Things You Should Consider
So you’re ready to put your house up for sale. What should you do to make it more sale-able, attract more buyers, and more importantly get more money in your pocket? Here’s a list of things to consider before putting your house on the market.
I don’t recommend doing any major renovations just to sell your home but if you are willing to do the work (or can get it done inexpensively) then consider smaller renovations like adding a backsplash, fresh paint on the walls, and landscaping to add more curb appeal. These will go a long way for potential buyers.
The power of a clean house is strong, I highly recommend giving the inside a thorough cleaning before allowing potential buyers through your door. Steam clean the carpets, wash floors, and dust. Don’t forget about the exterior. Sweep, rake, or shovel as needed, clean up yard debris, and make the exterior an attractive place that buyers want to be.
You’re moving anyways so you might as well start packing. De-clutter your home, room by room, and pack away things you don’t think you’ll need before you move. You can take down personal items like pictures if you wish but as long as it’s a reasonable amount then buyers won’t have a difficult time envisioning themselves in your home. Remove as much as you can from the kitchen counters and on the fridge doors. I recommend packing until your house feels empty but isn’t literally. That’s when you know when to stop.
Before I list your home I will require a few items to make the transaction as seamless as possible. I’ll need contact information of your financial institution to send documents to once the sale is complete, a spare set of keys for the lockbox, your surveyor’s certificate for the property, and any other pertinent information required for your home.
These tips will ensure your house will be as presentable as possible and increase it’s sale-ability when it counts the most.
You already understand the importance of hiring a REALTOR®, but what are the fees that you will incur? As a seller you don’t pay for any inspections requested by the buyer or a land titles transfer fee but there are a few costs that you will encounter.
This is the big one. As a seller you pay both the buying and selling agent’s commissions. When you purchase a home, you won’t have this cost. This will come out of your proceeds at the end from the lawyer. Commissions are typically a percentage of the sale price of the home and most often you will see a percentage that looks like 6/4/2. This means that the commission is 6% of the 1st $100,000, 4% of the 2nd $100,000, and 2% of any remaining balance. I also can offer a flat fee commission. I find that helps with those who are sticking to a strict budget and need to know the amount they will be paying upfront. Remember, I only get paid if your house sells.
There are also legal fees associated with the sale of your home. Although it’s less than if you were purchasing, they will cost you usually between $700-$800 + GST + PST
There may be a payout penalty on your mortgage if you are planning on selling and paying out the mortgage before your term is up. The penalty is usually 3 months of interest or the interest differential with your rate and what the current rate- whichever is higher. If your mortgage has a portability clause and you are planning on buying something after you sell, that is a great way to avoid the penalty altogether.
If you are planning on hiring cleaners to do a deep clean pre-sale, hiring a carpet cleaner, or hiring someone to do repairs, these will all have to be accounted for in the budget.
These costs and fees may seem like a lot of money but they are designed to ensure that you will achieve the most money once your house does sell and some are unavoidable. It’s better to know up front what these costs will be and will make budgeting for the new house that much easier.