Selling A Home Overview

WHAT IS A LISTING AGREEMENT?

• This is a contract between you (the seller of property) and the real estate broker that the agent represents.
• It is the authorization you give to the real estate broker to market your property for sale and handle the process of negotiations

It is important that the agreement accurately reflect all arrangements between you and the broker and clearly spells out the rights and obligations of all parties.

• You sign the listing agreement and receive a copy immediately.
• The agreement binds both parties to its terms and conditions.

THE FINE PRINT

Generally, in the agreement:

• You appoint the brokerage company as your agent and give its representatives the authority to find a purchaser;
• The duration of the agreement is indicated; and,
• The compensation is set out (you pay this only upon successful completion of a sale transaction).
• Sets out the listing price; and,
• Describes the property you are selling - lot size, building size, building style and materials, floor areas, heating/cooling systems, room sizes and legal description.

Here you decide what you are taking with you and what you are leaving with the house. Generally, unless stated otherwise, fixtures remain with the property, while chattels- things which are movable- aren't included in the sale. What stays and what goes is generally listed under "inclusions" or "exclusions."

And finally, the agreement gives the financial details:

• Mortgage balance, monthly payments and due dates for all mortgages; (unless you will clear the mortgage on closing);
• Annual property taxes;
• Monthly maintenance fees (condominiums); and,
• Any easements, rights of way, liens or charges against the property.

TYPES OF LISTINGS

Exclusive Listing: You appoint one firm to act as your agent in the sale of your house. This firm usually has the sole, irrevocable and exclusive right to advertise and sell your house for a given period of time.

MLS® Listing: This is a type of exclusive listing, but allows the realtor to work with other realtors through your local board's MLS® system and give your property maximum exposure. This type of cooperative effort will result in the listing agent sharing the commission with the selling agent.

What is the MLS® System? The MLS® system is a cooperative computer listing service operated by your local real estate board. The details of your property --and other properties-- are listed on it and are available to realtors 24 hours a day, 7 days a week.

How can the MLS® System Help Sell My Home? Complete details of your home including a full colour picture are available to all the realtors in your area, usually within 48 hours, via the MLS® computer system. Your property gains more exposure, because it reaches the majority of the real estate professionals in your community; and, Through mls.ca, the national MLS® Internet website, details of your home are available to potential buyers across the country and around the world.

SETTING THE ASKING PRICE

Although you may have an idea of how much your house is worth, it's important to have your home evaluated by a professional on its own merits. Be careful not to price yourself too high because this will result in you not being able to sell.

Thank you for considering Joseph Bitton and The Bitton Real Estate Team for your real estate needs. In Today’s competitive Real Estate Market, Commitment makes all the difference. As we ask for the opportunity to handle the sale of your home, we are proud to share our commitment with you and look forward to earning your business. Click Here for Our Committment.

In today’s Real Estate market, with literally thousands of homes available for sale, it takes more than just a yard sign or newspaper ad to sell a property. Our marketing program for the next millennium is a complete approach that meets the needs of today’s buyers and sellers. Click Here to see the plan we will implement to ensure the successful sale of your home.

THE OFFER

In the offer, the buyer is:

• Telling you how much he is willing to pay;
• Telling you how much of a deposit he will present upon acceptance;
• Suggesting a closing date;
• Proposing a set of conditions; and,
• Stating how long the offer is open for acceptance.

As an act of good faith, the buyer will make a deposit with the offer. A good deposit will often show the buyer's sincerity. A rule of thumb to use in deciding if the deposit is appropriate is that it should be roughly 5% of the offering price. The listing agent is bound by law to bring all offers to your attention.

In the offer, the buyer may:

• Attempt to "low ball" you, and submit an offer much lower than your asking price; or,
• Attach conditions to the offer.

You don't have to accept the offer but can reject it outright. Or you may wish to make a counter offer that comes part-way to meeting the offer's conditions. The counter offer is one more step along the way to negotiating the final terms and conditions of the sale.
Once the offer is accepted and all the conditions are met, the offer becomes a binding contract between both sides. Therefore make sure you understand and agree with all of the terms of the offer before signing.

BEFORE CLOSING

If necessary, and if the buyer makes it a condition of sale, you may be asked to:

1. Provide a current survey, showing that the house is located entirely on the property owned by you and that there are no encroachments;
2. Prove that you have title to the property (the buyer's lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions); and,

The buyer may also make the offer conditional upon inspection by a qualified home inspector or obtaining a mortgage approval.

CLOSING THE SALE

On or before closing day, this is what happens:

• The lawyers representing you and the buyer will set up a trust account for the money coming from the sale and will pay off any mortgages you owe on the property (unless you will be transferring this mortgage to a new home you’ve bought). After these are paid, you will receive any money you have coming from the sale;
• You must deliver the property deed or transfer documents, mortgage details and keys to your lawyer. Your lawyer will register the mortgage discharge and transfer the deed at closing; and,
• Your lawyer will ensure that you receive compensation for prepaid expenses such as, property taxes, electrical or gas bills, or if applicable, any heating oil left in your tank.

Some lenders will make it possible for your mortgage to be portable, so you can take your mortgage with you when you move to your new home. Here, your responsibilities under the listing agreement end. You'll have paid your listing agent the agreed-upon compensation. This will be done by your lawyer who will forward the payment from the proceeds of the sale. Now enjoy your new home!