If you’re thinking of selling your Montreal home, first make sure you understand how much it’s costing you to own it. Keeping the property may cost you more than you think. In our latest article, we explore the various costs typically incurred by homeowners when selling their Montreal home.
Carrying costs can sometimes be so high that they cancel out the profits expected from the sale. As long as your home is on the market, you’ll have to cover a number of costs. If you’re selling a home to a private buyer who needs financing, the sales process in Montreal can take months, and the wait can cost thousands of dollars. However, if you sell a home directly to the Vendre Maison Vite team, you can put an end to your carrying costs in just a few days!
Mortgage payments
The most obvious expense for a homeowner is paying a mortgage. If you own a house you don’t like anymore, or if you’re paying the mortgage on a rental property that’s not paying off, the heavy monthly mortgage payments can seem almost insurmountable. Without a doubt, you’re paying at least a few hundred dollars a month on your mortgage. This is money that could be invested in a new home rather than the current one, which doesn’t meet your needs.
Heating
Whether or not you live in the house while it’s advertised for sale, you’ll still have to pay Hydro to keep the electricity running when a potential buyer wants to view your home. In fact, your visitors will probably want to test the lights and the heating/air-conditioning system. What’s more, showing a house in the dark is not an option! Inspectors will also need to have everything up and running to do their job. Although costs may decrease if you no longer live in the property, you should still expect to spend a few hundred dollars each month.
Property taxes
Although the amount may vary depending on where your property is located, taxes are often expensive. You are responsible for payment of taxes until the sale is completed. When dealing with a traditional buyer, closing the deal can take several months because of the bureaucracy required by the lending bank. By selling to the Vendre Maison Vite team instead, you can end your financial obligations in just a few days.
Insurance
It’s a necessary evil: all homeowners have to buy insurance. While this may vary depending on the type of property you own and your insurance policy, the potential profits from a sale could quickly be wiped out by this expense. As long as you’re the official owner, you’ll be responsible for insuring your home. Don’t forget that insurance is always more expensive for rented properties than for owner-occupied homes.
Maintenance
If you choose to advertise your Montreal home for sale the traditional way, you’ll inevitably have to maintain it while it’s on the market. It’s usually a good idea to budget around 1% of a property’s value per year for maintenance and minor repairs. Thanks to this prediction, you can avoid unexpected expenses when your house is advertised for sale. Don’t forget: the sooner you sell, the less you’ll have to worry about maintaining the property.
Repairs
In addition to the expected minor repairs and maintenance, selling always involves the risk of having to carry out major work before you can sell. The roof may start leaking and the water heater may burn. Things like this can be expensive, but you can’t wait to fix them. This is especially true if you’re looking to attract as many potential buyers as possible to your home. It’s to deal with these kinds of unforeseen events that we advise all homeowners to have emergency funds. Such funds will ensure that you don’t get stuck with a broken property you no longer want. On the other hand, if you sell directly to the Vendre Maison Vite team, you won’t have to spend any money. That’s because we’ll buy your home as is, and you won’t have to renovate it.
Condominium fees
If you’re a condo owner, you’ll have to continue paying condo fees until the sale is completed. Condo fees can be expensive and can increase without notice. Take this into account when you decide to advertise your property for sale. This type of expenditure is all too often overlooked.
As a homeowner looking to sell in Montreal, taking the time to calculate your costs of ownership is essential. When all is said and done, the total can amount to several thousand dollars. As a result, this can have a significant impact on the profit you can make from selling. If you’re selling a home in Montreal, don’t overlook the importance of calculating carrying costs. And don’t forget to check out how a direct sale could be profitable!
