The Selling Process

Comparative Market Analysis (CMA)

Often, a real estate agent refers to a Comparative Market Analysis (CMA) when working with you to price your home. A CMA is a report that compares similar properties in your area that have recently sold, are currently on the market, or were listed but did not sell. A CMA can be beneficial in estimating the value of a property and determining an appropriate listing price and can support the seller in many ways:

• Estimate of price to list a property.
• Identify areas of the home that might need improvement compared to other properties for sale in the area.
• Help sellers understand what other properties are for sale in the same market, which may impact the seller’s strategy for pricing their home.

Home Evaluation

Like a CMA, a home evaluation can provide a lot of value to a home seller. An evaluation consists of assessing a property's value, condition, and potential improvements conducted by a professional appraiser. A Home evaluation can benefit a seller in a number of ways:

• Provide a property’s accurate and timely value based on current market value. This information can be helpful when deciding whether to sell the property or refinance a mortgage. Help determine a property’s listing price.
• By analyzing comparable properties in the local real estate market, an appraiser or real estate agent can provide guidance on how to price the property competitively and attract potential buyers.
• Help identify potential improvements or repairs that could increase the property’s value.
• Negotiating power: An accurate home evaluation report can give a homeowner more negotiating power when selling or refinancing. They can use the report to support their asking price or to negotiate a better deal. Provide homeowners with a better understanding of their home’s equity, which is the difference between the home’s market value and the outstanding mortgage balance. This can be helpful when looking to purchase another property.

Home Inspection Process

Most home inspections are typically paid for by a home buyer and are a condition to purchase a home. As a seller, there are benefits to having an inspection done on their property:

• Transparency of any issues with the property. A home inspection will reveal any problems and help buyers understand the property’s condition. This often can result in a quicker closing process as the condition of a home inspection is removed.
• Pricing can also be impacted by a home inspection. If the property has issues, the homeowner may repair them to help increase the property value or avoid pricing challenges during negotiating.

Offer and Negotiation

The offer and negotiation process is a critical step that involves several stages and may be repeated several times until you find the right buyer for your home. When a seller receives an offer from a potential buyer, it includes much more than the proposed purchase price. It typically includes

• Closing date: Timelines can vary greatly depending on the circumstance. Some may wish for a quicker closing date. In comparison, others may opt for a longer closing date to allow them the time to secure financing or to sell their own properties.
• Conditions: These conditions must be met before the property sale is complete. These often include a satisfactory home inspection, appraisal, or the sale of the buyer’s current proper.
• Inclusions and exclusions: Buyers may request for specific items to be included or excluded in the sale, such as light fixtures, window coverings, hot tubs, etc. A buyer may wish to leave smaller items out of the sale. Therefore, it would be the seller’s responsibility to remove it before the home’s sale.
• Purchase price: This, of course, is the main focus for most sellers. Potential buyers may offer less than the listed price, while others may offer more to close the deal quickly. The seller can accept, reject, or counter the offer. If the seller counters, the buyer can accept or make a counter offer. This process can continue until both parties agree on the terms of the sale. It is important for sellers to carefully review the offer before signing anything. Work with your real estate agent, and ask any questions you need to clarify what is being asked.

Closing

It should be noted that there is a difference between “Closing” and “Closing Day.” Once you have accepted an offer from a buyer, a copy of the Offer to Purchase Agreement will need to be sent to your lawyer for review. Your lawyer will prepare closing documents, such as the transfer of land and title transfers. The closing of a property may be quick or may take up to several weeks to complete. “Closing Day” is the official day the property will transfer from the seller to the buyer. This will require that all the necessary paperwork and financing is completed so the buyer can take possession of the property.