How Much Does It Cost to Sell A House In Toronto
If you’re thinking about selling your home here’s the number one question everyone asks. Do you need to know how much does it cost to sell a house in Toronto? Here are some typical expenses involved in the process:
- Getting Ready To Sell
- Home Inspection
- Photography and Videos
- Real Estate Commissions
- Legal Fees
You’ve walked in and out of your home every day for years. It’s like throwing on your favourite sweater. It feels like, well, home! The problem is that it’s your favourite sweater, not a complete stranger from the other side of town’s favourite sweater. Any potential buyer will be looking for loose threads, wrinkles and coffee stains which is why we always recommend doing repairs and staging.
If you can you should think about painting (inside, outside or both), getting in professional cleaners, sprucing up the garden, run repairs inside and outside, find a storage facility such as a locker or a Pod and finally get your home staged.
All of this costs money so you need to pick and choose your battles here. Importantly you should not waste valuable resources pursuing projects that don’t bring a return on investment (ROI).
Talk to an expert, us, 😉 before renovating your home for sale.
Is Staging Necessary?
Staging your house for sale is a relatively new phenomenon here in Toronto. Like all good ideas though it’s not going away. If your question is “Is it worth staging my home?” then our answer is “yes, it most certainly is”. Staged houses sell for more money and in less time than un-staged houses. Typically we provide a full cleaning service as part of our base package and various staging services depending on the level of need and square footage or number of rooms. Feel free to call or email us to discuss your options.
Is A Home Inspection Necessary?
The Home Inspection, or pre-listing home inspection fulfills several mandates. It gives the seller an inventory of the home, complete with recommendations about repairs, that could be undertaken to improve the home. It also saves buyers the hassle of having to conduct their own inspections. This offers confidence at offer time and can encourage multiple offers. We use Carson Dunlop for our inspections. Typically an inspection can cost up to $700. We always include this cost in our base package.
What Is A Status Certificate?
The Status Certificate is a document that all Condominium Corporations are required to produce upon request. It outlines the financial health of a building. Any lawyer representing a potential buyer will want to see a copy before a deal is made firm. It is always a condition in the offer. It costs upwards of $100 or more to order a Status Certificate but more importantly it takes time to procure, sometimes up to two weeks. Having the document ready when needed is the hallmark of a forward thinking negotiator. We always order early and include the procurement costs as part of our base package when selling a condominium apartment or townhouse.
What Are Real Estate Commissions?
We all know that this is the single biggest financial expense associated with the transaction. In Toronto this cost is generally borne by the seller. Sellers who cultivate long term relationships with their Realtor understand the value in this service. Recent government rule changes have opened up a wider array of choices for the seller.
It is entirely possible to sell your house by yourself and avoid fees altogether. You will manage the project from start to finish including answering phone calls and emails, staging, signage, letting visitors through the property, handling offers, negotiating terms and conditions and all the legal paperwork necessary in the closing of a sale. It is important to note that 90% of all “For Sale By Owner” properties end up being sold by a Realtor sooner or later. It is also important to note that FSBOs take significantly longer to sell than homes listed by a brokerage.
Brokerages in Ontario can charge anywhere from 1-6% depending on the level of client service negotiated. The 1% or com-free option offers no additional service other than a broker loaded listing on the Toronto MLS. No photos, no information about the property and no follow up.
Where Does The Commission Go?
When you hire an experienced and trustworthy Realtor (which is the right thing to do) your commission is disbursed thus:
50% to the listing Brokerage who then pay the listing Agent
50% to the cooperating Brokerage who then pay their buying Agent
The business of being in business in Real Estate reflects the commissions and fees charged.
The average real estate commission fees in Toronto have fallen from 6% in the past to 5% currently based on the Toronto MLS listings.
“Pat Simmonds Real Estate Services” is a full service team. We provide a level of service that is found only at the top end of the market and we strive daily to provide all of our clients with the best possible experience and service regardless of circumstances.
What Legal Fees Can I Expect To Pay?
Legal fees vary slightly from firm to firm in Toronto. Generally a competent office specializing in Real Estate Law would costs $1200 or thereabouts to conclude the proceedings.
Talk with your mortgage specialist or broker about porting or breaking your mortgage. Read the fine print here. Sometimes it is a viable option to break your mortgage.
The question of “How Much Does It Cost To Sell A House In Toronto” is only one part of the complex process that kicks into place when you decide to sell your home. See our related post about some of the things to expect in the process.
We are always available for a confidential and commitment free discussion about any part of the real estate process. Feel free to contact us with any of your concerns or questions.
If you found this article helpful you should read our guide about how to sell your home.
And here is another popular post abouthow to pick a real estate agent to sell your home.