Selling Real Estate

STEP 1 : Choosing the Right REALTOR®
STEP 2 : Now that I’ve Chosen My REALTOR®, What Documents do I Need?
STEP 3 : Preparing a Home for Sale
STEP 4 : Setting the Price
STEP 5 : Advertising Your Property for Sale: Barry’s Marketing System
STEP 6 : Now that My Property is on the Market, What should I Expect?



STEP 1: Choosing the Right REALTOR®

Once you’ve decided that a REALTOR® is necessary to help you sell your home quickly and for the highest price, how do you go about choosing the REALTOR® that is right for you?

The first step in finding the best REALTOR® for you is to ask yourself what services a REALTOR® provides and how they will help you reach your goals.  The REALTOR® must be able to:

1. Understand and ExplainAgency, Contract, Property and other areas of law that apply to you when selling your property.  As a seller of real estate, you will need someone who can explain legal documents and help you understand the implications of signing such agreements.
2. Research, Compile, Analyze and Assess current and past market trends, comparable properties and other sources of information when evaluating a home or investment property.
3. Market your home in such a way that it creates the best possible conditions to achieve the highest price in the shortest time.
4. Negotiate agreements with the best possible terms for the client.
   And, most importantly,
5. Sustain Constant Communicate with the Client. A REALTOR® should have the time to explain the home-selling process, discuss expectations, answer questions and generally be available to their clients during such an important transaction.  Selling one’s home, a very substantial investment, can be an extremely stressful situation for many people.  However, when clients are notified of things to come, kept up-to-date and included as an integral part of the team, the transaction becomes easy to deal with and sometimes even fun!  Before choosing your REALTOR®, ask the agent how accessible they are and who you will be dealing with – agents or assistants.
6. What kind of personality do you work well with?  At the very least, the REALTOR® should have a pleasant demeanor; should really listen to their clients; one who will provide the time and patience required by each and every transaction; and one who would provide feedback during the entire process of the transaction?

Once you have determined what you want in a REALTOR®, you must next determine whether or not the agent you are thinking of hiring possesses the skills required to provide the above services.  Every REALTOR® is different:  some have many years experience in the industry, some have educational backgrounds, some have teams that share responsibilities and the list goes on.  Ultimately, it is up to you, the client, to find the REALTOR® who is best suited to helping you reach your goals.  If you read About Barry and my Testimonials, you will surely see that Barry Pockay has the skills you need to sell your home or investment for top dollar

Barry Pockay not only has the knowledge and skills you need to achieve your goals with optimal results but he also has the determined attitude and helpful disposition to make the transaction as smooth as possible.  While always working through the perspective of his clients, Barry is determined to utilize all his skills and knowledge to the best of his abilities.  Barry is always dedicated to achieving the best possible results, whatever the situation.

BACK TO TOP

STEP 2: Now that I’ve Chosen My REALTOR®, What Documents do I Need?

Working With a REALTOR®– One of the first documents (if not the very first) a REALTOR® should explain to his or her client is the “Working With a REALTOR® Brochure.  Issued by the British Columbia Real Estate Association, this brochure outlines the various types of agency and the meaning of agency, the Privacy Act and how it affects a person buying or selling real estate and it also provides various real estate definitions that should be known to a buyer or seller.  This document must be signed by both the Agent and the Buyer or Seller of real estate and, although it is not an agreement that binds a client to his agent, it is a required form.  This is document that generally signifies the beginning of an agency relationship.

The Multiple Listing Agreement –The Multiple Listing Contract is the agreement signed between the seller of real estate and the real estate agent who will list the property on the real estate market (the “Listing Agent”).  This document contains a number of clauses outlining such things as the property to be sold, how the property will be sold, how much the property will be sold for, the commission the seller will pay the Listing Agent (if the agent meets the requirements outlined in the agreement) and much more.  This document is submitted to the Real Estate Board when the property is listed for sale.

Cancellation Guarantee – When a Seller of real estate writes an agreement with a real estate agent, he or she commits themselves to a certain period of time within which the agent has to sell the property.  What happen if the agent if the agent does not live up to his or her promises?  What if you find that you just don’t work well the agent’s personality?  What if the agent is not working in your best interests?  Under the standard terms of a listing agreement, it is not so easy to be completely released from the agreement.  Although a seller of real estate may successfully cancel their listing agreement, they might still have to wait until the expiration of the term they initially signed before able to move forward in selling their property.

Barry Pockay provides ALL of his clients with a cancellation guarantee, signed up front.  This guarantee allows any of his clients to cancel their agreement and move forward in the pursuit of achieving their real estate goals.  If there is one thing, Barry Pockay does not want to get in the way of his client’s best interests.  It takes a dedicated REALTOR® who believes in his work enough to provide such a solid guarantee – Barry is totally confident in his work and results and he is happy to provide such a guarantee.

Property Disclosure Statement – The Property Condition Disclosure Statement or “PCDS” is a written record of representations made, and not made, by the sellers about their property.  The PCDS is normally completed and signed by the sellers at the time the listing is taken.  More often than not, the PCDS is incorporated into an agreement for the purchase and sale of a property.  This is important in that any disclosures made by the Seller, or facts that the Seller knew or should have known but were withheld, can be used for recourse by the Buyer even after the sale of property has completed.

Strata Documents – Strata Documents include such things as Minutes of the Strata Council, Annual General Meetings of the Strata Corporation, Strata Bylaws and Rules and the Strata Plan.  A Seller should have these documents in their records from the time they purchased their home or investment or by collecting them during the period of their occupancy or ownership of the subject property.  Providing these documents to your REALTOR® and reading those over yourself will benefit you in the sale of your property.

BACK TO TOP

STEP 3: Preparing a Home for Sale

Why ‘prepare’ a home for sale?  When buying real estate, new buildings cost more money than older ones.  This is because the building itself is in good repair, the interior components are new and modern, everything has warranties and everything is likely in their best shape.  The best way to increase the price potential when re-selling real estate is two-fold.  The first thing one should try to achieve is to make their property appear as new as possible.  The newer your property feels and presents itself, the more a buyer will be willing to pay for it.  Second, a Seller should make his or her property appeal to as many people as possible.  The more people that walk into a property and feel as though it is their home (as opposed to the Seller’s home) the greater the chance the Seller has to not only sell their property for the highest price.  The following are a number of ways that one can maximize the highest value of their home.

Cleaning – If your goal is to sell your property for the highest possible price, there are a few things one must do to prepare that property for sale.  For the cost of some basic cleaning products and a bit of elbow grease, a thorough cleaning is a necessary step to take.  Nobody wants to move in to a dirty or messy place.  Even if the potential buyers were planning to renovate the property, they still want to see the best potential for their new property.  Besides, how would you know they wanted to renovate?  If the buyers didn’t want to renovate, do you think they would want to start their new life in a dirty place?  To get the most value for your property, cleaning every nook and cranny is one of the easiest ways to make a great profit.

De-Cluttering – With few exceptions, people do not live in a sterile environment.  As we live in our homes over time, we make them comfortable; possessions accumulate; storage rooms become filled; children’s and pets toys lay around, etc.  All of these factors bring a unique ‘personality’ to their property.  When selling a home, however, the best way to achieve your ultimate goal (selling your property for the highest price) is to make your property feel like home – not to yourself but to all the potential buyers.  De-Cluttering removes your personal effects - the more you remove, the less your home feels like your home and more like somebody else’s!

Renovating – If you want to ensure the best possibility for a quick and high priced sale, renovations are a great tool.  You might be asking yourself, “Why would I want to renovate a place that I am moving out of and won’t enjoy the use of myself?  Why would I spend money on something I am selling to MAKE money?”  The answer to this is quite simple.  First, renovating will, if done properly, make your home more contemporary and appeal to a greater number of people.  This in turn will help you achieve a quicker sale.  Second, the costs of renovating should actually make you more money than you put into it.  With a quicker sale and more profit, the question should really be, “Why wouldn’t you renovate?”

STEP 4: Setting the Price

MARKET VALUE

Location – One of the qualities that make every piece of real estate unique from every other property is its location.  This factor alone has the largest influence on the value of a property.  A home in a rural setting sells for far less money than a home in a metropolitan location.  Even if two homes are in the same area but one has a beautiful view and the other faces a busy street, value is affected.  Properties are generally valued according to other properties that have sold in the nearby area.  This is often because they share the same geography and benefits.  Some examples of these benefits include proximity to schools, parks, hospitals, shopping and other improvements.  You have no control over your property’s location and local sales affect the market value of your home.

Condition –One could think of condition in two respects.  The first is the visual or apparent condition of a property.  Think of two homes, identical in every respect.  However, one is clean and has been kept as close as possible to a new condition while the other has not been kept up at all.  The home in newer condition will sell for a higher price than the one that has not been kept up.  Moreover, the difference in price will not be the cost to clean the dirty home.  In fact, the cleaner home will often sell for well over the cost of cleaning.  The reason behind this is likely because people place a lot of weight on the condition of a property and whether or not the property will have problems in the future based on its present condition.  Also, a clean property will help prospective buyers to visualize their own space.  This task becomes much harder for a buyer if they have to look over clutter and problems with the property.

Aside from apparent condition, one must also consider the actual condition of a property.  Consider two properties that look identical in every nature.  Behind the walls, however, one of the properties has a giant infestation of termites.  It is easy to see why the actual condition of a property can have a major affect on the value of a property

Construction of Building – The type of materials used to build a structure has a definite affect on the value of that property.  For instance, a hut made of grass won’t last nearly as long as one made of concrete – just think of the three little pigs.  A property with a superior construction will often sell for more than another property comparable in all other respects except for the weaker type of construction materials.

Recent Sales of Comparable Properties – The current market value of your home is largely based on other sales of comparable properties in a recent period of time and under similar market conditions.  If you could find a property that was exact in every respect to your home or investment and it was just sold in the same market conditions as the one in which you want to sell your property, this would give you the most accurate estimate for the value of your property.  

Active Comparable Listings – Active listings are not a way to evaluate the current market value of a property - a person can put their property on the market at any price, even if it is unreasonable.  The asking price, then, is merely an unrealized hope. With that said, however, if a similar property is available in your neighborhood, the asking price may influence the price you ask for your own property.  To make the point, prospective buyers will often choose the cheaper of two identical properties.

Current Market Trends – The pressures of supply and demand have an affect on the current market value of your home.  For instance, if there are a lot of buyers and very few properties on the market, those properties would be in demand by more people – this, in turn, increases the properties’ market value.  If, on the other hand, there are many more properties available on the market than there are buyers, each buyer could look at the various properties and eventually find the right one for them.  The market value, then, would not be pressured upwards as buyers would not be bidding against one another.  Knowing things like whether the market is on the rise or fall can help one price a property correctly.
 
THE ASKING PRICE

When you first place your property on the market for sale, the initial price you ask is critical for a number of reasons.  First, the price will fall in a range within which potential Buyers will be “scouting” for homes.  If the price of your property falls in a range not suitable to the type of Buyers that would be interested in your property, you will be advertising to the wrong population and ‘miss the mark’.  This may in turn cause your property to stay on the market longer than you would like.  The asking price will also act as an incentive or disincentive to potential buyers.  If the price is far too high compared to other similar properties that have sold in the current market, potential buyers will have little interest to pursue your property.  Another more obvious reason for setting the right price is that it will dictate the point from which negotiations begin - it sets the starting point from which a Buyer will make their initial offer.

Aside from price itself, the asking price will influence the amount of time it will take to sell your investment.  Generally speaking, a sharply priced home (i.e. a home listed for market value) will often sell more quickly.  Overpricing a property will cause a property to stay on the open market for a longer period of time and can prevent a property from being sold at all.  Underpricing a property will often ensure a quicker sale and, depending on the pace of the market, could bring in multiple offers resulting in a higher than market value sale price. 

Depending on the strength of the market (determined by the numbers of Buyers and Sellers during a given period of time) and depending on what a Seller is trying to achieve, underpricing, pricing at market value or overpricing each have their strengths and weaknesses.  With regard to overpricing, a Seller must take into consideration the inconvenience in having their property stay on the market for longer periods of time.  First, the longer a property stays on the market, the more potential there is that Buyers might think something is wrong with the property.  This, in turn, might affect the price a potential Buyer would be willing to offer.  Second, a Seller will have to spend more time in keeping their property in the best shape if they want their property to sell for the best price. 

STEP 5: Advertising Your Property for Sale: Barry’s Marketing System

Marketing a property for sale is one of the most important functions of a real estate agent.  Proper marketing is the key to attracting as many prospective Buyers as possible.  The more Buyers brought to see a property, the greater the chances of generating offers and, hopefully, multiple offers. 

Think about selling a product, any product.  The best chance of selling something for the highest price involves advertising to as many people as possible in order to find those who might be interested to purchase that product.  People and companies utilize this theory all the time: they use TV Commercials, newspapers and e-bay to increase their chances of a good sale.  Unlike a product, real estate is unique.  However, the same advertising techniques and principles apply.

• a wide variety of internet exposure
• newpaper exposure
• high quality, full colour postcards directed to a targeted demographic
• high quality and full colour brochures with floor plans, additional photos and listing information
• grand openings
• open houses
• private showings
• Barry’s personal attention to every detail

If you are looking for a REALTOR® who promises to properly market you home and get it sold for the highest price, Barry Pockay is the REALTOR® for you

BACK TO TOP

STEP 6: Now that My Property is on the Market, What should I Expect?

Open Houses – Open houses are planned public events allowing represented and unrepresented buyers to attend your home or investment for the purpose of its sale.  Although open houses are an inconvenience to owners or tenants of a property, they are a great tool for attracting a large number of potential buyers and getting your property sold.

Private Property Showings – Unlike public open house events, private showings are scheduled tours of your home or investment to individual parties.  Whereas public open houses allow large groups of people through your home or investment, private showings are much more personal and bring in smaller numbers of people.  Usually, private showings take much less time than a public open house event, so, they are less intrusive on the owner or tenant.

Dealing with Offers – Once the advertising has been completed and people have had the opportunity to see your property, an offer or multiple offers should result.  When considering an offer, there are three main methods by which a Seller may respond. Accepting an offer means the Seller agrees to all of the conditions offered by Buyer.  Rejecting an offer means the Seller does not agree to the offer and thereby quashes the offered proposal.  A Seller may also “counter” any offer.  This occurs when the Seller, although happy with some or most of the terms offered by the Buyer, wishes to change or alter some of the terms of the Offer.  Legally, a counter-offer rejects the original offer from the Buyer to the Seller and creates a new offer made by the Seller to the Buyer, according to the altered terms.

Condition Removal Period – Once an offer has been accepted, there are often conditions attached to the offer that must be fulfilled before the offer becomes “firm.”  These subjects are also called condition precedents.  For example, the Buyer will purchase the subject property on the condition that the Buyer can secure suitable financing.  Once all the condition precedents have been satisfied and all parties have removed their conditions, the offer becomes a firm offer.

Completion Period – Once a firm offer is in place, there is a period of time between the condition removal date and the date the transaction completes (i.e. the date the total purchase price is paid and title to the property is transferred from the Seller to the Buyer).  During this time, the Buyer and Seller will notify their lawyer or notary of the pending transfer of title and money.

BACK TO TOP