This is the story of 2 families and their recent experience selling their respective home.
In the summer of 1998 these two families, total strangers to each other, purchased a brand new house from a new home builder.
They each took possession of their respective homes in the summer of 2000.
Eventually they met as neighbours since they happened to live on the same block in a modest Toronto Subdivision.
Ironically they had bought the same model, a 3 bedroom, 2,000 sq. ft. home with a double car garage and 4 parking spaces just a few doors away from each other.
Over the ensuing 10 years they seemed to take good care of their properties and kept their homes in good shape while not adding any upgrades.
Couple no.1 seemed to take good care of their financing, mortgage payments and personal credit.
As 2010 rolled around they decided to buy a bigger home.
They had heard throughout the years that Real Estate values had escalated in their area and felt they may be in a position to get a 4 bedroom home, with an additional bathroom upstairs so each child has his/her own and an extra room for visiting grandparents. An additional office on the main floor would be great as well.
They turned to their friends and colleagues for a recommendation of a Professional Realtor. Upon meeting one of the referred Realtors they were quite impressed by his/her Professional appearance and equally by his/her thorough presentation of the facts, market conditions and current property values.
The decided to enlist his/her services to Market their home for sale and listed it for $509,000.
Our couple were very impressed by the rash of activities that ensued.
Within 24 hours their Realtor had a For Sale sign on the lawn with their own web address, flyers at their neighbours' doors, Open House notifications for other Realtors and the general public, a video tour had been prepared and it seemed like their home was featured throughout the internet using social media and various synchronizations with other Real Estate websites.
The Open House was well attended and an offer came in within 12 days of listing. After some negotiations and with guidance from their Realtor, couple no 1 conditionally sold their home for $500,000.
Within 5 business days the transaction firmed up, a SOLD sign was put in place and they were in a position to make their next move.
Concerned about "..all that paperwork..." and what they have to do , the Realtor assured couple no. 1 that all will be handled by him/her, respective lawyers and administrative staff to a smooth conclusion.
Allowing for commissions totalling 5% of the sale price plus HST and a $1,000 legal bill by their own lawyer, couple no 1 were very pleased with the net proceeds of $470,750 and the efficient and professional manner in which everything was handled.
Upon seeing the SOLD sign, couple no 2 were intrigued.
After all they too were financially responsible, had lowered their mortgage and would love to own a bigger home.
They sat down to discuss their options and decided to sell their home as well.
However they would do it on their own.
"They sold it so quick and it seemed so easy, lets sell it on our own" remarked the husband.
"You know honey, I remember hearing that we can put the house on the professional MLS for just $109. That's all 'they' do anyways. Why don't we save all that commission and make extra money! We can also get a For Sale by Owner Kit for about $350 and a yard sign. Imagine that, we'll sell it for $500,000 as well since its the exact same house and we'll make SO MUCH MORE".
The idea seemed to excite couple no. 2 and indeed they listed their home on their own for $509,000 on the MLS and bought the kit.
Well they too were flooded by an array of activities. Their home phone, cell phones and work phones started ringing off the hook from the early hours of the morning until late at night. People wanted to come see their home at various times of the day with no consideration to their own schedule.
Occasionally they got the help of their respective parents to sit and wait for these strangers to come and view their home.
People came and went.
Some liked the home and others thought it had a finished basement, or a 4th bedroom.
"Why don't they read the feature sheets?" lamented the wife.
On the weekend, couple no. 2 had an Open House.
They posted signs with balloons and had quite a number of visitors.
As the days and weeks rolled by though, no offer came in.
People came knocking at their door at all hours of the day.
Their private lives were in turmoil.
Personal security was jeopardized.
Having dinner together was an impossibility, let alone the kids having privacy to do their homework.
However, on the 4th week, a couple who had previously been at an Open House called to discuss an offer.
Upon meeting, the 2 couples had an amicable discussion regarding a closing date, any issues with the house that the owners would disclose and eventually the offer price.
"Well since you don't have to pay commissions to a listing agent and since we are buying it privately and we have to pay bigger legal fees we will only offer you $460,000, and not a penny more".
Couple no 2, exasperated by their experience of the previous 4 weeks responded;
"We can not accept your offer. We are giving you the closing date you are asking for but we have to pay for storage, we will have to move twice and we too have a bigger legal bill because our lawyer charges more when a house is sold privately. We will agree to $464,000 and no home inspection. But since we are giving you the closing date you want and we have nowhere to go you need to come up to this price"
The buyers agreed.
The closing date was only 2 weeks forward.
Couple no 2 packed and placed their belongings into storage and moved into Mom and Dad's house with their children, until they could find something else.
To date, some 40 days later, with the children displaced from their own home and community, the couple managing work and after school activities and trying not to be a burden on Mom and Dad, they have yet to begin their new home search.
With winter fast approaching, it may be a while yet.
"I don't even know what we can afford yet. We are still paying for storage, we spent close to a thousand dollars of our own money to advertise and still ended up getting a few thousand dollars less than our neighbours who used a professional Realtor. How's that possible? And I have yet to see our lawyer's bill".
Update
Couple no. 1 are happy hanging Halloween decorations, with Christmas decor not far behind..in the home of their dreams.
