Welcome to RochefortRealty.com - Susan and Stephen Rochefort

Sellers Q&A

CHOOSING A REALTOR®

How do I choose which Real Estate agent to use when there are so many?

Trying to find the right REALTOR® can seem overwhelming and confusing but it should be quite simple. You need to find an agent you can trust, that will be honest with you, has a method for determining a price for your property, provides you information on buyer trends and has a strong marketing plan for selling your home. NEVER choose an agent based on the highest price they are willing to list your home and NEVER choose an agent based on the cheapest commission rate (remember, you get what you pay for!). You have as much say in the price that your home is listed for as your REALTOR®. REALTOR’s® have a code of ethics and included in that is the fiduciary duty that the REALTOR® must obey your lawful instructions. Don’t be afraid to interview a few different agents, not all REALTOR’s® are created equal!

How soon before I am ready to list my home, should I contact a REALTOR®?

Personally, our preference is that ANYONE who is considering selling their home within the year, give us a call right away. This is because we enjoy providing information and educating potential sellers on the market well before they plan to put their home on the market. There are times sellers have waited too long to list their home and end up in a difficult situation. There have also been times that we have saved sellers thousands of dollars in renovations because they had planned to complete extra work that would not help with the sale of their home. Therefore, if you are thinking of selling, call us right away and we would be happy to provide you with important information.

I am not happy with the services of my REALTOR®, what can I do?

All REALTORs® are expected to follow the law, rules of the real estate board and real estate council, and a code of ethics. The primary duty and care that a REALTOR® has is to their clients. If your REALTOR® is not providing you with the services that they committed to providing you then you have the right to cancel your contract.

COMMISSIONS

What can you tell me about commissions?

Commissions are negotiable and will vary between REALTORs®. Personally, we feel the old adage, “you get what you pay for”, goes a long way in this business. In our business, we offer a variety of commission packages and commission rates to potential sellers. These packages include various mediums for marketing including print media and on-line, as well as the Multiple Listing Service (MLS)®. Basically, with our packages, the more advertising that is done, the higher the commission rate that is charged.

The commission that is paid by the sellers, is the amount used to pay the REALTOR® that lists the property as well as the REALTOR® that brings the buyer. The commission is often equally shared between both REALTORs® and all expenses are deducted from these commissions.
Many consumers are not aware that most REALTORs® are responsible for ALL of their own expenses. In some offices, REALTOR’s® even have to pay for the coffee that is given to their clients while they wait in the office! REALTORs® are independent contractors to each office they work for which is why you can have two very different REALTORs® working out of the same office. The commissions that we charge are used to pay for the following costs starting with some of the more expensive costs;

Vehicle lease, fuel and insurance – this is one of the most expensive costs for a REALTOR®. On average, a two year lease costs $900/month with 40,000km’s per year. Fuel costs can run as high as $200 per week on an efficient SUV.
Advertising – this is another extremely high expense for a REALTOR®. As an example, for a 1 month full page ad in the Homes & Land magazine, the cost can average $1,000 a month. For a half page, 2 day, black and white ad in the Red Deer Advocate, the cost can be as high as $2,400 just for 2 days!
Monthly office rent – these vary depending on the office but these fees can be as high as $3,000-$5,000 per month. And besides a small office space and access to office equipment, all other fees are at the expense of the REALTOR®.
Board fees including the local board office (ie-Red Deer and District Real Estate board), AREA fees (Alberta Real Estate Association), CREA fees (Canadian Real Estate Association) and MLS fees.
Cell phone and other telephone costs – Although we utilize the best of technology in our business, we average $400 per month for each of our cell phones.
Computer equipment – a laptop is a must in this business!
Business cards, letter head, office supplies
Photocopying
Courier charges
Seminar and educational costs
Listing and purchase contracts
Business liability insurance – not only is there REIX fees to pay, there is also general liability insurance that a REALTOR® must carry.
Promotional products such as pens, presentation folders
Health care premiums
Thank you gifts

Do I have to call the REALTOR® that has the house listed to view the house?

No! In Alberta, any REALTOR® can show you any house that is listed on MLS. If you have chosen to work with a REALTOR®, your REALTOR® would prefer to show you the property rather than you calling the REALTOR® who listed the home. Remember, REALTORs® are paid based on a commission so if you are working with multiple REALTORs®, the only REALTOR® who will get paid, is the one that writes the offer with you.

I have interviewed 3 REALTORs® and one has offered to charge me less commission than the other two, should I use the REALTOR® that is offering the lower commission?

Of course, our answer to this question is a big, fat NO! There is a reason that many of the commissions quoted by REALTORs® are close in price and that is because in order to stay profitable and make a living in this business, a REALTOR® must earn a certain amount of commission to cover costs and make a profit. Our business is no different than any other business. If you call 3 plumber’s and ask for their hourly rate, it is likely that the rates you get are going to be similar. The question you have to ask yourself is, if a REALTOR® is willing to charge a lesser commission and give their own money away, what is to say that same REALTOR® isn’t going to easily give my money away when negotiating with an offer? How good are they at negotiating if they cannot even negotiate their own commissions?

PRICING

Will I get an idea of what my house is worth by touring open houses?

Personally, we feel this is a bad idea! Here is why.

The prices you see at the open houses are the asking prices not the selling prices. These prices can vary largely. So, it is important that you do not base your house on asking prices. Secondly, the general consumer is not familiar with what buyer trends are. What you might like or want, may be something totally different than what the average buyer is looking for. This is where the experience of a REALTOR® who works with buyers on a regular basis is very important.

How do I get an estimate of what my home is worth?

As a complimentary service to potential sellers, we will provide a Comparative Market Assessment that gives you an idea of what your property may sell for if you were to place it on the market.

What is a Comparative Market Assessment?

A comparative market assessment is simply a calculation of what your property may sell for. To assess what your property might sell for, current sold properties that have similar characteristics to your property are used to compare.

What is involved in a Comparative Market Assessment?

Each REALTOR® has their own way of completing a comparative market assessment. When we complete an assessment, the first thing we do is visit the property, complete a room by room walk through, and take many notes. The purpose of this is to gather information such as size of the house, number of bedrooms, number of bathrooms, type of layout, interior and exterior condition, type of flooring, finishing and location. This process takes between 30 and 60 minutes. Once we have completed the walk through, we return to our office to complete the assessment on paper. Finally, we meet to discuss the results of the comparative market assessment which can take between 30 to 60 minutes depending on how many questions the potential sellers have.

How is the price determined?

Although a REALTOR® can give you an estimate as to what you can expect to sell your property for, ultimately the market is going to determine the price. The sale price of your property is determined by supply and demand: how many properties are for sale, how many of those properties are your direct competition and what is a buyer willing to pay.

I smoke in my house, is this going to affect how much I will get for my house?

Absolutely! If you are a smoker and would like to sell your house, you must be willing to quit smoking in your home or this will have a serious impact on the price you will receive. You should also have a professional clean your carpets, walls, cupboards and ceilings. With a society that is becoming more and more health conscious, it is extremely important to ensure that you do not smoke in your house while it is on the market.

MARKETING

What can I do to help my home sell?

There are a variety of things you can do to help sell your home. This is exactly why you hire a REALTOR® to market your property! We provide a complete list of things to do as part of the services we provide to our clients.

What type of marketing is effective for the sale of my home?

Each REALTOR® is going to have their own opinion on this but our belief is that the more we can promote your property, the more chance you have at selling your property for the best price. Of course, the best marketing medium that will give your property the most effective exposure is the Multiple Listing Service (MLS)®.

Do you place the properties you list on the Multiple Listing Service (MLS)®?

Absolutely! The Multiple Listing Service (MLS)® is the number one market tool that we can offer to our clients.

Are Open Houses important?

We believe open houses are very important for two reasons. The first is that it gives another medium for marketing your property. Although very few houses are sold through open houses, it does give your property additional exposure. The second reason is to get feedback from the viewers. If an open house is worked properly by a REALTOR®, a seller can gain valuable insight into the marketability of their property in comparison to the competition.

VIEWINGS

What should I do with my pets when I have showings or open houses?

There are some buyers that are very sensitive to animals and it could be a make or break for someone. You should try to keep your pets in a kennel (including cats) or take them out of the house. It is very difficult for a REALTOR® to show the property when there is a dog continually barking or a cat trying to rub up against the potential buyers.

How much notice will I get when there is a showing?

Most REALTORs® know that it is common courtesy to give a few hours notice. Some will give 2-3 hours notice and others will give 24 hours notice. There are times that there could be requests for showings with as little as 15 minutes notice but it does not mean you need to accommodate these showing requests. Do keep in mind that you want to be flexible when you can as these are potential buyers.

OFFERS

Should I accept the first offer that comes in?

This depends. There is a saying in this business that sometimes “the first offer is the best offer”. Our advice to you on this is that it depends on the offer. You should always try to work with every offer you receive to see if you can find a solution that is mutually beneficial to both you and the buyer.

HOME INSPECTIONS

Why do buyers want a home inspection?

A home inspection is a part of a buyers due diligence to ensure they understand what they are purchasing and to ensure there are no major problems with the property. A buyer also needs to understand what types of maintenance costs they can expect in the first few years.

Normally, the cost of home inspection is the responsibility of the potential buyer.

If you are concerned there may be a major problem with your property then you can pay to have a home inspection completed before you list your property for sale.

What happens during a home inspection?

The home inspector will arrive at the property and spend between 2-3 hours inspecting the property. The major items they will check are the roof, furnace, and hot water tank. The will check the attic for any signs of water damage and the amount of insulation. They will also check the electrical panel, the plumbing and the overall condition of the property both inside and out.

POSSESSION DAT

What needs to be done before possession day?

There are a variety of things that will need to be done before possession day including shutting off the utilities, changing addresses and getting everything packed! As a service to our clients, we provide a checklist of things that need to get done.

Do I have to clean my house when I leave on possession day?

There is no provision in the contract that forces you to make sure your house is clean but as a common courtesy to the buyers, you should make sure your property is well cleaned. The buyers have paid a large sum of money to purchase their new home and the most disappointing situation on possession day is to walk into their home only to find it dirty. We have a checklist of items that we provide to our sellers that should be completed prior to possession day.

What time do I have to be out of my house on possession day?

Technically, the contract states that you will have to be out of the house by noon on the day of possession. We recommend that you try to be out well before noon or even try to be out the day before possession.

When do the buyers get keys to the house?

The REALTOR® that is representing the seller will hold the keys until the seller’s lawyer calls to say that the funds have been received and the keys are releasable. The point when keys are releasable could at any time during the day.

When will I get the money for the sale of my home?

If you are purchasing another property then the money from the sale of your home will be used for the purchase of the new property. If there is any money left over, the lawyer will prepare a cheque the same day or the next day after the possession day. There could be a delay if the money from the buyers is not received on possession day. In this case, the cheque would be prepared once the money has been received.

When do I have to sign papers?

The lawyer will call you approximately a week before possession to have you come in and sign the transfer or title and other closing documents.

GENERAL

I have to sell my current home and I would like to buy a new home, what are my options?

In general you have three options, some of these will depend on your financial situation:

Place your home on the market and wait for an offer before you make an offer to purchase another home
Find a home to purchase and make an offer subject to the sale of your current home
A financing option called “bridging” allows you to carry two mortgages. That way, you can purchase your new home without the conditional sale of your existing home.

What are the basic steps to selling my home?

When working with us, these are the steps to getting your home listed for sale:

Contact us to give you a market assessment of your property and tips for preparing your home for the market (i.e. staging tips, maintenance tips, renovation tips).
Review the market assessment with us to determine what price your property should be placed on the market at.
Prepare your home for the market.
Sign the listing contract.
Let us do the rest and wait to hear from us with requests for showings!

What are good re-sale features in a home?

Based on our experiences with buyers in Central Alberta in 2007, these were some of the more appealing features:

3 bedrooms on the main floor over 2 bedrooms
A house that is located in a crescent or close that does not back or face onto a busy street
A bungalow or a bi-level home over a 2 storey
Neutral floor and paint colors
In a house 10 years old: new carpet, paint and fixtures
In a house 20 years or older: new shingles on the roof, new furnace and hot water tank. New flooring, paint and fixtures.
A 2bdrm condo over a 1 bedroom condo
A larger kitchen
A house over 1,200sq ft
A 24x24 (or larger) garage, although this size of garage is quite rare in Red Deer!

What do you feel the hardest part of selling a home is for people?

We feel the most difficult part of selling is to disconnect your personal ties to your home. Once your property goes on the market, it becomes a product that is for sale in a marketplace. It is very important to stay very objective through the process in order to accurately assess the condition of the property and the pricing compared to your competition.

How long can I expect to wait for my property to sell?

Depending on the market, this could take 2 days or 120 days. In a market where there are large amounts of houses for sale and fewer buyers, it can take 90-120 days to sell your property. In a market where there is little for sale yet many buyers, your house could sell in just a few hours! Pricing your property higher than your competition will likely result in a longer sell time. It is the first two weeks that your property is on the market that it is the hottest and most likely to receive an offer if priced well!