If you're thinking about selling your home successfully in Canada, you've got a lot of work ahead of you. Unfortunately, many home sellers believe that their Realtor will take care of everything and only need to sign the papers. This could not be more untrue !
It's also important to realize that everything from realtor fees to closing costs differs by market. Even if you've previously sold a home in Canada, the process may vary if you've relocated to another province !
An overview of the home selling process in Canada is provided below to assist you in making informed decisions at each stage and achieving the best possible result for your efforts !
Calculate the costs of Selling
When it comes to selling a home in Canada, you may only be concerned with making money. However, it would be best to consider how much it will cost you before selling. Homeowners may be surprised by the cost of selling their homes. Real estate agent commissions, as well as an appraisal (approximately $400), home repairs, closing costs (roughly $500-$1,500 for sellers), moving expenses, and staging fees, will all consume a portion of your earnings. You may be charged a prepayment penalty or discharge fee of $200 to $600 if you pay off your mortgage early. Contact your lender to see if this fee applies to you !
Another factor to consider for some buyers is the cost of waiting. You're paying another month's mortgage, interest, homeowner's insurance, and maintenance for every month you wait to sell your home. So if you want to cut down on your living expenses and liabilities, you should list your home as soon as possible. The goal is to figure out how much it will cost to sell your home so you can set realistic profit goals. Simply listing your home for a higher price than you paid for it does not guarantee a profit. You'll need to think about how much you're spending to figure out how much you can sell it to make a profit !
Choose How To Sell
You have three main options when selling your home in Canada: choose from hundreds of Realtors, sell your home yourself, or sell directly with an i-buyer. Homeowners may be amazed to realize that not all real estate agents are the same. Realtors differ not only in terms of skill but also in terms of commissions. Agent commissions in Canada range from 3% to 7%, which significantly impacts how much money you keep from your home sale. For example, the average home value in Canada is $455,000, which means that agent commissions alone could cost you anywhere from $13,650 to $31,850. That's a significant difference that can quickly eat into your profits, so finding an agent who not only gives you the best value but also provides adequate service for the price you pay is critical !
Some homeowners opt for a For Sale By Owner (FSBO) approach in hot markets rather than paying a commission to a real estate agent. This means that instead of giving an agent a portion of your profit, you take on their responsibilities yourself. However, homeowners do not save as much as they think because the buyer's agent fee and the MLS listing fee must still be paid. It's also a good idea to get a professional appraisal before deciding on a price for your listing !
Get Your House Ready to Sell
If you want to attract buyers the old-fashioned way, you'll need a unique listing that sells the vision of what it's like to live in your home, not just the number of bedrooms and bathrooms. Talk about how close you are to local amenities, in addition to home features like large closets and square footage. If you've recently repainted or added new appliances, mention it. If you choose to use an i-buyer, you can use our guide on how to write a standout MLS listing that will attract buyers, or you can skip the listing and the hassles of home preparation entirely !
Most homes in Canada aren't ready to sell, which means you'll have to spend time and money preparing the property for potential buyers. Because repairs and maintenance costs vary, it's difficult to say how much this step will cost. However, here are some examples of how much some of the most common tasks will cost:
Power washing the exterior of the house: $200 !
$150-$500 to replace weather stripping on doors and windows !
For a typical 2,000-square-foot home, repainting all walls, doors, ceilings, and trim costs $6,500 !
Repainting exterior essentials costs at least $1,000 !
A new stove costs between $400 and $3,000 or more !
New countertops cost between $70 and $80 per square foot !
$50-$200 for a new mailbox !
Staging Home For Quick Sale
The curb appeal of a home makes a big first impression. Adding bright flowers, a new mailbox, or freshly washed walkways to your home's exterior can set a positive tone for what the buyer will find inside. To make your home more appealing to buyers, you may want to do some home staging. Home staging entails more than just cleaning and painting to make your house stand out. Some people will even rent art or furniture to achieve the desired look. This can cost hundreds of dollars per room, so carefully consider the advantages. Curb appeal and home staging are irrelevant to I-buyers. You can avoid these costs and hassles entirely if you use i-buyer !
The Procedure of Making an Offer
The average amount of time a home spends on the market before being under contract varies by market. It's also possible that your home will remain unsold, especially in light of Canada's recent real estate market downturn. You get a guaranteed home offer from an i-buyer, with no risk of the deal falling through. If you receive a home offer, you can accept it as is, decline it, or counteroffer; the choice is yours. The negotiation process is tricky because each party wants to come out on top. The offer is documented as a formal contract once both parties have reached an agreement and the closing process begins. You are now ready to make final preparations for the transaction !
Final Preparations For The Transaction
While the buyer is responsible for the majority of the tasks associated with closing, homeowners also have work to do. You'll need to locate important home documents, make repairs specified in the purchase agreement, and create the official disclosure statements before the final closing date !
By law, the seller must disclose any known latent defects in the house, such as mould infestations or other hazards. You may be required to disclose if the property has been the site of a marijuana grow operation or if there is a stigma associated with the property under certain circumstances like a murder occurred on-site !
Successfully selling a home is a long, arduous journey full of surprises and speed bumps at every turn. Knowing what to expect at each stage of the process can make the process go more smoothly, but it doesn't guarantee that you'll sell your home in the timeframe you want or for a fair price. Guglu Homes is currently providing real estate services in Ontario and is rapidly expanding to markets across Canada, bringing home selling into the mainstream. So, if you're looking for real estate services in Canada, contact Guglu Homes for the best services !
This website may only be used by consumers that have a bona fide interest in the purchase, sale or lease of the type of realestate being offered via this website. REALTOR®, REALTORS® and the REALTOR® logo are certification marks owned by REALTOR® Canada Inc., a corporation jointly owned by the National Association of REALTORS® and CREA. MLS®, Multiple Listing Service®, and the associated logos are all registered certification marks owned by CREA and are used to identify real estate services provided by brokers and salespersons who are members of CREA.