Selling a house comes with all sorts of expenses, from tending to those minor repairs you’ve been avoiding for years to the compensation of agents and obtaining the required approvals. You may be familiar with some of these, while others may be completely new to you.
Regardless of what brought you here, if you’ve recently decided to put your home up for sale, there are some costs you need to consider before you take the plunge. These costs shouldn’t come unexpectedly and should be factored in the selling price.
To get your ready for them, we’ve made a list of some of the main costs you will be faced with when getting your house ready for sale:
1. Minor Fixes and Repairs
Remember those minor repairs you’ve been putting off for a while? Well, before you put your home up for sale, you’re going to want to take care of them. Make sure to patch up any holes in the wall, provide a fresh coat of paint where needed, and do the other necessary updates where you’ve noticed that there is a need for one.
Another great step would be to do a maintenance round of the house. Inspect the HVAC systems in your house, the installations, the state of the foundation, roof and other major features that would be a cause for concern for any potential buyers.
If you notice that something needs your immediate attention, this is the ideal time to put the money towards these repairs. Making sure your house is in tip-top shape will ensure that potential buyers will see it for all that it is worth and not focus on what will bring more costs.
2. Staging and Home Preparation
We’ve already covered this topic and the top tips and tricks about house staging in a previous article, but it’s still worth mentioning as it brings some additional costs when selling your house.
You should take into consideration any staging costs when its time to start showing your home. Start preparing by cleaning it up from top to bottom, maybe rearrange the furniture to make the space in your rooms look wider, or buy a few decorations that will give a whole new look to a room.
If you’re not the creative type, getting professional help in staging is the best way to know that you are really setting your home up for success. Your Home Selling Specialists will set up your home staging and include it as part of their overall service. See below for more information.
3. Status Certificate (for Condos)
If you’re selling a condo, especially in the GTA, buyers are going to want to see your status certificate.
A status certificate is a report that describes the legal and financial health of the condo corporation. It contains information about the management of the condominium, the state it’s currently in, as well as the condominium’s laws, rules, and regulations.
Generally speaking, obtaining a status certificate for your condo will cost around $100, but before you try to get one, you’ll want to check with your condo board.
4. Real Estate Commission
Realtors can be of great help when selling a house and in Toronto, there is an ever-growing variety of service and commission options to choose from. All these services are different in regards to the level of quality they offer and the level of support they offer.
Realtor Commission in Toronto is usually around 5%, split between the selling and buying agent, but it’s important to get familiar with what this includes before you hire a Realtor.
5. Legal Fees
Legal fees can be tricky to calculate since everything depends on the array of services you use from the legal experts, the firm you’re using and, of course, the value of the house you’re selling.
However, in general, you can expect anywhere from $900-$1500 based on the average Toronto home price.
6. Potential Mortgage Costs
Before selling your house, make sure to check the terms and conditions of your mortgage.
If you have an active mortgage at the moment of sale, there may be some costs associated with transferring your mortgage, or closing your mortgage with your lender if transferring is not possible. There may even be pre-payment penalties that could cost thousands of dollars, making it that more important to get informed on what your mortgage includes.
The best course of action at this point would be to talk to your mortgage broker or lender to ensure you fully understand the complete details of your mortgage.
7. Final Touches
Regardless of how sell-ready your house looks, there are always some additional costs that pop up. Whether it’s power washing the exterior, replacing some lighting fixtures, paint jobs or landscaping, you should take into consideration these final touches.
A home inspection may also be required, but this depends on your and your potential buyers’ preferences. However, it would be a huge plus if you have an official document signed by an authorized professional to show your buyers that your house is in a sparkling condition, just as they want it.
8. Other Costs
Depending on the property you’re selling, there may be other closing costs involved. If you have a lawyer on your side, they can help you by going over all these costs so you can get a better idea of how much the whole process would cost you and how much profit you can expect in the end. These costs can include outstanding property taxes, utilities or condo fees.
You’ll also want to make sure that you continue to pay your property taxes and other utilities during the period that your home is for sale until the house is sold.
If you’re interested in finding out more about all the costs that are involved with selling your property, you can always hire a Realtor to advise you about everything.
Find out more about how your realtor can help you with these closing items. Start an application here today.