Preparing to sell your first home is an exciting milestone, but it involves much more than simply putting a "For Sale" sign on your lawn. To ensure a smooth and successful transaction, first-time sellers must navigate everything from gathering crucial legal documents to preparing their property for eager buyers. Here is your essential guide to selling your home with confidence.
Gathering Essential Documents Before Listing
The key to a seamless sale is organizing your documents before your home ever goes live on the market. A common paperwork delay that can impact a successful sale is scrambling to find required property or condominium files at the last minute.
If you own a standard home, you must understand the Real Property Report (RPR). An RPR is a legal document prepared by an Alberta Land Surveyor that maps out property boundaries and structural improvements. Having an RPR with evidence of municipal compliance is crucial because it confirms your property improvements abide by the municipality’s bylaws and regulations. If you have an existing RPR and have not made any changes to the property's exterior footprint, you may be able to sign a Statutory Declaration stating the original RPR remains accurate.
If you are selling a condominium, buyers will almost certainly make their offer conditional on a condominium document review. You should proactively gather key documents such as corporation bylaws, reserve fund studies, financial statements, board meeting minutes, and the certificate of insurance. Be aware that management companies often charge a fee for these documents, and they can take time to procure, so preparing them in advance avoids unnecessary delays.
Understanding Inclusions and Exclusions
One of the most frequent causes of buyer disputes stems from unclear communication regarding what stays with the house and what leaves with the seller. To avoid this, you must understand the difference between attached and unattached goods:
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Attached Goods: These are items physically attached to the property via pipes, screws, or nails, or items that cannot be removed without causing damage. Examples include built-in appliances, garburators, central vacuum systems, water softeners, and garage door openers. These typically stay with the property.
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Unattached Goods: These are your movable personal belongings. Examples include wall art, drapes hooked on rods, area rugs, a movable kitchen island, and remotes for the garage door opener.
- A common point of confusion is a wall-mounted TV: the TV itself is an unattached good, but the wall mount bolted to the studs is an attached good. Detailed listing agreements protect both sellers and buyers by forcing both parties to specifically write out any inclusions and exclusions. If you want to take a specific attached item with you, it must be explicitly excluded in the listing agreement and the purchase contract.
Preparing for Walkthroughs and Inspections
First impressions matter. Before inspections and buyer walkthroughs, you should go "Marie Kondo" on your space: thoroughly clean the home, remove excess furniture, and stow away personal items, knick-knacks, and small appliances to make the space feel larger. On the day of a showing or walkthrough, turn on all the lights, open the blinds, and let fresh air in. Keep in mind that on possession day, the buyer will expect the home to be in substantially the same condition as it was when they viewed it and made their offer.
Legal and Disclosure Considerations
First-time sellers must understand their legal obligation to disclose material latent defects. These are hidden defects that a buyer cannot reasonably discover during a standard inspection, specifically those that make a property dangerous or unfit to live in. Examples of material latent defects you must disclose include unpermitted additions, a basement finished over a major structural crack, chronic water leaks, or a property that was a former, un-remediated marijuana grow-op.
Conversely, you are not legally required to disclose stigmas, such as a death, suicide, or major crime occurring on the property, or rumors that the house is haunted, because these do not affect the physical condition of the home. However, if a buyer explicitly asks about a stigma, you must answer honestly or decline to answer entirely.
The Value of Experienced Real Estate Professionals and Clear Negotiations
Working with an experienced real estate professional is your best defense against costly mistakes. A professional will help you establish a competitive listing price using a Comparative Market Analysis (CMA) so you don't scare off buyers by pricing too high or lose money by pricing too low.
During negotiations, your real estate professional will help you communicate your expectations clearly, evaluate the pros and cons of accepting, rejecting, or countering an offer, and guide you through stressful situations like multiple simultaneous offers. By relying on an expert's guidance and ensuring all terms are put in writing, you can confidently navigate your first home sale.