You’re ready to sell... Now what?
Selling a property means you’ll be making a number of important decisions. Hiring a skilled industry member to work on your behalf is invaluable. My expertise ensures you understand each and every step of this complex process.
Hiring Industry Members
Industry members complete extensive education before becoming licenced and continue to take courses throughout their professional career. They are also licensed and regulated by the Real Estate Council of Alberta.
What’s your price
One of the first decisions you need to make is the listing price. Meaning, what price you’ll ask for your house?
Your industry member can help by providing a current market evaluation. This evaluation compares recent housing sale prices in your neighborhood - making it easier for you to choose a fair & equitable listing price that makes sense.
Your service agreement should also include the amount or method of calculating the remuneration paid to your industry member and the conditions for payment. Keep in mind that the amount of commission between you and your industry member may be negotiable.
Commission payments are made to the brokerage, who then pays the industry member that worked with you.
Remember: Real estate, mortgage brokering and real estate appraisal are services, so Goods and Services Tax (GST) are applicable.
Gathering your Documents
To facilitate the marketing of your property, a current Real Property Report is necessary. This document provides a buyer verification of municipal compliance. Condominium owners also need to gather applicable documents. If you’re unfamiliar with these documents, contact your industry member or lawyer for further information.
In Alberta, spouses that aren’t listed on title may have a right to make decisions about selling the property. This is called Dower Rights and is derived from the Dower Act. The untitled spouse must consent to a sale, in writing, on every house sale as long as your married in order for the sale to proceed.
See your lawyer for further information if you believe this applies to you.
Mortgage Payout Penalty
Beyond the sale price, other financial factors may impact your decisions during the selling process. Before you sell, call your mortgage lender to clarify the terms of your mortgage and to discuss options. When working with an industry member, you’ll be asked to sign a mortgage verification form. This grants them permission to verify your mortgage terms and conditions.
If you have an open mortgage, you’ll probably be able to discharge it without penalty. If you have a closed mortgage, you may have to pay a penalty. You may be able to transfer (port) your mortgage to the home you purchase. You can clarify this with your mortgage lender prior to listing your property.
A buyer may ask to assume your mortgage or borrow the money from you to purchase your property. There are costs and potential liabilities with each option, so it’s critical you understand your particular situation. It’s important you remember payout penalties can be substantial.