If you’re gearing up to sell your house, there’s a lot you’ll need to plan for. One of the major details you shouldn’t overlook is selling costs.
Facing costs as a seller may seem counterintuitive, however, it’s important to remember that home sales are a whole lot different than most other transactions.
As you may expect, the exact costs of selling will change home by home. However, this blog should give you a good idea of what to expect and how you can make the most of your sale. Let’s get started!
Planning on both buying and selling a home soon? Click here for tips on budgeting your move from start to finish.
What Does it Cost to Sell a Home in Durham Region?
When it comes to selling your home, there’s no flat “selling fee”. Instead, you’ll run into a handful of costs at different parts of the process – including before and after your home is listed and sold.
As a seller, you’ll want to be prepared for these expenses because they can add up quickly. Even if you get a healthy return from the sale of your home, you’ll want to have an idea of how much you’ll have left after all is said and done.
One more thing before we get into the specifics – it’s important to consider that many of these expenses are in a way, an investment. So, if you try to cut corners to save a few bucks, you could hurt your bottom line or run into setbacks.
On the hunt for more home selling tips? Explore these blogs next!
- How Flexible Should You Be During Home Negotiations?
- How to Find a Reliable Real Estate Agent
- The Importance of Agent Experience
Working With a Realtor
Let’s kick things off with what is (usually) the biggest cost involved in selling your Durham Region home: working with a local real estate agent. If you’ve sold a house before, you’ll know just how complicated it can be. As your personal guide to the market, it’s your agent’s job to keep things on track while also ensuring you’re able to get the best results possible.
So what do real estate commissions typically cost in Durham Region? It depends. Every Realtor has their own rate when it comes to fees. However, anywhere from 3% to 7% (of the home’s final sale price) would be considered average. Don’t forget – you’ll also pay HST on commissions.
Hiring a real estate agent is a great example of getting out what you put in. Nine times out of ten, a Realtor’s experience, expertise and overall degree of service will be reflected in their commission rate. Some people choose to work with a discount Realtor because they think it’ll save them money, only to wind up selling for less than they could’ve.
Legal Costs
A Realtor won’t be the only industry professional involved in your home sale. You’ll also be working with a real estate lawyer, who like an agent, comes at a cost. Most lawyers charge based on time and whether any complexities arise during the work. However, for a standard residential home sale, costs rarely surpass one to two thousand dollars (plus HST).
Your real estate agent can help you get an idea of what your legal expenses may look like after assessing your home.
Selling Before Your Mortgage Ends
As a homeowner, you can sell your house before you’ve completely paid off your mortgage. However, you may face a financial penalty if you do depending on the terms of your mortgage.
Every lender has a different rate or formula when it comes to these fees, however, they can add to several thousands of dollars. On top of the main repayment penalty, your lender could throw in a few extra administrative or reassignment fees too. It’s a good idea to get in touch with your bank early in the selling process to help you understand what these costs will be.
Want more advice on selling your home? Check out these other blogs for important insights!
- Do I Need to Make Property Upgrades Before I Sell?
- How to Price a Home to Sell
- Attracting Relocators When Selling Your Durham Region or Kawartha Lakes Home
Sprucing Up the Place
If you’re looking to get the best results possible when your house hits the market, you may want to make a few repairs or upgrades first. Investing money into your home right before you sell might seem backward, but when done right, the ROI can be amazing. So, depending on your goals (and your home’s condition) you may want to leave some wiggle room in your budget to spruce up the place.
That said, not all home improvements are created equal. Always check with your real estate agent first. They can help you determine which improvements will have the strongest payoff and which ones aren’t quite worth it.
Selling Your Durham Region Home?
We can help! Proud to work and live in Durham Region and the Kawartha Lakes, Puckrin & Latreille have sold every type of property throughout every kind of market condition since the ‘70s. We have the experience, insights, and connections to make your real estate dreams a reality.
Hoping to sell your home for top dollar? We have the experience and insights to make your dreams a reality! Call 905-985-7300 or send an email to hello@liveplayinvest.com to reach out.
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