Canadians.  More specifically, the research focused on those who potentially will purchase a home or condominium in the next 5 years.  Due to this specific audience the actual number of respondents that qualified for this survey was 508. With a sample of this size, results can be considered accurate to within +/- 4.35%, 19 times out of 20. This data was statistically weighted to ensure the sample's regional and age/sex composition reflects that of the actual Canadian population according to the 2001 Census data.

Royal LePage is Canada's leading provider of franchise services to residential real estate brokerages, with a network of over 11,700 agents and sales representatives in 600 locations across Canada operating under the Royal LePage, Johnston and Daniel, Trans-Action and Realty World brand names.  Royal LePage manages the Royal LePage Franchise Services Fund, a TSX listed income trust, trading under the symbol "RSF.UN".  For more information, visit www.royallepage.ca.

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Listing

How do I list my property?
Once you have decided to sell your property, the first thing is to list your property, establishing with your REALTOR^® the terms and conditions of the sale.

The Realtor will ask you to sign a Listing Agreement – an official document granting the listing REALTOR^® and his or her brokerage permission to represent you in the marketing and sale of your property.

What is involved with the signing of a listing agreement?
The listing agreement is a contract between you and your REALTOR^®'s brokerage company. It will:

• Provide a framework for subsequent forms and negotiations
• Clearly spell out the rights and obligations of all parties, the length of the agreement, and the compensation
• Set the listing price, and accurately describe the property (including lot size, building size, style and materials, floor areas, heating/cooling systems, room sizes, and descriptions)
• Detail what is, and what is not, included in the sale (As a general rule, fixtures are included; chattels, things which are movable, are not. If necessary, list what stays and what goes under inclusions or exclusions.)
• Provide information about annual property taxes, and note any easements, rights of way, liens, or charges against the property

The agreement binds both parties to its terms and conditions. You and the listing REALTOR^® sign the listing agreement and each of you receives a copy.

Your Royal LePage REALTOR^® may also ask for:

• Plan of survey or location certificate – A survey of your property showing the lot size, location of buildings, and any encroachments from neighbouring properties. Some jurisdictions need this to complete the sale of your home. Your lawyer may recommend a survey, especially if significant changes have been made to your property.
• Property tax receipts – Most listing agreements include information about current annual property tax assessments.
• Mortgage verification – Details about your mortgage provided by a mortgage lender upon your authorization.
• Deed or title search – A legal description of your property, and proof that you own it.
• Other documentation – Annual heating bills, water and sewage costs, electricity bills, and recent expenditures on home improvements. Many provinces also require a signed property condition disclosure statement.

What kind of questions should I ask a potential REALTOR^® about listing my property?
Can the REALTOR^® that helps me list my house represent me when I buy my next one?
In most cases, the answer is yes. Ask your REALTOR^® to explain the concept of agency and how it works in your province. Be sure to ask what limitations, if any, your representation will have.

What happens when my listing REALTOR^® is not available?
REALTORS^® work extremely long hours and try to be available whenever and wherever you need them. But you should ask your prospective REALTOR^® what arrangements he or she has in place when they can't meet with you.

What would you tell a buyer considering my home?
A good REALTOR^® will quickly spot your home's best features and tell you the best way to showcase them. Be sure you're comfortable with the way your house will be presented.

What do you think is the key to selling a home: advertising, Internet exposure, or promotion to other REALTORS^®?
Since the success of the listing REALTOR^®'s marketing plan will be based on how to attract prospective buyers, be sure you understand and agree with the approach.

What sold the last three properties you listed?
REALTORS^® should be able to explain how they have sold properties in the past, and how these experiences can influence your sale.

What advice would you give a buyer considering my home?
Do you want top dollar for your home, or as many offers as quickly as possible? Make sure you know and agree with the way your home will be framed for buyers and their selling REALTORS^®.

What distinguishes your personal service from other REALTORS^®?
The number one complaint from both homebuyers and sellers is that REALTORS^® don't return their phone calls. Listen carefully when prospective REALTORS^® describe their communication skills.

You've spoken to several Realtors, and it's time to make a choice. Think about what they told you, and ask yourself:

• Did they seem trustworthy and honest?
• Were they realistic when discussing your home purchase?
• Did they communicate well? Were you on the same page?
• Were they committed, motivated, and experienced?

What is agency?
Under agency law, the REALTOR^® legally owes you the duties and obligations associated with agency: utmost care, integrity, confidentiality, and loyalty.

A stringent Code of Ethics and Standards of Business Practice guides all REALTORS^®. It's your assurance of fair and honest representation.

A REALTOR^® must disclose, in writing, whose interests he or she represents in any real estate transaction. A REALTOR^® may represent you both as a buyer, and as a seller. In some cases, the REALTOR^® may represent both the buyer and the seller involved in the same transaction.

How will you market my property for sale?
Your Royal LePage REALTOR^® will develop a detailed marketing plan that will give your property the maximum exposure and attention it deserves.

When you list with a Royal LePage REALTOR^® you will:

• Always know what actions are being taken to sell your home
• Receive regular progress updates
• Be kept informed of changing market conditions
• Be kept up-to-date on sales of other homes in the area

How does my Royal LePage REALTOR^® help me manage my offers?
A buyer interested in purchasing your property will make an offer and, as an act of good faith, put down a deposit.

The buyer's REALTOR^® communicates the offer, sometimes known as an Offer to Purchase (a legal document specifying the offers terms and conditions) to you or your representative. The offer states how much the buyer is willing to pay and details the conditions.

The offer can be firm or conditional.

Firm Offer to Purchase: Usually preferable to the seller, because it means that the buyer will purchase the home without any conditions. If the offer is accepted, the house is sold.

Conditional Offer to Purchase: Means the buyer has placed one or more conditions on the purchase, such as subject to home inspection, subject to financing, or subject to the sale of buyer's existing home. The home is not sold until all the conditions have been met. The seller can accept the offer, reject the offer, or make a counter offer.

Acceptance: The seller agrees to all the terms and conditions exactly as set forth in the Offer to Purchase.

Rejection: The seller does not agree with any of the terms and conditions set forth in the Offer to Purchase.

Counter offer: The seller agrees with some of the terms and conditions of the offer, but not all of them. The seller then makes a counter offer. The counter offer may change the price, the closing date, or add or delete conditions. When the buyer receives the counter offer, he or she can accept the new terms and conditions or reject them.

A signed offer is a binding contract. Make sure you understand and agree to all of the terms before you sign. You may want to have a lawyer review the offer first.

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Closing

How does my REALTOR^® help me close the sale on my property?
Your Royal LePage REALTOR^® will supervise every step of the closing process to make sure that closing is as smooth as possible.

Closing may require:

• Professional house inspection to assess the condition of the property
• Professional appraisal by the buyer's mortgage company to determine the true value of the property
• Search of the title by the buyer's lawyer

What is involved with closing the sale?
On or before closing day, lawyers for the seller and the buyer will set up a trust account for the money coming from the sale. This money will be used to pay off any mortgages you owe on the property, after which you receive the balance.

Your lawyer should also ensure that you receive compensation for pre-paid expenses, such as property taxes, electrical or gas bills, or, if applicable, heating oil left in your tank.

You will give the property deed or transfer documents, mortgage details, and keys to your lawyer. Your lawyer will register the mortgage discharge and transfer the deed at closing.

You will also pay the listing brokerage company their compensation (your lawyer can arrange the payment from the proceeds of the sale).