Will selling cost money? Many people advertise their home for sale on the market without realizing how much it will really cost. There are fees and expenses that should be expected when advertising with a agent. By reading our latest article, you’ll find out what costs you might encounter if you’re selling a home in Montreal!
Have you decided to sell your Montreal home? There are so many things to take into account to get there! Always bear in mind that selling is going to cost money, both before you announce and when you close. That’s why it’s important to take these expenses into account when setting the selling price of your home and choosing who you will do business with.
Studies have shown that selling a house costs an average of $20,000! That’s a lot of money! Bear in mind, however, that figures can vary significantly depending on where you live and the price at which you advertise your home for sale.
Will selling cost me money in Montreal?
Commissions. Commissions are generally 6% of the sale price. You’ll know how much your agent costs when you sign a contract with him or her. Although this sum is not paid up front, it will still be deducted from the amount you have left when you move out. Don’t forget this when you set the selling price of your home.
Agency fees. The agency you deal with may charge you some additional fees during the sales process. Some agents ask their clients to take care of all advertising and marketing costs. Make sure you understand what’s included and what you’ll have to pay before signing with an agent.
Closing costs. Closing costs are made up of several expenses to be incurred at the time of officially signing the sale. These include transfer fees, title insurance, title search, registration, tax transfer, valuation and credit reporting. Expect to pay about 2% of the sale price in closing costs.
Taxes. If you advertise your home for sale, you’ll be responsible for paying all taxes, utilities and insurance until the sale is finalized. These expenses often represent several thousand dollars for homeowners, since it normally takes several months to sell a property. When you decide to sell, the sooner it happens, the better!
Market preparation. Preparing a property for the real estate market takes a lot of energy, time and money. In fact, some work needs to be done, including painting the walls and cleaning the carpets. You’ll also need to put all your personal belongings out of sight and do a bit of home staging to make sure your home sells well. Whether you team up with a professional or do it all yourself, you’ll probably spend a little on a few decorative items. You’ll also need to clean up the yard and perhaps even rethink the landscaping to improve potential buyers’ first impression of your property.
Inspections. Although it’s not mandatory, more and more sellers are paying to have their home inspected before advertising it for sale on the market. Normally, this costs $200 or more. If you choose to have your home inspected before you advertise, you’ll be able to fix any problems listed before they are revealed by the inspector hired by a buyer. Doing so will also give you a little more power when negotiating with him.
Warehousing and moving. In itself, moving is not really a selling expense. Nevertheless, it’s a major expense that will have to be made when the house is sold. Whether you choose to hire a team of movers or do it yourself, moving can be expensive! Are you going far from your current location? Will you need to rent a truck? Buy pizza to thank your friends for their help? And don’t forget to factor in storage costs if you live in the house you want to sell. In fact, packing away unwanted items as soon as possible will help you sell faster because your home will look tidier, and it will also make moving easier!
