Do you really know what it costs to be a homeowner? Most people are surprised when they realize how much of their salary is spent on keeping a property they no longer want. Learn more about some of the carrying costs you may face as a homeowner in Montreal.
Home ownership can be expensive! That’s why, when they flip a property, investors are always looking to sell as quickly as possible. Owning a home for too long eats into your profits, sometimes to the point where the house ends up costing you money! Do you own a home you’d rather sell? When selling with a real estate agent in Montreal, waiting to find a buyer to go through the escrow process can take several months. In the end, you may have wasted thousands of dollars in ownership costs! Below are some of the costs you’ll still have to deal with if you advertise your home for sale on the market.
Normal cost of ownership
Energy
Even if you no longer live in the house, you’ll need to ensure that the electricity remains functional. In fact, you’ll have to continue paying Hydro-Québec bills until the house is officially no longer in your name. If you live in an oversized property and intend to move into a smaller one, you may have to spend a small fortune heating or air-conditioning the house while you wait for a buyer to show up. If heating, cooling and lighting your home costs you about two hundred dollars a month, you may be putting thousands of dollars into it before the house is finally sold.
Taxes
You’ll have to pay your taxes until the day you sell. Although this may vary according to the size of your property and its location, we’re generally talking about thousands of dollars to spend. If you sell quickly, you won’t have to pay taxes.
Maintenance
Light bulbs to change, lawnmowers to fill with gas, filters to replace in the air conditioning system… These little things end up costing a lot more than you think. Ask yourself how often you visit RONA and how much you spend just to keep your home in good condition when it’s advertised for sale. Waiting for a sale to be concluded on the traditional market is not always the best option.
Surprise jobs
There’s nothing more frustrating than surprise work appearing after the house has been advertised for sale, or after an inspector has passed by. You don’t want the house, so putting even more money into it can be excessively frustrating.
Insurance
The average homeowner pays $1,200 a year in home insurance. Although this figure can vary significantly depending on where you live, home insurance is a significant expense, especially if you’re spending money on a house you no longer want.
The façade
When advertising a Montreal home for sale, appearances are of the utmost importance. If you want to sell on the traditional market, you have to do your best to have a nice front. Whether you do it yourself or hire a professional to lend a hand, taking care of the grounds and exterior of a property takes time and money.
Cleaning
Of course, the interior of your property must also be kept in excellent condition. You’ll need to make sure the house is clean 24/7, in case a visitor shows up at the last minute. Hiring a professional housekeeper can help you stay on track, but you’ll also need the cooperation of all family members to keep your home spotless.
Other carrying costs
Depending on where you live and what’s going on with your property, you may have even more costs to manage as a landlord. For example…
Homeowners’ association fees
If you live in a condo or community, you’ll have to pay homeowners’ association fees for as long as you’re a legal owner.
Management
You may have made a real estate investment in Montreal, but you live elsewhere and want to sell. If so, you may have property management fees and other costs to add to your list of expenses.
Surveillance
If you live far from the property, but don’t rent it out with the help of a property management company, you’ve certainly hired someone to visit the house from time to time and make sure everything is in order.
Once all the expenses have been added up, you often end up with a small fortune lost in property ownership. Once you’ve decided to sell a home in Montreal, you should try to sell it as quickly as possible, and keep as much money in your pocket as possible. We would like to invite you to make a few calculations specific to your property in order to determine which selling method will be the most appropriate for your Montreal home!
