If you’ve already downloaded our complimentary Seller’s Guide, the next step is to get familiar with what actually drives your home’s sale price, what selling will cost you, and why professional representation matters more than most sellers realize.
What Drives the Sale of Your Home
In general, homebuyers want the most affordable home in the most exclusive area they can afford. With that in mind, look at your home from a buyer’s perspective. It needs to live up to, or exceed, similar homes currently for sale in your neighbourhood.
Unless you’re willing to forfeit a considerable amount of money at the negotiation table, some repairs before listing are essential.
Outdoor
- Wash windows, doors, and gutters
- Mow the lawn and ensure the garden is neat
- Clear the walkways of debris
- Address deteriorating brick, cement, or asphalt
Indoor
- Paint the home in neutral colours to appeal to more buyers
- Replace burnt-out light bulbs and repair broken switches or outlets
- Declutter every room, including the basement
Not sure if your home’s real value is in the structure or the lot it sits on? Read our guide on how to sell your home for land value.
The Costs to Sell Your Home
Mortgage Penalties
Your lender may charge a penalty if you sell during your mortgage term. This fee can run into the tens of thousands of dollars, so contact your lender early to see what you may owe. Some lenders allow you to port your mortgage, which involves transferring it to your new home and taking a second mortgage for the remainder of the purchase price. Lenders might also reduce the penalty if you take a new mortgage with them for your next purchase.
Legal Costs
Legal fees depend on the firm representing you, though most sellers should budget roughly $1,200–$1,800 for the sale of a home. We work with several trusted local real estate lawyers and are happy to help you find the right fit.
Staging Costs
Staging can range from freshening up and decluttering a room to bringing in full furniture packages. Sellers should budget for repairs, painting, and potentially storing excess furniture and clutter. In the GTA, it’s common for the realtor to cover staging consultation fees, while furniture rental costs are typically negotiated between the seller and their realtor. It’s common for the sellers to pre-pay for staging, and if the agents are going to cover a portion of the staging costs, they pay their portion to the sellers on successful closing. Realtors do not pay for staging up front, because it is a significant financial risk should the sellers change their mind about selling and take the home off the market.
Pre-List Inspections
We’re strong advocates for pre-list home inspections. A pre-list inspection gives you the chance to proactively repair any deficiencies before the home hits the market and it gives buyers the peace of mind of a clean inspection before they even make an offer. If you’re not willing to make the repairs found in a pre-list inspection, then we usually suggest skipping it. It can give the buyers the wrong impression if they know you know about defects in the home, and that you are unwilling to remedy them.
Professional Representation
The biggest cost of selling your home is usually agent and brokerage compensation. That total is typically split between four parties: the seller’s agent, the seller’s brokerage, the buyer’s agent, and the buyer’s brokerage, and it’s subject to HST. Commission is negotiable between the seller and the listing brokerage, so don’t assume it’s a flat percentage for all transactions. The exact percentage depends on the services, and the effort required to sell your home in the current market.
It’s worth thinking carefully about where that commission goes. Discount brokerages and agents don’t offer the same marketing exposure, technology, or experience that full-service teams do. See what makes The Lourantos Group and Sotheby’s International Realty different.
Want more information about selling your home? The best place to start is finding out what your home is worth. Get started here.
