If you are looking to sell your home, congratulations, the market is fantastic! It is a great time to be a seller. Getting a substantial return on your investment is always a great feeling.
When selling, it is natural to be focused on the money you are receiving and not the money you will be spending, but it is always a good idea to be prepared and know what to budget for. Here is a brief breakdown of associated costs of selling a home: (Remember, costs will vary based on your listing price, the condition of your home, preferences, etc.)
Preparation Costs of Selling a Home:
- Home Staging: Staging is the act of arranging decor and furnishings with the intent to showcase a home for sale. The costs associated with this can vary greatly depending on your preferences and needs. A professional home stager can charge upwards of $600 for an initial design consultation, and around $500 per room, per month for furniture/furnishing rentals. Staging can cost a little or a lot depending on the condition of your home and how well it shows compared to similar homes for sale in your area.
- Decluttering: If you have clutter in your home that needs to be removed, you could be looking at a few hundred dollars to rent a bin to dispose of unwanted items and a storage unit to store larger items you plan to keep. If you have a substantial quantity of items for disposal, you might consider rubbish-removal services.
- Fixing Important Issues: Before you list, it is crucial to take care of any pertinent repairs. Ask your REALTOR® for advice on what needs to be repaired/renovated, and what can stay as-is.
- Cleaning: Consider whether you plan on hiring a cleaning service to deep clean your home before you list.
Closing Costs of Selling a Home:
- Legal Fees: Typically range from $500 – $1,000
- Mortgage Discharge Fee: If you are switching lenders, you will need to pay a fee to discharge your mortgage from your current lender. Most banks will charge between $250 and $325 to prepare this. It costs an additional $70 to register a mortgage discharge on title.
- REALTOR® Fees: Real estate fees/commissions will vary, based on where you live and what you negotiate with your agent.
- Status Certificate (Condos): If you are selling a condominium, you are usually required to provide a Status Certificate to the buyers. This certificate provides important information about the individual condominium unit and typically costs around $100.
After The Sale of Your Home Closes:
- Moving Costs: Costs associated with moving can include paying for a truck rental, the hiring of movers, moving supplies and any storage fees.
- If your home closes earlier than you expect, you might be faced with costs associated with temporary living arrangements before you find your next property.
There are costs of selling a home; be informed: know how much it will cost you to sell yours! Prepare yourself and set a budget that will leave you without surprises when the time comes. Create a checklist and ask an experienced REALTOR® for advice. If you are ready to sell, but have some questions, give me a call at 416.921.1112. I would be happy to provide more information and share helpful resources!