Home Preparation and Staging
First impressions are crucial in real estate. In a competitive market like BC, many buyers only see a home once before making an offer. Preparing and staging your home before taking photos ensures it looks great online and in person. Investing time and money into home preparation can significantly impact your selling price:
Painting
Professional Cleaning
Gardening & Landscaping
Repairs
Renovations (if necessary)
Storage Locker for Extra Items
Staging: From minor touch-ups to full professional staging.
*Pro tip: Consult a trusted real estate advisor before renovating for sale. They'll know which improvements offer the best return on investment.
Pre-Listing Home Inspection
In a challenging market, a pre-listing home inspection can be advantageous. It gives you the opportunity to address any issues before listing, providing leverage with buyers. Knowing potential inspection findings in advance can help you anticipate buyer concerns. Costs range from $300-$800, depending on your home's size.
Strata Documents (for Condos/Townhomes)
Buyers will want to review your strata documents during the offer process. Having these documents ready early increases the likelihood of receiving a subject-free offer. Ordering these documents from your property management company costs $30-$250, depending on urgency. A full service agent will often cover this expense and also order the documents on behalf of their clients.
Real Estate Commissions
Commissions are often the largest expense for sellers, but it's essential to focus on net profit rather than just costs.
When hiring a real estate agent, commission is generally divided as follows:
The listing agent (representing the seller)
The listing agent's brokerage
The buyer's agent (representing the buyer)
The buyer's agent's brokerage
Full-service agents typically cover marketing expenses like professional photography, videography, virtual tours, online and print marketing, cleaning, pre-listing inspections, and the costs associated with ordering necessary documents and files.
Alternative: Selling your home without an agent (FSBO) requires a strong understanding of the real estate process, contracts, market value, and sales techniques. While some succeed on their own, many end up hiring a realtor after months of little activity.
*Tip: Remember, you get what you pay for. Choosing an experienced realtor can ensure you maximize your profit and stay legally protected.
Legal (Notary/Lawyer) Fees
Every real estate transaction requires legal representation. If you're buying and selling, using the same notary or lawyer for both transactions is advisable. They handle the statement of adjustments, detailing the exact closing costs.
Mortgage Discharge
Selling your home during the mortgage period may incur a penalty, depending on your mortgage agreement. Most lenders allow you to transfer the remaining balance to a new property, but if you're only selling, you might face a pre-payment penalty. Consult your lender or mortgage professional for details before listing your home.
Other Costs to Sell
While the above covers major expenses, consider additional costs:
Moving truck
Pet boarding (if needed)
Extra keys or fobs for your realtor or possession
Good news: Buyers are responsible for property transfer taxes, so that's one expense you don't need to budget for.