Frequently Asked Questions: Sellers Edition

Choosing to sell your condo 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 condo?

An appraisal is conducted by a licensed professional who determines the value of your condo by conducting a thirty to sixty-minute visit in your unit in which they examine the condition, dimension and amenities of your condo. Appraisers should be an unbiased third party that simply evaluates your condo 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 only your condo, not the entire market. 

How much is my condo worth?

Your REALTOR® may price your condo differently 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 condo

-how it compares to other condos in your area

-the current market

This means that the price of your condo 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 condo. Without all factors taken into account, your unit 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 condo?

A conditional sale when selling a condo means that an offer has been accepted, but there is still conditions that need to be met for the sale to close. Many of the conditions are on the buyer’s side: they can include a property inspection, review of condo documents, lawyer review, review of the property disclosure statement, securing financing and securing insurance. Typically, the conditions a seller must meet is simply a lawyer review and providing the proper documents to the buyers. Once these conditions are met, typically indicated 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 condo.

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%. Split between a buyers agent brokerage, 2.5%, and the listing agent’s brokerage 2.5%. Please note. The commission is plus HST.

Estoppel Certificate

An estoppel certificate is an important document issued by the condominium corporation intended to give potential purchasers of a condominium unit information so that they can make an educated decision about their purchase. The certificate provides information about the specific condo unit and the condominium corporation.-- The buyer will request this either upfront or before closing. The cost is between $300 - $400, depending on the property management company and is typically paid for by the seller.

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 condo?

When you sell a condo 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 condo, 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 condo 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 disadvantage in the spring is that there is more competition, as most people choose to list during the warmer months. If your condo is near a sought after school, it may be best to list it in the summer, as many parents look for property during this time. 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 condo 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 condo?

According to our MLS system, condos sold in on average 42 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, condos sold in on average 91 days. Most REALTORS® will agree that if a condo does not sell within 8 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 at which you and your REALTOR® decide to place your condo 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 condo?

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

Preparing Your Condo for Viewings

When your Halifax condo is on the market, there is potential that many eyes will be peering in. You will have likely had professional photos taken, and a home staging completed. This kind of marketing will highlight all of your Halifax condo’s best features, and you will want to keep your condo up to those picture-perfect standards when curious buyers see the unit in person. 

The most obvious step in preparing your condo for viewings is to do a deep clean. While most understand this, they tend to overlook the fact that this deep clean must be maintained for the duration of your listing. 

There are several things that you can do to make it easier on yourself to maintain a high level of order and cleanliness while your condo is listed. Read through for some tips on how to set yourself up for successful condo viewings!

Deep Cleaning

We all know that a Halifax condo that is about to hit the market needs a deep cleaning. You are going to want to ensure everything sparkles. The obvious areas are the windows, countertops, baseboards, floors, mirrors, surfaces, bathtub and toilet. Areas that are sometimes forgotten are the trash bin, arranging toiletries, wiping out cupboards, dusting behind furniture and organizing underneath the sink. You do not know what your potential buyers are going to look at when viewing your condo, so you need to make sure you’ve got all of your bases covered.

Reduce your Clutter

Removing clutter is an essential component of prepping your Halifax condo to sell. You want your condo to feel as spacious as possible to incoming buyers because space = value. If you are toying between leaving something personal on the mantle or putting it away, you should probably put it away. The less personal you can make your condo, the easier it is for someone else to see themselves in it.

This goes for the closets too. Do not simply take all of your extra items and store them in your closet. Buyers will look in the closets to see if they would have enough space for themselves. A cluttered closet will not sell a buyer on your condo.

Take Control of Odours

Smell is a very strong sense and can sway buyers to or away from your condo. It is best to avoid scents in general so that they are not distracting to the buyer, and in case a buyer has a scent allergy. Try to cook milder dishes that do not leave scents lingering as well. If you insist on adding fragrance to your condo, opt for candles or air freshers with very common smells such as fresh linen, lavender or vanilla.

Leave the Unit

It is often very hard for a buyer to picture themselves living in your condo if you are present during the showing. It is also hard for their agents to receive honest feedback from their buyers on what they thought of your space. Sometimes, this feedback is crucial to adjusting your condo or listing to lock in a sale. 

Not only should you physically leave the condo, but you should also remove any family photos or decor specific to your family. This will aid the buyer in picturing themselves in your space.

Open Concept

Buyers in this day and age love open-concept condos. If your condo is built like this, you are in luck. If it is not, however, you can still succeed! Ways to make your condo feel more open-concept are to: remove bulky furniture, keep sightlines open, and rearrange existing furniture to invite people into the room. If you are not sure how to do this, there are professional condo stagers who can help you immensely. 

A Fresh Coat of Paint

A fresh coat of paint on the walls can do wonders when you need to renew a space. Walls get dirty and scuffed over time, and we do not want the buyers thinking about that when they are looking at your condo. If you are going to paint your walls, opt for a light and neutral colour that matches everything, and opens up the space.

Do Not Leave Anything Broken in Sight

This may seem like an obvious one, but it is still worth mentioning. You should fix things that are visually broken. This includes leaking faucets, missing tiles, broken handles or hinges and so much more. If you can see that it's broken, the buyer can too.

Adjust the Temperature

Make sure that the temperature in your Halifax condo is comfortable when buyers walk in. If your condo is too cold, the buyer may not feel like they can relax after a long day of work. If the condo is too hot, they may think there is not enough airflow. The most preferred room temperature is typically between 20-22 degrees Celsius.

The Bottom Line

Your top priority as a condo seller is to get your home sold. And not only get it sold but for top dollar. By following these tips, and any other tips that your REALTOR® or condo stager provides will not only make it easier to reach your goal, but to make the process much smoother from start to finish. When your condo is clean and marketable, it not only increases its value but can add a much more pleasant and excited buyer.

Questions about getting your condo sold? Call us anytime at 902-488-0012

Andrew Perkins

Why You Need to Stage Your Condo to Sell

Staging your condo to sell is a new checklist item in the condo selling process. Not only does it make your condo look the most appealing to potential buyers, but it also may increase offer prices! Let look at some statistics that were pulled by The National Association of REALTORS Research Group in 2019:

40% of buyers’ agents cited that condo staging had an effect on most buyers’ view of the home. 

83% of agents said that staging a condo made it easier for buyers to picture the unit as a future home. 

47% of buyers said that staging the living room was the most important. The second most important was the master bedroom, and then the kitchen.

25% of agents said that a staged condo had an increased dollar value between 1-5%, compared to similar homes that were not staged. 17% of agents said that the dollar value increased between 6-10%.

The average dollar value spent on home staging was $400.

28% of sellers’ agents stated that there were decreases in the time on the market when the condo is staged compare to similar homes that were not staged.

So, what the statistics are saying, is that if you spend on average $400 to stage your condo, and your unit is worth $300,000, you are looking at a probable increase in dollar value of about $7,500, and a potential increase of up to $30,000. Even if it only increased your home’s value by 1%, you are looking at a possible extra $3000!

What does it mean to stage a condo?

Home staging is the process of adding decorations, arranging pre-existing furniture and/or hiring experts to dress your condo to make it look its best for photos and open houses. It is essentially showing buyers the unit’s potential and allows buyers to picture their future home more easily than staring into an empty or unfurnished space.

Some Home Stagers are so good, they can make your unit look like something out of a magazine! Our most trusted home stagers in the Halifax Area are A&E Home Staging. Danielle is phenomenal at aesthetics and design, and working with her guarantees your condo will look its best. Pictured below is some of her work:

Still not convinced? Here are some more reasons below why staging your condo should be non-negotiable in the selling process:

1. Your condo will sell faster

According to the Real Estate Staging Association, condos that are staged sell on average 73% faster, than similar units that were not staged. Just think: the main determinant in a buyer putting in an offer on your unit will be its visual presentation. The average buyer is not going to put an offer on a condo that they do not love the look of, or that they can picture themselves in. If you were a buyer and you looked at five condos, and one of them was beautifully staged, the other four bare, which one would be the most tempting?

2. Highlight the good stuff

Maybe your unit has built-in shelves on the walls or a large fireplace in the centre of the room. Expert Home-Stagers will take these unique aspects of your condo, and stage them properly to show buyers how these accents can upgrade your space, rather than clutter it. A shelf that may have been home to your gaming console for years can easily be turned into a display of artwork or local craft.

3. Hide the flaws

Maybe your condo has some things that you wish you could cover up or erase before buyers walkthrough. If this is the case, home-stagers will factor this into how they carefully place furniture, decor, lamps and rugs so that the buyer is pulled through the perfect flow of the unit, and away from the less favourable features. 

4. You may not see your own clutter

Unless you're a minimalist, you probably have clutter. We are also typically all blind to our own clutter because many of our possessions hold emotional value. You may think that a dresser full of family picture frames makes your bedroom feel like home, but a potential buyer has no connection to these photos, and they will make the room appear smaller to them. When you hire an expert to stage your condo, they look at your space as a product on the market, not as the home that built your life. They will remove what they know buyers do not want to see and replace it with what will get you the top dollar.

5. More money in your pocket

The top priority of home stagers is to get buyers interested in your unit. The more buyers that are interested, the more offers you will receive. Bidding wars can lead to higher offer prices which is what every seller hopes and dreams of. If a couple falls in love with your condo and hears that there are multiple offers, they may offer much more than they were planning to, to make sure they don’t lose it.

Don’t take it personally

A Home-Stager may remove many things from your condo that you cherish and love. You must remember to not become offended if your home-stager tells you to hide your favourite poster or painting: The home-stager is not saying that your favourite wall decor isn’t beautiful - they are trying to make your unit less personal and as marketable as they can to the widest range of buyers. When we remove personal objects and favourite colours and replace them with more generic and neutral decorations and colours, a wider range of individuals may be able to picture themselves in your condo.