Remember, at some point in the future, every buyer may become a seller!
After deciding to sell your home, consider these three matters before you put it on the market:
- The asking price;
- How the purchase price is going to be received; and
- How to go about finding a buyer.
How much should you ask for your home?
Homeowners naturally want to obtain the best possible price. However be realistic, and don't place such a high price on your home that prospective purchasers will be discouraged from inspecting and/or making offers on the property.
The asking price is not the agent's.
Owners should not determine the selling price based on what they believe they "need" to sell their house for. Using this as a guide is not wise, and would probably either undervalue or overvalue the home. The "fair market value" for your home is the only certain guide to follow for the best return.
Homeowners often believe that they have a fairly good idea of what their home is worth. Keep in mind, that the "asking price" is not the same as the "selling price" of the home. Sellers advertise the "asking price" (what they want), not the selling price (what they will take). Even if the seller on your block disclosed their selling price, it would probably be higher than what they actually recieved. No one likes to admit how far they came down from their asking price! It is advisable to get second opinions from someone who is qualified and knowledgable in the real estate market. The real estate agent, being such a person, can be of great assistance in this area. It should be pointed out, however, that some agents will suggest whatever market price they feel will induce the owner to list with them, although they have no real hope of selling at that price. A common guise of agents attempting to induce you into signing a Multiple Listing Agreement is to "promise" a higher price.
It is always wise to obtain an appraisal of your property from a qualified and reputable appraisal firm, even if the market prices can be established with reasonable certainty. The name of a reputable appraiser may be obtained from your financial institution. The cost of an appraisal for the average home is approximately $200. Not only does an appraisal give you peace of mind, it is also insurance if there is any doubt as to what a proper market price would be, so that your property will not be undersold.
A lawyer's bill is comprised of two items: a) Fees for the services rendered to the client; and b) Disbursements, which are charges for those expenditures made on the client's behalf to complete the transaction (such as funds paid to the Land Titles Office to have the title transfer document or mortgage registered, funds paid to have searches done, or money spent for obtaining photocopies of all relevant documentation on file).
In a real estate transaction, it is customary for the purchaser to pay all legal fees in connection with the conveyance of a property. If, however, the seller has agreed to provide a clear title, any charges incurred in connection with clearing the title become the seller's responsibility.