As the weather starts to heat up, so does the housing market. If you are thinking of selling your house for the first time (or even the third time), there are some key words that will help you with this exciting and fast-paced journey. Real estate can seem daunting, but if you have some of these terms in your back pocket, it will make it a lot easier and help you every step of the way. First, when you hire a Realtor, it's important to know the difference between a Buyer’s Agent and Listing Agent. If you are selling your home, you are working with a Listing Agent who will work for you to negotiate the highest price and terms for the sale of your home. If you are looking to buy a home you are working with a Buyer's Agent, who will negotiate the best terms and purchase price for you. Mostly likely in your process you will be running into both, so it's best to know the difference.
After you chose your realtor, they will do a CMA (Comparative Market Analysis). This will help you and your Realtor and decide a listing price for your home. By looking at what other homes sold and the price at which they sold in your neighbourhood, this gives your Realtor a strong sense of where to start. Next the age of your home, the renovations, size and location all factor into the comparison.
After you've decided with your Realtor the price of your house, the marketing will begin. Most likely they will hire someone to do a floor plan for you, get professional photographs taken, and will get you listed on MLS (Multiple Listing Service). This collects all the details on your home so other realtors can view it (and suggest it to their buyers). They also will list you on multiple sites, and hold open houses to gain interest.
Once on the market, the goal is that someone will make you an offer on your house! These offers can come with contingencies or subjects that must be met before the deal can go through. These can include ensuring the person can get a loan/financing, that the house passes inspection and potentially some other things that you should discuss with your agent. The subjects have a period of time attached to them, so they have to be met in that time period. If they are not met on either side, the house becomes available to others again.
You might go through a few offers before you settle on the one that works best for you. The next step is acceptance of the offer. Once you sign the acceptance agreement you are in a binding sale contract and you can't back out without facing legal consequences.
The completion/closing date is when the sale of the property is complete and payment is given. Some other closing costs include commissions, mortgage fees, property transfer tax, title insurance, moving, etc.
The possession date is when the keys are handed over and you need to be out of the house and it needs to be cleaned by the date and time.
These are some of the major steps in your real estate journey. Working with a Realtor will limit the stresses and ensure proper steps are taken.
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