Let us break down our most frequently asked questions associated with the cost of selling your home!
How much will it cost to prep my home for sale?
When prepping your home to list, the process can vary based on the current condition of your home. While we don’t recommend major renos before sale – there are some big impact items that we suggest as an out of pocket investment, before we get moving with your sale.
Here are our most common tips to elevate your home and improve its value:
- Paint! Painting your home throughout with a clean, neutral shade is the most simple refresh.
- Level up your lighting. If you have builder grade, or outdated light fixtures, swapping those out for something new, can really change the feeling of a space for the better.
- Hardware + fixtures. By changing up your dated hardware and generic faucets, this can easily elevate a kitchen or bathroom.
- Upgrading countertops. A modern minimal countertop (+backsplash) can transform your kitchen and win you big points with buyers.
- Carpet Refresh. If your home has carpet that is old, or high traffic, a professional carpet cleaning can bring it back to its original glory.
- Curb Appeal. Cleaning up your gardens, and taking on some minor landscaping work can up your first impression.
The cost of these projects will vary based on the scale of work, however investing in these items can bring a large return later, if implemented properly.
That being said, we wouldn’t recommend spending more than 1-2% of your home’s value on the prep. Often these projects are far less than that, but it can be easy to get carried away, if you don’t set a cap on budget.
Who pays for home staging?
We are big believers in the power of staging! Why?
- On average, a staged home will sell for 18% higher than a non-staged property.
- 83% of buyers’ said that a staged home made it easier for them to visualize the property as their future home.
- Most buyers form an opinion about a home within the first 7-10 seconds of arriving.
- Does home staging cost you anything? Generally, yes.
At Abode, we include staging in our commission fees. We believe strongly in this step of the preparation process, and therefore we are happy to make the investment in your sale. We work with the best in the business, to ensure that your home shines!
If you are working with an agent that does not offer this service, and you would like to take it on, a good measure of cost is about $1000 per room staged.
How do real estate commissions work?
When working with a real estate agent, it is good to have an understanding of the fees associated with the services that they provide.
It is commonplace for a seller to pay a 5% commission on the final sale price of their property in the GTA. This 5% is evenly split between the listing agent and the buyers agent (2.5% to each party). Important to note, all commission amounts are subject to HST, payable by the seller. Real estate commissions are paid out upon closing and come out of the proceeds of the sale.\
How much are lawyer fees when selling a property?
You will need a real estate lawyer to act on your behalf in the sale of a home. Legal fees generally range between $1,000 – $3,000, depending on the value of your property.
How much is the penalty to break my mortgage?
If you have to discharge your mortgage upon selling, you may pay a discharge penalty from the mortgagee to do this. It is important to speak with your mortgage broker or bank to find out what these costs may be. By learning about theses fees upfront, you can avoid running into surprises at closing.
Do I have to pay capital gains tax?
If you are selling
a property that is not your primary residence, you may be exposed to Capital Gains Tax. Your best strategy is to discuss this with your accountant, so that you know what your tax exposure may be in advance. Remember, this is only applicable to investments, not your primary residence that you reside in with your family.
- Prepping Your Home to Sell (1-2% of Property Value or Less)
- Commissions & Service Fees (5% + HST but negotiable between 0% – 6%)
- Home Staging & Styling (Complimentary to $1,000+ per room > fees and quality vary greatly)
- Lawyer Fees ($1,500 – $2,500 + estimation)
- Mortgage Penalty (be sure to ask your lender)
- Capital Gains Tax (be sure to ask your accountant)
If you want to talk more about the selling process, and learn how we can help you navigate each of these points, please don’t hesitate to reach out. We would love to chat!