Getting ready to sell your house can induce a lot of conflicting emotions. You may be thrilled and excited at the thought of moving on to your forever home. The next stage in your life holds the promise of new beginnings and cherished memories. However, before any of that happens, you first need to sell your house, which may make you feel overwhelmed, sad and even a little afraid.
This step represents a serious milestone, especially for a first-time homeowner.
You may feel like there are a million things on your mind, and you don’t even know where to start. While everyone is different and people sell for various reasons, almost everyone has the same questions that arise.
Here are our answers to some of the most frequent questions we get asked by first-time sellers.
1. Is it the right time to sell?
The past two years have been an unprecedented time for the Toronto Real Estate Market. The demand for homes in the GTA has increased sharply, and there are not enough listings available for everyone who wants to buy. Historically-low interest rates have only contributed to a strong seller’s market. As interest rates rise, demand may drop slightly. However, by preparing your home for maximum impact, you can still expect multiple offers and a very high return on your investment.
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2. Where do I start?
If you’re even thinking about selling your house, the best place to start is with a thorough cleaning and decluttering. Even if you decide to skip every other step, a clean and tidy house always shows better and can help you sell faster. Once your home is sparkling clean, the rest of the process will not seem as overwhelming.
Want to know more about what’s happening in the current market? Read some of our most recent posts below:
- Is The Toronto Real Estate Market Shifting?
- Another Interest Rate Hike? What Will Happen To Toronto’s Real Estate Market?
3. Should I renovate before selling?
This is probably the question we get asked more than everything else. We always recommend making minor repairs and a fresh coat of paint, but to avoid spending a lot of time or money on major renovations. Why? Because some upgrades won’t add anything to your final price, and others can even devalue your home. For instance, imagine you love white carpets throughout. The installation could cost thousands of dollars when all is said and done. However, a buyer may not love those white carpets as much as you do, especially if they have children or pets. Not having a ton of renovations to worry about can make selling your home much easier and less stressful.
4. How much is my home worth?
The value of real estate fluctuates, but the overall trend is that prices are going up, especially in the Toronto area. That said, the value of your house will depend on a few factors, like square footage, location, recent updates, and if any major repairs are needed. Your best bet is to have a professional appraisal of your home.
If you’re curious to know how much your house is worth in today’s market, you can request a free evaluation here.
5. What pricing strategy should I use?
Is it a good idea to set your price high to leave room for negotiations? This strategy is common, but we generally don’t recommend it. For one thing, it’s not a tactic you’ll need in this market which currently favours sellers. While professional advice is always recommended, pricing your house slightly under market value is often a better strategy. This gets the attention of many buyers and makes it more likely that you’ll receive multiple bids for your home.
Looking for more ideas to make your sale a success? These posts will help:
- Everything You Need To Know About Buying And Selling On The Waterfront
- How To Sell Your Home When You Have Pets
6. Should I use a real estate agent?
In a strong seller’s market, many people believe they’re better off without an agent. If you walk around your neighbourhood, you may even see some signs saying “For Sale By Owner.” While listing your house on the MLS may be all you need to sell, a professional real estate agent will improve the whole experience. Selling a property is a lot of work and demands that you be available at a moment’s notice when someone wants to walk through your home. If you work full time, you may not be able to market your house and handle showings effectively. And unless you’re very well trained in selling and negotiating, chances are, you will sell your home for less than it’s worth.
Looking for the top first-time buyer FAQs? You’ll find them right here.
7. How much will I have to pay in commissions if I use an agent?
There is no set rate, but sales commissions will amount between 3% to 6% of the final sale price. However, a better question to ask is how much more will I make with a professional agent than I would on my own? The answer is usually a lot more. A real estate agent has many tools to maximize your sale, from knowing what upgrades provide the most value, how to stage your home correctly and how to market effectively. The result almost always means more money in your pocket even after the commission.
8. It’s a seller’s market. Do I still have to market my home?
If you want to get what your home is worth, you should absolutely do everything in your power to market your listing. The MLS might attract some interest, but you won’t necessarily find the right buyer. Without an effective marketing strategy, you may attract low-ballers who want the cheapest price so they can flip your home a few months later.
What does strategic marketing look like? Here are some ideas to consider using.
9. Should I be there for home showings?
It may feel counterintuitive, but it is best if you’re not home during showings. An interested buyer wants to get a feel for the home and imagine themselves living there. They want to take their time, open every door and inspect every closet. If you’re home, they can feel uncomfortable and won’t ask as many questions as they want to. When it’s just the buyer and the real estate agent, the buyer is more likely to let down their guard.
10. How do I know what offer to accept?
As a seller in this busy market, you can likely expect to receive multiple offers on your home. How do you know if an offer is right for you? It isn’t just about picking the highest bid. You also want to make sure a buyer has pre-qualified for financing and is able to pay the agreed-upon price. Look at what conditions the buyer is requesting, and make sure you accept an offer with a convenient closing date.
Want more help or have more questions about how to sell your home?
