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Use a REALTOR® or sell it on your own? The hot real estate market during the past few years has prompted many people to think about selling their homes. During a strong “sellers market,” several homeowners may even consider selling their homes on their own in order to “save the real estate commission.” If you’re thinking about selling your home without enlisting the services of a REALTOR® here are some very important questions to ask yourself. Do you have the time? A REALTOR® provides many services including identifying your needs and wants, helping to set a listing price within current market guidelines, developing a marketing plan, offering tips and advice to make your home more attractive and “saleable,” and acting on your behalf during negotiations to ensure your interests are protected. Even if you had the time to do all this yourself, how much would you really save when you factor in the amount of time you’d have to invest. Another advantage of working with a REALTOR® is the far-reaching market exposure your home will receive through the Multiple Listing Service (MLS). MLS is a computer-based system that relays information about your home to a vast network of REALTORS® and therefore, potential homebuyers in your market. The greater the exposure your home receives, the more likely you are to find a buyer willing to pay your price. Do you have the knowledge? A REALTOR® has vast amounts of real estate knowledge and the experience required to stay cool, even in a hot real estate market. In Ontario, a REALTOR® is a licensed real estate professional who is a member of a local real estate board as well as the Canadian Real Estate Association (CREA) and the Ontario Real Estate Association (OREA). When you work with a REALTOR®, you can expect strict adherence to provincial law as well as to a code of ethics ensuring you’ll receive the highest level of service, honesty and integrity. Do you know how to set a price? One of the most important services a REALTOR® will provide is helping you determine the “asking price” of your home. Setting a sales price is one of the most critical and difficult steps in the home-selling process. This is an area that requires extensive knowledge and training as well as access to sophisticated market analysis. Most “do-it-yourselfers” lack these resources and end up “guessing” at their price. If you set your price too high, many prospective buyers will be frightened off without even looking at the property; too low, and you could miss out on thousands of dollars. A REALTOR® will work with you to decided upon and negotiate a realistic price that meets your objectives. Think again The sale of a home requires an organized, step-by-step approach that many homeowners just don’t have the time, skill or experience to carry out. In reality, a “for sale by owner” transaction usually doesn’t result in the cost savings the homeowner may have hoped for. Most often, “for sale by owner” translates into “discount” for potential homebuyers. Selling your home is not a simple procedure It involves large sums of money, stringent legal requirements and the potential for costly mistakes. Invest in a REALTOR® and he or she will be committed to doing what it takes to help you sell your home in the least amount of time and for the best possible price. Is now a good time to sell your house? Thinking of selling your home but not sure if now is the “right time?” Talk to a REALTOR for sound advice on when to sell your home in the least amount of time for the best possible price. First a REALTOR will help you examine your reasons for wanting to sell. The most common reasons why people decide to sell their homes include changes to their financial status, an employment transfer, a growing family or retirement. Today’s low interest rates have also made it attractive for many homeowners to “move up” to a larger home. Whatever your reason, selling a house is a complicated procedure so it’s imperative to have a qualified real estate professional on your side. Because selling a home involves large sums of money and complicated legal documents, a REALTOR’s expertise can help a homeowner avoid costly mistakes. Real estate cycles Buying your home was probably the best investment you ever made. That’s because over the long term, real estate has proven to be a sound investment while at the same time offering you and your family shelter and a feeling of pride of ownership. However, real estate is subject to the law of supply and demand which creates cycles in the market. A shortage of homes generally means prices rise. This cycle is commonly known as a “seller’s market.” Alternately, a surplus of homes can result in a slow down in home sales or even a reduction in prices and is often referred to as a “buyers market.” One of the most important services a REALTOR provides is market analysis. Most people don’t have the time it takes to conduct the comprehensive market research required to accurately price a home. A REALTOR can give you up-to-date information on what economic and other factors are impacting current market conditions. Which market is best? Obviously, you will want to sell your home quickly and for the highest possible price. In a “seller’s market,” you often see many buyers competing for the same house resulting in top prices -- sometimes even over the original list price. However, if you are planning to purchase another home after the sale, chances are you will be competing in the same seller’s market faced with higher prices. In a buyer’s market you may find you have to wait longer to sell your home for a fair price. The upside to selling your home in a buyer’s market is you’ll have more selection and pricing options when you go looking for your new property. Although the current market cycle should influence your decision to sell, remember there are trade-offs to selling in either a buyer’s or seller’s market. Some people are concerned that if they trade up to a larger home in a buyer’s market they will lose some of their home’s equity in the sale. But, while you may sell your home at a “discount,” it’s likely you will purchase your larger home at an even greater discount. The advantage is you then own a larger asset with even greater potential for appreciation. Seasonality In Ontario, changing seasons and the weather can affect buyer demand. For example, fewer buyers may be out looking at homes during the cold and snowy winter months, but as a seller you will be competing with fewer homes on the market. Spring tends to be an attractive time for real estate sales as gardens start to look nice again and people come out of hibernation. Buyers with school-aged children like to purchase in the spring so they can move in over the summer. However, homes sell throughout the year so think of the season as only one factor in deciding when to sell your home. There are many important issues that come into play when deciding to sell your home. A REALTOR can help you to determine if now is the best time for you. |