You've likely heard that the real estate market has been on fire for the last couple of years. If you’ve lived in your home for a while, it’s likely worth much more than you paid for it and you may be ready to sell. What are the costs of selling a home in Ottawa? You should be aware of some of the costs you will likely incur.
Real estate fees
When using a full-service brokerage, you can expect to pay approximately 5% in real estate fees. These fees are split between the buyer's brokerage and the listing brokerage. These fees should always include the following:
- Full Home staging is essential. Even in a seller’s market, you still want those buyers to make an offer on your home because the more offers you receive, the higher the sale price will be. A word of caution though...your home will feel EMPTY. But that’s ok. The goal is to get buyers looking at your space, not your stuff. It’s a known fact that buyers who fall in love with a home pay more.
- Professional photos are needed for your MLS listing, your property website and social media campaigns. And take note..it’s not just a guy with an iphone saying he’s a ‘professional photographer”.
- A Virtual walkthrough is a great way to showcase your home without having just any joe shmoe walking through your house. Now that we’re in the Covid era, the walkthrough is super important to narrow down in-person showings to the buyers who are the most interested in your home.
- A complete online marketing package will target the likely buyers for your property. Don’t just put homes up on the MLS and hope they sell for top dollar. Your marketing plan should encompass digital marketing as well as agent t0 agent marketing. The goal is to get the most eyeballs on your home. More interest = more money.
- Negotiation expertise is key to not leaving any money on the table. Choosing a realtor who knows your neighbourhood and your market is essential.
As a seller, you have a variety of options to choose from when selling your home. If you’re dealing with a discount brokerage or doing it yourself, you could be paying for all or some of these items out of pocket.
Pre-Sale home improvements
Before you put your home up for sale, it’s always a good idea to spruce up your home to show it at its best. It could be as simple as a new coat of paint or updated light fixtures or as detailed as a bathroom renovation. An experienced realtor will be able to tell you what’s needed and what isn't based on the cost to maximize the sale. Preparing your home is hard work but it could mean appealing to more buyers which means more money in your pocket.
Mortgage Penalty
The penalty for breaking your mortgage early can be significant. Check with your lender and ask if your mortgage is portable and if there are any other fees that you might be responsible for.
Legal fees
You need a lawyer to facilitate the closing of your home. They will ensure that it is done according to the legal requirements in Ontario. It will cost approximately $1000-1200 for the sale of your home.
Moving costs
If you're moving into your first home, enticing friends and family with pizza and beer to help you move will probably do the trick. However, using the services of a professional mover will make your life easier if you're moving a house full of furniture. As we all know, moving day might be the worst part of buying and selling a home. Hiring movers can help with loading and unloading, saving you time and a lot of pain. Costs will vary from a few hundred dollars to a couple of thousand, depending on the size of your home.
The costs of selling a home in Ottawa can be great. I hope this helped you be more prepared. Contact me if you have any questions about the process.
Want to know more? Read 10 Things Nobody Tells You When Selling Your Home.
