Selling Real Estate in New Brunswick
Selling real estate: Good things to know.
Selling real estate—in New Brunswick that’s most often a home—is a big transaction. You’ll want to be sure that your finances, your home, and your schedule are in order. It can be complicated and time-consuming, so most people who sell a home in New Brunswick do it with the help of an agent. The main reason most people choose to go it alone is to save money. If you have the time and ability to sell your property alone, you could save the typical 5% of the sale price that real estate agents normally charge.
For many people, the benefits of a real estate agent are worth the cost. An agent is convenient, because they handle many aspects of the sale; they may be able to negotiate you a higher price; they bring knowledge and skill to the table; and they may help you sell faster.
Understand market conditions
In a buyers’ market, there are many homes for sale and fewer buyers, so homes may sell for less than market value. In a sellers’ market there are fewer homes for sale and many people looking to buy, so homes may sell for more than market value.
Things like market conditions, how quickly you need to buy and your financial situation should all factor into your buying decision.
Preparing your finances and your home
If you are selling your home and still have a mortgage to pay off, review your mortgage agreement to see what your options are. Depending on what type of mortgage you currently have, you may pay a penalty for discharging (paying off) your mortgage early. Talk to your lender or financial institution and be sure you have a clear understanding of your rights and obligations under your current mortgage agreement.
It’s a good idea to have a clean home when you are selling it. Tidy up inside and put your best foot forward for potential buyers. Curb appeal is also important—keeping gardens and landscaping tidy can add curb appeal that attracts buyers.
If you are thinking of making any upgrades to your home, your salesperson may be able to help you decide which type of upgrades will add the most value to buyers.
Set an asking price
Even if you think you have a good idea of what your home is worth, research the value of homes nearby and what homes in your area have sold for recently.
There are a number of factors that can impact the value of a home, such as location, market conditions, and the condition of a home. This research can give you a general idea of what is happening in your local market. A real estate agent can also give you advice and help you set an asking price that will attract buyers and maximize your profits.
List and market your home
If you’re working with a real estate agent, they will list and market your home for you. This may include using listing services like MLS (realtor.ca), media, for sale signs, networking with other agents and salespeople, holding an open house, and showing your home to potential buyers.
Accepting an offer
If a buyer is interested in your home, they will put in an offer. The offer will include things such as their offered price, what they would like included with the house (such as appliances, which are included unless the offer specifically excludes them), an expiration date and any other conditions.
You must respond to the offer before the expiration date or the buyer is no longer obligated to honour their offer.
You may choose to accept the buyer’s offer, reject the offer, or provide a counter offer. You may choose to provide a counter offer if you want to propose changes such as a new price, different items included with the home, or a different closing date. The buyer then has the same choice to make—accept, reject or counter your offer. This process continues until you come to an agreement, then the offer becomes legally binding.
Typically, once you accept an offer, the buyer must pay a deposit. This deposit amount will be included in the agreement and funds will be provided to your agent to be held in trust until the sale closes. Once the sale closes, the deposit will be applied towards to the purchase price of the property. It is important that you understand the conditions of the offer, and who is entitled to keep the deposit if the sale does not move forward as expected.
Closing the sale
Real estate agents work with both you and the buyer and co-ordinate with their lawyers to confirm that the transfer of the property to the new owner takes place. The buyer’s salesperson may take them on a final walk through of the property prior to closing to ensure that everything is in place. Once the financing and legal work required to close the sale is finalized, the buyer’s salesperson will provide the buyer with the keys to the property.