Prepare for multiple offers on your home

Our Last 3 sales all SOLD in Multiple Offers and for more than list price within days of going on the market.

From finding the right rep to buyer showings, there’s lots to do.

The details of how your home is marketed and sold should be included in the agreement with your real estate rep.

The details of how your home is marketed and sold should be included in the agreement with your real estate rep.

The spring real estate season is in full swing and in some areas of Ontario, where demand for homes exceeds supply, sellers may receive multiple offers at one time. It’s exciting to think about the prospect of receiving more than one offer on your home. Remember, thought, that there are a number of important steps and decisions to make before the “for sale” sign goes up.

You’ll want to meet with several registered real estate professionals before selecting the one who’s right for you. Asking friends and family who have recently bought or sold a home for referrals is a good place to start.

Take the time to ask questions, learn about the representatives’ experience in selling properties similar to yours and discuss their approach for marketing your home. This is also a good time to voice your expectations about the sale process and strategy. Remember to visit the Registrant Search feature on RECO’s website (www.reco.on.ca ) to verify the representative’s registration.

Once you select a representative that you’re comfortable with, you’ll be asked to sign a listing agreement. This is a legally binding contract between you and the brokerage where your representative works. Before signing, ensure you read and understand the agreement in full. If there is anything you are unsure about, discuss it with the representative or the brokerage’s manager, and consider seeking independent legal advice before signing.

The way your home will be represented on the market, plus the other details you discussed with the agent should be included in writing in the listing agreement. If your representative recommends additional suppliers, for example a home inspector, home stager, or photographer, satisfy yourself about the benefits of these services and determine who will pay for them before agreeing to engage them. Most disagreements are not because someone is trying to pull a fast one, but from a lack of common understanding on the part of both parties.

Once your home is listed, you’ll want to get ready for visitors. Between open houses and showings, there could be a significant number of people coming through your home. Be sure to remove and securely store all valuables, including jewellery, small electronics, financial statements, credit card receipts and prescription medications.

Agree with your representative on a game plan for showings and offers. For example:

  • How much notice do you need before agreeing to a showing for a potential buyer?
  • Do you want someone to escort potential buyers through the home at all times during an open house?
  • Do you want to receive offers via email, fax or in person?
  • Do you want potential buyers to submit offers at any time or on a particular date?

Consider what is important to you and discuss the pros and cons of each option with your registered real estate professional.

If you receive more than one offer, your representative is obligated to disclose certain but limited information to everyone that has submitted an offer: the number of offers that have been received, whether any of the buyers are represented by the same brokerage as you and whether the brokerage has a commission agreement with you, the seller, that may give its buyers an advantage.

Once the offers are presented, you have a choice of action: accept one of the offers; reject all the offers; send offers back for improvement; or make a counter-offer to one buyer.

In keeping with the Code of Ethics that governs real estate professionals in Ontario, your representative is required to keep the details of each offer confidential between you and themselves. They can’t share the details of any offers with anyone without your permission, though they must disclose to those making offers the items described above.

In some cases, sellers may provide potential buyers the opportunity to improve their offers (also referred to as sending back the offer). Keep in mind, this approach has risks that you should discuss with your representative.

In selecting an offer to “work with” or accept, you don’t have to select solely based on price. If other considerations, such as the deposit amount, closing date or conditions, are more important to you, you can select an offer that best suits your preferences.

Click Here for Full Article: Toronto Sun Article

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