Selling Your Home
Deciding to sell your home can be a hard decision. The final decision can be made and changed a few million times. A person can have second thoughts when the house goes on the market. Second thoughts can happen when the first offer is received. Doubts can continue for some people until well after the house has sold. These doubts are common and happen to many home sellers. It is okay to have doubts, but it is not okay to have regrets.
When a good friend of mine sold her house in Canada, she did not receive as much money as she thought she would. She was counting on a certain amount but only received a fraction. She did not take into considerations the costs of selling a home which caused her some regrets:
Real Estate Agent Commissions
- Real Estate Agent Commissions Typically a real estate agent charges between 3% and 7% of the selling price of your home. This commission can be avoided by selling your home without an agent.
- Home Staging This fee can vary according to what needs to be done. Your home will sell faster with the appropriate home staging such as paint, art, etc.
- Legal Fees A homeowner who wants to sell his or her home should save at least $500 to cover the legal fees.
Land or Property Transfer Tax
- Land or Property Transfer Tax If you plan to buy a home when your house is sold, you will need to pay these taxes for your new home.
- Moving Costs This cost is dependent on how far and how much you need to move. It is cheaper if you own your own truck or have a friend with a truck.
These items can steal some of the profits from your house sale. It is possible to save some money and sell your home without an agent but this may be a mistake.
• It takes personal experience to sell a home, and a real estate agent has this experience.
• Lenders do not like private sales and typically are more cautious when dealing with a private sale.
• If you do not have experience, negotiation may become an issue. A real estate agent handles the negotiation and can receive a fair price for the house.
• In many parts of Canada, bidding wars are common. If your house is not represented by an agent, a bidding war is unlikely.
• You must set a price for your home. This step requires research or a professional appraiser. This appraiser may cost extra money. A real estate agent is aware of the value of similar houses and can price your home reasonably without this cost.
• A real estate agent can provide guidance when you do home staging to get the most out of the least amount of money.
• A real estate agent can be a buffer between the seller and buyer.
• A real estate agent will also provide advertising for your home that would cost you money.
• You do not pay a real estate agent unless the house is sold.
Whether you are selling your home or hiring a real estate agent, make sure to be prepared, so there are no regrets just doubts.