Frequently Asked Questions: Sellers Edition

Choosing to sell your home can be an exciting and overwhelming experience. If you do not have any previous experience, you may have a lot of questions. To learn about the selling process, you can visit our page detailing it here. Even with understanding the process, you may have more questions along the way: this is totally normal. There are a lot of moving parts in the process, so we have outlined some common questions we have had in the past!

What does an appraisal mean when selling a home?

An appraisal is conducted by a licensed professional who determines the value of your home by conducting a thirty to sixty-minute visit in your home in which they examine the condition, dimension and amenities of your property. Appraisers should be an unbiased third party that simply evaluates your home and determines what they believe it would sell for. This may be more or less than what a REALTOR® would determine, or an online evaluator. Essentially, the appraiser is evaluating your property, not the entire market. 

How much is my house worth?

Your REALTOR® may price you're home different than what it is appraised for, and also different than an online evaluator may say. This is because a REALTOR® takes into account three variables:

-the condition of your home

-how it compares to other homes in your area

-the current market

This means that the price of your home may fluctuate based on when it was evaluated. Only an experienced REALTOR® will be able to take all these factors into account to determine the correct price to list your home. Without all factors taken into account, your house may end up selling for less than what its potential is, or being priced too high to generate interest. 

What does conditional mean when selling a home?

A conditional sale when selling a home means that an offer has been accepted, but there are still conditions that need to be met for the sale too close. This may be a property inspection, review of condo documents, lawyer review, review of the property disclosure statement, securing financing and securing insurance. Once these conditions are met - must be done by a certain date on the agreement, then the sale is finalized. 

How much are closing costs when selling?

There are a few closing costs to consider when selling your home.

-Lawyer Fees and Disbursements

The average cost of legal representation in Halifax is approximately $800-$1000, not including disbursements, which could be anywhere from $200-$400 Disbursements include courier fees, photocopying, title search, registration costs. It is a good idea to shop around, as there is no set cost.   

-Real Estate Commission

The typical Real Estate Commission in Nova Scotia is 5%. This is split between both the buyer's agent's brokerage, 2.5%, and the listing agent's brokerage 2.5%. Please note. The commission is plus HST.

What is an estoppel certificate in the sale of my condo?

An estoppel certificate is a binding statement prepared by the corporation at the request of a unit owner or purchaser. It indicates the standing of common elements fees and reserve fund assessments against the unit, whether they are up to date, paid in advance, or in arrears. The Condominium Act and Regulations specify which items must be included. For example, the certificate will also contain such items as the names and addresses of the property manager and the officers of the corporation, the financial standing of the corporation, the reserve fund balance, whether any major capital expenditures or increases in fees are planned, and if there are any lawsuits pending against the corporation. A copy of the most recent declaration and bylaws are to be provided with this certificate. When selling your condo, you as the seller are responsible for the charge associated with producing an estoppel certificate. 

What happens to my mortgage when I sell my home?

When you sell a house with a mortgage, the first thing to do is find out roughly how much you still owe on the loan. Knowing how much you owe, it’s time to figure out how much you’ll be making from your home sale after all is said and done — and whether it will be enough to cover your outstanding mortgage balance, plus all the typical closing costs. If you are breaking your mortgage, you may incur a mortgage penalty as well. It is always a good idea to speak with your mortgage broker or banker before listing your home, in case there is a penalty to pay for not completing your mortgage. If you have a fixed term such as a five-year fixed rate term, your lender may charge you a penalty called an interest rate differential. If you are breaking a variable rate term, the penalty is typically three months’ interest.

When is the best time to sell?

The common consensus in the Halifax real estate market is that is it best to sell your home in the Spring. The weather is starting to get nice, folks are out and about, and moving is generally easier. However, there are pros and cons to selling at any time of the year. A downfall in the spring is that there is more competition, as most people choose to list during the warmer months. If your home is near a sought-after school, it may be best to list it in the summer, so parents can secure the home for their children. When you list on off-season (winter) there is much less competition. Also, job transfers typically happen at the start of the year, meaning there are folks still house hunting in the middle of winter.

Who pays the REALTOR® fees?

The seller is typically responsible for the commission fee that REALTORS® charge. The percentage of the sold price is typically 4-6%. Half of this is paid to the buyer’s agent brokerage and a half to your representation. This cost is built into the sale price before the house hits the market.

How long does it take to sell a house?

According to our MLS system, homes sold in on average 38 days this past year. Our Halifax Market has been extremely hot, so this is short in comparison to previous years. If we look at the past decade, homes sold in on average 78 days. Most REALTORS® will agree that if a home does not sell within 6 weeks, then a price change may need to be made.

What is a title search?

A title search is the search of public records to ensure that the seller does in fact own the property. A search of all of the title records applicable will occur to determine if the title is valid. This will confirm the property’s legal ownership, the history of the piece of land and if there are any claims against the property.

What is the difference between list price and sold price?

The list price is the price that you and your REALTOR® decide to place your home on the market for. This will be the price that is advertised and submitted on the MLS system. The sold price is the price that the buyer agrees to pay with an agreement of purchase and sale. You are entitled to accept any price, however, your REALTOR® can advise you on making the best decision for your situation. Buyers can offer above or below the listing price, and whichever price you accept ends up being the sold price.

Why should I hire you to sell my home?

Our team is experienced, professional and dedicated. We do everything in our power to ensure the success of a smooth, stress-free sale. We want our clients to enjoy the process from start to finish, and receive the maximum return. We offer a variety of complimentary services for each of our clients as well, which can be found by visiting our Why Sell With Us page. You can also browse our Testimonials to see what our previous sellers have to say!

Still have questions? Call or email us today, we’d be happy to help!

Andrew Perkins

902-488-0012

Andrew@andrewperkins.ca

House or Condo? Which is Better?

The two most popular property choices when purchasing are, a single-family home or a condominium. Most wonder, which is better? If you ask around, you will likely receive a different answer from each and every person. That is because the truth is, neither is better. Condominiums work great for certain wants and needs, and single-family homes work great for others. So, which is best for you? We decided to dig into the pros and cons of both so that you can learn which would suit you best. 

Single Family Home

Pros:

 

Private Yard

When you own a single-family home, you own the land that it is built on as well. This means you are able to customize your yard to your liking. It’s true that some condo buildings have common outdoor spaces, but they are all shared. You cannot guarantee that other residents will not be occupying the shared spaces when you feel like using them. With a single-family home, you can decorate your yard in any way you wish, use it to host family nights, play with your pets and more. You never have to worry about other people using it because it is yours and yours only. 

Control over the Property

When you own a home, you can customize the inside however you like as well. If you feel like tearing down a wall to expand your master bedroom, you do not need anyone’s approval. With a condo, customizations may require board approval. If you want full control over the design of your home, it would be wise to search for a single-family home. Single-family homes work great for families that may need to alter the layout of their space to accommodate growing children.

More Storage Space

With a single-family home, you tend to have more storage space. Some have garages, basements, extra closets and more. Condos typically have storage units that you can either rent or are part of your condo fees, however, they are not nearly the size of a basement or garage. If you are someone who needs added storage space for your family, your hobbies or both, consider a single-family home. You may be able to even build additional sheds on the land of a single-family home if zoning permits it for additional storage.

Easier to Sell

Since single-family homes are the more traditional approach, they are typically easier to sell. They make great investments for multiple property owners too as they can act as move-in homes or investments. Condo popularity is on the rise, but it seems that single-family homes always stand the test of time. Also, banks are usually more comfortable lending for single-family homes rather than multi-family homes in terms of investing. 

Cons:

More Expensive

Because of the added land and space, Single-family homes are often more expensive than condos. So, if you are a first-time home buyer, a single-family home may be priced higher than your budget. In Halifax alone, the average price for a condo in the past twelve months was $343,383, while the average price of a single-family home was $421,891! That is around 80K more! All of that added space, yard and storage comes with an added cost!

Renovation and Maintenance costs

When you own a single-family home, you are in charge of any needed renovations and maintenance. If your foundation needs repair, if your hot water heater malfunctions or you get termite damage, it is money out of your own pocket. If you are thinking of purchasing a single-family home, make sure you have savings for these unexpected costs.

Utility Costs are All Yours

When you live in a condo, some of the utilities, such as water, may be included in your condo fees. With a home, you are responsible for all utility costs. This can be an additional 500-1000$ per month depending on how much energy you use, and your internet package. With single-family homes being typically larger than condos, their energy bills are usually higher too.

No Amenities

Even though you do get your own yard when you own a home, the land and maybe a garage are the only added “amenities”. Some condo buildings have a large variety of amenities that can make living feel luxurious. This can include gyms, pools, rooftop terraces, common rooms for parties, dog wash stations and more. 

Condos

Pros:

Cheaper Insurance

Because you are only insuring the four walls in which you live in for a condo, home owner’s insurance is typically cheaper for condo owners. The condominium building has its own insurance to cover the building, therefore you are liable for much fewer moving parts than a whole single-family home. 

Amenities

As we spoke about in the cons of owning a single-family home, condo buildings can offer many amenities to add luxury to your life. Condo buildings often include gyms, swimming pools, underground parking, concierge service, on-site management, snow removal, landscaping and more, making living a breeze. If you are not someone who likes to maintain the exterior of their home, condo living is for you. These amenities are also most beneficial for retirees who would rather not be responsible for added maintenance.

Location

Condominium buildings are normally situated in downtown areas of cities, or at least close to downtown. This gives condo owners great access to the best areas of the city. If you enjoy being just a walk away from a cafe, grocer or bar, then condo living is for you. This feature makes condo living great for working professionals who would rather walk to work than have to commute. 

Less Space/Downsize

Sometimes, extra space is not always the best thing. If you are looking to downsize, live alone or are just a family of two, you may not want extra space. In fact, having to keep extra space clean and maintained may overwhelm you. In this case, a condo would be a great choice as they are typically smaller. Think of a couple whose children have all grown up: perhaps they do not want to upkeep an entire house anymore. 

Cons:

Harder to sell

Condos are not necessarily hard to sell, but they typically are a little harder to sell than single-family homes. Condos have gained popularity in recent years, however, there are still always more buyers looking for single-family homes. If we look at the Halifax market over the past twelve months, Single Family Homes have sold in on average 39 days, while condos have sold in on average 49 days. Both have sold fast, but as you can see, condos tend to take a little longer.

Condo Fees

Each condo building has a corporation in which owners must pay dues to monthly. These fees go towards the maintenance, amenities and major repairs or improvements of the building. These fees also give owners access to all of the common elements in the building. They are an added expense, however, they may sometimes include your parking and some utilities, which helps offset the cost. 

Limitations

One of the main issues with condos that owners face is the limits on how units can be customized. When shopping for a condo, make sure you are very happy with its layout and style, as many renovations must be approved by the condo board. There are also many added rules when living in a condo building that must be respected in order to provide a healthy atmosphere for all condo owners.

Less Privacy

Living in a condo building means sharing walls with your neighbours. This can foster a great community, however, it means less privacy as well. You must also be mindful of your neighbours when living in a condo building, meaning you need to be conscious of your noise levels in the late hours of the night. If you are someone who often throws parties or enjoys entertaining, you may want to consider a single-family home.

There are many other pros and cons we could list here, but I think we got the point across: there is not a clear cut answer on whether condos or single-family homes are best. If you are still stumped, you can always give us a call! We would be happy to point you in the right direction! 

Andrew Perkins

902-488-0012

andrew@andrewperkins.co