1. What is the difference between a term and a condition?
Both are typically written into a contract of purchase and sale. A term forms part of the agreement and needs to be fulfilled prior to possession. A condition on the purchase is something that needs to be removed before a certain date. Once all conditions are removed, the deal becomes firm.
2. What is a reasonable deposit on a purchase?
The most common deposits I've witnessed in a real estate transaction are $5,000 with the offer, and a $5,000 deposit increase at condition removal.
3. What time period should there be between the offer and removal of conditions?
Typically there are 7-10 business days between the offer to purchase and condition removal. However, if there is a stat holiday in the condition removal period that is typically where it extends to 10 business days.
4. Where does the deposit on the purchase get deposited?
The deposit gets deposited into the buyer’s brokerage's trust account. It is held there until possession. Since the sellers pay the buyers agent for their services (brining them a buyer), the commission amount is commonly held back and paid to the respective buyers agent following possession. Any excess amount is sent to the lawyers before possession.
5. How far out on average are possession days?
Average possession days can be 30-60 days out. However, sometimes they can be quicker, sometimes they can be longer. Each transaction is unique; therefore, every timeline for possession will be different.
6. What needs to be disclosed to potential buyers?
Everything. Everything you know about your home to the best of your knowledge. It is better to disclose up front instead of it coming back to haunt you later. You do not need to disclose any of your own personal or financial details. Everything related to your home must be disclosed.
7. Why is the assessed value different then the market value?
The assessed value is calculated from the city for your property taxes. It plays NO value towards what your home is worth. In fact, it can be below, or above your market value. The City of Regina uses a special calculation (mill class) to determine your assessed value.
8. What happens if the appraisal comes in too low?
There are three things that can happen if an appraisal comes in too low. First, the buyer could make up the difference. Second, the seller forfeits the difference between appraisal and offer price. Or lastly, the deal falls through. The second scenario is the most common.
9. What does sale contingency mean?
An offer that comes with a contingency condition typically means the buyer has a home to sell. Therefore, they cannot remove all of their conditions until they have a firm sale on their home. As a seller, you can instigate a 24, 48, or 72 hour clause. This protects you, and allows you to accept a back up offer. If the buyers cannot remove all of their conditions within the respective time period, this deal becomes null and void and the new offer you signed comes into effect.
10. How does the home inspection work?
The home inspection is at the buyer’s expense. They choose who they would like to complete the inspection and the onus is on them. The inspection takes approximately 4 hours, with a review by the inspector with the clients to follow. Expect to be away from your home for about 5 and a half hours. It's best practice to leave your home while he/she (inspector) works. If anything is discovered during the home inspection, there can be some re-negotiating that may happen.
11. When is the best time to sell a home?
There is a common misconception that the best time to sell your home is in spring. That is not always the case. Every home is different, therefore, each home will have it's own position on the market. With the right marketing strategy, and the correct asking price, anytime can be the best time to sell your home. There are some homes, however, that do have special circumstances that should be taken into account.
12. How long should it take to sell a home?
Sometimes homeowners perceive selling their home as a long, drawn out process that takes months. However, with the right exposure and appropriate asking price, you should have an offer in your hands within the first week. With that said it’s important to keep in mind that every home is different and some homes can take longer.
13. I'm not getting any showings, how come?
Unfortunately, when this question is being asked that means something isn't right. Unless there is something wrong with the home that would stall a potential sale, it typically falls back onto the asking price. No one likes to do a price adjustment, however, it may be the best option to generate exposure.
14. How is the real estate market right now?
Your real estate agent is the best person to ask this question. They will know all of the ins and outs of buying or selling a house in your market. The honest answer about Regina’s market; is it depends. Each house is different and there are variables that play into an expert’s opinion.
15. You’ve received an offer, now what?
There are three options. You can accept the offer and all of its terms and conditions. You can counter the offer – whether it is for price, or a change in possession date. Or, lastly, you can reject the offer. All three regularly happen in real estate and you have to go with what’s best for you and the sale of the home to encourage a deal to happen.