Checklist and Important Information for Listing an Acreage
2022 has been a highly active year in the Country Residential market as it has been for city properties. However, things have slowed since the beginning of the fall, likely because of inflation, higher interest rates and fall/winter being the traditionally slower buying cycle for the country. I do suspect 2023 will be a good year for sales and anticipate an active country market. So, if you are planning to sell in 2023, it will be useful to utilize some of the suggestions from my list below. It covers off the main items that sellers should be aware of and will help ensure a smoother and hopefully more profitable listing and sale.
Although I have authored similar articles in the past, I wanted to do an update list for readers thinking of selling in 2023 to focus on a couple really important topics. After being involved in a few deals this year where GST became a very contentious issue between sellers and buyers as to who should be responsible, I felt it a good idea to include a couple of suggestions in the list on that subject.
- Verify zoning of your property – Country Residential or Agricultural Zoning. Usually if a midsized property it is likely zoned Agricultural, however sometimes even a smaller land parcel can be zoned Agricultural. If over 19 + acres, it is almost always Agricultural. This can be confirmed at the MD or via your Tax Assessment Notice.
- As a seller, ensure through your Realtor that your listing is written on the appropriate listing documents – either Country Residential or on an Agricultural Listing Contract. It is also important that the purchaser of your property has their offer written by the buyer’s Realtor on the correct purchase contract, again either Country Residential Purchase Contract or Agricultural Contract. This is because GST is covered off differently in both contracts.
- It is very important that as a seller you verify with your accountant and/or lawyer before going to market if GST will be applicable on your sale. Be ready to verify to a prospective buyer if you have a GST registrant number as this has implications for whose responsibility it will be – either seller’s or buyer’s, to remit GST if it is applicable. It is helpful if the agents involved have a good understanding of GST but important a Qualified accountant verify this.
- Ensure you have a Current RPR (Real Property Report) with compliance. If older RPR exists and any changes or additions have been made to the buildings, decks, etc., ensure you get an update to the RPR and secure a new Compliance Stamp/Compliance Letter from the MD.
- Gather any existing well reports and water chemical analysis reports. If older then 5 years, consider getting a well test done to verify current pumping rate (GPM) – usually a 2-hour recovery analysis by a well/water contractor. Also, get the water tested for full chemical analysis including bacterial testing.
- If there is an internal or external cistern, verify size and age. If cistern is tied into a well supply, verify tie-in is operational and how set up.
- Have septic system inspected and cleaned out and request an inspection report. Verify if septic system is Tank and Field (pumped out to field) or a Gravity System.
- If your home has a wood foundation definitely get an up-to-date Engineer’s Report done. There is still some stigma around wood foundations even thought they can be fine with no issues. They can have a somewhat shorter life cycle than concrete but are still quite reliable with many properties in the city and country having been built in earlier days with wood foundations. It is really important that drainage is well designed away from the home for wood basements, as it should be for concrete as well!
- Verify if furnace is High Efficiency or Midgrade and its age. Verify ages of hot water tanks.
- Place tags/notes on all processing equipment verifying what the various tanks are used for.
- Verify wiring type in the house as well as breaker panel age and main breaker size. If property has in-floor heating, verify number of zones.
- For larger parcels verify soil type if possible.
- Verify age of roof.
- If property is located near a creek or other water sources, verify if it is in a Flood Zone or not. This information can be attained from recent Provincial Flood Zone maps or calling the MD.
- Have most recent tax information and assessment on hand.
- Verify which schools are available for your area for prospective buyers.
- Verify closest fire department as it affects insurance rates.
Feel free to write or call write me if you have any further questions relative to these suggestions or if you are looking for an agent to represent you and your upcoming listing.
By Wayne Chaulk, Realtor, BCom
