Selling Your Home
Once you have made the decision to sell your property, Michelle will meet with you to discuss the following:
Market conditions – The real estate market is always changing and it is important to understand how the current conditions will affect your position as a seller. Is the market a seller's market, buyer’s market or a balanced market? How long are properties typically on the market before they sell?
What is the market value of your home? This is influenced by market conditions, location, size, style, condition, amenities and financing options.
What is a realistic listing price? Homes that are priced right sell faster and can generate higher, competing offers.
The Selling Process
Here is a summary of the selling process:
This will be influenced by the market conditions and the buyer but is usually different from the asking price. On most offers, the price will be negotiated several times, so usually the buyer is prepared to come up in price from their initial offer.
While the terms of deposit can be negotiated in the offer, a typical deposit is 5% and is payable within 2 business days of final subject removal.
This is a series of requirements that must be fulfilled prior to closing. A few common subject conditions are for a buyer to obtaining financing, home inspection, obtaining insurance, review of strata documents, title review and the sale of the purchaser’s property.
Inclusions and Exclusions
This is a list of furnishes, appliances, decorative items, fixtures, etc. that are being included or excluded from the sale.
Closing and Possession Dates
In general, the closing date is the day that the seller will receive the funds and the title will be transferred to the buyer. In BC, the possession date is usually 1 to 3 days after the closing date.
The seller of a property should anticipate for the following costs:
Lawyer or Notary Fees & Expenses
A BC lawyer or notary must handle the closing and transfer of title.
Obtaining a Clearance Certificate
If you are not a Canadian seller, you will need a Clearance Certificate from Revenue Canada prior to the completion date of your transaction. The current wait for a Clearance Certificate is 6 to 8 weeks, so it is important to contact your lawyer or accountant as soon as an accepted offer has been received. Before issuing the Clearance Certificate, Revenue Canada will need to collect any tax payable on the property to be sold.
Mortgage Pre-payment Penalties
There are penalties to selling a property before the term of the mortgage is up. It is always a good idea to speak to your mortgage company prior to listing so you are aware of potential costs.
The commission to the listing agent that is agreed upon in the listing contract.
Goods and Services Tax (GST)
The GST is a 5% tax that applies to the commission fee and other services related to the sale.
Adjustments for Ownership
This may include property taxes and/or strata fees and is applied on the Statement of Adjustments prepared by the lawyer/notary prior to closing.
Capital Gains Tax
It is recommended that you speak to your accountant or financial adviser to determine the more beneficial way to dispose of your real estate investment.