The Selling Process
You have an offer on your home! When a buyer decides to purchase your property, they will with the guidance of their agent, write a contract on a form called the Contract of Purchase and Sale. Melvyn will review the terms of the offer with you and explain the significance of each part of the contract. You have the option of responding in one of three ways:
Accept the offer as is, make a counter offer, or reject the offer.
It is advisable to counter a non-acceptable offer. Your counter offer would reflect the price and terms that you would accept.
Your best interests and the satisfaction of knowing that your home was sold at its highest and best value are at stake. Being familiar with the market conditions and knowing your personal motivation to sell, she will guide you through the negotiation process. With her proven negotiating skills she will give you objective counselling and caring guidance.
Here are some items that you should consider when deciding how to respond to an offer:
- Deposit money
- Is the Buyer Pre-Approved?
- Occupancy Time Frame
- Completion Date
- Possession Date
- Inspections – What type?
- Personal Property Items included: Appliances, window treatments, garage door openers, etc.
- Subject Clauses – What and how long?
Subject clauses may seem like a minor issue, but they can be a major stumbling block. A subject clause means that something else must happen in order for the deal to go through. A purchase may be subject on the buyer getting approved for financing, sell the home they already own, getting a favourable inspection report, or any number of other things. Melvyn will make sure the clauses are as specific as possible, and spell out exactly what will happen if the clause is or isn’t met.
A common clause is the Home Inspection. A home inspection is something a buyer requests and the cost of the inspection is paid by the buyer. A home inspection is an objective visual examination of the physical structure and systems of a home, from the roof to the foundation. The standard home inspector’s report will include an evaluation of the condition of the home’s heating system, central air conditioning system (temperature permitting), interior plumbing and electrical systems; the roof, attic, and visible insulation; walls, ceilings, floors, windows and doors; the foundation, basement, and visible structure. A professional home inspection is an examination of the current condition of your prospective home. It is not an appraisal, which determines market value. A home inspector will not pass or fail a house, but rather describe its physical condition and indicate what may need repair or replacement. Of course, a home inspection will also point out the positive aspects of a home, as well as the maintenance that will be necessary to keep it in good shape.
No house is perfect. If the inspector finds problems, it doesn’t necessarily mean the buyer won’t buy the home. A buyer has the following options if something is found to be wrong with the home:
- Buy the property as is
- Request that you make repairs
- Ask for an allowance be given at closing to cover the cost of the repairs
- Rescind the offer and void the contract
Some buyers look at the home inspection as an opportunity for a second round of negotiations, and want everything fixed to bring a house into “as new” condition. This train of thought is not realistic. Generally any post-inspection negotiation focuses on deficiencies or items which are health or safety related that may not have been disclosed or evident when an offer was made.
If all conditions are met, their Realtor will prepare a “Subject Removal”, which means all subjects will be removed and the contract is now firm.
Your next step will be to hire a lawyer or notary and all contract documents will be sent from our office to them.
Your lawyer or notary will:
- Search the Title of the property,
- Make sure property taxes are up to date,
- Prepare ownership transfer documents,
- Ensure your mortgage is discharged,
- Prepare a Statement of Adjustments,
- Ensure the buyer is now the registered owner at the Land Titles office.
Your Completion and Possession Day
The completion day is the day the title is transferred to the Buyer’s name. You’ll be required at that time to review and sign various documents relating to the sale and closing costs. Once everyone agrees that the papers are in order, the buyer will submit a certified cheque or bank draft to cover the closing costs and the balance of funds due.
Once the deal has registered your Realtor will arrange to get keys from you for the possession. Possession date is usually 1 to 3 days after Completion Date. On Possession Date, their Realtor will make the necessary arrangements with Melvyn so the buyers can move into their new home.