Selling your house in GTA!
Are you planning to sell your house? Have you considered what costs are involved?
At time of planning, you need to budget for the added costs involved in making the sale, especially if you’re using the proceeds to finance the purchase of another home. That means keeping an eye on the following expenses:
- Real estate agent commissions: Real estate agent commissions is service fee to your pay to realtor to guide you through the sales process and selling your house with in your stipulated time frame and desired market price. These can run anywhere between 3.5% and 5% depending on where you live and what you negotiate with your agent. A 3.5% real estate commission on a house that sells for $500,000 will set you back $17,000 +HST.
- Legal fees: A lawyer service are required to execute the house deeds and they help to protect your interest in case any complication arise in your sales process. Typically, you are required to budget for at least $1000, but, the actual cost may vary depending on how complex your deal is.
- Home staging: In order to get the maximum dollars for your property, you need to present it to potential buyer in an appealing and attractive manners. You might need to make certain tweaks to your décor and finishing for which you might need to carry out some home staging work i.e. you might have to move all your stuff out and rent out furniture and art and some decorations stuff to make home look great to potential buyers. It can cost around $1,000 to $2000, but that can vary depending on how much fixing up your place needs.
- Mortgage payments: The proceeds of your home sale will be used to pay off your mortgage. But, be prepared to add prorated interest you’ve accrued to the total balance. Additionally, your lender may penalize you for paying early if you have a prepayment penalty associated with your mortgage.
- Moving costs: Depending on where you’re moving and how much stuff you have to shift, you’ll likely need to factor in at least a couple of hundred dollars for moving expenses — unless, of course, you have your own truck and willing friends who will work for pizza and beer.
- Tax Planning: Finally, you also need to ensure you plan for any tax implication arising due to capital gains arising from sales proceeds.
Many of the above fees are negotiable and will vary based upon your personal situation. It is always advised to speak to a seasoned professional for personalised advice.