FREE Home Sellers Guide
Learn from a Top Brokerage in the GTA
As a first-time Seller, there’s a LOT you need to know and do. Below, you’ll find a step-by-step process for selling your home. And don’t worry if you don’t have a 30-day lead time, we often accomplish all of this in just a few weeks. Also, don’t feel like reading this whole guide? We’d be happy to take you through everything you need to know. We love working with first-time Sellers!
DAY 1 - FAMILIARISE YOURSELF WITH THE REAL ESTATE MARKET
You’ll want to start the process by getting an understanding of the real estate market.
How much do homes like yours sell for?
How long do they usually take to sell?
Have interest rates changed recently?
Are there any new government or bank rules affecting Buyer motivation?
There are tons of great online resources to help you understand the current market conditions!
DAY 2 - CONDUCT RESEARCH ON REALTORS
Being a first-time Seller can be stressful, but having an experienced Realtor by your side can make the process smoother. To ensure you can take advantage of the full range of services they offer, it’s essential to engage an agent’s assistance promptly. When selecting your REALTOR, consider the following steps:
Ask your friends and colleagues - First-hand knowledge of an agent’s services and expertise can be invaluable
Search online - Before scheduling any meetings, take the time to visit the agent’s website. It provides insight into the quality of marketing you can expect when they sell your home, and you can explore the services they offer, highlighting what sets them apart from the other 55,000 agents in Toronto.
Read reviews You can find real estate agents reviews on platforms like Google, Yelp, Zillow, Real Satisfied, and Facebook. Just as you research restaurants, hotels, cars, and appliances, look for the number of reviews compared to the competition, overall ratings, and trends in reviewer comments.
Once you’ve shortlisted the agents you’re interested in working with, it’s time to schedule interviews. Most agents will prefer to meet at your home and will spend 45 minutes to an hour touring your property, asking questions, and discussing their experience and approach to selling a home.
DAY 3 - ENGAGE IN A CONVERSATION WITH YOUR MORTGAGE LENDER
Talk to the bank or lender who currently holds your mortgage. Ask about:
Mortgage portability - It’s improbable that the closing date for selling your current home will align with the expiration of your mortgage term. For instance, let’s consider a scenario where you took out a 5-year mortgage at a rate of 2.8% three years ago, and you still owe $600,000. You might be wondering if you can take that $600K mortgage at its current rate and apply it to a new home purchase for a two-year term. However, what if you now require an $800K mortgage and the prevailing interest rates are 3.5%?
(Pro tip: many traditional banks offer the option to port your mortgage for a 90-day period and utilize a ‘blend-and-extend’ approach. Essentially, this involves merging your existing $600K mortgage for the remaining two years at 2.8% with an additional $200K at the new rate of 3.5%).
Penalties - What penalties will you have to pay if you have to break your mortgage early? If you aren’t buying another home or aren’t allowed to port your mortgage, the penalty can be substantial.
Mortgage assumption - Suppose interest rates have significantly risen since you obtained that 5-year mortgage three years ago. In that case, a potential buyer for your home may find it appealing to assume your mortgage (provided you don't wish to transfer it). Mortgage assumptions can help you avoid penalty fees, and if the interest rate changes have been substantial, assuming your mortgage could be an attractive choice for the new buyer. If you're in the process of selling your current home and purchasing a new one, now is the time to determine your capacity for an additional mortgage and secure pre-approval. Preparing your home for sale becomes more meaningful when you are certain about your ability to afford the upgrades you desire.
Bridge financing - Can you take possession of your new home before your existing home closes? Do you qualify for bridge financing?
DAY 4 - CHOOSE A REALTOR WITH EXPERTISE IN ASSISTING FIRST-TIME SELLERS
It’s time to interview Realtors to help you with the sale. Make sure to ask about:
Their experience and expertise
Their track record with helping first-time Sellers
Any staging services they provide or recommend
How they market a home online and offline
Any additional inclusions: cleaning, pre-listing home inspections, handyman services, free furniture rentals, etc.
What kind of help they can provide during the home preparation process?
Commission rates
References
If you’re also buying: what’s their experience in your new target neighbourhood?
Remember - you get what you pay for. The REALTOR you choose to hire will impact how much you sell your home for and the experience you have as a Seller. It's one of the most important decisions you’ll make as a first-time Seller.
Once you've picked your Realtor, you will be asked to sign some initial listing paperwork. The contract will confirm the commission rate and inclusions and will solidify your relationship so that your agent can get to work.
DAY 5 - DETERMINE WHETHER YOU WILL BUY OR SELL FIRST
Now that you’ve talked to at least one Realtor, you should have a better idea of whether to buy or sell first. You’ll want to consider:
If you sell first, where will you live if you can't find another home to buy? Where will you store your things?
Will the bank let you buy if you haven’t sold your home?
If the closing dates aren’t the same, will the bank give you bridge financing? How much will that cost?
In the current market, will it be easier to sell your home or buy a new one?
How much emotional uncertainty can you handle?
What’s your worst-case scenario?
DAY 6 - PREPARE YOUR DOCUMENTATION
Your REALTOR is going to be doing a lot of prep work before your home hits the market and will be asking for:
Utility bills
Tax bills
Details of any renovations or improvements
Rental contracts
Warranties
Survey (if you have one)
List of any ongoing issues with the home (or past issues you might need to disclose)
If you own a condo, you’ll also want to:
Gather details about maintenance fees and what’s included
Read the minutes from the last AGM package and any correspondence you’ve received from the board. Are they planning an increase in maintenance fees? Are they considering a special assessment? Are there any pending lawsuits? Planned maintenance or renovations?
DAY 7 - SELECT THE REMAINING MEMBERS OF YOUR TEAM
The process of selling your home requires a collaborative approach. In addition to securing the services of a real estate agent, you may also find it necessary to enlist the expertise of:
People to help get your home ready for sale (handymen, painters, gardeners, etc.)
Professional cleaners
Home inspector
DAY 8 - WHAT WILL BE THE EXPENSES FOR SELLING?
Be sure to anticipate and plan for ALL the costs associated with being a first-time seller:
Home preparation costs (home service pros, cleaners, Stagers)
Off-site storage
Pre-listing home inspection
Status certificate (if you live in a Condo)
Real estate commission (plus HST)
Legal fees (plus HST)
Mortgage penalties or bridging costs
Moving costs
Note: The Buyer pays all of the Land Transfer taxes in Toronto, Ontario.
DAY 9 - CREATE DUPLICATES OF YOUR KEYS
Many agents use lockboxes to securely provide access to your home for agents showing it to potential buyers. Having an extra key can also be convenient for coordinating with cleaning services and stagers.
DAY 10 - CREATE A LIST OF MINOR REPAIRS AND IMPROVEMENTS
I understand you’ve been postponing the to-do list for quite a while, but now is the ideal moment to address it. Develop a plan to address issues like the leaky faucet, ceiling cracks, bathtub caulking, and missing doorknob. First-time buyers can be sensitive to small issues and might overestimate the cost of these repairs. Create a comprehensive list of necessary fixes and discuss them with your Realtor.
(Pro tip: it’s easy to get carried away in this phase, so always seek guidance from your agent before making any expenditures.)
DAY 11 - COMPILE A LIST OF SIGNIFICANT TASKS THAT YOU NEED TO ADDRESS
To enhance the appearance of your home, you may have plans to paint some rooms, replace light fixtures, or upgrade worn-out carpets. It's a good idea to create a list of these potential improvements and discuss them with your Realtor.
If your agent is arranging for a professional stager, this is typically when they will conduct a staging consultation. During this consultation, they will provide you with precise instructions on decluttering, depersonalizing, and updating specific aspects of your home.
DAY 12 - ORGANISING CLOSETS AND CUPBOARDS, AND THE ART OF DECLUTTERING AND DEPERSONALIZING
Now it’s time to get real about preparing your home for sale.
Today's task: Clear out half of the items in your closets and cupboards. The last message you want to convey to potential buyers is that your home lacks storage space. Since potential buyers will inspect your closets, make sure to hang and neatly fold the remaining items. For extra appeal, consider organizing them by colour. Similarly, clean and declutter your bathroom and kitchen cupboards, eliminating anything embarrassing and striving to reduce their contents by half. Consider donating any household items, clothing, bedding, etc to local charities in order to de-clutter.
In the foyer, bedrooms, bathrooms, living room, den, and basement, initiate a thorough decluttering process. Additionally, put away any personal photos and mementos. The objective is to help potential buyers envision themselves living in your home rather than being distracted by your vacation photos.
It might seem overwhelming to prepare your house in just one day. You're probably right, but rest assured, there are still several weeks left before your home is listed for sale.
DAY 13 - SECURE A STORAGE LOCKER
While it may be tempting to stash your clutter and closet items in your basement or garage, keep in mind that potential buyers may inspect these areas as well. To maintain a clutter-free appearance, it's a good idea to explore the option of renting an off-site storage locker for a month or two. An even more convenient alternative is to rent a portable storage container that you can fill at your current residence. These portable storage containers are then transported offsite and delivered to your new home, making the process hassle-free.
DAY 14 - GIVE AWAY AND SELL UNWANTED ITEMS
Chances are, you've accumulated belongings in your current home that you'd prefer not to take with you to your new place. Consider organizing a garage sale, selling your unwanted items on platforms like Facebook or Craigslist, or donating them to a charity.
DAY 15 - CREATE A STRATEGY FOR YOUR PETS AND CHILDREN
We understand your affection for your pets, but it's important to acknowledge that the home-selling process can be quite stressful for cats and dogs. After all, what dog enjoys having a group of strangers in their territory? And as for cats, relocating their litter box to an unfamiliar spot can be quite unsettling.
Furthermore, having to swiftly vacate your home for showings can be challenging, especially when you have children.
If you have pets and/or kids, consider moving out during the listing period to either a friend/family's place or a short-term rental.
DAY 16 - FIRST-TIME SELLER EDUCATION: UNDERSTANDING THE DOCUMENTATION
Today marks Day 16, and you're well over the halfway point! While you're likely still occupied with preparing your house or condo for sale, it's also a great time to initiate your learning process. Request your Realtor forward copies of all the forms and documentation, enabling you to become acquainted with them. Your agent should provide you with the paperwork and be able to explain what they all mean.
In Ontario, you will be required to sign the following documents:
Working with a REALTOR - Listing Agreement
FINTRAC (government-mandated ID verification form for the prevention of money laundering)
MLS Data Agreement
Agreement of Purchase & Sale
Confirmation of Cooperation (this outlines the commission agreement between your agent and the agent who represents the Buyer)
You might also be asked to sign:
A Staging Contract
Seller’s Direction Re: Offers
Lockbox Authorization Form
Open House Authorization Form
SPIS (Seller Property Information Statement)
DAY 17 - UNDERSTANDING THE PRESENT MARKET CONDITIONS
As a first-time seller, it's likely been some time since you've closely followed the real estate market.
Engage in a discussion with your Realtor: What's the current state of the market? Are properties similar to yours experiencing bidding wars, and if so, how much are they selling over the asking price? Can you find out how many offers the house five doors down received on Monday? Are homes struggling to sell and remaining on the market for extended periods? What's the estimated time frame for selling your property? Request an updated list of homes currently available for sale in your neighbourhood and those that have sold in the last two weeks from your agent.
DAY 18 - CONTINUE WITH YOUR HOME PREPARATION!
I understand that this may not be the most enjoyable task, but the hard work you invest in preparing your home for sale will ultimately yield financial rewards. Be sure to:
Verify that all light bulbs are functioning.
Keep your kitchen counters clear.
Tuck away grooming products in the bathroom.
Organize the basement and garage.
Arrange for window cleaning.
Have the carpets professionally cleaned?
Eliminate scuff marks from your walls.
DAY 19 - UNDERSTANDING SHOWINGS, APPOINTMENTS, AND OFFERS
Discuss with your agent the logistics of appointments for viewing your home. Find out how much advance notice you can expect, the typical duration of showings, and the expected number of showings. Additionally, inquire whether your agent intends to host open houses.
Although your Realtor should provide you with a thorough explanation of the offer process and what to anticipate, it's also beneficial to educate yourself on how it operates. Conduct some research:
In-person offers vs. offers over email
The process for a normal offer, a bidding war and a bully offer
The negotiation options (accept, decline, or counter-offer)
Your own agent’s style and preferences
DAY 20 - UNDERSTANDING CONDITIONS
When it comes to receiving offers, it's essential to be well-acquainted with the various types of conditions that an offer might include. As a first-time seller, the most common conditions you're likely to encounter include:
Financing Conditions
Home Inspection Conditions
Status Certificate Review Condition
DAY 21 - FIRST-TIME SELLER EDUCATION: GRASPING THE CLOSING PROCESS
Closing day is the day when the new buyer takes ownership of your home and you receive payment. Here's what you should be prepared for:
Ensure your property is clean.
Removing all of your belongings.
Verifying that your appliances, furnace, and air conditioning are in good working condition (unless your agreement specifies otherwise).
Handing over your home to the new buyer in the same condition it was in when they purchased it.
Leaving all your keys with your lawyer.
Disconnecting your utilities and cable services.
DAY 22 - THE FRONT AND BACKYARD AREAS
Buyers form rapid impressions of a home, and the state of the front and back yards is of utmost importance. Here are some considerations:
Clear away soot, moss, and grime from walkways and decks.
Give a fresh coat of paint to the door, railings, and front porch.
Ensure your front steps are in excellent condition.
Replace the mailbox and house numbers.
Maintain the lawn, weed the garden, introduce some colorful flowers, and include attractive planters.
Clean the exterior of your BBQ and obtain a new cover for it.
Spruce up your patio furniture and invest in some new throw pillows.
DAY 23 - SMART STRATEGY FOR FIRST-TIME SELLERS: THE ART OF STAGING
Your home will be professionally staged up to one week before it's officially listed for sale. All the necessary preparations should be completed before the staging team arrives, and the property should be generally clean. It's advisable to plan to be away while the staging process is underway and to take your pets with you.
Witnessing your home for the first time after staging can be an emotional experience. Some individuals rediscover their affection for the place and wish they could stay, while others might miss the familiar elements that made their house or condo feel like home. Both reactions are entirely natural. Keep your focus on the end goal.
DAY 24 - CLEANING
Several Realtors, including ourselves, often arrange for professional cleaners to perform a thorough final cleaning just before the photography session. The objective is to present the home in the best possible light, ensuring it looks bright and sparkling.
DAY 25 - PHOTOGRAPHY AND FLOOR PLANS
Ideally, you've enlisted the services of an agent who collaborates with a professional photographer rather than taking the photos themselves. Photos will undoubtedly serve as the initial impression potential buyers receive when browsing for a home online, representing your first chance to make a strong impact.
Moreover, your agent should also be arranging for floor plans to be created. Floor plans are highly sought after by buyers and can greatly enhance the marketing of your property.
DAY 26 - PRE LISTING HOME INSPECTION
If you're offering a pre-listing home inspection to potential buyers, be sure to arrange it a few days before you intend to officially list your property on the market. This gives you the opportunity to address any minor issues identified by the home inspector and factor in any significant findings when setting your asking price.
DAY 27 - PROVIDE YOUR INPUT ON THE MARKETING EFFORTS
A top-notch Realtor should excel in marketing homes, like our in-house Digital Marketing Team. The finest agents collaborate with professional designers and copywriters and are committed to digital marketing. If you haven't done so already, inquire with your agent about the precise details of their marketing strategy for your home. It's entirely acceptable to request a preview of the photos and copy used for feature sheets and the MLS description.
DAY 28 - DETERMINE YOUR PRICING APPROACH
Should you opt for a higher initial price with room for negotiation, set a lower price to spark a bidding war, or price your property at market value and take your chances?
As a first-time seller, it's crucial to engage in a discussion with your agent regarding your pricing strategy a few days before your listing becomes active on the market. By this stage, you should be well informed about the properties you'll be competing with and the recent market trends in your neighbourhood.
In addition to the pricing strategy, you must also determine the actual asking price, as it will serve as a reference point for potential buyers.
DAY 29 - COMPLETE THE FINAL LISTING DOCUMENTATION
You're nearly at the finish line! If there have been any changes since your initial paperwork signing, such as the asking price, you will need to provide your signature or initials on the updated listing agreement. Additionally, you'll be required to approve the MLS Data Form. Take your time to review it thoroughly, as inaccuracies in the MLS listing can have a detrimental impact on your sale. Be sure to:
Your home is listed in the right neighbourhood
The lot size is right
The parking situation is correctly indicated
The listing includes the right number of bedrooms and baths
There aren’t any feature errors (e.g. ‘granite counters’ instead of “butcher block” or “hardwood floors” instead of “laminate”)
DAY 30 - FINAL CHECK AND OVERVIEW
You've dedicated considerable effort this month; congratulations! Take one last stroll through your home and endeavour to see it from a buyer's perspective. Do you find it appealing? Did you overlook anything important?
Now, take a deep breath and prepare to put your home on the market! Contact us for assistance.