The traditional real estate story is familiar to most people who have ever bought or sold a house. A homeowner lists a property, and a buyer places an offer. If both parties agree, it’s on to the next step for everyone.

However, not every transaction follows the usual path. There are obstacles and options that you may not know about. For example, what happens if your buyer won’t or can’t pursue the standard options to obtain financing?

You could consider a Vendor Take Back Mortgage where you become the lender. But should you? Let’s explore the risks and advantages of providing financing for your own buyer.

Thinking of selling your home? Getting an idea of its value in the current market is always a positive first step. Book your complimentary home evaluation here.

What Is a Vendor Take Back Mortgage?

A Vendor Take Back Mortgage (VTB Mortgage or VTB financing for short) happens when the seller provides some or all of the financing for the home. Other terms you may hear are “seller financing or a seller take-back mortgage.”

This can be a private arrangement or in cooperation with a traditional lender or mortgage broker. In any case, you will still need a real estate lawyer to legally register the mortgage.

Buying or selling real estate is unlike any other transaction due to the high dollar amounts involved. Financing is a highly complex legal process, even when you want to keep the banks out of it through a private arrangement.

(Speaking of legalities, we are not lawyers. We highly recommend obtaining professional legal advice when considering any form of seller financing. In the meantime, please consider this post for informational purposes only.)

Given that your home is likely your most valuable asset, it’s good to proceed with caution. This level of commitment demands a lot more protection than a scribbled “IOU” provides!

Financing in real estate can seem complex, but it is an essential component of buying or selling a home. You can get some valuable information in the posts below:

• What Is Bridge Financing and Do I Need It When Selling My House?
• What Happens When Your Mortgage Is Up for Renewal?
• How Mortgage Stress Tests Affect Home Sellers

Who Should Consider a Vendor Take Back Mortgage?

A Vendor Take Back Mortgage isn’t a possibility for every home seller. The ability to cover your buyer’s financing depends greatly on your own equity and access to capital. Keep in mind that few people have enough liquid funds available to cover the cost of real estate in today’s market.

Seller financing taps into your home equity to fund your buyer’s purchase. It can get financially and legally complicated if you still have an existing mortgage yourself. Most insured lenders do not allow VTB financing, so you will need to assess your documentation carefully. A Vendor Take Back sale may be possible if you have an uninsured or private loan, but you should disclose it to your lender.

Needless to say, you should be particularly careful about agreeing to finance a buyer’s purchase if your home is not fully paid off. The counsel of a real estate agent and lawyer are both essential to ensure you protect your own interests.

A Vendor Take Back Mortgage can work if your home is fully or mostly paid off. A significant amount of equity shields you from some of the risks associated with financing. Not that it’s ever ideal for a buyer to miss a payment or two. However, the situation is far less stressful when you have the funds to cover it.

Seller financing is also common when a homeowner sells their property to a family member or possibly a close friend. This is one way to help a younger buyer who can’t qualify for a traditional mortgage to get into the market as long as a certain amount of trust is involved. You’ll also want a contingency plan to protect your investment (and your relationship) if things don’t go as planned.

Pros and Cons of Vendor Take-Back Mortgages

Providing seller financing can offer several benefits even when you’re not helping a family member purchase your home. It can also open up your pool of buyers, giving you an advantage in a down market when people may be hesitant to make a commitment. Other pros of VTB financing include:

The potential to earn interest income. Every payment from your buyer covers the principal and interest, just as it would with traditional financing. This gives you a chance to fully leverage the value of your house as time goes by.

The possibility of deferring Capital Gains. When selling a second home, the primary residence exemption doesn’t apply. In this case, you would have to add 50% of any profit you earn to your total taxable income for that year. Dividing the total amount owing over several years can make your payment far less burdensome than a single lump sum.

Before agreeing to lend the funds to buy your home, it’s also important to understand the risks and downsides. There is always a chance that your buyer defaults on their loan and can’t cover their payments. This can put your own financial health in jeopardy as you will have to cover the funds out of your own pocket.

Even an ethical buyer with the best of intentions can run into the unexpected. When offering seller financing, you should be fully aware of all potential risks and have a backup plan in case the worst happens.

Selling a home is highly nuanced and every situation is different. You’ll get some insights as to how to navigate the market in the posts below:

• 8 Important Things to Remember When Selling Your Home
• How to Sell Your House Fast
• Why Home Sellers Need to Think More Like Buyers

How Does a Vendor Take Back Work?

You might think that the rules are less stringent when providing Vendor Take Back financing. However, clear documentation is essential, and all terms of the agreement must align with the Canadian Interest Act.

Vendor Take Back mortgage rates are another point of negotiation. As the seller and lender, you can charge a higher or lower rate or even offer 0% financing depending on the situation. Whatever you and your buyer agree on becomes legally binding once both signatures are on the Agreement of Purchase and Sale and the lawyer has registered the Mortgage Agreement. When going in with all of the information, seller financing can be a valuable tool to streamline the transaction.

Do you have a challenging home selling situation and want some personalized advice? Our top agents in Hamilton & Burlington can guide you through anything. Reach out today with any questions you have, or call 905-332-9223 to connect with our office.

For many homeowners, their home is the most valuable asset they own. Selling it isn’t just an emotional experience; it’s also a critical financial decision. How much a house ultimately sells for is understandably a high priority as it determines what options a seller has for their next steps.

This concern is followed closely by questions about timing. When exactly will you get the money once your sale closes and ownership changes hands?

This extremely specific question doesn’t always have a simple answer. Today, we’ll outline the closing process in more detail, including when you can expect to receive the money after selling your home.

Is there a change on the horizon and you’re not sure where to start? Getting an accurate, unbiased assessment is a positive first step toward a successful home sale. Book your complimentary home evaluation here.

When Does the Seller Get the Deposit?

The buyer pays a deposit once the seller accepts an offer according to the agreed-upon terms in the Agreement of Purchase and Sale, usually within 24 hours. Like everything else, that money does not go directly to the homeowner.

Instead, it’s held by the listing brokerage in their Real Estate Trust Account, which is strictly regulated by the Real Estate Council of Ontario to protect both buyers and sellers. This procedure assures the buyer that the seller won’t receive the funds prematurely before any conditions are met. The buyer typically gets their deposit back if there is a valid reason to cancel the transaction (such as inspection not being satisfactory to the buyer).

This policy also provides security for the seller. If the buyer ends up backing out for a non-legitimate reason, the seller may be entitled to keep the deposit as compensation.

What happens if your home sale is less straightforward than you hoped? One of the resources below can help:

• What Are the Secrets to Selling a Home Discreetly?
• Why Did My Neighbour’s House Sell but Mine Didn’t?
• Can You Successfully Sell a House With a Stigma?

When Does the Seller Get the Money After Closing (Ontario)?

The timing of when a buyer delivers the funds for a house is far more straightforward than when a seller actually receives the proceeds. After you accept an offer, the buyer pays a deposit within 24 hours. There is no set amount by law, but approximately 5% is standard.

On the closing date, the buyer provides the rest of their down payment and the lender covers the rest. The seller will still need to wait patiently for the entire closing process to be completed.

Real estate is more complicated than most transactions. Unlike buying groceries or paying for gas, the money for a house doesn’t change hands right away. The homeowner doesn’t even receive the funds directly. During the closing process, all funds go to the seller’s lawyer’s trust account until the disbursement date.

Earning the highest amount possible will make waiting for the proceeds easier to bear. For that, you need a well-executed marketing plan. Here’s Our Full-Service Real Estate Team’s Guide to Marketing Your Home.

Disbursement Date: Meaning

When does the seller get paid after closing? Often, it’s the same day. Just be aware that there is a distinction between the closing day and the disbursement date.

The closing date is the day the transfer of ownership officially takes place and the buyer legally becomes the new owner. Usually, this is the same day the buyer gets the keys and takes possession, but not always.

The disbursement date is also when you will receive any proceeds from the sale of your house. It can happen on closing day or a day or two later depending on how complex the sale is.

Stunning presentation is one of the most important factors for a successful home sale in any market. The posts below can help you attract maximum attention from buyers:

• How to Stand Out in a Changing Real Estate Market
• Does Curb Appeal Still Matter When Selling A House Today?
• The Power of Staging When Selling Your Home

What to Expect When Selling Your Home in Ontario

In Ontario, funds from a real estate transaction are released concurrently with the closing process after all legal requirements have been completed. Usually, it happens fairly quickly. However, there can also be minor delays depending on the situation.

What Can Delay Disbursement of Funds?

• If your transaction closes late in the day, after business hours, you will not likely receive funds until the next day. The same goes for holidays or weekends.
• The buyer’s method of payment can also be a factor.

Direct deposits or wire transfers are generally faster than waiting for a certified cheque. On rare occasions, there could also be encumbrances or other hurdles that affect the timing of disbursement.

Your real estate lawyer will first use the proceeds to cover any outstanding mortgages or lines of credit against the property. They’ll also pay out any real estate commissions and any property tax adjustments. The remaining balance goes to the seller, typically by wire transfer or direct deposit. It may not happen immediately, but the process is straightforward and seamless in most cases.

Do you have questions about selling your home or what the process might look like? Our top agents in Hamilton & Burlington are here for you every step of the way. Reach out today with any questions you have, or call 905-332-9223 to connect with our office.

We always get asked, “When is the best time to sell a house in Ontario?” whenever someone is planning a move. It’s a fair question. Hamilton and Burlington real estate is always changing, and everyone wants to make the most of their most valuable asset.

To further complicate matters, real estate has seasons when the market is typically at its busiest. It makes sense that most people want to sell their home during peak times. Still, there can be advantages during any season or market type. In this post, we’ll explore the implications of selling now versus selling later.

Are you counting on outstanding results when selling your home? Discover the Woolcott Selling Advantage right here.

Should I Sell My House Now?

The market and the season are secondary to your lifestyle goals. You may have a reason for moving where it doesn’t make sense to wait for a particular scenario to happen. If the dream job of a lifetime comes up, no one will turn it down to see if housing prices rise or fall a little.

Sometimes, it’s possible to align the market with your timing. It might make sense to take a wait and see approach if you aren’t in a rush. Just remember that there are advantages and disadvantages to every condition, and there is no reason to put off your dreams longer than you need to.

Strategy is more important than timing when it comes to selling your home. The posts below will help you be prepared for anything:

• 8 Important Things to Remember When Selling Your Home
• How to Sell Your House Fast
• Why Home Sellers Need to Think More Like Buyers

Is There a “Best” Month to Sell a House in Ontario?

Traditional wisdom is that the best time of year to buy a house is the “worst” time to list. That’s because market conditions sometimes favour buyers, giving you less power to negotiate a top dollar sale.

However, the market is more nuanced than that. For example, spring and fall are traditionally busy in real estate while summer and winter are slow, but there are other factors at play. In fact, we have seen these trends turned upside down over the last few years with more houses selling in the winter than any other season!

The best month to sell a house depends on a variety of factors, not just the market. If conditions are busy and prices are high, you might stand to earn a healthy profit from your sale. But if you plan to buy shortly afterward, now you’re the one facing high prices!

The reverse is also true. If it takes a long time to sell your home and prices are low, you will also benefit from those conditions when it’s your turn to be the buyer. Once again, we recommend basing your plans around your own agenda rather than worrying about outside factors. Let’s take a look at where you might be in your plans to move in the near future.

How do you choose a real estate agent you can trust to sell your home? The posts below will give you some insight:

• Can a Real Estate Agent Sell their Own Home?
• Should You Use the Same Agent to Sell and Buy a House?
• Fact Vs Fiction About Working With A Real Estate Agent

Scenario One: You’re Not Quite Ready to List Your Home

A seller’s market is by no means an obligation to list your home right away. Regardless of the potential, this is a decision of life-altering proportions. It takes time both to prepare yourself for the change and to showcase your home in its best light.

Failure to do either of these things could lead to hasty actions and possibly not getting the best price in spite of the favourable conditions. Besides, a fast transaction and high dollar amount are far from the only factors to consider. When you move, it should always be for the right reason and only when you are ready.

Making your home appealing to buyers is critical for a successful sale in any market. The posts below will give you some ideas:

• The Power of Staging When Selling Your Home
• What Type of Home Staging Is Best for You?
• Minor Upgrades, Maximum Results

Scenario Two: You Are Ready for a Change

If you’re excited about the idea of a change, now is a great time to sell your home. The first step is to assess the situation and identify all advantages you have and challenges you may face. A free, no-obligation home evaluation from Woolcott Real Estate will help you know where you stand in the market today.

We will give you valuable insight as to how much your house could sell for right now as well as any upgrades with high profit potential. Our team will also provide you with marketing tips to ensure you get maximum exposure and empower you to get the best price you can for your home.

Whether you plan to sell a month from now or six months from now, an up-to-date evaluation can arm you with the important information you’ll need to make the most of your decision.

Do you want guidance on getting the best results when selling your home? Our top agents in Hamilton & Burlington are here to help. Reach out today with any questions you have or call 905-332-9223 to connect with our office.

It makes sense that most people want to earn the highest amount of money possible when selling a house. The only problem is that getting the property ready for maximum impact in the market can take time.

You have the luxury of being able to paint, perform minor repairs or even undergo substantial renovations when you plan months or years in advance. However, the only certainty in life is that life happens – as evidenced by the frantic Google searches for “how do I sell my house quickly” and “I want to sell my house urgently.”

Sometimes, you need or want the fastest transaction possible with the least amount of preparation you can get away with. Let’s take a look at how we can pull off the almost impossible.

An accurate, unbiased assessment is the foundation of your effective home-selling strategy. Book your complimentary home evaluation here.

How Long Does It Take to Sell a House in Ontario?

Practical expectations are the first step when buying or selling a home. Even if you find a buyer right away, a real estate transaction still takes time. Think of everything that has to happen from the moment you decide to sell and when the buyer gets the keys.

The Pre-Selling Period: During this time, you do what you can to prepare your house for the market. Typically, this means cleaning, decluttering and taking care of any necessary repairs. You’ll also want to choose a real estate team to represent you if you haven’t already.

Time on Market: After your house is listed, you will have showings and your real estate agent will help you negotiate any offers you receive.

The Closing Period: This refers to the time after you accept an offer and before the transfer of ownership takes place. A lawyer reviews all of the paperwork and runs a title search while the lender finalizes the mortgage approval.

The fastest possible scenario likely involves a cash buyer (who also wants a quick transition), a clean offer, a lawyer available immediately and absolutely no complexities. In this rare situation, the transfer of ownership still takes a couple of weeks due to the legal aspects of selling a home. Anything that happens in less than 30 days is considered an unusually fast transaction in Ontario.

Real estate transactions can be complex, and no one can expect a sale to happen overnight. What you can do is streamline the process as much as possible to make it easy for a buyer to find and fall in love with your home.

Understanding your buyer’s perspective can help with a fast home sale. Here’s Why Home Sellers Need to Think More Like Buyers.

Understand the Current Market

How quickly your house sells depends on the market, the property type and your selling strategy. Homes sell quickly during periods of high demand and low supply. Selling during a buyer’s market usually takes longer unless you are lucky or have an impeccable strategy.

For a realistic timeframe, take a look at the current market. Consider the average number of days on the market and average selling prices for similar homes. If those statistics work with your timeframe, you’re likely in a good position to sell your house on your terms.

You may need to consider some compromises if you need to move faster than the market. No one can say with certainty whether or not you can beat those numbers, but effective planning gives you the best chance.

The real estate market changes, but the foundations stay the same. The posts below can guide you to a successful sale in any circumstance:

• Fact Vs Fiction About Working With A Real Estate Agent
• How to Price Your Home for the Market
• A Home Seller’s Guide to Closing Costs

Top Strategies for Selling Homes Fast

You may not be able to complete all of the preliminary steps when you need a quick sale. However, it’s critical to do the best you can with the resources you have to appeal to as many potential buyers as possible. Think of the three P’s of selling a house.

Presentation

Lacklustre presentation can make it harder to sell quickly, not easier. It’s worth a little extra time and effort to make your home show well. A total remodel may be off the table, but you can still clean and declutter thoroughly to make a positive impression on potential buyers.

When working with a full-service real estate team, you’ll be surprised at how much of a transformation we can make in a limited amount of time. With almost immediate access to tradespeople and contractors, we can ensure your home stands out in the market.

Price

A compelling price point is always essential, but it’s even more critical when you’re relying on a fast transaction. We never want to undervalue your property. However, your listing price must show real value and generate excitement in the market. A realistic price is a valuable piece of the puzzle in enticing qualified buyers to place an offer.

Want to get your home show-worthy in record time? The posts below can help:

• Do I Really Have to Update My Home Before Selling It?
• Worth It or Not? What Renovations Really Help When Selling Your Home
• The Power of Staging When Selling Your Home

Promotion

Massive exposure is the final component of a fast and successful home sale. The more people who know about your listing, the better. However, it’s the combination of all three elements that really adds up to the results you want.

A house that shows beautifully at a compelling price point and high levels of excitement is the winning formula for all real estate transactions. When you want to put the move behind you with as little time and stress as possible, smart pricing, presentation and promotion always help.

Do you have questions about selling your home in today’s market? Our top agents in Hamilton & Burlington can help you get the results you need. Reach out today with any questions you have, or call 905-332-9223 to connect with our office.

When it comes to selling a home, there is no one size fits all solution. From the marketing to the value and everything in between, each house requires a unique approach to net a seller the most money in the least amount of time.

Home staging is one aspect of selling that requires a personal touch. “When someone thinks of staging, they usually think of a full-home makeover, with all the furniture and décor replaced with new pieces to get the home ready for sale,” says Jayne Woolcott of Woolcott Real Estate.

However, Woolcott says there are a few different levels of home staging sellers should consider, ensuring they’re maximizing their value – and their time.

Do you want even more details on how to stage for the maximum impact? Check out The Power of Staging When Selling Your Home.

Partial Staging Methods

There is no law stating that you need to spend thousands of dollars staging your entire house. Often, a partial or even some do-it-yourself techniques can help you earn more from your sale without a huge investment of time or money. Let’s begin with a look at some of those options.

Declutter and Depersonalize

When buyers are searching online, they want to be able to envision themselves in a home. This simple concept is what staging a house to sell is all about, whether you do it on a budget or go all out.

Focusing on cleaning and decluttering is the first step to getting buyers into that headspace. It might take a few days, and the only cost is for any cleaning supplies and organizational materials. Aim to keep all tables, dressers and countertops clean and tidy.

You’ll want to discard every unnecessary item to eliminate all distractions. Even your personal items and mementos must go, such as photos along the fireplace or fridge.

Stage Your House Inexpensively With Existing Items

One of our professional stagers at Woolcott Real Estate reports that many homes can be drastically improved using items you already own.

Furniture can be moved around to maximize space, and we can play with colour. Even simple things, like moving throw blankets and pillows, can change the whole mood of a home.

Staging with what you already have is a great way to optimize your sale without a substantial outlay of cash. No matter what, decluttering is still the first step. Less is almost always more if you want to create the impression of maximum space and natural light in the home.

Looking for even more advice to make your listing stand out today? The posts below can help:

• How to Price Your Home for the Market
• How to Stand Out in a Changing Real Estate Market
• Does Curb Appeal Still Matter When Selling A House Today?

Bring in the Staging Supplies

If a home is vacant or has outdated furniture that won’t photograph well, a professional stager can be one of the home seller’s strongest assets. Armed with a full inventory of couches, side tables, bedding and décor items, a professional’s eye transforms rooms into stunning masterpieces that photograph well – perfect for capturing buyers seeing homes for the first time online.

Woolcott says staging can be invaluable for most sellers, but cautions that it isn’t always a magic pill.

“If a carpet is worn or the paint is tired, a buyer will see through the staging when they visit the home in person. These are projects that should be remedied in consultation with your real estate agent and your stager,” says Woolcott. “We believe that all parties should work together on getting the home ready for sale, which is why we have our own on-staff, full-time stagers.”

Opt for the Full Staging Experience

Your own efforts can go a long way to creating a positive first impression on a potential buyer. However, for the full effect, it pays to bring in the professionals. This is particularly true for larger homes, where visitors are more discerning about the quality of the materials and design.

When only the best will do, an established real estate agent can provide a staging consultation and even recommend talented designers to prepare your home. Even better, work with a full-service team that includes professional staging as part of their package. This option can give you the best of both worlds, no out-of-pocket expenses and the best possible results from your home sale.

Did you know that Woolcott Real Estate offers complimentary staging to all clients? Contact our top agents in Hamilton & Burlington right here or call 905-332-9223 for more information.

Ah, home maintenance! It’s an important part of homeownership, but it’s something that often falls to the wayside as busy family and work schedules take precedence. However, homes are not self-maintaining, and forgetting about routine tasks can affect value in the long run.

“We go through hundreds of homes every single year and often see the same things being forgotten about that impact price and desirability,” says Jayne Woolcott, sales representative with Woolcott Real Estate. “As real estate professionals, we want to ensure our clients receive the best value. Part of that is helping them understand what needs to be done during regular home maintenance.”

Today, Jayne talks about the top 5 maintenance recommendations to keep your home in its best shape.

Before deciding on any repairs, it helps to know how much your house is currently worth. Book your complimentary home evaluation here.

Keep Gutters Clean

You might not think about your gutters (also known as eavestroughs), but a buyer likely is. This goes double if there are a lot of trees in your yard or your neighbour’s branches extend over your roof.

Whether you plan to sell or not, this simple task can make your house more appealing. It can also give you an added competitive edge when buyers have multiple listings to choose from.

Jayne Woolcott agrees. “Gutters are often forgotten about because they’re not something people see every day,” she said. She recommends using a small garden shovel to collect all the leaves and debris and to wear gloves. Taking care of your eavestroughs can prevent more costly repairs down the road, such as water leaks or even roof damage.

Home repairs are just one part of a complete selling strategy. Learn more in the posts below:

• Top 10 Questions to Be Ready For During an Open House
• 8 Important Things to Remember When Selling Your Home
• Selling Your House in Hamilton? Here’s How to Make the Most of It

Change Your Air Filters

Fresh air is critical, but it’s something we often take for granted. A few small updates now and then can help keep the air inside your home healthy and clean.

Generally speaking, owners of single-family homes should change their air filters every 90 days. If there are pets in the home, such as cats or dogs, or if someone has allergies, it’s better to change them every 60 days or even more often. You also might consider frequent replacements when selling your home so that buyers are greeted by the scent of fresh air.

A new filter costs only a few dollars, so it makes sense to change them frequently. If you find yourself forgetting, you can always set a reminder on your smartphone.

Check Seals in the Bathroom

A slow drip might not seem like a big deal, but water damage can add up to some seriously costly repairs. Plus, buyers will certainly notice a stain or two, especially if they’re accompanied by the smell of mildew.

A little prevention can go a long way to keeping your house dry and drip free. Give your bathtub, shower and sink a quick inspection to see if there are any signs of leaks. If you don’t feel up to the task, don’t just neglect it. Hire a plumbing service and get it done. If you notice any leaks, call a pro right away!

A quick fix now will cost far less than a major repair later. If you’re handy, you can tackle the job yourself with some caulking supplies from your local hardware store.

Tighten Up Loose Hardware

Does your towel rack wiggle every time you reach to dry your hands or the handle nearly flies off the cupboard door when you open it? It’s time to grab your trusty screwdriver or Allen key and tighten up all of your fixtures.

This tiny home maintenance task is easy, costs next to nothing and can prevent costly damage to your walls and doors later. Plus, think of what a relief it will be when everything is functioning properly again.

Now that your house is in tip-top shape, it’s time to bring it to the attention of potential buyers. Learn some of our best marketing strategies in the posts below:

• A Back to Basics Guide to Maximizing Your Sale
• Why Home Sellers Need to Think More Like Buyers
• Our Full-Service Real Estate Team’s Guide to Marketing Your Home

Caulk Your Windows and Doors

Tiny gaps between windows and doors are common. If they’re small enough, you can’t even see them, so you might not even know they exist – until the cold air comes pouring in! Sealing your windows and doors keeps water out and prevents interior water damage.

It will also keep the cool air in during the summer and out in the winter, which also helps to lower utility bills. A sealing kit can be a quick temporary fix. However, if you want buyers to see the best in your home, it may be better to invest in a more professional solution.

Do you want more advice on how to sell your home? Our top agents in Hamilton & Burlington can help you get the best results with minimum effort. Contact us right here or call 905-332-9223 today.