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Guide To Selling
Your Home
Selling Process
Selling a home is a major decision but does not have to be a major
headache. Below is a brief explanation of the typical steps in the process
1) Decide upon a real estate agent:
Selling your home usually begins with a call to a professional real estate
agent. Do some research and choose a real estate agent who is familiar
with your area and has a good reputation. Phone the agent and ask for
a meeting. Ask the agent to do a "competitive market analysis" or CMA
as it is called and to show you their marketing plan for your home. During
that meeting decide if you are comfortable with that agent and if so list
your house with that agent.
2) Review the competitive market analysis to
decide on a listing price:
Nothing is more important than the right price. If a property is priced
wrong it can hurt the value of your home. A competitive a market analysis
compares your home with similar houses in your area or comparable areas
that have sold recently, are currently listed now for sale and houses
that were listed and did not sell. The theory is that buyers will pay
you a similar price for your home at this time that other buyers paid
for similar houses. The theory generally works very well.
3) Sign a listing agreement:
A listing agreement is a contract between you and your agent giving your
agent exclusive right to sell your home for a specific amount of time.
This listing agreement sets out important terms such as listing price,
length of listing agreement ( usually minimum of 90 days), commission
rate, possession date, items included in the price or excluded from the
price such as wood stoves, fridges, stoves, curtains etc. and any other
terms that might be discussed. The listing agreement is a very important
document. Have it explained completely to you. Note: I give
sellers the option to withdraw their listing at anytime without any penalty
if they are not totally satisfied.
4) Fill out a Property Condition Disclosure Statement:
Upon listing you will be asked to complete a Property Condition Disclosure
Statement or PCDS. This form has questions about the condition of the
major structural elements of your home such as roof, foundation, electrical,
plumbing, insulation etc. You will answer the questions and sign and date
the bottom of the form. This form has become standard in Nova Scotia and
it is advisable to complete it. However you have the option not to complete
it if you so choose. This will bring suspicion upon your property however.
have your agent discuss this with you. The PCDS is discussed in more detail
at Property Condition Disclosure Statement.
5) Discuss and sign agency form- "Working
with an Agent":
Agency law is a very important part dealing with a realtor to sell your
home. You will have an agency relationship with your agent and you should
be totally aware of what you should expect. The agent will explain to
you this relationship and provide you with a brochure called " Working
with an Agent". You will be asked to sign an acknowledgement that
you have read and understood this pamphlet.
6) Discuss and understand Land Registration or
LRA:
The way title is transferred in Nova
Scotia changed in November of 2004. After this date all properties that
are sold must be "migrated" to a new electronic system. This
is completed by your lawyer and there are extra costs associated with
doing it. The cost varies considerably between lawyers. I have seen sellers
charged from $350 plus hst to $1000 plus hst. You can migrate the title
at any time and it is a good idea to to do as soon as you put your house
on the market or even before. It will save time at the time of sale and
allow you to have a quicker closing. For more information on LRA go to
my LRA Page by clicking here; LRA page
7)Agent then begins implementing the
marketing plan:
Once all the paperwork is signed the agent then leaves and begins implementing
the marketing plan that was discussed for your home. This will likely
include putting up a sign, listing the house on the Multiple listing Service
( MLS ), some advertising and other marketing.
Property Condition Disclosure Statement
(PCDS)
A standard form of the Halifax Dartmouth Real Estate Board is the Property
Condition Disclosure Form. This form is filled out and signed by the owner
on the listing of the house. This form is a series of questions about
the condition of the house. There are 4 answers for each question: Yes,
No, Don't Know and Does Not Apply. One answer is checked per question.
Questions are asked about the structural components of the home such as
roof, foundation,wiring,plumbing, insulation etc. and other questions
relating to zoning and building permits. The agent should go over this
form with you.
It is not mandatory to complete this form. The owner has the option not
to complete this form. On the listing information sheet there is a box
to check whether there is a PCDS or not. The reality is that almost every
listing has a yes checked and a PCDS has been filled out by the owner.
The form isn't usually given out to anyone until there is an offer signed
for the property. Most offers will have a condition that asks for the
PCDS to be provided and for the buyer to have time to review and approve
of it. So you should should fill out and sign the PCDS. If you have nothing
to hide than it is best to fill out the form. If you do not know the answer
check Do Not Know. For example a question is asked about the type and
R value of the insulation in the house. If you're not completely sure
what is in the walls or attic you should check Do Not Know.
It is important to remember that this is a legal form and can used against
you if a lawsuit is filed. Be sure of your answers.
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