FAQ
Questions that sellers frequently ask
Q. Why shouldn't I price my house a little high, since I can always drop the price later?
A. That is a strategy that sounds good - but, in fact, is more likely to result in a lower price. Here's why. The first few weeks a house is on the market is when it will have the most activity. If a house is overpriced, it has to compete with houses at that higher price level, which are almost certainly larger or have newer/more luxurious features. So the overpriced home is unlikely to attract an offer. Worse yet, those first weeks are when real estate agents preview the house. If it's overpriced, they may not even bother to show it to their buyers. Eventually, the seller will have to drop the price - and may end up with an even lower price because buyers will wonder why the house has been on the market so long and may factor that into their offer.
Q. What is meant by the term "contingency" in a sales contract?
A. Sales contracts typically contain several "contingency" clauses, or stipulations that the sale is subject to. For example, with a mortgage contingency, if the buyer is unable to obtain financing within the specified timeframe, neither the buyer nor the seller is required to complete the purchase. Among other common provisions in the "subject to" section are property, termite or radon inspections and/or the purchaser's need to sell a current home first.
Q. As a seller, what certifications am I responible for?
A. Your municipality may require you to provide a Use and Occupancy Certificate to the buyer at settlement. Typically, the municipality will check your home for safety issues such as working smoke detectors, GFCI outlets at appropriate locations, loose handrails, trip hazards and proper permits for any improvements made to the home. Ask me and I will tell you if your municipality has this requirement and I will provide a list of the things required to obtain it. You will also be required to provide a tax certification that your taxes are paid up to date as well as a water and/or sewer certification. These are obtained by my conveyancer on your behalf for your convenience.
Q. What happens if the home inspection reveals a serious problem?
A. Generally, if the home inspections reveal a serious problem, the buyer who has a properly drafted contract can get out of the contract. What usually happens, however, is that the the repair or cost of remedying the problem becomes an issue of negotiation. That is where my skills as a negotiator is critical in resolving the issue and keeping the home sale moving.
Q. What is radon and what is the purpose of radon testing?
A. Radon is a radioactive gas produced by the natural decay of other radioactive substances. If radon dissipates into the atmosphere, it is not likely to cause harm. However, when radon enters buildings and is trapped in high concentrations (usually in basements in inadequate ventilation), it can cause health problems. The general rule is that remediation is indicated if radon levels measure 4 picocuries per liter (PiC/L) or more. Radon levels vary, depending on the amount of fresh air that circulates through a house, the weather conditions, and the time of year. It is relatively easy to reduce the levels of radon by installing ventilation systems or exhaust fans.
