Budgeting: The Secret to A No Surprises Sale
Selling your property comes with a number of associated costs that you should be prepared for, both before and after your property sells. Considering all of these costs in your budget can help you avoid any surprises.
Depending on the age, style and condition of your home, a few home repairs may be recommended. This is based on market conditions, your agent’s marketing strategy and most importantly, your budget. This can range from fresh paint and new light bulbs, to some larger projects such as replacing flooring or appliances. A good agent will work with your timing and your comfort level to determine the best selection of repairs to improve the overall value of your home.
Staging has become a very common term in the Toronto market. It basically means making changes (either cosmetic or physical) to your space to make it more visually and emotionally appealing to buyers. Often how someone ‘uses’ their home is different than how buyers expect to see a home. Stagers work with clients to improve the look, feel and flow of a space. There are many different levels and degrees of staging. Ultimately it’s up to you to determine how much or how little you feel comfortable doing. Your agent will work with you to find the best solution to you.
Getting a pre-inspection report on your property can give prospective buyers peace of mind about your property and can save them a step in the buying process. This can cost a few hundred dollars but add more potential offers to your plate.
Breaking your mortgage
If the completion of your sale means you need to discharge your mortgage early, you may incur a penalty. Talk to your Mortgage Broker or Bank to find out the exact terms of the penalty.
You will need a lawyer to act on your behalf in the sale of your home. While fees for selling are less than for buying, this cost will still be around a thousand dollars.
Real Estate Brokerage Fees
Most Realtor fees are based on the selling price of the property. HST is charged on top of the commission.
This cost really depends on your personal situation and the extent of your move. It’s best to contact a few moving companies to get a quote.
Capital Gains Tax
Primary residences in Canada are exempt of this tax, but other properties, including cottages, chalets, or investment properties are not. Make sure to consult your accountant regarding how your sale will be affected.
Now you have an overview of what to budget for, click here to see if there is a best time to sell.