This is nice news for prospective condo buyers, who now have a wider selection to select from. However, it’s problematic for those attempting to sell their condo, who can have to significantly lower their asking price or, in a worst-case scenario, take their property off the market until the vendor’s market becomes more favorable.
More and more homeowners are choosing the second option. But what consequences do they face consequently of this decision?
Do you will have to reimburse your broker for expenses?
Rick Kedzior, President of Ontario Real Estate Associationsays the province’s Trust in Real Estate Services Act is a giant help to sellers on this scenario since it sets mandatory requirements for brokers. BC, Alberta and Manitoba have all introduced or updated similar laws to Ontario in recent times.
“When an agent accepts an offer, they provide the seller with a schedule of services to be provided, and that schedule also indicates who is paying for what,” says Kedzior. “From an agent’s perspective, staging and any other ancillary services they provide are a cost of doing business. Another example is all the costs associated with an MLS listing. I have never seen a situation where the seller was left with the costs.”
The only (and rare) situation where the vendor may very well be left with a bill can be stipulated within the listing contract. “When you have the meeting to put your house up for sale, they might say we’ll stage the house for you or paint it or something like that,” says Ahren Spylo, a spylorealty.com Realtor at Keller Williams Realty in Waterloo, Ontario. “And if you decide to take the home off the market, they may want to sort out the costs, whatever they are. But that would have to be determined up front.” Make sure you understand the sales contract if you sign it.
Are the prices lower if I remove a condo from the offer?
There could be a stigma attached to a property being taken off the market without selling. “So they put it on the market for, say, 90 days — that’s pretty much the norm — and then they take it off the market. From a realtor’s perspective, the question then becomes, ‘What happened to that listing?'” Kedzior says. But that is hard to quantify.
Of course, there could also be a chance cost if you will have to alter your life plans consequently of not selling. This could disrupt your plans to take a brand new job in one other community, or you would be forced to pay for upgrades needed to make the property suitable for rental or to accommodate a growing family.
