What Expenses to Expect When Selling Your Home.
With the current state of the market, many homeowners are hoping to cash in when selling their property.
And while this is very likely, they must also factor in all the fees this step entails to correctly estimate the probable profits. Do you know what these are?
One house selling expense you must plan for is the land surveyor. In Quebec, a certificate of location is mandatory for a property sale to go through.
The Certificate of Location
Do you know on what year your property’s certificate of location was issued? If it’s been a few years, or if you have completed some outdoor work since, the buyer’s mortgage lender may require a new one. You will need to pay a surveyor to draft an updated certificate. Be aware, however, that you are only obligated to provide recent documents at your expense if so specified in the purchase offer. If not, the buyer must assume the costs.
A Drop in Price Following the Inspection
Normally, when a buyer wants to acquire an asset as important as a residence, they schedule an inspection. While you won’t be paying for the inspector, you should expect this to lead to additional expenditures.
For example, the buyer might renegotiate a lower purchase price following the inspection report. They might ask that you complete some renovation work yourself, such as repairing a drain or structural component, or replacing the windows. You may likewise have to carry out certain tests at your expense to detect the presence of pyrite or vermiculite (the costs of which vary between $300 and $1,500). In short, it is better to be prepared.
Some may be surprised to learn that there is a penalty if you sell your property before you have paid off your mortgage. In fact, depending on how much you still owe and the current mortgage rate, the financial institution may charge you a specific amount. This fee is difficult to roughly estimate, but here is an example: if you have $150,000 left on your mortgage, expect to pay a penalty of between $1,200 and $3,500. This will be based on the penalty rate in effect, of course.
he real estate agent will carry out a long series of tasks to facilitate a rapid and hassle-free sale. This is typically considered an essential expense!
The Real Estate Agent
While some will want to manage the sale of their home without expert assistance, others will prefer peace of mind and hire a real estate agent. This professional can evaluate your property’s value as well as take care of the photos, the listing, the publicity, the visits, the offers to purchase, the paperwork, etc. This is a service that greatly reduces the burden on sellers. Moreover, an agent will work to get you the highest price possible for this sale. So, their services could be seen as an investment!
Paying for notary services is mandatory not only when purchasing a property, but when selling one as well! Set aside a few hundred dollars to cover the fees for the act of sale when completing the transaction.
Moving fees vary based on several different factors, such as the travel distance, the home’s square footage and the number of belongings. This is not usually an expense that should be taken lightly. There’s a reason why many people ask their friends and family to help out on moving day! However, even if you do get your pals to lend a hand, you must still budget for the truck rental (and beer and pizza for all).
And now you know everything about the fees you can expect to pay in a real estate transaction!