November 15th - 2012

Sellers want to understand market and legal processes

Beyond worrying about the state of the real estate market, Ontarians are most concerned about understanding the process and legal documents when selling a home, a new survey reveals.

Beyond worrying about the state of the real estate market, Ontarians are most concerned about understanding the process and legal documents when selling a home, a new survey reveals.

Research commissioned by the Ontario Real Estate Association (OREA) shows that Ontarians’ top concerns when selling a home are: knowing the state of the real estate market (77 per cent); understanding the process and legal documents (61 per cent); fixing up the home in order to list it (60 per cent); and the number of days on the market (59 per cent).

It is natural for home owners to feel uncertain about the selling process because each sale requires different steps dependent on a number of factors, according to Ron Abraham, OREA president. These include the terms of the agreement (such as building inspections or completion date), the need to transfer or discharge a mortgage, and whether the seller has already purchased a new property and is financing two homes simultaneously.

“It seems that home owners are just as concerned with the selling process and the documents involved as they are with the thought of preparing their home for sale, which isn't surprising since there's a lot to consider with this step,” says Abraham.

“REALTORS® can quickly and easily identify areas in a home that need repairs or touch-ups or advise against certain renovations if the return on investment isn't there. Ultimately, home owners want to show their home in its best light to help make for a smooth negotiation phase and sale.”

Reviewing and understanding documents can be another complicated part of the home selling process, which is why Abraham recommends that home owners consult with their REALTOR® before signing any forms. If any doubts or misunderstandings arise, it is also advisable to consult with a lawyer.

The findings are the second in a two-part research project, the OREA State of the Market survey, which looks at the concerns of the province’s buyers and sellers. The first part examined the top priorities for buyers. The recent findings also reveal that:

  • More men than women feel a sense of inconvenience when selling a home (44 per cent versus 38 per cent respectively), but more women (62 per cent) than men (57 per cent) were concerned about fixing up a home before listing.
  • The majority of respondents were concerned about their ability to negotiate a price when selling. Half (50 per cent) of those with total household incomes of $100,000 or more expressed concern about their price negotiation skills, while 56 per cent with incomes between $50,000 and $99,999 said the same. However, 62 per cent of those with incomes of $50,000 or less were worried.
  • The majority of Ontarians (59 per cent) would start to feel anxious if their home was still on the market after 45 days. An earlier OREA release revealed that the average selling time in some areas is 30 days, whereas other areas may take twice that long. Some may be influenced by quick sales in "hot" markets, not realizing the time span typical of their area.

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For more information contact

Ontario Real Estate Association

Jean-Adrien Delicano

Manager, Media Relations

JeanAdrienD@orea.com

416-445-9910 ext. 246