Thinking of selling your home or property, is now the right time to do so? House and property sales in the Toronto area has risen in the past decade, which also means that commission costs for selling have increased. As a seller you have two options for selling your home, you can either do it yourself privately, or you can have the aid of a realtor. Selling, in general, is just as overwhelming as buying a property, so we have devised some useful steps to consider before deciding to sell your home.
Step One: Deciding how you want to sell - Private vs. Realtor
Once you have decided that you want to sell your home, you have to weigh up the benefits as well as the downside of a private sale. It is a personal preference, and sometimes privately selling can be smooth sailing and cost saving. However, having the help of a realtor or company can provide exposure to your property, as well giving it a professional feel. Going through a Realtor ensures you have more protection regarding the potential buyers coming into your home, pricing your home and handling the offer.
Step Two: Check your mortgage balance, and pay off terms with your existing lender
Before listing your home or property for sale, (if you have a mortgage against the property) give your mortgage lender a call. When speaking with your lender ask for the full breakdown, including any administration fees or if there are any penalties. You can also ask if your existing balance is transferable on to another property.
Step Three: Get pre-approved
Once you have spoken with your lender, if your mortgage is not transferrable you will have to apply for pre-approval from a new lender. Once you have researched your new location, or have found your new home, we recommend that you have a realistic timeframe before listing your home for sale.
Step Four: The cost of selling your home or property
Even if you choose to sell your home/property privately, there will still be some costs involved. Such as:
- Legal expenses – this includes the statement of adjustment
- Mortgage discharge fees – if you are selling your home before your mortgage term has ended, you may be subject to a feel to remove the ‘collateral’ hold that the lender has on your home.
There are other possible costs involved when selling your home, such as:
- Moving costs – don’t forget you may need the assistance of a moving company
- Cleaning fees – you may want to hire a professional cleaner for the new homeowners
- Advertising/Staging fees – you may want to take the photographs yourself or pay a professional to make your home/property more attractive to potential buyers