10 tips for selling your own home

Thinking of giving for-sale-by-owner a try? Here's what you need to know to make it a success.By Elizabeth Rogers, 50Plus.com

Private sale wasn't the first strategy that came to mind when Elaine* and her sister helped their father sell his home when he decided to move. However, a lack-lustre response from real estate agents made them think twice about using an agent at all. They figured "why not put up a for-sale sign and see what happens?"

Elaine and her sister aren't alone in their thinking. Some estimates say that as many as one in four people sell their home privately. For-sale-by-owner (also known by its acronym FSBO) is still a new idea to many people, but the increasing amount of information and services available to help is making the idea more appealing. After all, a real estate brokerage can charge five per cent or more in commission to sell your house. More people are wondering: is it really worth it to use an agent?

If you're considering a private sale, here's what you need to know to make it a success:

Think like a sales person

The best place to start is to know your product, and then figure out how to present it to its best advantage. Start by taking notes about the features of your home that a potential buyer might be interested in. Don't just consider what's in your house, but also what's around your house. Are you close to schools, shopping or other amenities? What upgrades have you made to the home, and when were they done?

Once you've got a list, it's time to start formulating your sales tactics. Not only will you need to write ads to sell your home, but you'll also want to prepare a sales pitch to respond to phone calls or unannounced visitors.

Being ready to respond to unexpected questions is also important, Elaine advises. And the more you know about your home, the better. For instance, prospective buyers might want to know how much it will cost to heat your home in the winter or how much property taxes will be. Utilities bills and tax statements can serve as proof. If you've got receipts showing when improvements were made, like a new furnace or new windows -- keep them handy as well.
Develop a budget -- and know how to spend it

Do you get to keep all of the savings in commission we mentioned before? No -- you should expect to spend a portion of that on advertising and other services that would normally be covered by an agent. As with any home sale, expect to spend money to make money.
Doing a little number-crunching before you set out can help you see where money will be well-spent. Remember, you have to pay some expenses, like hiring a lawyer and doing some repairs, whether you use an agent or not. Some services like home-staging consulting can actually add value to your home by making it more attractive to buyers. A home inspection can give you a heads-up as to what needs to be done around your home -- you might want to repair them first, or find out what their worth before you enter the bargaining process.

Research your home's market value

Property listing service PropertySold.ca warns that one of main reasons that private sales fail is that owners overprice their home. How can you get a realistic idea of what your home is worth?

-- Talk to your neighbours, particularly anyone who has recently sold a home in your areas.
-- Check the listings in the local newspaper or online (online classifieds, MLS.ca, etc) to see what homes in your neighbourhood are selling for. (Many cities now have a real estate advertising television channel such as REtv).

-- Have a professional appraisal done.

Many people invite an agent (or a few agents) in to get an opinion. The feedback can certainly be useful, but this isn't the only number you should rely on. In Elaine's case, the quoted price was too low so they used other means to estimate the home's worth.

Develop a marketing plan

Where and how will you get people's attention? If you're in a high traffic or well-travelled area, a for-sale sign might be enough to get people looking. However, you should consider a balanced approach that also includes listing your property online and taking out a print advertisement in a local publication. You may also want to consider hosting an open house as part of your plan.
Don't underestimate the importance of networking. Let your friends and colleagues know that your home is for sale, or put up a poster at your church or community centre (if allowed). Take advantage of social networking sites like Facebook where you can advertise your home.

Get organized

Keeping track of advertising, phone numbers and appointments can be tricky, so it's best to think about your strategy ahead of time. PropertyGuys.com recommends purchasing an appointment diary or calendar to help with this process.

For clarification and transparency in the process, be sure to keep track of the details such as names, dates and any next steps in the process such as where and when you take out advertising. You can also use your diary or file to keep track of your budget.

Set the stage

Most home experts agree: how your home looks will have a big impact. Potential buyers typically look for clean, spacious and bright homes. Tackling clutter is usually the first thing home stagers recommend, but some thorough cleaning and a fresh coat of paint will make your home more attractive. Stashing your personal items -- whether it's family photos, knick-knacks or every day items like your tooth brush and shampoo -- will make buyers feel less like a guest in someone else's home.

If you want some extra help, hiring a home-staging consult for an hour or two can be worth the investment. If you're looking to keep costs down, Elaine recommends bringing in a friend instead, particularly someone who will give you an honest opinion. Give them a practice tour of your home and take note of the feedback. Online articles, TV home decorating shows and magazines are also inexpensive sources for good advice.

For more tips on home staging, see MoneySense's Winning the real estate war: 10 tips from home stagers.

Prepare for negotiation

Now's the time to dust off those bargaining skills. Are you ready to negotiate the price, or handle a potential bidding war? Also, don't let the thought of deals and contracts scare you off if you're not an experienced seller. Here's where your real estate lawyer can help: They can evaluate the terms of any contract and help you evaluate any offers. They can also advise you on what you need to disclose about your home.

Another thing to consider: Just because you're not using an agent, doesn't mean a buyer won't. That agent will have to be paid somehow -- so either advertise "no agents, please" or be prepared to account for his or her commission in the asking price. You might be able to negotiate a flat fee rather than a percentage.

Think about safety

There's going to be a lot of attention on your home and its contents, and there is some risk involved when inviting strangers into your home. So what can you do to stay safe?

- Enlist help. For their own safety, Elaine and her sister agreed to both be present for appointments with potential buyers. If one or the other (or one of their husbands) wasn't available, they had a plan to invite a friend instead. Two people can provide better supervision for touring groups or open houses.

- Hide it. Anything that can be broken or stolen shouldn't be around. When it comes time to sell her own home, Elaine already has plans to find safe, temporary homes for the jewellery, electronics and other valuable items -- whether it's with a trusted friend or the safe deposit box at the bank.

- Go for the lived-in look. If you have to be away from your home for any length of time, use a timer for some lights and ask a neighbour to park their car in the driveway if necessary. Empty homes are the perfect target for thieves -- some of who may have been by the home to preview its contents.

- Protect your privacy: Consider using a cell phone or setting up a new email address to handle communications instead of giving out your personal contact information.

Stay impartial

Elaine cautions that having a thick skin is essential for the process as potential buyers won't be shy when it comes to nit-picking the details of your home -- especially when it comes to pointing down flaws that might help bring the price down. Try not to take it personally; a real estate agent wouldn't get defensive or upset.

"You have to be ready to hear criticism about your home -- whether it's the decorating or layout, or things that need to be fixed," Elaine warns. "Overall, you have to be impartial and divorce yourself from it."

Get advice

Just because you decide not to use an agent that doesn't mean to you have to "go it alone".

There are many services such as, PropertySold.ca, Bytheowner.com and For Sale By Owner that offer listings and sales tools for a modest fee. Other companies like PropertyGuys.com include marketing support and listings as part of an overall consulting package -- which is still the fraction of a cost of an agent's fee.

For more information on getting your home ready for market, the Canadian Home and Mortgage Corporation has a guide about Getting Your House Ready to Sell, as well as current market trends and outlooks.

As previously mentioned, there's a wealth of information available online, in magazines and even on TV -- not to mention the many books written on the subject which you can find at your local library or bookstore.

This method of selling your home isn't for everyone, but it might be worth a try before you turn to an agent. In Elaine's case, taking a chance paid off. They were able to sell the house quickly, and for more money than the agent initially predicted -- and they didn't have to pay a commission either.

OTTAWA (Reuters) - Sales of existing homes in Canada jumped 31.5 percent in the second quarter from the first and saw their first year-over-year quart

OTTAWA (Reuters) - Sales of existing homes in Canada jumped 31.5 percent in the second quarter from the first and saw their first year-over-year quarterly increase since before the peak of the financial crisis, the Canadian Real Estate Association said on Tuesday.
The industry group said actual home sales totaled 147,351 units in the second quarter of 2009, up 1.4 per cent from the same quarter of 2008.
Home sales rose 8.7 percent in June from May on a seasonally adjusted basis. They were up 17.9 percent from June 2008, using nonseasonally adjusted figures.
"This is on par with the record for the month of June set in 2007 and is the fourth highest ever for activity in any month on record," CREA said in a report.
A total of 41,304 homes changed hands in the month.
The report is the latest piece of evidence showing that consumers are venturing back into the home market, encouraged by low mortgage rates and signs that the worst of the recession is over.
"The recovery in the Canadian housing market continued in earnest in June ...," said Millan Mulraine, economics strategist at TD Securities.
"With prices remaining quite favorable and low borrowing rates enhancing affordability, it is likely that this uptick in sale activity may continue for some time as the recovery in the housing sector takes hold," he said.
The average home price rose 3.6 percent year-over-year to a record high C$326,613 (about $287,000) in June.
On a quarterly basis, the average price was up 0.5 percent from a year earlier to C$318,696.
But CREA said strong sales activity in a handful of very expensive markets was distorting the national average to make prices look unusually high.
Sales growth in Vancouver, Toronto, Montreal, Calgary and Edmonton contributed the most to the national increase.
The inventory of unsold resale homes -- measured as the number of months it would take to sell the stock of houses at current sales rate -- fell to its lowest level since August 2007 at 4.2 months.
"Clearing out excess resale inventories is an important step toward witnessing a more material recovery in new housing construction, which is value-added and does impact GDP growth," said Derek Holt, economist at Scotia Capital.

Financial Dispatch: Home prices slide 14%

Andrew Torgan
CNN Financial News Producer

The steep slide in home price accelerated at a record pace during the first three months of 2009.
The national median home price of single family homes sold during the first quarter fell 13.8% to $169,000 year over year, and 6.2% compared with the last quarter 2008, according to the National Association of Realtors. That was the largest year-over-year decline in the 30-year history of the report.
The NAR attributed much of the loss to two factors: First-time homebuyers, who are often entry-level buyers, accounted for about half of all purchases during the quarter. And many buyers took advantage of the deeply-discounted prices of foreclosed properties and short sales. These “distressed properties” typically sell for 20% less than traditional homes, according to NAR. These homes also accounted for about half of all transactions.
Trade Deficit widens
The U.S. trade deficit rose in March for the first time since last July as the global recession cut sharply into sales of American exports.
The Commerce Department says the deficit widened to $27.6 billion in March, slightly lower than the $29 billion gap that economists had forecast. The politically-sensitive trade deficit with China also increased.
Ford seeks to raise cash
Ford Motor says it will offer 300 million common shares in a public offering to help meet funding requirements for retirees’ health benefits
Based on Monday’s closing stock price, the offering could raise nearly $2 billion dollars. The automaker says it will use part of the profits to pay into a health care trust for its retired workers under its agreement with the United Auto Workers union.
GM stock falls to 76-year low
General Motors stock plunged 23% to a 76-year low this morning, a day after a group of GM executives disclosed they had sold shares in the struggling automaker.
Six GM executives, led by former GM Vice Chairman and product chief Bob Lutz, disclosed Monday that they sold almost $315,000 in stock and liquidated their remaining direct holdings in the automaker.
The sale underscores the pressure on GM with less than three weeks remaining for the automaker to win deals to slash debt and operating costs with its major union and bondholders to avoid bankruptcy.
750,000 jobs by August?
The Obama Administration estimates that the economic stimulus plan will create or save 750,000 jobs by early August, a senior administration official said Monday.
The comments came as the administration’s Council on Economic Advisers released a report that explained the methodology behind its estimates for how many jobs will be created by the $787 billion stimulus package.
The report touts — as stated previously by the White House — that the plan will save or create 3.5 million jobs by the end of 2010. It also points to even bigger job creation and savings of 6.8 million jobs by the end of 2012.
Crude touches $60/barrel
Crude oil prices topped $60 a barrel level in electronic trading this morning as investors focused on signs of economic stabilization and a weaker U.S. dollar.
Oil last settled above $60 a barrel on Nov. 12, when it ended at $62.41.
Gas prices surge 10%
Gas prices have surged nearly 10% over the past two weeks.
That’s a gain of 20 cents during the past 14 days, and the national average hit $2.248 a gallon on Tuesday, according to AAA.
There is a silver lining, however: Analysts say a return to $4 a gallon gas is not on the horizon. Even though prices have been on a tear, they’re still some 46% lower from the all-time high of $4.114 a gallon hit last July.
Memorial Day travel to rebound
Despite that recent run-up, Memorial Day travel is expected to rebound this year, thanks to the overall decline from 2008’s record-high gas prices and discounts on hotels.
According to AAA, a total of 32.4 million Americans will travel at least 50 miles from home to mark the holiday weekend. That’s an increase of 1.5% from last year, when soaring gas prices cut the number to 31.9 million.
Baggage fees top $1 billion
U.S. airlines took in a record $1.1 billion in bag fees in 2008 after staring to charge for all checked luggage in an effort to cover rising energy prices, according to data from the U.S. Transportation Department.
Traditionally, airlines would only charge a fee for passengers who exceeded the baggage weight limits or who would want to check more than 2 pieces of luggage. United Airlines was the first U.S. carrier to break with the practice by charging $25 for a second checked bag starting in February 2008. US Airways announced it would start charging $15 fee for the first bag starting July 2008.
Most carriers now follow this practice of charging $15 (each way) for the first checked bag and $25 (each way) for a second checked bag.

Real estate markets differ though economies similar for Calgary and Houston

Real estate markets in Calgary and Houston are different on several fronts, even though energy indsutry drives both economies.

By Mario Toneguzzi, Calgary HeraldMay 5, 2009


Major Canadian and American cities with similar economies and geographies are experiencing variable price trends this spring, according to a survey released today by Century 21 Canada.
In a comparison between Calgary and Houston, the house price survey said price levels are significantly higher and selling times are shorter in Calgary than in Houston but Calgary also has greater price declines than Houston.
The report said average prices in March were $380,737 in Calgary compared with $200,233 in Houston. Median prices in March were $340,500 in Calgary compared with $130,000 in Houston. Calgary's average and median prices declined 11 per cent and 12 per cent respectively, while Houston's average and median prices declined four per cent and six per cent respectively from a year ago.
mtoneguzzi@theherald.canwest.com
© Copyright (c) The Calgary Herald

Spring rally won't last, realtors say

VIRGINIA GALT
May 6, 2009
Canadian homeowners will likely have to wait until next year to see a solid rebound in real estate prices, the heads of two of Canada's largest real estate firms said yesterday.
The brief spring rally in the Canadian housing market - although encouraging - cannot be regarded as the beginning of a full-fledged recovery just yet, and sales activity is expected to cool again this summer, Don Lawby, president of Century 21 Canada Ltd., and Phil Soper, chief executive officer of Royal LePage Real Estate Services Ltd., said in interviews.
"The spring market is usually the biggest and the best of the year for the housing industry... and there probably will be a lull during the summer," Mr. Lawby said.
What happens in the fall will depend on the economy and consumer sentiment, he added.

"If there are lots of worries about layoffs and the deteriorating economy, then we are not going to have much activity. On the other hand, we have not seen dramatic declines in house prices and I don't think we are going to," Mr. Lawby said.
Mr. Soper agreed that the spectre of rising unemployment is a concern. However, prospective home buyers tend to be more greatly influenced by low interest rates and improved affordability when it comes to making purchasing decisions, he said. Low interest rates and softer prices spurred an increase in the volume of Canadian home sales in February, March and April and - after a typical summer slowdown - will likely result in increased sales activity again in the fall, Mr. Soper predicted.
The real estate executives' views supported those of two Canadian bank economists who issued reports on Canadian real estate trends yesterday.
"We still feel there is more downside than upside risk to home sales and prices," said Bank of Nova Scotia economist Adrienne Warren.
"The significant deterioration in domestic labour markets in recent months suggests little prospect for a major resurgence in demand in the near term. Meantime, a still-high level of active listings relative to underlying demand will continue to pressure prices," Ms. Warren said.
Pascal Gauthier of Toronto-Dominion Bank said the competing forces of rising unemployment and greater affordability will cause markets to "remain quite choppy between now and the end of the recession" in most parts of the country.
Mr. Lawby and Mr. Soper said entry-level, first-time buyers have been the most active players in the Canadian real estate market this spring, while higher-end home sales activity continues to be subdued. Nonetheless, they said, the Canadian real estate market is far healthier than the U.S. market in the wake of the subprime mortgage crisis that caused the U.S. housing collapse.
"We don't have the same problems," said Mr. Lawby, who issued a report yesterday comparing housing prices in major Canadian and U.S. cities with similar economies and geographies.
While prices in both countries are down year over year in most regions, prices have not fallen as steeply in the Canadian market as in the U.S., according to the Century 21 report.
"When you compare ... so-called 'twin cities,' you see some dramatic differences," Mr. Lawby said.
For instance, the market is much stronger in Toronto than in Chicago.
"In Toronto, the average price declined 4 per cent to $394,099 and the median price dipped 2 per cent to $325,000 [between March, 2008, and March, 2009]. In Chicago, the average price fell 34 per cent to $249,901 and the median price dropped 39 per cent to $180,000. (U.S. average prices are in U.S. dollars.)
"It took an average of 37 days to sell a house in Toronto, compared to 168 days in Chicago," Century 21 said in its report.

Fear trumps low interest rates for Canadian consumers

by Julian Beltrame, THE CANADIAN PRESSFriday, March 6, 2009provided by
OTTAWA - Jim Rawson says it's a great time to buy a house.
The regional manager of Invis mortgage brokerage firm in Toronto has been in the business since 1978 and has never seen interest rates, both variable and fixed, so low. Pair that with falling housing prices and it's a no-brainer.
"People have to have somewhere to live and whether you are paying for a mortgage or paying rent, you still have to be paying to live somewhere," Rawson explains.
But something is missing in the equation. As prices for most consumer goods, cars and homes decline - in some cases plunge - and the cost of borrowing falls, Canadians have been hesitant to buy.
The Bank of Canada did its part this week to lure consumers and businesses out of their fox hole, dropping the overnight rate down to an unheard of half per cent - virtually zero.
Canada's chartered banks lowered their prime rate to 2.5 per cent on Tuesday, shortly after the central bank moved, and by the end of the week were lowering other lending rates.
TD Canada Trust, for one, is reducing several of its posted fixed-term mortgage rates on Saturday. TD's biggest decrease was with its two-year mortgage, which falls to 5.0 per cent from 5.75 per cent.
Scotiabank went even further, lopping nearly two full percentage points off the advertised price for its 10-year mortgage, which fell to 5.25 per cent from 7.15 per cent, effective Friday.
By almost every measure, Canadians have slowed down borrowing and spending, most visibly in the auto sector, which saw sales volume crash by 28 per cent in February.
The Canadian housing market, for years a source of boundless growth, has come crashing to earth with sales, prices, and construction of new homes all down, in many cases by double-digits.
Consumers have also stopped discretionary purchases, as the 5.4 per cent contraction in retail sales in December - the largest in 15 years - shows.
"I think they're scared out there," says Bruce Cran of the Consumers' Association of Canada. "Consumers are tapped out and frightened of over-spending. They are going back to being savers."
Bank of Canada deputy governor Pierre Duguay may have a point in saying there is a danger of "irrational fear" taking hold, but there are also very real reasons to be concerned.
Canada lost 129,000 jobs in January, the third straight month of decline, and announcements of future layoffs are being posted almost daily. Everyone is predicting the Canadian economy has much further to fall after contracting 3.4 per cent in December.
There is also fact that the days of easy money are over. Chartered banks are being more choosy who they lend to and interest rates - low as they are - are higher than they might be given the central bank rate and non-existent inflation.
Variable rate mortgages, for example, formerly could be had below the banks' prime rate. The prime rates have fallen, along with the Bank of Canada's moves, but now banks' variable mortgage rates are well above prime.
Individuals have also cut back on borrowing, hence spending. TD Bank chief executive Ed Clark said this week that overall demand for loans is coming down.
Under normal times, economists would say that is a good thing. Rampant buying, particularly in the United States, was a major contributor to the financial sector meltdown that brought the world low.
Americans have now pulled back big time making matters worse, even though the Federal Reserve rate at 0.25 per cent is lower than the Bank of Canada's. The U.S. once lamentable savings rate has shot from just above one per cent to five per cent in a matter of months.
The amount of debt Canadians held as a ratio of their income increased last year to 136 per cent from 130 per cent. What kept them solvent is that low interest rates made the cost of servicing that mounting debt at affordable levels.
That is as long as jobs, incomes and the economy were advancing. In a recent CIBC World Markets report, economist Benjamin Tal showed the squeeze was underway.
Canadians assets fell by $160 billion in the third quarter, he noted, adding that with house and equity values falling, Canadians would likely be another $180 billion poorer in the fourth quarter. Values haven't gotten better since.
As well, debt is rising and consumer bankruptcies are jumping - 13.5 per cent last year with expectations they could hit 30 per cent growth this year. Mortgage arrears are also on an upward path, rising from a record low of 0.24 per cent to the current 0.33 per cent, the highest in six years.
But the big number, says Tal, is the number of Canadians who have lost their job and the much bigger number that are for the first time in many years afraid of losing their job.
"The issue is confidence," he said. "People talk about the unemployment rate going to eight and nine per cent, but the focus should be on the 91 per cent of people who are employed and are concerned about their jobs."
Tal and most economists believe that Canadians will start spending again because they no longer can put off purchases. But he doesn't believe they will spend with the reckless abandon of the recent past.
"After the crisis is over, consumer spending will be stronger but not like it used to be because it was artificially strong before, using borrowed money," Tal said.
Rawson believes that time is coming soon, at least in the housing market.
Applications for mortgages in his Toronto office have doubled since December, Rawson says, with many in the pre-approved market. That usually involves first-time prospective buyers making sure all their ducks are lined up before taking the plunge.
"These are people who haven't bought yet but they will buy in the future," he says.

National home sales to drop 17 per cent in '09; prices predicted to fall 8 per cent

By The Canadian Press

OTTAWA - House prices are expected to fall eight per cent across Canada this year and sales are predicted to slip nearly 17 per cent, according to a new report from The Canadian Real Estate Association.

The association, known as CREA, said sales on the benchmark Multiple Listings Service fell 17.1 per cent in 2008. It said sales are expected to fall another 16.9 per cent to 360,900 units in 2009 - which would be the lowest level for national sales activity since 2000.
Sales are expected to fall in every province, led by declines in British Columbia, Alberta and Ontario.

CREA predicts sales to rebound by 9.9 per cent to 396,600 units in 2010, with the biggest recovery forecast for B.C. and Alberta.

Prices are expected to drop eight per cent this year, with figures falling most in Western Canada and Ontario.

Meantime, the average home price in Newfoundland & Labrador is forecast to rise 4.8 per cent in 2009.

CREA said it expects prices to stabilize in 2010, with annual price increases of one per cent or less in five provinces.

The report comes the same day Canada Mortgage and Housing Corp. said housing starts slipped by 10.9 per cent to 153,500 units in January, compared to the month before.
Economist say that is the largest per cent monthly drop since March 1995.