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Category Archives: For Sellers

17 Things to Know About Closing Your House Deal

Source: http://www.moneyville.ca/article/1041152–17-things-to-know-about-closing-your-house-dea

Closing day in a house deal is a milestone for both the seller and the buyer. To make it go smoothly, it is very important that both buyer and the seller are properly prepared.


Here’s a checklist if you are selling:


  1. Make sure you have given your lawyer a copy of any deed, mortgage, survey and current property tax bills. You should have received these from your lawyer when you bought the house.


  2. Do not cancel your household insurance policy until you have heard that the deal has closed. Also, if you are moving out more than 30 days before closing, you need to notify your insurer that the home will be vacant. This way, you will still be covered if anything happens in the home up to the closing date.


  3. You will visit your lawyer a few days before closing to sign the papers. Make sure you give one set of keys to give to your lawyer, which will be passed on to buyer’s lawyer at closing.


  4. If you are a non-resident of Canada, you must obtain a certificate from Canada Revenue Agency regarding any income tax payable, or else the buyer will be holding back 25 per cent of the sale price until you do get it. Non-resident means you have not lived in Canada at least 183 total days in the past year before the closing day. This can take up to two months so let your lawyer know right away so that the proper application can be filed.


  5. Have all your utility meters read on the day of closing. That way you will only be responsible for your share of utilities. Also notify your cable and telephone provider so that your service can be disconnected. If your house is heated with an oil tank, you need to make arrangements to fill the tank on the closing day.


  6. Cancel any pre-authorized or postdated cheques at your bank, to make sure you don’t pay for anything after closing.


  7. As you have to be out of the property when it closes, arrange to move out before 5 p.m.



Here’s a checklist if you are buying:


  1. Schedule your pre-closing visit shortly before closing, so that you can conduct your final inspection to make sure that the home is in the same condition as when you signed the offer.


  2. Arrange moving time late in the afternoon, as that is likely when the seller will have moved out. If it is a condominium, and you need use of the elevator, contact the management company well in advance of closing to reserve the elevator.


  3. Fire insurance must be arranged for the full replacement cost of the home. If it is a condominium, you need a policy to protect your contents and liability. Do not leave this to the last minute.


  4. If you are arranging a mortgage for less than 20 per cent down, the bank will be deducting certain costs, such as mortgage insurance, appraisal fees and HST. Find out early what all these deductions will be, as you will have to come up with any difference needed to close your deal. Make sure you have provided the lender with all required proof of income, or down payment well in advance so that it does not delay the money.


  5. Your lawyer will be receiving a statement of adjustments just before closing. This could add to your closing costs if the seller has prepaid some expenses, especially property taxes. Find out exactly what this is as it can add up to 0.5 per cent more to what you may owe.


  6. You will need to deliver, at least 2 days before closing, the balance of money needed for your lawyer to close the deal, by certified cheque, money order or bank draft.


  7. Let the lawyer know how you will be taking title to the property. If you take as joint tenants and one of you passes away, the other party immediately becomes the owner. If you take as tenants in common, you can transfer your interest to a beneficiary under your will.


  8. Tell your lawyer to order title insurance for you. This will protect your property against title defects, survey issues, work orders and frauds while you own the property.


  9. Arrange for your cable and telephone providers to install service on the day of closing or immediately after closing.


  10. Contact the utility companies, to make sure they read the meters on closing, so that you are only responsible for charges after you move in.



Being prepared in advance will ease the stress of closing day and hopefully begin the creation of happy memories for you and your family.


4 Signs Your Home Is Overpriced

Source: http://financialedge.investopedia.com/financial-edge/1009/4-Signs-Your-Home-Is-Overpriced.aspx?partner=globeandmail#axzz1doP5dtWn

If your house has been sitting on the market for three or more tortuous months, your asking price may be to blame. Here are four tell-tale signs that it’s time to slash that listing price.


  1. No one is stopping by for a  look. Your house has been on the market for a month or  two, and showings have been scarce to none. Wait a second, do you hear that? Ah  yes, it’s the sound of warning bells ringing. If buyers are not even taking the  time to look at your house, it’s pretty sure sign that the price is too high.

    Of course, you may argue that this doesn’t necessarily mean that there’s no interest in your home. While you’ve had no  actual showings, that brochure box by your “For Sale” sign is empty and your  online listing has received hundreds of hits. If that’s the case, this only  proves that there is interest in your home, but something is keeping  buyers from scheduling a showing. What’s holding them back? You got it -your  absurdly high asking price.

  2. You’ve had plenty of showings but no  offers. So, your home has attracted a handful of  showings since it’s been on the market, but you still haven’t gotten an offer.  Of course, the Pepto-Bismol pink shower in the master bathroom or the turquoise  blue carpet in the living room could be to blame.

    Poor  design and color choices can certainly scare away potential buyers. But if your  home is tastefully decorated and updated, it’s more likely that your price needs  to come down. Some experts say if you’ve had 10 showings without an offer, your  home is probably overpriced. (Learn about alternatives to selling in Can’t  Sell Your Home? Rent It.)

  3. Buyers shower your home in  criticism. You’ve had plenty of showings, but your  realtor has noticed that prospective buyers make the same negative comments  about your home time and again. For example, they may continually complain that  your house is plagued with a pungent odor reminiscent of wet dog and rotten  tomatoes. Or perhaps they all point out that the 1970s-themed kitchen, complete  with pea green appliances, is a little outdated.

    Be sure to ask your realtor to notify you of any negative feedback from buyers. While some  of the comments may be difficult to hear, a little constructive criticism may  help you sell your home in the long run. Remember, there’s no room for hurt  feelings in home-selling.

    It may turn out that other homes  in your neighborhood have remodeled, modern kitchens and a more inviting smell.  If this is the case, you’ll either need to freshen up your home, give your  kitchen a makeover or (you guessed it) cut your asking price. After all, if the  price is right, prospective home buyers may decide they can live with a  pea-green dishwasher – or buy a new one.

  4. You have the highest priced home on the  block Let’s say comparable homes in your area are  priced much lower than yours. Houston, we have a problem. If your house is the  most expensive three-bedroom, two-bath, 10-year old home in your zip code, it’s  probably going to be the last one to sell.

    Ask your realtor for regular updates on home prices in your area. He or she can show you the  closing price on homes similar in size and age to yours and notify you when  comparable homes drop their prices. This will help you decide if it’s time for  you to drop you price, as well.



So, after picking up on some of these warning signs, you  finally give in and drop your price. But you still haven’t received an  offer. What’s the deal? You probably haven’t cut your price enough.

Realtors say if you’re going to lower your price, don’t do it in small  increments. After all, there’s really no difference between $225,000 and  $224,900. Buyers won’t fall for that. If you’re going to slash your price,  you’ll have to lower it by at least $5,000 for buyers to take  notice.

Read more: http://financialedge.investopedia.com/financial-edge/1009/4-Signs-Your-Home-Is-Overpriced.aspx?partner=globeandmail#ixzz1icPlJVbN