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The fun part of selling a house is in imagining what comes next. Regardless of what the future holds, a successful transaction will open up a world of possibilities. The good news is that your home has likely increased in value, perhaps significantly if you’ve owned it for five years or more.

A comparative market analysis allows you to estimate how much you could potentially earn from your sale. Just keep in mind that the selling price is only part of the story. First, it helps to fully understand all of the costs involved with preparing, listing, and finding a buyer in today’s market. In this post, we’ll outline the costs of selling a house in Ontario.

An effective selling strategy begins with an accurate estimate of your house in today’s market. Book your complimentary home evaluation with us right here.

The Value of Professional Guidance

Selling a home can be one of the most financially and emotionally rewarding milestones of your life. It could also be one of the most stressful transitions and cost far more than it should. Often, the difference is in working with a knowledgeable and experienced Realtor® to walk you through all of the steps.

That’s also why we titled this section “the value” rather than “the cost” of professional guidance. Real estate commissions are technically a seller’s highest closing cost, typically 5% of the total selling price. This amount is then split with the buyer’s agent. What does all of this mean in terms of your bottom line?

Imagine you could sell your home for $1 million without the help of a full-service real estate team. It will be a far more stressful situation than it needs to be, but with no commissions upon your closing date.

Just remember that you’ll likely earn less with an FSBO sale (For Sale By Owner). An American study shows that real estate agent-assisted sales add an average of 14% to the total price. Even a modest increase of just 7% would leave you with far more in your bank account after your closing date.

Adding 7% to a $1 million sale works out to an extra $70,000. Subtract a 5% commission ($53,500), and you still end up with $16,500 more than you would have earned without expert guidance. Not only that, but you’ll also experience a high level of support throughout the entire selling process.

Want to know more about where we work? Learn all about the beautiful Town of Thornbury in the posts below:

The Cost of Preparation

Behind every successful home sale is a world of preparation. It takes time to clean, repair, and upgrade a house for maximum impact in the market. When conditions lean in favour of buyers, your presentation must shine all the more.

The question is, what upgrades will be the most profitable and how much will they cost? The key is in knowing where to concentrate your attention. A detailed analysis can help you determine what upgrades could generate the most profit. From there, it’s up to you how far you want to go with renovations.

After your house is cleaned, decluttered, and all updates are complete, it’s time to talk about staging. This means presenting your home in a way that buyers can imagine it as their own. There is a cost; however, effective staging can lead to a faster sale at a higher price. Our services include a complimentary staging consultation so you can make the most of your investment.

Do you plan to buy a new house after yours sells? Our closing costs calculator can help you create a realistic budget.

Marketing Expenses

Once your house is ready for the market, there will be promotional and advertising expenses to attract potential buyers. These begin with images and videos. Using your smartphone camera can keep your expenses to a minimum, but the quality will be lower than if you invest in professional photography.

Targeted online advertising can greatly expand your network. If you have a lot of followers, you might gain some exposure through social media.

Working with a Realtor® is the best – and most cost-effective way to generate the maximum exposure for your listing. We have access to platforms like the MLS® and Realtor.ca, as well as extensive networks of real estate agents and brokerages to reach out to.

Whether it’s a buyer’s or seller’s market, a successful sale means you must somehow bring your listing to the attention of qualified buyers. (Quick plug: when partnering with The Kearns Group, you benefit from our custom-curated and highly-targeted marketing systems – with no out-of-pocket costs.)

At the end of the day, it’s not about how much it costs to sell a house – it’s about your return on investment. The resources below will help you maximize your home sale in any market:

How Much Are Closing Costs in Ontario?

After you accept an offer, the closing process begins. Naturally, there are legal fees for selling a house in Ontario since a lawyer needs to run a title search and ensure the property is free of encumbrances.

When selling before your mortgage term ends, there may also be penalties for breaking your term early. A bridge loan may also be necessary if you purchase a new home before your existing property sells, which comes with additional interest and fees. Some lenders may allow you to transfer your mortgage to your new home – for a fee, of course.

Average closing costs can vary, but setting aside 3-5% of your total price will help you stay comfortably within your budget. This also prepares you for other expenses, including the cost of hiring movers, professional cleaners, and utility setup fees.

When transitioning to a new home, saving some funds for renovations and repairs is a good idea. Even a move-in-ready house will need a few minor touches to make it feel as though it’s truly your own.

Do you want personalized guidance when buying or selling a home in the Southern Georgian Bay area? Our Thornbury real estate agents are here to give you honest and up-to-date advice. Connect with us today at 705.888.2888 or email Mike@TheKearnsGroup.ca.