What are the costs of selling your house? It’s a burning question we get all the time from people listing their houses for the first time. We’re breaking it down in our quick guide…
It’s common knowledge that buyers can pay some pretty significant closing costs when they purchase a home. But what about sellers? If you’re ready to sell your house, you could wind up with a very nice chunk of change in your pocket. That said, you’ll have to take care of a few costs first.
We know budgeting can be tricky for home sellers, and part of the reason for that is the confusion surrounding selling costs. If you’re ready to put your house on the market, here’s what you can expect.
Home preparations
When selling your house, any experienced real estate agent will tell you how important it is to prepare your home before putting it on the market. That could mean having your furnace serviced, repairing your leaky faucets, adding a bright coat of paint, and anything in between. Trust us when we say, the right preparations can have a huge impact on how buyers see your home—but they can also add up!
The good news is, an experienced agent can help ensure that you only pay for the improvements that matter. Look for a team that offers a track record of selling success, and access to a truly talented stager!
Pre-listing inspection
It’s not a necessity, but you may want to get your home inspected before putting it on the market. While the buyer will probably opt to bring in their own professional, a pre-listing inspection can help you turn up any potential surprises beforehand.
Knowing about your home’s existing problems will allow you to either repair them, or factor them into the price you set. In our experience, the outcome is usually better if you can address these issues before you get to the negotiation table!
The cost of this type of inspection may vary, but you can typically expect to pay somewhere between $300 and $600.
Real estate commission
During a home sale, the seller will almost always cover the commission of both agents (their own, and the buyer’s). On the bright side, you won’t pay anything unless you achieve an outcome you’re happy with!
What you negotiate as a commission rate is up to you recognizing you should entrust the sale of your home, and likely your biggest investment, to a highly skilled and knowledgeable professional. Of course, the commission rate is usually split among the listing agent and the buyer’s agent.
Legal fees
When you’re selling your home, the legal fees you’ll pay will depend on the lawyer you choose. But typically, they’ll be somewhere in the neighbourhood of $1500-$2200.
You’ll lawyer will earn their money by performing a collection of crucial tasks, including a title search (which ensures that the sellers own the property free and clear), title insurance, and registering the deed which are crucial to the sale and purchase of any home.
Mortgage penalty
It’s all too easy to forget. If you sell your home during your mortgage period, you may have to pay a penalty and discharge fees. Worst case scenario, it could wind up costing you thousands of dollars.
Fortunately, in many cases, you can add the remainder of your current mortgage to the one you’re securing for a new property. It all depends on the terms of your agreement, so be sure to read it carefully!
It’s unavoidable…
We know paying money to sell your house isn’t fun, but it’s important that every homeowner knows what the costs of selling your house really are. On the bright side, a knowledgeable agent can help you reduce your costs—and maximize your returns. Are you ready to learn how to make a smooth and profitable home sale?
If you have questions about the home-selling process, we’d love to answer them. Get in touch to get the ball rolling!
