About Essex County, ON

Once you've sold your home, you can proceed with your move and tie up loose ends.

Create a file in which to keep all closing and settlement papers: include receipts for any home improvements

you made while you owned the house. Even though it's unlikely you will have to pay capital gains tax, you will

need these figures for your next tax return.

If you are planning to buy another home, decide how much you need for a down payment and moving costs. If

you made a profit on your home sale, it may be wise to make a minimal down payment on your next home,

and invest the rest. This will depend on your tax situation and how the numbers evolve. Consult your financial

advisor. If you aren't buying another home right away, you may want to opt for a combination of long-term and

short-term savings and investment plans.

Make sure that your sales proceeds are in the right place when you issue checks at closing. Do a walk-through

of the property right before closing to avoid last-minute surprises.

Avoid getting caught by late payment fees: Before you move, send change-of-address notices to creditors,

professional associations, and publications to which you subscribe.

If you are closing your sale and purchasing a second home simultaneously, it's important to make sure your

utilities are switched off at your previous address and switched on at your new address around the closing

date.

You have identified the buyer. Now the buyer is busy with financing; until the sale closes, you are responsible

for keeping your property in the same condition as when the buyer saw it last. The closing date should be

clearly specified in your sales contract, which should include deadlines for the buyer to sign off on

contingencies. Make sure the buyer meets any deadlines you've set.

Be ready to deal with any problems that may crop up. For example:

Unsatisfactory Home Inspection - If the fix is major, you may want to split the cost of the repair with the buyer,

or give the buyer a cash credit at closing to cover the repair. If the fix is minor, or you are selling in an active

market, your sale might go through without any concessions on your part.

Preventive Measure: Make sure that your sales contract is specific in its inspection contingency and

doesn't allow for the entire transaction to be renegotiated on the basis of the inspection.

Low Appraisal - Your deal could fall through if the buyer's appraisal comes in lower than the agreed-upon sales

price and the lender refuses to issue a mortgage. Ask for another appraisal if you think the buyer's appraisal

was wrong, or renegotiate your price. Another option is to offer seller financing for the dollar difference.

Preventive Measure: Give the appraiser the most recent comparable sales from your neighborhood,

and make sure your home is in top condition.

Cloud on the Title - Title problems can take several forms, including unsatisfied liens against your property,

delinquent taxes, and encroachments on the property line. In order to clear the title, you will have to pay any

liens or delinquent taxes. Lawyers and Title companies are used to dealing with encroachment issues, which may be resolved with some kind of insurance policy.

Preventive Measure: Check your title before you sell and make sure it is clear.

Buyer's Remorse - Occasionally, an uncertain buyer will decide to pull out of the deal regardless of the

consequences. Try to work with the buyer's agent to determine the problem. You may be able to suggest a

solution that reassures the buyer and rescues the deal. (If not, you may be able to keep the buyer's deposit.)

Preventive measure: Learn all you can about the buyer's motivation before you accept an offer. Also,

be sure the sales contract allows you to keep the security deposit.

…(Continued)

your home. This can be an emotional process, especially if offers come in far below your list price, or your

home has been on the market for several months. This is why obtaining an experienced agent is essential, so

you know what to anticipate and can attack the market accordingly.

Never rush. Take the time needed to make an appropriate decision and never jump at initial offers. Consider

all offers carefully, and make sure that the terms are as favorable to you as they are to the buyer. Never

accept an offer on the phone. Contact your agent and meet in person. This rule will prevent you from

emotionally reacting.

Before you list your home, decide on the lowest acceptable offer. Keep this number to yourself; do not share

with your agent, as the number may change during the time your home is on the market.

Make sure that everything is in writing. This is for your protection and the buyer's. Documenting the process

helps avoid confusion and potential legal problems down the road. In most states, land transitions and their

details need to be in writing to be valid.

The majority of the time, you’ll want to counteroffer. Someone purchasing a home will almost always start out

on the low side, so take this into consideration. Using an agent during this process will be an advantage, as

they are use to this process... (Continued)

will provide an honest assessment of your home's value. When deciding an agent and sales plan, consider the

current market and your home's salable assets as well.

Comparative Market Analysis

A comparative market analysis should take into account repairs, improvements, and annual costs (such as

property taxes) of your home, in addition to its size, features, and amenities. Expect to get an analysis of

recently comparable homes sold in the neighborhood, as well as a list of equivalent homes currently for sale.

When you receive the analysis, break down the home comparisons to square footage. It will allow you to

analyze how accurate the CMA estimate is.

One Step Further

If you want confirmation of the list price you have in mind, get a pre-sale appraisal. Appraisers use comparable

sales in addition to other information to make their determinations. The appraisal will cost between $250 to

$500 dollars... (Continued)

strength of the market: supply verses demand. If you want to sell quickly, or you are in a buyer's market, you

may decide to set your price lower than market value. On the other hand, if you're in a seller's market where

multiple offers are common, you may want to set your price higher than market value... (continued)