A PUBLICATION OF: Selling

Transcription

1 A PUBLICATION OF: Selling Your Home

2 RESIDENCE FINDER Thank you for downloading the latest ebook from Comfort Life The Trusted Source for Retirement Living and Care. Comfort Life brings you sound planning strategies and advice to ensure you make the right retirement decisions whether your retirement is imminent or years away. "Comfort Life helped me understand my retirement living options and offers a step-by-step approach to find the best one for my needs." FINANCING 101 We hope you enjoy this ebook. The Comfort Life Team BEFORE YOU MOVE CARE OPTIONS PREPARING FOR YOUR MOVE 2

3 table of contents How to decide when to sell: 6 Eight important considerations 10 Your home selling team How to choose the right real estate agent 16 What seniors should know 22 about selling their homes How to get the best offer for your home 28 Staging to sell: Turning your 34 home into a house 3

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5 HOW TO DECIDE WHEN TO SELL: EIGHT IMPORTANT CONSIDERATIONS 5

6 How to Decide When to Sell: Eight Important Considerations BY SHERRI MORO Housing needs change throughout our lives. At first, young people going out on their own need a place to call home and become first time buyers. Upsizing young families need more space for children and purchase larger homes. Seniors thinking of rightsizing or downsizing may want less to take care of and some may want or need more support and services. Today many seniors stay in their homes, deciding to age-in-place. But others find themselves thinking about a new house, and sometimes even an entirely new way of life. There are also those who plan to remain in the family home while they are independent but then move to an assisted living residence when they need to. HOW TO DECIDE WHEN TO SELL 6

7 Here are eight things to consider if you or an older member of the family is trying to decide whether or not it s the right time to sell the family home. 1. Is the Size Right? It s a fact that larger homes cost more to run. If you find yourself over-housed, not using all the rooms, paying more for upkeep, taxes and utilities than you d like, a lower priced or smaller home may be easier to manage with your resources. 2. Equity For many, the equity that has built up in the family home over the years is the main source of retirement savings. If you need to move to convert that equity into cash and income to be financially secure in the coming years, selling the home may be the best choice. 3. Routine Maintenance Having a home means constant upkeep. For some the once-fulfilling maintenance duties such as mowing the lawn, clearing the gutters, mending the fence and cleaning the house may be getting less enjoyable and more laborious. If you no longer have the time, interest, or energy to do these tasks, maybe it is time to sell. 4. Physical Ability There are many styles of homes and some may be a better match for your physical ability. Often heard concerns from seniors include too many stairs, security, wheelchair accessibility and the overall safety of the home. HOW TO DECIDE WHEN TO SELL 7

8 5. Friends and Neighbours When you have lived at your home for any length of time you may find that your neighbourhood has changed. If friends, relatives, neighbours and merchants have gone, maybe it s time for you to consider moving also. 6. Family Grown children may have moved further away making it more difficult to spend time with them and the grandchildren. Maybe you d prefer not to take long trips to visit, or perhaps you just need a little regular help from a family member. 7. Transportation Some people choose not to drive any longer and therefore need to be close to public transportation or near quality medical care. 8. Lifestyle Perhaps the idea of taking trips really excites you, but you are concerned about leaving an empty house for extended periods of time. Or you may want to be better located to activities you enjoy such as golf, walking trails, and organized recreation. Maybe you d just like to move closer to old friends or to a place where you can make new friends with similar interests to yours. It s easy to get overwhelmed after you ve lived in the same place for much of your adult life. But making a housing change can make your life less complicated and more carefree. Be sure to consult with your financial planner or accountant as well as a qualified REALTOR. SHERRI MORO, B.A., ABR*, SRES**, IS AN ANNUALLY AWARD WINNING HALTON AREA REALTOR WITH SUTTON GROUP QUANTUM REALTY INC., BROKERAGE. HOW TO DECIDE WHEN TO SELL 8

9 YOUR HOME SELLING TEAM 9

10 Your home selling team BY KATHY BARTHEL If you ve lived in your house for many years and haven t bought or sold a property in quite a while, the idea of selling may be overwhelming. You may not know what your house is worth, how much money you d make on it and how much you d have left to finance a move to a retirement community. Perhaps you haven t tackled those loose shingles you meant to fix last spring and you aren t sure what else needs work. Whatever your circumstances, the prospect of selling the home you ve lived in for years is a large and emotionally charged task. If you re not sure where to start, the best plan is to get a team of experts together. Perhaps you used only a real estate agent and a lawyer when you originally bought your house, but there are a few other people you ll want to consult. Once you meet with them you ll understand much more about the process and you ll have a plan to move forward. YOUR HOME SELLING TEAM 10

11 Here are 10 people you may want to include on your homeselling team: 1. Home inspector The home inspector checks out the structure and mechanics of your house before you list it and points out potential problems that need to be addressed before an offer comes in. Even if you think the house is sound, it is a very good idea to get a home inspection; you don t want any surprises later on when the buyer s building inspector does his walk through. 2. Real estate agent FOR SALE A good agent knows how homes are selling in your area, can provide an accurate market analysis and may create and submit ads about your house to real estate newspapers and websites. An agent who specializes in selling seniors' homes (a Seniors Real Estate Specialist or "SRS") would be ideal. 3. Handyman The handyman will make any small repairs and touch-ups so that your home looks great inside and outside. You may also require a plumber, carpenter or an electrician depending on what work needs to be done. YOUR HOME SELLING TEAM 11

12 4. Home stager The home stager will stage your home by removing clutter, rearranging, removing or adding furniture, removing or adding décor items and possibly painting your home as well. A good first impression is critical and by staging your home it will be easier for potential buyers to imagine themselves living there. Staging can also help to increase the market value of your home. Some of your furniture and other items may be placed in temporary storage during this time. Stagers often have interior design backgrounds. Your real estate agent can tell you if you should use a home stager and may pay for some or all of the staging costs. 5. Real estate appraiser If a certified appraisal is required the appraiser will give you a detailed and unbiased market value assessment of your property s value. The appraisal is usually valid for a set period of time only so don t get one done unless you are sure you are ready to sell your house. The service can cost a few hundred dollars but is well worth it so that you know how best to price your home. 6. Real estate attorney This is the lawyer who will oversee title searches, property surveys and all other legal aspects of the sale. 7. Banker/lender If you need a loan in order to make any repairs to your property that were discovered by the building inspector, or any cosmetic enhancements, contact your banker or lender. YOUR HOME SELLING TEAM 12

13 8. Movers You may ask family and friends to help you move or you may find it easier to leave all the coordination, time and physical labour to the professionals and hire a fully insured moving company. They know how to move fragile and valuable items such as your china cabinet and they are also liable for any damage that may happen. If you manage the move yourself and something breaks, repairs and losses will be your responsibility. 9. Piano movers If you are moving a piano you may want to hire a piano moving company rather than a regular moving company. They will bring the correct piano moving skids, ramps and slings, they will know how to dismantle the piano if necessary and they will ensure that the piano is not damaged in any way during the move. 10. Packers You or your family members may take on the task of packing but it could take you several days. Professional packers work in teams with proper tools and packing equipment and they know how to efficiently pack all of your valuables which ultimately saves you space, money and time. YOUR HOME SELLING TEAM 13

14 THE SELLING TEAM HOME INSPECTOR FOR SALE REAL ESTATE AGENT HANDYMAN HOME STAGER REAL ESTATE APPRAISER REAL ESTATE ATTORNEY BANKER/LENDER M O V E R S PIANO MOVERS PACKERS YOUR HOME SELLING TEAM 14

15 HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT 15

16 How to choose the right real estate agent BY SHERRI MORO So you ve decided that you would like to move and the time has come to sell your family home. One of the first things you need to do is to find the right REALTOR for you. Like any other home seller, seniors often start their research online and by asking friends and family members for referral recommendations, which are both good places to begin. The following are just some thoughts to keep in mind as you go through the selection process. In real estate, like all professions, there are those who work with certain clients and have the training and expertise to serve specific niche markets. Some REALTORS choose to work specifically with first time buyers, new Canadians, investors, divorced, or move up buyers. There are also those that are specially designated to service the real estate needs of the mature fifty-plus community. Many REALTORS HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT 16

17 A REALTOR specially trained to consult and assist the fifty-plus market with their transition often have additional services and systems to make the experience as smooth, comfortable and stress free as possible who choose to work with boomers and more mature clients have received the designation of SRES (Seniors Real Estate Specialist) and may be better qualified to assist this group with buying and selling a home. As with any particular type of niche, the sale process with seniors has its own unique set of issues that must be addressed. A REALTOR specially trained to consult and assist the fifty-plus market with their transition often have additional services and systems to make the experience as smooth, comfortable and stress free as possible. Some of these services and systems may include: Extra help and guidance There are many seniors who are widowed and living alone in their family home and just aren t sure of the next steps. If they don t have local relatives to help them get started a REALTOR trained to work with seniors will set up free initial consultations to describe how the process works and will present all the options for the transition. Depending on the circumstances it may require a few consultations to make certain that you are one hundred percent informed and comfortable. And if it is your wish, they can bring a remote relative into the process through phone calls and . Slower pace The home selling experience is complex and many ideas and contracts are presented during the process. A good REALTOR knows their client and if it is warranted, wanted or beneficial will present everything in a slower paced format. This means the client can relax and feel that at each point they have time to properly sift and digest the information without being pressured or rushed. As a result, everything is thoroughly understood and stress levels are much lower. HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT 17

18 Contracts in plain English Supporting professionals include lawyers, inspectors, lenders, stagers, estate planners, insurance and financial advisors. Even before a sale occurs, a good REALTOR will sit down with copies of all the usual contracts, in larger type if requested, written in layman s terms. This extra consultation will prepare you for all the paperwork that will occur during the transaction and allow you to ask questions or address concerns early so that when an actual offer is made you clearly know what you re signing, why you re signing it and what the expectations for the outcomes will be. Encouragement Not everyone wants friends and family members to be privy to the details of their real estate transaction, but for those who want others to be involved, be it for support or as a sounding board, the REALTOR should always welcome and encourage it. Guidance The decision to transition to another home is a big one and there are lots of housing choices and options. Depending on your goals, you may be searching for a town home, bungalow or condominium. A good REALTOR will carefully present all the options, even those that won t earn them compensation such as retirement communities, assisted living, or long term care. Special rates for professional fees There are many REALTORS who have automatically discounted rates on commission for seniors so there is no need to worry about the stress of negotiating a deal. Supporting professionals The home selling process involves many professionals and a good REALTOR can usually recommend a few that they know who have good reputations and that they have worked successfully with in the past. This may include professionals such as lawyers, inspectors, lenders, stagers, estate planners, insurance and financial advisors. HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT 18

19 During the process of selecting an agent you should be aware of some potential warning flags: Pressure The agent pressures you to sign a contract with them without giving you ample time to reflect or think about the decision. Lack of explanation The agent does not take the time to explain absolutely everything you sign in as much detail as needed for you to completely understand. They may even brush it off. HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT 19

20 Failure to provide supporting documentation The agent suggests a price for the home but does not prepare a Comparative Market Analysis (CMA) to share with you about the price opinion. Although it is illegal and unethical, it is unfortunate that there are some that will see an opportunity to take advantage of a senior by pricing the home lower than market value, sell it to a buyer that is connected to them and then quickly re-sell it for the actual higher market price to make a profit. Why seniors more often? They have lived in their homes for decades sometimes and even a low price can seem high if they haven t been keeping tabs on the market over the years. No references The agent will not provide references of past clients for you to contact. Past performance is generally an indicator of future performance and they either don t have good references, or don t feel it s important to provide them. Neither is good. Isolation The agent discourages you from having friends, family or other support during any part of the transaction. This is an attempt at isolating you and you should ask yourself why they might do that. It should always be cause for concern. Keeping these points in mind will definitely make your search for the right REALTOR an easier one. Select carefully as there is so much depending on it. To find an SRES in your area visit HOW TO CHOOSE THE RIGHT REAL ESTATE AGENT20

21 WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 21

22 What seniors should know about selling their homes BY ADAM LINDEN Ok, so you and your family have finally made the decision to sell your home and move on, now what? Are you aware of all the options available to you? Will you consider moving in with an adult son or daughter who can help you with your needs as you grow older? Or perhaps you are considering moving to a senior supportive environment. Many seniors would prefer to continue living in their own home, aging in place. Sometimes circumstances work against those preferences. Whatever the reason, there may come a time when parents, along with their adult children consider selling and moving on. WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 22

23 Unique issues and complex decisions Selling a senior s home really is different and can be much more complicated. You will most likely be dealing with several unique issues and complex decisions during the process. Though seniors usually make the decision to sell, it is not uncommon for their adult children to be involved in the process. See your house as an investment Once the decision to sell has been made you need to start looking at the home as an investment. That involves selling the home for the most money, in the shortest time and with the least amount of inconvenience. For most people a home represents the largest part of their net worth so getting the maximum price for the home is of utmost importance. Many seniors will be living on a fixed income; therefore the equity in their home becomes an integral part of their overall financial plan. WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 23

24 Put together an action plan to effectively market your property for top dollar. Consult with a Seniors Real Estate Specialist A m i s t a k e can be very costly, and for that reason any senior looking to sell their home should consult with a specialist. The issues facing senior citizens when selling their homes are much different than for younger people, and most real estate agents have little idea how to resolve them. A mistake can be very costly, and for that reason any senior looking to sell their home should consult with a specialist. This professional should maintain a network of other senior-focused professionals who can assist in tax counseling, financial and estate planning, and other aspects of the sale and move. Create a marketing plan Once you have selected an agent that you feel confident about and are comfortable working with, it is now time to put together a marketing plan for the home. Comparative Market Analysis The first step is to have your agent prepare a CMA (comparative market analysis). This is a key piece of information as it compares your property the subject property with other homes in the area known as the comparables. The CMA will compare your home against other homes that have sold in the last 90 days, are currently listed for sale or that did not sell in the last 90 days where the listing has expired and terminated. WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 24

25 Determine your listing price Listing the home below market value will guarantee that 100% of potential homebuyers will see the home but again this is a very dangerous area. Once the agent evaluates the information and makes the necessary adjustments to make the subject property as close to the comparables as possible, it is time to determine a listing price for the property. Under pricing and over pricing Many seniors, once they decide to make the move, often make the mistake of under pricing the property in order to secure a fast sale. This is not recommended and should be discouraged. In order to sell the property for maximum dollar, caution must also be taken not to over price the property either. This is also a very dangerous strategy, as it will assist in selling other properties in the area. Pricing and Buyers Pricing a property within the recommended range will bring in around per cent of prospective buyers. Even in a hot market pricing the property too far above market value will limit showings, as only 5-10 per cent of all eligible homebuyers will see the home. Listing the home below market value will guarantee that 100% of potential homebuyers will see the home but again this is a very dangerous area. The public will perceive this to be a bargain, which could result in the seller getting far, less than what the home is worth. Selecting a proper listing price is one of the most important factors when selling a home. WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 25

26 Seller s market or buyer s market? During the listing of your home your agent should have discussed the current market conditions presently being experienced in your area. You should have a general understanding of how the local real estate market works, along with the forces and influences affecting your local real estate market at the present time. Questions like whether it is a seller s or buyer s market should be answered. Perhaps the market is more balanced. If so, your agent should be able to tell you what effect this will have on the price and the average number of days it takes to sell a home like yours. Listing on MLS Another important factor when marketing the home is to list the property on the multiple listing service. The MLS is a very important tool to help gain maximum exposure because it markets the property to all the other realtors who are members of the real estate board. It also gives the public access through the public MLS site that is supported by the real estate board and its members. ADAM LINDEN, SRES, IS A REALTOR WITH HOMELIFE VICTORY REALTY INC., AND A REAL ESTATE ADVISOR TO THE 50 PLUS HOME BUYER AND SELLER IN THE GREATER TORONTO AREA. WHAT SENIORS SHOULD KNOW ABOUT SELLING THEIR HOMES 26

27 HOW TO GET THE BEST OFFER FOR YOUR HOME 27

28 How to get the best offer for your home BY ADAM LINDEN Getting your home ready to sell can be an overwhelming process. However, there are ways to do it that can get you a better offer than you expected. Here is what boomers and seniors need to know to get great offers on their homes. Preparing the home for showings to the public When preparing the home for showings, the goal is to put the home s best foot forward to prospective buyers. Staging your home involves getting the outside and inside of the home in top shape. HOW TO GET THE BEST OFFER FOR YOUR HOME 28

29 Six Tips to Prepare Your Home: 1. Declutter and Stage Each Room You can hire a service to help declutter the home so as not to convey that lived-in look. Now s the time to divest of some of your furnishings, collections, and heirlooms by either placing them in temporary storage or simply giving them to friends or family members who will enjoy them. 2. Share Heirlooms and Valuables Another good reason for staging the home is to put some of those treasured possessions and family heirlooms away so the public does not have access to them when they are viewing your home. Now is the time to take those treasures of a lifetime and start sharing them with family. 3. Take Care of Home Repairs It is important to fix those little things around the house that are in need of repair. Does the faucet leak? Do the doors stick? Does the house need a fresh coat of paint? Items like these can leave a negative impression in the buyers mind. 4. Improve Curbside Appeal The curb appeal of the home is also very important as this is the first thing a buyer sees when approaching the home for the first time and first impressions are very important. Hiring a company who specializes in staging for the mature home seller can remove a great deal of stress and help the family deal with other more pressing issues. HOW TO GET THE BEST OFFER FOR YOUR HOME 29

30 5. Be Prepared for Every Showing The senior agent may prefer to have their senior client out of the house during showings so that they won't be forced to answer a potential buyer s sensitive questions. You must be prepared for numerous showings and some may be on short notice. You will also need to prepare for your agent to host an open house if you have agreed to it. 6. Review the Real Estate Market During the listing of your home, your agent should have discussed the current market conditions presently being experienced in your area. You should have: A general understanding of how the local real estate market works, along with the forces and influences affecting your local real estate market at the present time. Prepared questions like, Is it a seller s market or a buyer s market? Perhaps the market is more balanced and what effect that will have on the price and the average number of days it takes to sell a home like yours. If your agent has done all the right things in promoting your home to other agents and to prospective buyers looking to purchase a home in your area, preparing for an offer should be just a matter of time. HOW TO GET THE BEST OFFER FOR YOUR HOME30

31 Entertaining offers and negotiating the sale Your agent has now called to advise you that there is an offer registered on the property and would like to get together to present the offer. This is a good time for the family to get together, either in person or on the phone, to discuss the offer. Leaving a sibling out of the discussion will only cause more grief down the road. Your seniors real estate specialist will provide you and your family with unbiased advice, but will always be acting in the best interest of the homeowner. Now that you have an offer what are your options? You can: 1. Accept the offer 2. Sign back the offer 3. Refuse the offer and do neither Deciding Your Move Your senior agent will assist you in determining if a counteroffer should be made, and help guide you through the process. Your realtor will discuss the contents of the offer, including: 1. Any conditions 2. Warranties or representations 3. Closing date 4. Price HOW TO GET THE BEST OFFER FOR YOUR HOME 31

32 Get a Home Inspector Often times the buyer will request a home inspector to examine the condition of the structure and to prepare a report on the home. The inspector s report may contain further points to be negotiated, such as cost of repairs. Your seniors agent will also review the terms and conditions of the offer and work with you to find a completion date that makes sense and fits into your overall plan. Keep in mind; this process can be stressful enough on a senior and their family without the thought of having to be uprooted twice. Selling the Home What Matters Residential real estate is a very emotional business so your realtor needs to take all emotion out of the negotiations and focus on what really matters: 1. Making sure the home seller gets the most money for their home 2. Doing their best to verify that the property has not been misrepresented to the buyers 3. Making sure that all documents are completed properly 4. Ensuring that all agency relationships are fully disclosed HOW TO GET THE BEST OFFER FOR YOUR HOME 32

33 STAGING TO SELL: TURN YOUR HOME INTO A HOUSE 33

34 Staging to Sell: Turn Your Home Into a House BY SHERRI MORO Sell Faster For More Money It s a fact today that staged homes sell more quickly and for more money than un-staged ones. Today s homebuyers are increasingly particular and their expectations are higher than in past. Busier and faster paced lives leave them with less time to do fix ups or spruce ups, and as a result they generally prefer turnkey houses. Overcome Your Emotions The challenge for many home sellers, in particular those who have been in a home for decades, is overcoming the emotional connection to the home. Years ago you bought a house and turned it into a home. STAGING TO SELL: TURNING YOUR HOME INTO A HOUSE 34

35 Today when selling a home you must turn it back into a house again. Simply put, the way our homes look when we are living in them is not the same as when we are selling them. The house becomes a product when it is listed for sale. Basic Principles of Staging Overall there are eight components in staging a home for sale in today s competitive real estate market. A good REALTOR will recommend a home stager several months in advance of putting the house on the market. This is not something a home seller needs to do on their own. 1. Clean. Homebuyers prefer a clean house that has been kept in good repair. Sticky windows, squeaky hinges, running toilets, dripping faucets all need attention. 2. Let There Be Light. Although environmental light bulbs can be a better green choice, they do not cast the bright light that a 100W incandescent bulb does. Replace all bulbs and as a result rooms will look brighter and larger. 3. De-personalize. Homebuyers are looking to buy a house that fits their needs, lifestyle and personality so you should not distract them with yours. Personal photos, religious items, and unique art should be removed. STAGING TO SELL: TURNING YOUR HOME INTO A HOUSE 35

36 4. Declutter. Review each room and decide what to store, sell, donate or throw out. Decluttering is the one of the most important components to the staging process. 5. Inspect. Bring a home inspector in prior to listing, and fix problems before a homebuyer s inspector finds them. The cost of an inspection runs between $250 and $500 depending on the size of the home, but can save thousands at the negotiating table. 6. Neutralize. Review the décor and think beige thoughts. This applies to walls, carpets, flooring and counters. Consider a fresh neutral coat of paint and replacing worn carpets. 7. Modernize. While renovating is not generally the best use of money when selling, small changes can reap higher sale prices. Consider replacing light fixtures, faucets, mirrors, and doorknobs. For a modest budget an older home can be sufficiently updated in this manner. 8. Curb Appeal. The yard must be tidy and well maintained, and the front doorway clean and welcoming. Replacing exterior light fixtures, the house number, doorbell, and mailbox can update a house instantly. Taking the time and effort to stage a home creates a blank canvas on which buyers can start painting the picture of their own lives. It can also make your house their home and turn for sale into sold. STAGING TO SELL: TURNING YOUR HOME INTO A HOUSE 36

37 Get more information on topics related to selling your home at You ll find many resources including these helpful articles: REDUCE YOUR BELONGINGS TAXES ON SELLING YOUR HOME: MYTHS VS. REALITY WHAT TO LOOK FOR IN A NEW RESIDENCE E-BOOK: PREPARING FOR YOUR MOVE REVERSE MORTGAGE, HOME EQUITY LINE OF CREDIT AND HOME EQUITY LOANS: WHICH IS RIGHT FOR YOU? PREPARING FOR YOUR MOVE 37