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Am I Ready To Sell
Ask yourself why you are thinking about selling your house. Here are a few answers you may come up with:
- To Upgrade – What can I afford to move up into? What do I owe on my mortgage? Will I be able to get financing? Where do I want to move to?
- To Make Money – Where will I move to? What are the prices of houses there? Am I downsizing? Retiring? You can only sell one home per year to avoid paying capital gains tax on your profits.
- Relocation – Does the new company have a relocation program to help me sell my house? What are houses worth there?
- To Save Money – Are you house poor? Can you pay off your mortgage from the proceeds of the house?
Once you know why you are thinking of selling, you can determine if the reason(s) are valid enough to proceed with selling.
How much is owed on the mortgage?
Make sure you know how much you owe on your house before you list it for sale. Many homeowners need to pay off an existing mortgage through the proceeds of the sale of their home. Remember to include realtor fees, lawyer fees, etc. in your calculations.
What costs are involved in selling my house?
The costs may include but are not limited to:
- Real estate sales commission + HST
- Lawyer’s fee + HST
- Land registry transfer fee if not on land titles
- Discharge of mortgage registration fee
- Balance of mortgage loan
- Lender penalties for closing mortgage early
- Interest on tax arrears
Your real estate agent, banker, or lawyer can help you understand and estimate these costs.
Where will I go after I sell?
Make sure you know what type of house you want to move into and where you want to live. Become familiar with the existing market conditions and the price of homes you are interested in. Even if you have a lot of equity in your home, make sure you visit your financial institution or a mortgage broker to determine if you can afford to sell your home and move into a more expensive one.
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