Go it alone, or use a REALTOR ?

The fact is, most people who try to sell their own home end up using a REALTOR in the end anyway. Before anybody decides to fly solo through this complex, time consumming and financially perilous process, they should consider these questions.
Will you really “save” the real estate commission?
When buyers see a home for sale ‘by the owner’, they see a bargain. They imagine the REALTOR’S® fee going into their pocket, not yours.
Are you familiar with real estate law?
Complicated and ever changing, real estate law governs nearly every phase of selling your home. One misssed step, and an entire deal can fall through, or worse, a lawsuit can come your way.How many potential buyers will you reach?
Selling a home takes more than just hanging a “For Sale” sign. How will you promote your home? Will you write your own ads? How will you use the Internet, knowing that you’ll have no access to the cooperative service available through the Multiple Listing Service. MLS.
Do you have the time?
Promoting a home is a full time job, and you may already have one. Will you be able to take calls at any time? How about screening the callers to figure out if they’re suitable candidates? Not everybody who calls is even suitable to walk through your home, but how do you tell?
Do you know the market well enough to get the most for your home?
Lacking years of experience, the average do-it-yourselfer is merely guessing at their listing price. Often they set the price too low or too high and miss out on thousands of dollars, or they price their home too high and drive away willing buyers.
Do you have the negotiation skills to keep a deal on track?
When an offer comes in, emotions can run high with so much money on the line. This is why direct seller-to-buyer deals often end in disaster. REALTORS keep it professional and are indispensable when it comes to bargaining with buyers.

Closing Checklist!

Immediately begin satisfying any conditions of the agreement that require action on your part. Your REALTOR® will fill out the documents stating that the conditions have been satisfied.Have your lawyer begin searching title to the property. This can take a while, so make sure you give ample time.
We recommend a home inspection to avoid any unpleasant surprises on move-in day.
Well before closing, get your homeowner’s insurance. Your insurance broker will give you a ‘binder’ letter certifying that you’re covered. You can’t get a mortgage without this letter!
Contact your lender and have them finalize your mortgage documents. Have your lawyer review them before you sign.
Your lawyer will transfer essential utilities like hydro and water, but you’ll have to make sure telephone and cable companies switch their services to your name.
If you rent, you must give notice to your landlord, or sublease your apartment.
Begin planning your big move! Where are those cardboard boxes?
Send out your change of address information and fill out a card at the post office. Contact the Ministry of Transport about changing your driver’s licenses.
Walk through your new home one more time with your REALTOR®.
A day or two before closing, you’ll meet with your lawyer to sign the closing documents. Your lawyer will tell you in advance what certified cheques you’ll need to seal the deal.

The big day arrives

Deliriously happy and emotionally exhausted, here you are on closing day. You made it! If your lawyer has arranged everything well, closing day can be surprisingly low on drama. Before you know it, you’ll be handed the keys to your new home.

Congratulations!

What Should I Buy?

First, decide where you want to live

City
Ahh, the big city. Sure the prices are generally higher, but you can walk to a restaurant, maybe even to work. You’ll also have the widest range of housing options.
Suburban
Newer schools, newer shopping centres, bigger yards, bigger homes, no wonder so many people love the suburbs.
Smaller Cities and Towns
Canada is dotted with thousands of wonderful self-contained communities, and compared to the big city, you can save a bundle.
Rural
If you like the idea of owning land, how about a few acres all to yourself? Seclusion is not for everybody, but for some, it’s heaven
Next, decide what type of home you want

By now, you probably have a good idea of what type of home is right for you. To familiarize you with the terminology, here’s a quick overview:

Single-family detached
As the name implies, the home is not attached to the home next door. Styles range from a single-story suburban bungalow, to a three-story Victorian.
Semi-detached or linked
Two houses that share a common wall. Usually less money than a fully detached home.
Duplex
A building zoned for two families.
Town house
Also known as terrace or row housing. Several homes with a common style and joined in a row. They usually share walls on both sides.
The Condo Alternative

Some people can’t wait to start gardening on Sunday morning. If you are not one of those people, it can be just an elevator ride away.

How Condos are owned
You’ll own 100% of your unit, and a share of the common areas. Common areas include the necessary plumbing, electrical systems, hallways and elevators. They may also include lots of fun stuff like a private gym or party room.
Condo fees. Membership has privileges, and costs
On top of your mortgage and property taxes, condo owners also pay a monthly fee to operate and maintain the common areas. Be sure to look into condo fees, and how well they’re managed, before signing anything.
New or resale?

Resale. Previously loved
Nothing can match the charm and character of an older home. As a bonus, the previous owner may have made improvements and upgrades and you get them with the house, usually for less than the cost of putting them in yourself. However, some may have a little too much ‘character’, like a leaky roof. Know what you’re getting into. You should always work with a knowledgeable REALTOR®, and as we cover in Step 10 don’t buy a resale home without a Home Inspection.
Ahh… that new house smell
You will be the very first person to live in your new home. In fact, your new home may be so new, that it’s not even built yet.

Before you commit to anything, carefully examine the property, the blueprints and visit other homes built by the same company. Have your REALTOR® and lawyer review everything before you sign. While your home is being built, stay on top of the process and remember, you have a legal right to make a full inspection of the house before you accept it as complete.
You know what you want, but let’s talk needs

Are you getting out of a two-bedroom apartment because it’s too small? Then your new home should have at least three bedrooms, and probably a second bathroom. REALTORS® call these must-have features “needs”. Features you’d like to have are called “wants”.

Your strategy should be to find a home within your price range that fulfills all or most of your ‘needs’, and as many of your ‘wants’ as possible.

To help

Close the deal

Your negotiations were successful and you have a legally binding agreement. But, is the house truly sold? Not quite yet. It’s time for the vital final steps known as “closing”.
Your REALTOR and lawyer will do most of the work
Thank goodness. Closing a deal involves many, many complicated and time-consuming legal maneuvers. That’s why you’ve hired pros.
Canada’s money laundering reporting requirements By the time you accept an offer, your REALTOR will also advise you of reporting requirements by FINTRAC, the federal agency responsible for administering Canada’s Money Laundering and Terrorist Financing legislation and regulations. Your REALTOR is required by federal law to complete a client identification form, and must ask you as the vendor or seller for verified ID such as a driver’s license or passport. You can find out more on the FINTRAC web site www.fintrac-canafe.gc.ca.
Your closing checklist
You still have plenty to do yourself, and here’s a comprehensive list.
• Contact your lawyer and notify them that an Agreement has been signed. Make sure they’re ready to close the transaction.
• Immediately begin satisfying any conditions of the agreement that require action on your part. They have definitive dates for completion and failure to do so can result in a lot of hassles, or even spoil the whole deal.
• Notify your lawyer and lending institution if the buyer is assuming your mortgage.
• Contact the utilities, telephone and cable companies about transfer or removal of service. Note: Your lawyer will often handle the transfer of utilities.
• Call your insurance agent and arrange cancellation or transfer of your homeowner’s insurance.
• Contact a moving company to arrange your move on or prior to closing date.
• Send out your change of address notices and advise the post office. Notify the Ministry of Transportation about your new address for driver’s license and registration.
• Notify your REALTOR immediately if anything changes about your property or your situation. Contact with your lawyerIf you plan to “discharge” or pay off your mortgage with proceeds of the sale, your lawyer will btain a statement from your lender showing your outstanding balance on the mortgage, and any penalties you’ll have to pay to discharge the mortgage.
• A few days before closing, your lawyer will ask you to sign the paperwork that enables the title to be transferred to the buyer.On closing day, your lawyer will receive and distribute the proceeds from the sale, pay off your mortgage and other costs, and give you a cheque for the net proceeds. Congratulations!
You should be pleased that all your hard work paid off. We hope these ten steps helped make it easier. You’ve probably already used the proceeds from your sale to purchase your next property. A very wise move indeed, because as you know, home ownership is one of the best long-term investments you’ll ever make.

Prepare your finances

Before the offers start rolling in, you should prepare for the massive amounts of money that will pass through your hands.
A lot of the money will probably be going to your mortgage
If you own your home free-and-clear, congratulations! For the rest of us, there are a lot of mortgage considerations
• “Discharging” your mortgage
Many people use the proceeds from the sale of their home to “discharge” or pay off their mortgage. If you have what is known as an “open” mortgage, you can pay it all off without any penalties. If you have a “closed” mortgage, be prepared to pay a few month’s payments in penalties.
• If you’re buying a new home, is your mortgage “portable”?
Many mortgages are “portable” meaning that you can take your mortgage money with you and buy a new home, without penalty. This can be a real bonus if the interest rate on your mortgage is lower than existing rates! If your new home is more expensive, and requires more mortgage, you’ll have to borrow the extra money at the new, higher rate.
• Maybe the buyer is “assuming” your mortgage
Your mortgage may have a feature that allows the new buyer to take over your mortgage. If the interest rate is lower than existing rates, this can be a very enticing selling feature for your home.
• Become a mortgage lender yourself?
If your buyer is having trouble arranging all the money to buy your property, you may consider lending directly to them. This is called a “Vendor Take Back” mortgage, and it’s often used by sellers to help move a property in a slower market. This is an incredibly complicated financial dealing, and you must talk with your REALTOR® and lawyer before choosing this route.
• If you find your new dream home before you’ve even started to sell your old one
Talk to your existing mortgage lender. You may be able to arrange “Bridge Financing”. This is when your lender (the bank) is confident your existing home will sell quickly, and they agree to lend you the down payment for your new dream home.