The Ultimate Home Selling Guide For First-Time Sellers
You have a lot of work ahead of you if you're trying to sell your house in Canada. Many home sellers think that all they need to do is sign the paperwork and that the realtor would take care of the rest. The opposite is true, as you can see.
Your preparation for the market, the decision of the asking price, negotiation of the purchase, and transfer of ownership all depends on you, the homeowner.
It's also critical to be aware that market variations apply to everything from closing expenses to Realtor fees. If you've moved to a new province, the procedure could be different even if you've previously sold a home in Canada.
Your preparation for the market, the decision of the asking price, negotiation of the purchase, and transfer of ownership all depends on you, the homeowner.
It's also critical to be aware that market variations apply to everything from closing expenses to Realtor fees. If you've moved to a new province, the procedure could be different even if you've previously sold a home in Canada.
Step 1: Calculate the worth of your house and the selling price.
Making money can be your only concern when selling a home in Canada. But you should also think about the expense before deciding to sell.
Homeowners may be ill-prepared for the costs associated with selling a house. You'll spend a portion of your income on real estate agent commissions, as well as an appraisal (around $500), home repairs, closing charges ($500–$1,500 for sellers based on different scenarios), moving costs, and staging fees.
If you pay off your mortgage early, you might additionally have to pay a discharge fee or penalty of between $300 and $600. If this fee is applicable, you should confirm with your lender.
Another factor that some owners take into account is the cost of waiting. You pay another month's worth of mortgage, interest, homeowner's insurance, and maintenance for every month you wait to sell your house.
Your home should be listed as soon as feasible if you want to lower your living expenditures and liabilities.
At the end of the day, you need real estate agent to sell your house. They will be the ones who carefully explain the details, costs, and legal documents to you. Or you can read about how to become a real estate agent.
Besides, some agents offer free house evaluation service for you to use and check the value of your property.
Homeowners may be ill-prepared for the costs associated with selling a house. You'll spend a portion of your income on real estate agent commissions, as well as an appraisal (around $500), home repairs, closing charges ($500–$1,500 for sellers based on different scenarios), moving costs, and staging fees.
If you pay off your mortgage early, you might additionally have to pay a discharge fee or penalty of between $300 and $600. If this fee is applicable, you should confirm with your lender.
Another factor that some owners take into account is the cost of waiting. You pay another month's worth of mortgage, interest, homeowner's insurance, and maintenance for every month you wait to sell your house.
Your home should be listed as soon as feasible if you want to lower your living expenditures and liabilities.
At the end of the day, you need real estate agent to sell your house. They will be the ones who carefully explain the details, costs, and legal documents to you. Or you can read about how to become a real estate agent.
Besides, some agents offer free house evaluation service for you to use and check the value of your property.
Source: Andrea Piacquadio / Pexels
Step 2: Choose how to sell your home
In Canada, there are two methods by which you can sell your hose.
1. You can sell with a realtor
- Realtor's fee: Usually from 3% - 5% based on negotiation.
- Real estate lawyer fees: The average real estate lawyer charge is $500 to $1,000, although the exact amount you incur may differ. Most common services are:
1. Title Search: The seller's lawyer must make sure the seller closes any unfinished permits and agrees to pay any unpaid bills with money from the sale of the home.
2. Letter of Direction: The seller's lawyer will confirm whether the property has any mortgages or lines of credit, and will give the buyer's lawyer a Letter of Direction stating that any money obtained from the sale of the property would be used to any outstanding debt and taxes. The buying lawyer will next get the verified property tax information from the selling lawyer.
3. Statement of Adjustments: The Statement of Adjustments is a list of the costs that the seller was responsible for paying or had already paid for at the time of closing.
4. Closing Date: On the day of the closing, the buyer's lawyer will electronically send money to the seller's lawyer. The seller's lawyer will verify receipt of the cash and apply them to settle any outstanding obligations and mortgages. The buyer lawyer will then receive the keys when the seller lawyer has finished writing a report. The closing costs, including attorney fees and real estate commissions, will also be deducted by the seller's lawyer before the seller is credited with the remaining sum.
2. For sale by owner
It could surprise home sellers to learn that not all realtors are made equal. Realtors' abilities in the field vary, but so do their commission rates.
In Canada, agent commissions can range from 3% to 7% (this depends on what province you are currently living in), which significantly affects how much of the proceeds from the sale of your home you keep.
For instance, the average property value in Canada is $500,000, which means that the agent commissions alone might cost you anywhere between $15,000 and $35,000.
It's crucial to select a professional real estate agent who offers you the best value while also offering acceptable service for the money you pay because that significant difference will quickly take away your selling profit.
In competitive markets, some homeowners choose to sell their homes themselves (For Sale By Owners) rather than pay the real estate agency commission. This implies that you take on their obligations yourself rather than giving an agent a portion of your profit.
1. You can sell with a realtor
- Realtor's fee: Usually from 3% - 5% based on negotiation.
- Real estate lawyer fees: The average real estate lawyer charge is $500 to $1,000, although the exact amount you incur may differ. Most common services are:
1. Title Search: The seller's lawyer must make sure the seller closes any unfinished permits and agrees to pay any unpaid bills with money from the sale of the home.
2. Letter of Direction: The seller's lawyer will confirm whether the property has any mortgages or lines of credit, and will give the buyer's lawyer a Letter of Direction stating that any money obtained from the sale of the property would be used to any outstanding debt and taxes. The buying lawyer will next get the verified property tax information from the selling lawyer.
3. Statement of Adjustments: The Statement of Adjustments is a list of the costs that the seller was responsible for paying or had already paid for at the time of closing.
4. Closing Date: On the day of the closing, the buyer's lawyer will electronically send money to the seller's lawyer. The seller's lawyer will verify receipt of the cash and apply them to settle any outstanding obligations and mortgages. The buyer lawyer will then receive the keys when the seller lawyer has finished writing a report. The closing costs, including attorney fees and real estate commissions, will also be deducted by the seller's lawyer before the seller is credited with the remaining sum.
2. For sale by owner
It could surprise home sellers to learn that not all realtors are made equal. Realtors' abilities in the field vary, but so do their commission rates.
In Canada, agent commissions can range from 3% to 7% (this depends on what province you are currently living in), which significantly affects how much of the proceeds from the sale of your home you keep.
For instance, the average property value in Canada is $500,000, which means that the agent commissions alone might cost you anywhere between $15,000 and $35,000.
It's crucial to select a professional real estate agent who offers you the best value while also offering acceptable service for the money you pay because that significant difference will quickly take away your selling profit.
In competitive markets, some homeowners choose to sell their homes themselves (For Sale By Owners) rather than pay the real estate agency commission. This implies that you take on their obligations yourself rather than giving an agent a portion of your profit.
Step 3: Prepare Your Property for Sale
When you sell with an agent, you must go and register your listings. To be effective and sell your home quickly.
You can list what are the features of your house, and it's unique selling point and estimate the value of the house so you can know which price to offer and which is the net profit, after having deducted all the maintenance costs and renovation.
Here is the brief list of maintenance and renovation costs when you sell the house:
Power washing the home’s exterior: $300
Replacing the weather stripping on doors and windows: $200-$700
Repainting all walls, doors, ceilings, and trim: $6,500
Repainting exterior elements: $1,000
New stove: $400-$3,000
New countertops: $70 to $80 per square foot
Roofing: from $4000-$5000
Furnace repair: estimate $1000-$2000
The three most profitable repairs are adding a kitchen island or whirlpool bathtub (which earns around 65% of your investment).
Enhancing energy efficiency (recoups about 60% of your expenditure).
Repairing the roof (ROI ranges from 50% to 80%).
Your real estate agent can assist you in determining which improvements are most beneficial in your market.
You can list what are the features of your house, and it's unique selling point and estimate the value of the house so you can know which price to offer and which is the net profit, after having deducted all the maintenance costs and renovation.
Here is the brief list of maintenance and renovation costs when you sell the house:
Power washing the home’s exterior: $300
Replacing the weather stripping on doors and windows: $200-$700
Repainting all walls, doors, ceilings, and trim: $6,500
Repainting exterior elements: $1,000
New stove: $400-$3,000
New countertops: $70 to $80 per square foot
Roofing: from $4000-$5000
Furnace repair: estimate $1000-$2000
The three most profitable repairs are adding a kitchen island or whirlpool bathtub (which earns around 65% of your investment).
Enhancing energy efficiency (recoups about 60% of your expenditure).
Repairing the roof (ROI ranges from 50% to 80%).
Your real estate agent can assist you in determining which improvements are most beneficial in your market.
Step 4: Home Staging
You may also want to do a little home staging to make your home more attractive to buyers.
Home staging goes beyond cleaning and painting to make your home stand out from others. Some people even go as far as renting art or furniture to create the right look. This can cost hundreds of dollars per room, so make sure you weigh the benefits carefully.
It's important to provide a good first impression. Bright flowers, a new mailbox, or freshly cleaned sidewalks can enhance the exterior of your property and give potential buyers a good impression of what they can expect inside.
Home staging goes beyond cleaning and painting to make your home stand out from others. Some people even go as far as renting art or furniture to create the right look. This can cost hundreds of dollars per room, so make sure you weigh the benefits carefully.
It's important to provide a good first impression. Bright flowers, a new mailbox, or freshly cleaned sidewalks can enhance the exterior of your property and give potential buyers a good impression of what they can expect inside.
Step 5: Offering Process
The average time a home will stay on the market before going under contract will vary between markets. If you get an offer on your house, you have three options: accept it as-is, reject it, or counteroffer. The negotiation process is a challenging situation since both parties want to come out on top of the contract.
After an agreement has been achieved by both parties, the offer is formalized as a contract and the closing procedure is started. You will receive offers from the buyer's agent and talk about the price. Agents will be the only communicator between sellers and buyers. You are not allowed to contact the sellers or buyers directly to negotiate.
After an agreement has been achieved by both parties, the offer is formalized as a contract and the closing procedure is started. You will receive offers from the buyer's agent and talk about the price. Agents will be the only communicator between sellers and buyers. You are not allowed to contact the sellers or buyers directly to negotiate.
Step 6: Prepare for final transactions
While the buyer is primarily responsible for the majority of the closing-related tasks, homeowners are also involved. You must obtain critical property records, complete the repairs outlined in the purchase agreement, and prepare the official disclosure statements prior to the final closing date.
Any known latent flaws in the property, such as mold infestations or other risks, must be disclosed by the seller by law. If the property has a stigma attached to it or has previously been the site of a marijuana grow business, you may be compelled to disclose this information under certain circumstances.
Any known latent flaws in the property, such as mold infestations or other risks, must be disclosed by the seller by law. If the property has a stigma attached to it or has previously been the site of a marijuana grow business, you may be compelled to disclose this information under certain circumstances.
Home selling tips
1. Light Decorations
A room appears larger the more light it has. Having lots of natural light makes the space appear brighter and larger, whether that means removing draperies for the day, removing bushes that block light, or cleaning your windows.
2. Landscape
Even though we constantly tell ourselves not to, we all do it. Before they ever enter the house, people often make observations and pass judgment at first sight. Before buyers enter your home, you may make a strong first impression on them by paying attention to your grass, flower beds, and walkway.
3. Reduce Contact Between Pet And Home Visitors
Even though you would believe that keeping your adorable puppy inside the house when guests stop by will increase its marketability, it won't! When they see a dog food bowl in the kitchen or fur all over the place, some people could become put off.
Additionally, some people can find it more difficult to envision themself living in a place where they still have personal items like their pet dog or cat or even family photos.
4. Home Staging
You will move to another step of the selling process - home staging. There are some home staging tips that you need to know to make your house clean and organized so you can sell your house faster. When it comes to increasing the value and speed of the sale of your property, planning and presentation are often the keys.
It is important to have home staging. You can increase the experience when homebuyers pay a visit to your house and make your house look clean and organized. A fantastic method to increase your home's internet appeal and make it stand out in today's crowded market is to include high-quality, staged listing images and videos.
Since your property is in good shape, home staging doesn't have to be an expensive or time-consuming procedure. Decluttering and removing personal belongings that can obstruct buyers' ability to see themselves in your house is vital.
A room appears larger the more light it has. Having lots of natural light makes the space appear brighter and larger, whether that means removing draperies for the day, removing bushes that block light, or cleaning your windows.
2. Landscape
Even though we constantly tell ourselves not to, we all do it. Before they ever enter the house, people often make observations and pass judgment at first sight. Before buyers enter your home, you may make a strong first impression on them by paying attention to your grass, flower beds, and walkway.
3. Reduce Contact Between Pet And Home Visitors
Even though you would believe that keeping your adorable puppy inside the house when guests stop by will increase its marketability, it won't! When they see a dog food bowl in the kitchen or fur all over the place, some people could become put off.
Additionally, some people can find it more difficult to envision themself living in a place where they still have personal items like their pet dog or cat or even family photos.
4. Home Staging
You will move to another step of the selling process - home staging. There are some home staging tips that you need to know to make your house clean and organized so you can sell your house faster. When it comes to increasing the value and speed of the sale of your property, planning and presentation are often the keys.
It is important to have home staging. You can increase the experience when homebuyers pay a visit to your house and make your house look clean and organized. A fantastic method to increase your home's internet appeal and make it stand out in today's crowded market is to include high-quality, staged listing images and videos.
Since your property is in good shape, home staging doesn't have to be an expensive or time-consuming procedure. Decluttering and removing personal belongings that can obstruct buyers' ability to see themselves in your house is vital.
Bottom Line
The home selling process in Canada is not a complicated process but you must understand to carefully calculate your numbers properly. Normally, hiring a real estate agent will get you out of 90% of the trouble and save you a couple of thousands.
Normally, selling house process doesn't have any closing cost to deduct, however, there are realtor's commission fee and real estate lawyer's fee.
Generally, you need to find the value of your house, list your house with brokers or for sale by owners and prepare some legal documents. Details are mentioned above.
The home selling process in Canada is not a complicated process but you must understand to carefully calculate your numbers properly. Normally, hiring a real estate agent will get you out of 90% of the trouble and save you a couple of thousands.
Normally, selling house process doesn't have any closing cost to deduct, however, there are realtor's commission fee and real estate lawyer's fee.
Generally, you need to find the value of your house, list your house with brokers or for sale by owners and prepare some legal documents. Details are mentioned above.