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The Home Selling Process: What You Need to Know

The Home Selling Process: What You Need to Know

Selling your home may often seem like embarking on an adventure. There are several things you will need to consider besides the sales price. These items include the mortgage remaining for your home, the details of the sales contract, and insurance requirements during the period your home is for sale, just as a start. However, if you have the right information at your disposal, you will find that the home selling process experience is smoother than you originally anticipated.

Preliminary Information

There are a few bits of preliminary information that are helpful to see to before you go through the sales process. These include:

  • Mortgage Information – Contacting your lender first is a good way to sort out any special conditions that may apply to your mortgage. There are both open and closed mortgages and the type you have may depend on whether you can use your sales proceeds to pay off the remaining mortgage without a penalty. This option is possible with an open mortgage, but not a closed one. Other options to consider are whether you want to port your mortgage to a different home that you buy.
  • Terms of the Purchase Contract – Purchase contracts are created according to industry standards and Alberta real estate law. Buyers have the options of accepting, rejecting or countering offers. You have the discretion to keep information on whether you have multiple offers private. The contracts will usually have conditions mentioned that include inspection reports and proof of financing. 
  • Property Insurance Conditions – Alberta law puts responsibility for any property damage during the selling process in the hands of the seller. Most industry representatives suggest maintaining insurance on the home until the funds from the buyer are received. If you are not currently living in the house, you’ll need to find out what your insurance carrier’s requirements are for proper coverage.

Finding a Real Estate Professional

Real estate professionals with the Real Estate Council of Alberta offer valuable advice, including helping determine listing prices. One of the first things they’ll be able to do is provide a market evaluation that lists current neighbourhood sales prices. There are several relationship options sellers may have with real estate professionals, including either common law or designated agencies, customer status and transaction brokerage.

Documentation and Disclosures

Some of the items you might need to start the sales process include:

  • Real Property Report showing municipal compliance
  • Condominium documents (if applicable)
  • Information on defects and inclusions or exclusions

The Real Property Report provides the necessary information to show that your home complies with municipal regulations. In the case of a condominium, you’ll need the documents that pertain to this type of home.

Disclosures will cover two types of defects, known as latent defects and material defects. Latent defects are not discoverable during inspections, while material defects are seen as significant and possibly affecting the value.

Attached items, such as curtain rods, usually stay, but you can negotiate whether these go with you. Leased items, including alarm systems and similar devices, will also require consideration.

Legal Help

A lawyer can help create an easier title transfer or mortgage discharge process. Legal advice can also be helpful for determining your tax liability. Using the right professionals will help ensure a smoother process all around.

The process of selling your home doesn’t have to be difficult when you’re equipped with the correct knowledge for the items above.

Happy selling!

 

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About The Author

Jeff S.

Proud father and husband. Loves music, Nine Inch Nails, UFC and inbound marketing.

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