In the world of real estate, flashy promises and bold guarantees are as common as “For Sale” signs. One of the most alluring and perhaps deceptive is the “Your Home Sold Guarantee.” It sounds like a dream come true, especially if you’re eager to sell quickly. Who wouldn’t want the peace of mind knowing that if your home doesn’t sell, your agent will step in and buy it themselves? But as with most things that sound too good to be true, this guarantee comes with a catch—a catch that could cost you dearly.
The Promise: “Your Home Sold, Guaranteed!”
The premise of the “Your Home Sold Guarantee” is simple on the surface: if your house doesn’t sell within a specified time frame, the real estate agent or company guarantees they will buy it themselves for homeowners looking to move quickly—whether due to a new job, financial strain, or just the desire for a change—this can seem like a golden opportunity.
But here’s where the cracks start to show. This guarantee is often nothing more than a marketing tactic designed to lure you in. It’s a classic example of bait and switch—grab your attention with a compelling offer, then hit you with the fine print.
The Catch: Selling at a Fraction of the Value
The first thing you need to understand is that this “guarantee” usually comes with a significant caveat: the agent’s offer to buy your home is typically only around 75% of its actual market value. That’s right—if your home doesn’t sell and the agent steps in, you could sell your property for much less than it’s worth.
To put that in perspective, let’s say your home is valued at $400,000. Under this guarantee, if your home doesn’t sell within the agreed period, the agent might offer to buy it for just $300,000. That’s a $100,000 loss—money that could have gone toward your next home, your savings, or your family’s future.
Why Does This Happen?
The reason behind this lowball offer is simple: risk mitigation. No real estate agent wants to be stuck buying homes at full market value, especially in cases where the property may have trouble selling. By offering 75% of the market value, they ensure that they can resell the home at a profit, covering their costs and then some. This isn’t a service; it’s a business strategy—one that leaves the homeowner at a severe disadvantage.
The Real Intent: Getting You to Call
At its core, the “Your Home Sold Guarantee” is a lead generation tool. Real estate agents use it to get their foot in the door with potential clients. The flashy promise draws you in, and once you’re engaged, the real sales pitch begins. The guarantee itself might never even come into play because the agent’s primary goal is to secure your listing and sell your home the traditional way.
This tactic plays on the homeowner’s desire for security and certainty in what is often a stressful and uncertain process. The thought of a guaranteed sale removes a lot of the anxiety from selling a home, which is why this promise is so effective. However, the reality is that it’s just a hook to get you interested. Once you’re in, you’ll likely discover that the guarantee isn’t as beneficial as it seemed.
The Fine Print: What You’re Not Being Told
It’s not just the 75% buyout that homeowners need to be wary of. The “Your Home Sold Guarantee” often comes with other strings attached:
Strict Conditions: The guarantee might only apply if you meet certain criteria, such as setting the home at a price determined by the agent or making costly repairs and upgrades before listing.
Extended Listing Agreements: In some cases, signing up for this guarantee could lock you into a longer-than-usual listing agreement, making it difficult to switch agents if you’re unhappy with their performance.
Hidden Fees: Some agreements include hidden fees or commissions that aren’t immediately apparent, further reducing the amount of money you’ll walk away with if the agent ends up buying your home.
Limited Marketing Effort: Knowing that they can fall back on buying the home at 75% of its value, some agents might not put in their full effort to market and sell your home at its true market value.
An Ethical Alternative: Transparency and Fair Value
So, what’s the alternative? The answer lies in transparency and working with an agent who prioritizes your best interests over their bottom line. A good agent will focus on selling your home at its true market value, using effective marketing strategies, realistic pricing, and good old-fashioned hard work.
Instead of flashy guarantees, look for agents who offer honest assessments and realistic timelines. Selling a home isn’t always quick or easy, but with the right agent, it can be a fair and straightforward process. They should be upfront about the challenges and opportunities of selling your home and work with you to set a price that reflects the property’s true worth.
Questions to Ask Your Agent
If you’re considering working with an agent who offers a “Your Home Sold Guarantee,” make sure you ask the following questions:
What is the exact buyout price under the guarantee?
Are there any conditions or requirements I need to meet for the guarantee to apply?
What is the length of the listing agreement?
Are there any additional fees or costs associated with the guarantee?
How will you market my home to ensure it sells for its full market value?
The answers to these questions should give you a clearer picture of what the guarantee really entails and whether it’s in your best interest to pursue it.
The Bottom Line: Knowledge is Power
In real estate, as in life, knowledge is power. Understanding the true nature of the “Your Home Sold Guarantee” can save you from making a costly mistake. It’s easy to be swayed by a promise that seems to offer peace of mind, but in reality, it’s just another sales tactic designed to benefit the agent more than you.
Before you sign up for any guarantee, make sure you fully understand the terms and what you might be giving up. A little skepticism can go a long way in ensuring that you make the best decision for yourself and your financial future.
In the end, selling your home is about more than just speed and convenience. It’s about getting the value you deserve. Don’t let flashy guarantees distract you from that goal. Choose transparency, fairness, and a process that respects your investment—and your intelligence.
I recently had my ensuite washroom renovated. Each evening, after the contractor left, I would go in and take photos to document the process. The first couple of times, the changes were immediate and, dare I say it, exciting.
But on the third to fifth day, progress seemed to slow down, and there appeared to be hardly any progress.
When I talked to the contractor, I brought it up, and he told me those days that he was working on the stuff you don’t notice, like running new plumbing lines, electrical wiring, and moving heating vents.
The unsexy stuff, I told him.
Exactly, he said, but it is very important stuff to get done so the sexy stuff can get done properly.
This is exactly what happens when you prepare your house for the stagers to come in and do their stuff—the sexy results the buyers see and admire.
Preparing your home for staging involves a lot of work, and most of it isn’t sexy.
Once you decide to sell your home, it is a business transaction (as bad as that might sound), and you must understand that it is no longer your home. It must be positioned so that someone else can see themselves living there.
You see it all the time when visiting IKEA. They can make 30 square feet of living space seem like I could comfortably move my family of five into it.
It’s not tricking people into buying stuff they don’t need. It’s making people believe these things will make their lives better.
By staging your home, you’re allowing people to decide if buying it will improve their lives. Staging helps with that vision.
Here is the list I sent them to get ready for staging:
401 Remitrom Ave – Get Ready to List
Your bedroom
Remove dresser closest to the door or place it in the closet – we may use it in the second bedroom.
Remove at least half the items in the closet.
Remove all artwork.
Replace the blackout curtains with basic white curtains. IKEA, Walmart, Amazon are great places to find inexpensive ones. Please measure them, but they look like 72-inch panels.
Second bedroom
Couch to living room – if the stager does not like it, it will likely be used in the Florida room.
Remove all wall art and shelves.
Replace window cover with an inexpensive curtain or sheer.
I envision this room as either a nursery or a child room with a single bed.
Washroom
Replace shower curtain with an inexpensive white one. You can find one at Dollarama – IKEA, Walmart, Amazon too.
All toiletries including toilet paper hidden away – only soap dispenser on the counter.
Keep the art work above the toilet.
Upper hall
Remove wall frames, even from stairway.
Patch and paint as needed.
The mirror might be used by the stager somewhere.
Mudroom
Clear it out.
Living room
Pack all frames.
Remove any wall art.
Place the coat rack in the mudroom – we’ll see it the stager can use it.
Store your comfy coach, somewhere until your move.
Place chest under the window in the mudroom.
Be prepared that the stager may not want to use your side tables and coffee table.
Clear out the bookshelf – it may be used someplace else or removed depending on stager.
Dining room
Store extra chair that’s sitting against the wall.
Remove wall art.
Store all alcohol.
Be prepared to store all the smaller buffets – I think the stager will use the large antique buffet.
Kitchen
Clear everything off the counters. Store the items you will need in the cabinets.
Clear the shelf above the fridge.
Remove all fridge magnets.
Florida room
Except for the bookshelf, clear it out.
This may be made to look like a sitting or family room.
Backyard
Keep it pretty ????
Basement – clear as much as possible
Store the hanging racks against a wall out of the way if you need to use them.
Nothing hanging and remove all clothes hangers.
Declutter the storage shelves as much as possible – only the essentials.
Clear the storage room as much as possible – maybe place anything that is in a plastic container in the yard shed – maybe any black shelves should be moved into this room to make the main basement look bigger.
Office
Store the exercise equipment.
Store anything else that isn’t home office use – that’s what we want this room to be.
Once my clients completed everything on my checklist, the stager came through. Most of what I had outlined in my checklist put them that much further ahead for the staging day.
I try to reduce their stress as much as possible, and by doing this work ahead of the stager’s outline, it is more piecework now than a frantic dash. I like to think of it as puttering.
The stager followed up the day after with her staging preparation checklist with several options. Here it is:
Front Porch:
Leave “as is” looks great.
Living Room:
Option 1:
Recommending to keep the sofa and instead remove the large wood Hutch located b/w the living and dining room.
Option 2:
Remove the Sofa and Keep the Hutch if it cannot be stored.
Remove the TV, coffee table, bench and area rug.
Remove the mirror located behind the door.
Remove the metal wall shelf/ledges behind the sofa.
Move the tall white cabinet to the basement.
Note: I really appreciate it when stagers allow for options or flexibility. It’s another stress reliever for my clients.
Dining Room:
Move the Bar cart to where the large hutch was located.
Move the FP to the Sunroom.
Keep the table and chairs (6). If the Hutch can be removed and stored then it’s best to show the table with the extensions and 6 chairs. It looks very nice in
the photos and will offer more versatility for potential buyers.
Keep all of the plants and any décor items.
Kitchen:
Clear the countertops and leave the coffee maker and utensils and container.
Sunroom:
Add the FP to this room and place on same wall as tall grey cabinet.
Move the tall Grey cabinet to opposite wall.
Remove everything else in this room.
Balcony:
Set up the all the patio furniture for photography and showings.
Do you have decorative cushions for the patio sofa and love seat? We can bring if you don’t. (more stress reduction letting them know they can supply rather than have my clients go buy cushions)
Primary Bdrm:
Move the bed in front of window as we discussed.
Recommending to remove the dresser.
Keeps everything else in this room. We will bring matching nights but will use your nights elsewhere in the house.
Note: Once the bed is rotated can you send photos of how the room looks. We want to see how much space is left on the right side of window.
Bdrm 2:
Keep everything in this room. And we will set up as bedroom with double bed.
Basement/Utility Room:
Clear the top of the washer dryer.
Most of this space looks good.
Consider painting the steps but only if time permits.
Office/Bdrm Option 1:
Consider making this a bdrm/office. Remove the white cabinet (can it fit in the closet or somewhere in the basement, you have lots of space?).
Move the desk over to the far right.
Move the tall white shelf from living room and place on floor beside the desk. We can then add a twin mattress and bedding.
Option 2: Leave as an Office only.
Other:
Touch up walls were needed from nail holes, as we discussed.
Replace burnt out light bulbs.
As it turned out, I was wrong about the couch and hutch. This is why I always prefer the stager. They see things differently and know what will look good and what won’t.
They are always looking through the lens of a designer and photographer. They know how it will be seen with online photos and with in-person impressions.
For instance, as I walked in the front door to the living room, my eye was drawn to the bookshelf and dining room light.
The stager saw the TV as a distraction and suggested they take it down. She plans to use the bookshelf as a bed in the basement office to show potential home buyers that it is also a bedroom option.
Stagers, man. They see things in another dimension…
As you can see, there is a lot of work involved. Having sold five personal homes, I’ve found that having an individual guide for each room makes the process much easier.
It will never be without stress, but it can be a much easier process with clear direction.
I’ve heard so many stories from clients who previously used another agent to sell how unorganized the process was and so many last-minute decisions that made it incredibly stressful.
Just imagine a jet pilot winging it every time before taking off for a flight.
Airlines have a checklist and process for every detail that pilots must go through every time.
I hate flying, but knowing there are processes in place takes my anxiety down to where I can now eat on a flight.
I get it; everyone wants a bad guy to blame all their problems on.
For people who think they’re entitled to own a home yet have complained about home prices in Toronto, even when they could have bought a house in 2006 in the East End, Leslieville, and the Junction for $500,000, they blame everyone from banks to all levels of government, and especially us dickhead realtors for inflating the price of a home in Toronto.
Then, some people hate their agents after they fail to buy a house after several attempts, lumping all agents in the same boat as greedy, keeping them from being able to buy a house.
Sure, some blame should be put on the agent they chose to represent them, but not the homeowner’s agent.
The seller’s agent is there for one purpose: to get the best deal possible for the home sellers.
Period.
It’s one thing to decide to use the agent that appears in your social feeds doing dances and home tours where they waive you into each room in fast motion.
A better idea is to choose an agent with experience analyzing the price range of what a home will sell for so your time isn’t wasted on homes you could never afford.
Here’s an example of a recent listing of mine. I had ten competing offers on a vacant house in Pickering, listed for $699,000. My evaluation suggested it would sell in the $820,000 to $840,00 range. Seven of the nine agents expected me to give them the “price expectations” of my seller.
In other words, they were clueless about determining the price range at which the house would sell.
One agent asked me if I would advise her on the side after offers were submitted. She had two separate buyers with offers.
No conflict of interest there, huh?
I’ve always suspected this happens between agents from certain unreputable brokerages, including some of the big-name brokerages you’ve heard of.
But that’s another post for another day.
My answer to the agents who asked about price expectations was always the same: the seller is looking for the best offer.
I gave them my seller’s preferred closing date, June 24th or sooner.
Why would I tell any agent what the seller was expecting? My “job” is to get the most favourable terms and selling price possible for my client.
If I gave agents the expected price, how many would pay more? Why would they? I’ve tipped my hand.
I think this is all an echo of the past decade of a red-hot seller’s market, during which buyer agents would submit an offer, say, $200,000 more than the asking price, only to find that the house sold for $330,000 more than the asking price.
It could also be that because they have never experienced a truly balanced market, they’ve never had to evaluate a house and likely have never had the option to negotiate a price lower than the asking price when there was an opportunity.
When I first got into the industry in 2004, I would submit offers of $40,000 less than the asking price, riddled with conditions and clauses that would get laughed at by selling agents today, a deposit of $5,000. I would give the seller 3 days irrevocably because the house had already been on the market for three months.
Those were the days. Selling 3,500 square foot homes in Aurora for $600,000.
Let’s look at how this offer night went, and please pay attention to the closing dates. I’ll explain later.
Agent one:
Offer price: $750,001
Deposit: $15,000
Closing date: July 11
Conditions: none
Agent two:
Offer price: $777,900
Deposit: $40,000
Closing date: July 4
Conditions: none
Agent three:
Offer price: $770,000
Deposit: $45,000
Closing date: June 27
Conditions: home inspection and insurance
Agent four (This agent had offers for two buyers):
Buyer one:
Offer price: $770,786
Deposit: $45,000
Closing date: June 26
Conditions: none
Buyer two:
Offer price: $785,786
Deposit: $40,000
Closing date: June 25
Conditions: none
Agent five:
Offer price: $800,000
Deposit: $50,000
Closing date: June 27
Conditions: none
Agent six:
Offer price: $808,000
Deposit: $35,000
Closing date: June 20
Conditions: none
Agent seven:
Offer price: $670,000
Deposit: $60,000
Closing date: July 19
Conditions: home inspection and insurance
Agent eight:
Offer price: $779,000
Deposit: $30,000
Closing date: July 9
Conditions: none
Agent nine:
Offer price: $850,000
Deposit: $50,000
Closing date: June 21
Conditions: none
The choice is obvious: who wins here?
Take the 850, get it signed immediately, and we’re done.
I’ve done my job and made my client a boatload of money, right?
That’s what an inexperienced agent would have done. What’s the saying, “A bird in hand is worth two in the bush,” or something?
Here’s where my experience with negotiations comes into play.
I set Agent Nine’s offer aside.
I called agents five and six. They are within my estimated selling price range, and experience tells me with the size of their deposit, they likely have left money off the table and have room to improve. I let them know where they stand regarding offer strength.
The other agent’s offers were either too far away on price to work with or, if you look at their closing dates, were too far past what I had told them the preferred closing date was.
See what I mean about choosing your agent? Did the agents not tell their clients about the closing date, or did they simply not pay attention?
I called and thanked them for their offers, but we will be working with another offer.
Agent Four insists on having an opportunity to improve her offers. I told her she was too far off and we’d already decided.
If, by chance, one of those offers (or both) comes back and is higher than Agent Nine’s, then they will both be given one final opportunity to improve.
As it happens, Agent Five improved their offer price to $860,000 (Agent Six came up to $828,000), so both Agent Nine and Five were given a final opportunity to give their final and best offer.
They were once again reminded that closing before June 25 was important.
Agent Five returned with $875,100, and Agent Nine with $871,000.
Which offer did the seller end up working with and why?
Recall earlier when I said to pay attention to the closing date. A certain tax being threatened (“we’re only asking the top 1% to pay their fair share.. “) would cost a lot more in tax than $4,100.
Agent Five’s clients were livid—how can we have the highest offer and not get the house? When I reminded them that the closing date was important and ended up being the determining factor, they said their mortgage agent wouldn’t allow them to close sooner than 30 days because it would require them to resubmit paperwork, which made no sense to me.
Then, they promised me, hand to God, that if we accept their offer, they will 100% be able to close on June 24 once the offer has been approved by the mortgage underwriter.
I told them I appreciated their promise, but if they can’t move the closing date now, there is a good chance they won’t be able to do it later, and we didn’t want to take that risk.
Do her agents hold my client’s decision against me? Do they now think I’m the bad guy for not accepting their offer? It was always my client’s decision, not mine, but I’ll be the blame in their eyes.
What about the other people who submitted offers?
Do they see the final selling price and blame their agent for not giving them a realistic selling range?
Am I the asshole agent for “inflating” the final selling price?
Is my seller to blame for accepting the highest price (even if it wasn’t)?
Do you see how some people blame others for their inability to buy a home?
When you’re grocery shopping and you see a person handing out food samples, do you automatically go over and get a sample?
Maybe you’re like me and look it over first to see if it’s something you’d be interested in trying. Most times, it’s something that I’m not interested in eating either because it’s junk food or has something I shouldn’t eat, like beans or grains.
Food demos and sampling are done because they bring awareness to the product and result in more sales.
If it didn’t result in more sales, samples wouldn’t be offered.
My wife is a food entrepreneur. Her business model is helping food companies get their products listed in grocery stores and she has a subsidiary food demonstration company that holds food demos at grocery stores.
Some of the food companies are hesitant to do demos because they have to supply the food. That’s a cost that some of them are unwilling to absorb.
My wife explains that the demos produce more brand awareness and sales and they should be seen as an opportunity, not a hindrance.
The demos held by my wife are somewhat elevated. They are set up to look better, drawing even more attention to them.
All of the demo people, who are affectionately named brand ambassadors, are told everything that is a benefit about the product, and the drawbacks so that when a potential buyer has a question, they are getting factual information from a knowledgeable representative.
This is crucial in case there is a food allergy and it also shows the consumer that the person is not there just handing out samples but knows what they’re talking about.
It also benefits the food company. They are being represented by knowledgeable sales reps and it shows through increased sales.
You know there would be a real estate angle to this, didn’t you?
Are there demos in real estate sales?
Absolutely and you’ve already heard them.
Open house.
Yes, an open house is essentially a demo of a house for sale and the sampling allows people to come in and walk through the house.
I have been hosting open houses on every single one of my listings because when done correctly, they are very effective.
There is a prominent realtor, who is associated with a lion and offers a million-dollar marketing “guarantee”, that campaigned that he will sell your house “without ineffective open houses”.
Essentially, his “million dollar marketing” is eliminating one of the most effective marketing tools. Think about it, no matter how good the photos, video and virtual tour are, without being able to physically visit the property, how can any potential home buyer know if it would be a fit for them?
Yes, I know they can visit the house with an agent – if they are working with one, but what if they’re not?
Not every buyer has found an agent they want to work with or maybe they want to buy without one.
Another benefit of an open house is it allows many people to tour the home in just a few hours rather than having many people come at separate times over a few days.
That’s more disruptive than an open house over a weekend.
Why does the lion advertise that open houses are ineffective? Is it because he doesn’t want to do them? Maybe he can’t be bothered to host them. Perhaps his team of agents are ineffective because they haven’t been taught how to hold an effective open house.
I see it often, an agent holding a completely ineffective open house.
Picture this; it’s a Saturday morning. You’ve been searching for a house off and on for some time, and you come across one online that catches your attention.
You see there is an open house at 2:00. Great! You can go and have a look at it without having to bother your agent. If you like it, you’ll go back with them.
2:10, you arrive at the house and the agent is just getting there themselves even though it was supposed to begin at 2:00.
The agent is frazzled and looks surprised that you’re there. You feel awkward and tell them you’ll come back in a few minutes, but they insist you come in.
There are no lights on, the only information about the house available is a simple, black-and-white printout of the MLS listing.
You walk through the house hesitant to turn any lights on so you don’t get a good sense of the rooms.
Your visit is over in less than 5 minutes and as you walk to the door to put your shoes on the agent, while sitting on the couch on their phone, looks up and asks “What do you think?”.
How is that an effective open house?
This is a scenario that plays out more often than not.
Some agents will dissuade sellers from open houses with the excuse that only nosy neighbours go to open houses.
Neighbours have a vested interest in your home selling too. If your house sells for a record price, that brings up the house values in the neighbourhood.
Another excuse you might hear about open houses is that agents use them to meet new potential clients.
If that’s the case, why aren’t more agents sitting in open houses more often?
If an agent holds an effective open house, meeting new clients would be a byproduct of good customer service.
Allow me to provide some examples of how I hold an effective open house that provides value, first to my seller clients and as a result, answers the typical questions that home buyers have about the house that mutually benefits them.
First, my open houses are always advertised on the MLS beginning Thursday allowing time for the info to flow through the main online portals that home buyers use:
Realtor.ca
Housesigma
Zoocasa
And any other real estate info aggregate sites.
Then, on the morning of the open house, my open house signs are put out in highly visible areas by 10:00 am. Too often, agents simply put a sign on the road leading into the area and another at the house – and usually 10 minutes before the open house starts!
I have a minimum of 7 open house signs put out leading from the main streets, to feeder streets and finally, to the street the house is on.
Even if this brings in one extra person who was unaware of the open house, that’s still an extra person in to see the house.
I arrive at the house at least 20 minutes before the scheduled time and turn on all the lights, check to make sure the rooms are presentable and prepare the extra information materials that include info on parks in the area, the schools, where the best places are to eat, distance to highways and public transportation.
I’m ready with my information as well. Buyers almost always want to know what the property taxes are, when the house was built, the age of the roof, furnace, A/C, windows, and lot dimensions.
I’m no longer surprised when other agents holding open houses don’t know this info. It should be the first thing they learn about the house.
Many times host agents just sit on the couch and barely acknowledge the people who come in.
I make sure to greet everyone who comes in, while standing, thank them for taking the time to attend and invite them to help themselves to any of the information that is on display and ask how they found out about the open house; MLS, street signs, etc. I also ask them if they have an agent they are working with so I can make a note in the appointment system and notify their agent that they came through the open house.
Finally, if they are not working with an agent, I will ask them if they would like me to tour the house with them or if they would like to tour the house on their own.
This allows people to be more comfortable looking through the house not having a grinning, commission-hungry agent pointing out the obvious good features of the house while engaging in pointless small talk.
The people who do want me to tour with them are given the factual and pertinent info and not “this bedroom has hardwood floors and a closet”.
All in all, the more people that get in to see the home, the better chance of finding a buyer.
The more effective an agent is at presenting and selling the house, because after all an agent is a salesperson, the better the chances are of the house selling for more money and less time.
Ineffective open houses are done by ineffective agents.
You Better Be Able To Justify Low Balling Offers on Houses Before Making One
Where to even start with a topic like lowball offers?
Last night (a Sunday), around 10:30, I received an unexpected offer on one of my listings.
The house is a 3 bedroom, 3 washroom backsplit. It has a wide 110 by 86 foot lot. It’s not a corner lot but sits on a gradual bend in the road.
It has a pool, separate side entrance with an inlaw suite in the basement. The kitchen is updated with granite countertops, stainless steel appliances and a kitchen island with a breakfast bar.
It’s a nicely kept house in perfectly good condition. You could just move in without having to do anything, really.
The backyard is privately fenced with horizontal fence boards giving it a modern landscaped feel. There is a nice big tree adding to the privacy and it faces west so it is nice and sunny almost the entire day.
The roof had new shingles put on in 2022, so no need to worry about a roof for a long time.
When I meet with owners to discuss the price range of their home, I always look at the following:
What have similar homes sold for over the past year
How many days, on average, similar homes took to sell
What the average property taxes were
What the condition of the house is compared to the sold properties
Property taxes usually translate well in telling me I’m using good comparable homes, and the average days to sell is a good gauge once the property is on the market as to whether or not we have the right price.
The most important part is what the price range is of similar homes in similar condition. Comparing apples to oranges is no bueno, but so is comparing crab apples to honey crisps
My analysis, which consists of taking all of the data into consideration along with my experience and intuition, I came to the conclusion the market value of the house was $1,185,000 to a maximum of $1,250,000.
The owners did ask about setting a low listing price of $1,099,000 to attract more buyers. I told them that I don’t believe this was the market for that tactic.
We decided that a fair market listing price would be $1,198,000.
Now, back to the lowball offer. The offer came in at $1,050,000.
Yes, $148,000 less than the asking price.
I didn’t know the offer came in. It was 10:30 on a Sunday. I was watching Parasite.
There was no phone call to discuss an offer. Not even a text to say “Hey, I’m submitting an offer.”
I always call an agent Before I submit an offer on a home. I ask about what closing date the sellers are looking for, whether or not they’ve had any other offers previously, and if so, why it didn’t go together, and price expectations even if there is no hold back on offers (an offer date).
The reason I ask about price expectation is to find out what the sellers want to be sure it’s even worthwhile to put the offer together. Sometimes, even if the house has been on the market for a couple of weeks.
Plus, if through my research I find that the house is overpriced, I want to know if the agent feels the same and would be open to looking at an offer that is significantly lower than the asking price.
It has happened before.
Anyway, this agent, who is actually the broker of record, which is scary to think she’s teaching this sort of practice to her agents, simply sent the offer unannounced.
Legally, I have to present all offers to the sellers even though I know they’ll say no.
I called the sellers and in an uplifting tone of voice told them they got an offer. Then in a monotone voice, told them it was crap.
As expected, when I told them the price, they were pissed. I told them I wouldn’t have bothered you with this crap if I didn’t have to. The sellers have to decide to reject, I can’t do that for them.
I gave the sellers their options which were to simply let it expire at noon without a response, or to send them a counter offer with their price expectations, which would be an effort in futility being this far apart in price, or to send the buyers Form 109.
Form 109 is an offer acknowledgement form. It proves the offer was presented and optionally allows the seller to say “bite me, asshole. You’ve insulted me with your price.” I always tone it down and just say the terms were unacceptable.
In this case, the sellers are experienced and instructed me to just let the offer expire without telling the buyer and agent anything.
Fast forward to 2:30 Monday afternoon, 2 and a half hours after her buyer’s offer expired, the agent called me to ask about the offer.
“It’s dead” was my reply.
That seemed to spark a fireworks display and she decided to go up one side of me and down the other. She was arguing how it’s a buyers market, and the sellers would be smart to take this offer because all other offers will be lower.
“A buyer’s market?” I questioned her. “So there are more houses on the market than there are buyers?”
I also asked her for the contact info of her fortune teller who could predict what the future offers would be like.
She didn’t like those questions and switched tactics telling me that in her 9 years in the business, this is the most favourable market she’s seen for buyers.
“Too bad you weren’t around in 2008, like I was. Then you would have seen a better market for buyers” I told her.
That put her in her place. She knew she wasn’t dealing with an agent that didn’t know what they were talking about.
She came up with another story about her client not even wanting a pool to justify the price. I simply asked why she would be showing a house with a pool to a buyer that wasn’t interested in pools.
“Because there isn’t much on the market to show her.” She told me.
“But you said it’s a buyer’s market.” I reminded her.
She was done and she knew it.
She tried a couple of other bullshit lines like winter will slow the market and we don’t know where interest rates will go in October.
Now I went the offensive and pointed out a comparable house that had single pane windows, no pool or landscaping, a lot that was riddled with easements and boundary restrictions that sold the day before for $1,100,000, another that was bigger than my listing, but dated listed for $1,230,000, then rattled off 3 inferior homes that she could buy for the insulting price she offered for my clients home.
West Rouge, where I live, and Centennial are the two areas I concentrate on and know best and there’s no way this broker of record from Thornhill could even try to argue with me.
In the end, she tucked her tail between her legs and gave me the defeated line of “well, if the sellers change their mind, let me know and I’ll bring the offer back.”
There’s a better chance of me reading War and Peace in a day than that happening.
Are you gearing up for a big move to a new house? While moving can be an exciting adventure, it often comes with its fair share of stress and headaches. The good news is that with careful planning and some smart strategies, you can make the transition smoother and more enjoyable. Plus, I’ve included a handy checklist for you to download so you are prepared for the big day.
In this blog post, we’ll walk you through a comprehensive checklist to help you move to a new house without all the stress.
Before Moving Day:
1. Set a Moving Date
Start by choosing a specific date for your move and mark it on your calendar. Having a set date will give you a clear target to work towards.
2. Create a Moving Timeline
Develop a timeline that outlines all the tasks you need to complete before the big day. This will help you stay organized and avoid last-minute chaos.
3. Declutter
Moving is the perfect opportunity to declutter your life. Go through your belongings and decide what to keep, what to donate, and what to discard. Donating items you no longer need not only reduces what you have to pack but also benefits others.
4. Gather Packing Supplies
Ensure you have all the necessary packing supplies on hand. This includes boxes, tape, bubble wrap, markers, and any special packing materials you may need.
5. Label Boxes
As you start packing, be sure to label each box clearly with its contents and the room it belongs to. This simple step will make unpacking a breeze in your new home.
Getting Help:
6. Ask for Help
Don’t hesitate to reach out to friends and family for assistance. They can help with packing, lifting heavy items, and providing emotional support during this transition.
7. Consider Professional Movers
If you prefer a more hands-off approach, consider hiring professional movers. They can handle everything from packing to transportation, significantly reducing your stress level.
Prepare for Transition:
8. Notify Utilities
Contact your utility providers, including water, gas, electricity, and internet, about your upcoming move. This ensures a seamless transition at your new home.
9. Update Your Address
Don’t forget to update your address with the post office, banks, and other important institutions. This will prevent mail and bills from getting lost during the move.
Packing Essentials:
10. Pack an Essentials Box – Create a box with essential items you’ll need on your first day in your new home. This should include toiletries, a change of clothes, important documents, and basic kitchen supplies.
Taking Care of Loved Ones:
11. Prepare for Pets and Children – Moving can be stressful for pets and children. Arrange for a safe and comfortable environment for them on moving day to keep everyone relaxed.
Moving Day:
12. Stay Organized – Keep a binder with all your important documents, contact numbers, and your moving checklist handy. This will help you tackle any unexpected challenges that may arise.
13. Unpack Methodically – Once you’ve arrived at your new home, start unpacking methodically. Begin with essential items and gradually work your way through the boxes. Take your time to organize your new space as you go.
After the Move:
14. Take Breaks and Relax – Remember to take breaks and relax during the moving process. Moving can be physically and emotionally draining, so it’s essential to recharge and take care of yourself.
15. Explore Your New Neighbourhood – Once you’ve settled in, take some time to explore your new neighbourhood. Getting to know your surroundings can help you feel more at home and reduce the stress of the unfamiliar.
Moving to a new house doesn’t have to be a stressful experience. By following this checklist and planning ahead, you can make your move a smooth and enjoyable transition to your new home. We hope these tips help you move with ease.
Click the button to download your Moving to a New House Stress-Free: Your Ultimate Checklist.
Real estate selling commissions are always debated. Some say they are way too high and others don’t mind paying them as long as they see the value in what they are getting.
And that is the main point of contention I see when it comes to commissions.
There are those who believe houses sell themselves. That may have been true up until April of 2022, but we are in April of 2023, and even though prices are beginning to rise, there are houses out there that are sitting for months on end.
It’s laughable when agents try to justify their commissions because they have the best marketing.
Let’s face it, we (realtors) basically all do the same thing. Some just have a knack for doing it that tiny bit better and that can be the difference between a 5% selling commission and a 3.5% commission.
What about negotiating? I see a lot of agents boasting about their negotiating prowess. They even took an online course to become a certified negotiation expert (CNE).
It’s great they’re doing things to improve themselves, but at the end of the day, it’s just another “advantage” they have to sell themselves to home sellers.
I’ll be the one to point it out, their “negotiating tactics” during a red-hot seller market were to simply undervalue a house, get dozens of offers, and simply have the seller sign the offer that was the highest price.
The listing agent had no idea what the house was worth, but that didn’t stop them from advertising that they negotiated the highest selling price in the neighbourhood. Until the week after when the next house sold for more…
“Free” staging is another term tossed in the mix to justify commissions. To me, the word free diminishes the true value of good home staging; and I emphasize good.
I can stage a house, but believe me, the difference between my staging and hiring a professional home stager is the difference between you, the homeowner, selling for an average price or making tens of thousands more than the average selling price.
But therein lays some of the commission contentions; some homeowners want everything included in a rock-bottom commission rate. They want to have their cake and eat it too.
This means the real estate agent, who coordinates and pays upfront for photos, videos, floorplans, virtual tours, aerial drone footage, and online ads, begins to look at the costs involved, compares it to what they’ll make after all is said and done, and has to make cuts somewhere in order to make some money.
How much should an agent make from their selling commission?
Now we come back full circle. They need to be able to justify their commission rate.
How?
By demonstrating the value that they bring to you, the home seller.
A good realtor brings more value to a home seller with their ability to sell for more than the average selling price, and they do this by better preparing a home for sale than most other agents.
Like I said earlier, most of what agents do is pretty much the same.
One thing I learned in the restaurant service industry is that it’s all about the presentation.
A beautifully plated chicken dinner prepared by a trained chef at Aloe will be more expensive than one served at Milestones prepared by a line cook.
Some agents are just better at preparing a home for sale than most because they pay for excellent professionals to help them, and help a home seller get more.
Too many times I’ve seen houses under-sold because of shitty photos, or none in some instances. Some homeowners are short-changed because none of the houses’ main features were highlighted.
Ad copy, or listing descriptions that read like “Welcome to this sun-filled and open concept house in a great child-friendly neighbourhood, minutes to downtown! Walk to everything the city has to offer. Great schools and parks nearby! Come see it before it’s gone!”, does nothing to point out why it’s a great house.
It’s just fluff.
Meaningless drivel.
Again, with all of this being said, there are some home sellers that no matter how much value a good agent can bring to the table, are simply too focussed on the selling commission. Even if the agent had shown them why they charge what they do and justify why their selling service brings more money for the seller, those types of sellers will never waiver and go with the agent that offers the lowest commission but still has photos and staging in their repertoire.
There was a conditioning that went on during the boom, and a race to the bottom for selling commissions ensued because a listing was guaranteed to sell.
In this market, where homebuyers are squeamish and strapped for money, great photos, staging, and virtual tours aren’t enough.
Buyers are looking for value. Value doesn’t mean the least expensive house, they are looking for a house that won’t be a money-pit. They want a good house that they can simply move into and live their life.
I wonder what the value of an agent who has the ability and connections to have a house prepared in that way would be.
When home buyers drive your neighborhood, or when Realtors are previewing for their clients, what do they see? You never get a second chance to make a first impression, so make sure your home has the The Wow Factor: Seven Quick Curb Appeal Tips that makes people go “wow.” Take a walk around your property right now—front to back. Pretend you’re a prospective buyer. Do you like what you see?
Here are eight quick tips for creating a visual impression that makes them want to see more.
Start at the door. Get out your paintbrush and spruce up the front door. A bright color will attract attention from the street, if that fits with your overall exterior. Replace doorknobs and hinges with something new and shiny. A seasonal wreath on the door adds a welcoming touch. If your screen door squeaks or sags, get a new one or just remove it to make an attractive door more visible.
Under pressure. Rent or buy a pressure washer and go over the entire exterior, top to bottom. Pay special attention to any white or light-colored areas, which tend to collect dust and dirt. Use it on porches, stairs and decks. And by the way, power washing is equally effective on concrete, and can really lighten up sidewalks and driveways.
Spit and polish. Anything that’s metal on the outside of your home should sparkle and shine. Start with the house numbers. A good metal polish might work, but if not, replacing them is relatively inexpensive. Exterior light fixtures should all be working order and should shine brightly, both in daylight and dark. Check for burned-out bulbs while you’re at it. How’s your mailbox? New owners might appreciate one of the new models with a security lock.
Hide the kids and dogs. You want your home to have the broadest possible appeal. Not all prospective buyers have children so if you do, it’s best to keep the evidence out of sight. Put away the bikes and balls. If you have play equipment such as swings or a basketball goal, remove what you can or move items to where they are less visible. Be sure someone in the family is assigned to pick up after Fido and Fluffy too.
Plant a garden. You don’t have to have a green thumb to add seasonal color to the outside of your home. Think containers. Placing a few colorful pots on the front steps or by the door is a great place to start. Visit your local nursery and buy whatever is in season. Replace as needed—nothing dead or dying, please! Keep the grass mowed and edged too.
Light up your life. Good exterior lighting improves both appearance and security. In-ground spots can accent landscape elements or the house itself. Make sure the front walkway and drive are well lit. If wiring is not an option, solar fixtures are relatively inexpensive and easy to install, although they may not be as bright as wired fixtures.
Look out the window. Or in, which is what your prospective buyers will be doing. While you’re power washing, make sure the windows get their share. Use an inexpensive vinegar and water spray, and wipe down with old newspapers. Give them the same treatment on the inside and the whole house will sparkle.
Shutters are a plus. Shutters add a cozy feel, so if you don’t already have them, you might consider installing some. If you have shutters, reattach anything that looks saggy. Make sure they are freshly painted. Depending on your home’s exterior, choose a contrasting color that stands out. Dark green looks great with yellow or cream. Black is great on stone or brick, and white is almost always a good choice.
As you plan your exterior makeover, keep in mind your neighborhood, competing homes that are on the market, and your budget. Most of these How To Maximize Your Selling Price With Low-Cost Cosmetics and DIY. And even if you have to spend a few dollars for professional help, the investment will pay off by attracting more buyers more quickly.
Follow the 50% rule. Look at every flat surface in your house and take at least 50% of the items away. This goes for kitchen and bathroom counters, desktops, bookshelves and dressers. Maybe you do use that blender/toaster/coffeemaker/radio every day, but for now, keep it out of sight and get it out only when you need it.
50% your closets too. If stuff tumbles to the floor every time you open a closet or a cupboard, you won’t impress your buyers. An overstuffed closet tells a buyer that you don’t have enough storage space. So get out the packing boxes, pretend you’re moving next week, and streamline every space. The buyer needs to know there’s plenty of room for his (or her) stuff.
Don’t get personal. When a buyer walks through your front door, you want her to imagine herself living in your home. This won’t happen if the walls are covered with family pictures and the refrigerator door is decorated with childlike Picassos. Add these items to your packing list. Let the buyer see a clean slate, ready for her to add her own personal touches.
Brighten up. Walk through your home after dark and on a cloudy day. Does it look bright, cheerful, and welcoming? Start by getting some brighter light bulbs to shed some light on those dark corners. Make sure there are no burned out bulbs anywhere. Check the porch lights and outdoor lighting as well.
Show me the money. Realtors and builders alike will tell you that you’ll get the most bang for your buck by investing money in your kitchen and bathrooms. So whatever you have to spend on a pre-sale facelift, that’s where your money should go. If your bathroom vanities look shabby and dated, a couple coats of semi-gloss enamel in one of today’s “in” colors is a great place to start. Add some drawer pulls to kitchen and bathroom cupboards. Replace faucets with brushed nickel or bronze. New stainless steel appliances in the kitchen will give it a real “wow” factor.
Do a painting. As part of your facelift plan, painting the interior walls is a great investment. Ceilings should be white because it makes the rooms seem larger. But keep white paint off your walls and go with a warm neutral (pale yellow, rosy beige or taupe) instead. Stark white walls are cold. Even if your home is very contemporary, you still want to reflect a degree of warmth and coziness.
Check for hidden problems. Often it’s the things you can’t see that will trip you up. So keep an eye out for problems that aren’t immediately obvious. For example, if the storage space under your stairs smells musty, air it out and add some room freshener. Make sure there are no signs of mold or mildew anywhere. Look around the baseboards and the outside of your home as well for signs of termites or other pests. Make sure there are no dripping faucets or leaks under the sink. And check to see that your smoke detectors are working.
Add the unexpected touch. When you’re ready for that first open house, make sure you appeal to ALL the buyer’s senses. Put out some fresh flowers or plants. (Hint: orchids are not expensive and they last a long time.) Avoid candles, which could create a fire hazard. Instead, use essential oils with scents that create a mood. Lavender is relaxing, rosemary is stimulating, and jasmine elevates the mood. Citrus scents are always fresh and clean. Of course if you want to pull out all the stops, bake some chocolate chip cookies and leave them on the counter. But please, no onions or fish smells left over from last night’s dinner.
Homes do not sell themselves. It takes planning and effort on your part, 7 Reasons Why You Need A Realtor to Sell Your Home, to turn your property into a showplace. The payoff is the look on that prospective buyer’s face that says, “I want this one!”
