First Time Selling Vancouver Real Estate | Info Guide
So you are looking to sell your home which is something you never have done before. You turn to the internet for some help but all you can find is information on first time buying when it comes to Real Estate.
Here is an attempt on getting you as much information as possible on the first sale of your Real Estate life. This is an integral part of your life and a huge decision where many people go in with no knowledge and hopefully this changes that!
#1 Question; What Are The Realtor Selling Fees?
Now keep in mind there is not a set in stone fee Realtors have to charge. We all charge what we feel we are worth based on the services provide. Some Realtors charge more, some charge less and you decide what is most important and who is worth it.
My fees are and always have been 7% on the first $100,000 and 2.5% on the balance (+5% GST).
For example; You Vancouver Realtor markets and sells your home for $1,000,000
Your selling fee would be $7,000 + $22,500 = $29,500 + 5% GST = $30,975
What’s included in that fee?
Within that selling fee almost everything is included. My services include staging consultations, staging items, floor plans, videos, virtual tours, professional photography, online and social media marketing, mail marketing, open houses, private showings, contract work, negotiations and every other thing you can think about! The only other thing that can be an additional cost is if you decide to hire a stager to actually bring in furniture and staging items – mainly for vacant homes.
The Pre-Listing Process
When marketing your home for sale Vancouver Realtors all work differently, very differently.
My process involves a ton of pre-marketing. I always ask for at least one week of prep time before we start marketing your home on MLS.
Step 1: Price
Price your home! This is done by looking at current active listings, recent sales and the market as a whole.
Step 2: Staging Consultation
This is an integral part of the process. My personal stager (Feng Shui certified) spends 60 to 120 minutes in your home or condo and gives us suggestions based on her expertise. We then decide what we can do.
I then I go fill up my car with my personal staging inventory and bring them over to your home to add for marketing.
Step 3: Marketing Material
Now the fun begins! Your home is staged, clean and ready to show.
Within a matter of a day or two we bring in a Professional Real Estate photographer, virtual walk through and a professional floor plan (not doing a floor plan can and will cost you money! Learn why here)
Once that is complete. We are ready to hit the market and begin the marketing process. Typically we always come to market on a Monday morning.
On the market
Now all the pre-preparation is done, your MLS listing contract is signed and you are ready to go!
Generally, I recommend coming to market on a Monday (or Tuesday or long weekends). Now the onus is on you to have your home ready to show, clean, de-cluttered etc… After we had done the staging walk-through, prepared photos, video etc… you now have a standard to go off. Realistically there is no way to keep your home in the perfect condition as we know you are busy and the flowers cannot always be fresh! However, we try our best to have the home in optimal condition for showings and especially open houses.
Warning; this is not easy but massively important. Potential buyers can pick up on pride and care you have put into your home and it rubs off on them. They can also pick up on neglect and the negative sides as well so do your best! I especially love marketing and showing homes when you are on vacation! That makes it easier on everyone and helps the sale. Also, Realtors can also pick up on the good and bad as it is our job!
For more tips and tricks on presenting your home for showings and open house see my blog on home preparation.
For private showings we usually ask and receive at least 24 hours notice to give you ample time.
Private showings are a great way to really sell the home. This allows Realtors to give special attention and I highly recommend and prefer private showings for luxury Real Estate which take much longer to show and explain compared to a smaller condo at 500 sqft. However, I love private showings in general!
For open houses we typically have 1 to 3 per week on week 1 and then set a plan after that. Open houses on the weekdays vary in times and can be day or night (sneak peek). Open houses on weekends run 2 hours and can be anywhere in between 12:00 to 4:30. You have Agents opens on weekdays (10:00 to 12:00) and the day depends on your area.
OFFERS & Negotiation
Eventually (depending on your price, market and strategy) you will receive an offer. This is where the negotiation begins and having an experienced Realtor on your side is crucial.
The main negotiation points are price, closing dates and subjects / terms. Other important terms on a contract include deposit amount, offer expiration date/time & included items. To see an example of page 1 of an offer you can see my blog on contracts here.
Now when you get an offer you can “counter-offer” anything you want. If the buyer wants to move in Jan 15 an you need the home until Feb 28 – we counter the dates. If the buyer wants all your furniture (included items) and you don’t want to leave any we counter. Just remember, everything is negotiable.
The deposit when you buy or when someone is buying your home is typically 5%. However, this is not set in stone and is simply a common standard. Not every buyer has 5% of $900,000 readily available so we can play with that number as needed. If someone has sold a home and can increase the deposit after certain dates we can adjust that as well.
For me, 5% is not integral but good to see it in there when an offer comes in. The deposit is held in trust with the buyers Real Estate Agents company and is not available to you at all. Once the closing date arrives that money is used in the process. The reason for the deposit is just in case the buyer of your home cannot close or something happens you then have that 5% on the line. This very rarely happens in Vancouver Real Estate but just good to know why we have it in place – as a security blanket.
The Listing Contract
In Vancouver Real Estate contracts most of our terms and conditions are all the same for everyone. The different items are dates (length of listing agreement), selling fees (based on Realtor) and some legal info.
One thing you should know. A contract can be cancelled at any time. Even though we must submit a minimum 60 day contract to the Vancouver Real Estate Board, you can cancel after 1 day, 1 minute, etc… Most Vancouver Realtors do not celebrate this but you should know. If your Realtor is not doing their job you should terminate the contract and hire a new one – there are 14,000 to choose from!
The contract really binds your Realtor to you and not not you to them in essence.
After the Realtor selling and marketing fees there are some other costs:
- Lawyer/notary (budget around $1,000 to $1,500 to be safe)
- Mortgage penalty (if you have a mortgage, are breaking a mortgage or porting)
- Cleaners (on me)
- Elevators (if you live in a strata)
This should cover all the major expenses.
Although every sale is different in their own way this should cover most of the major things. Every time you get an offer there will be new or different terms and subjects. There is never two of the same.
I hope this information at the least gives anyone some more information and helps with any uncertainty and / or questions you may have.
If you are interested in information about buying your first home, check out our blog post here!
If there is anything on here we missed or you would like to see please contact me anytime here!