excited about moving. But buyers will start second guessing. A casual statement about the house “really being too small for a growing family,” or “the schools are going through some changes” might be enough innocent chatter to squash their interest.
Underestimating Closing Costs
Many sellers only consider the money they are selling their home for (the purchase price). They don’t appropriately calculate all the costs associated with the sale and overlook the following items: • Balance of Purchase Price — the purchase price less the buyer’s initial deposit (the latter could be anywhere from 5% to 20%) • Legal Fees — amount depends on purchase price and lawyer (approximately $1,800 for a $500,000 purchase in Toronto) • Title Insurance — sometimes included in legal fees ($250-$400) • Realtor Commission — if you use an agency/real estate professional to sell your home. • Land Transfer Tax — varies according to province and depends on purchase price • Adjustments/Prorated Costs for Annual Expenses — includes property taxes, condominium fees, and utilities • Other Fees Sometimes Paid by Seller — appraisals, inspections, closing costs, etc.* **According to Mortgages.ca, lenders request appraisals and the borrower (seller) pays the appraisal cost. However, many home buyers, especially first-timers, order one on their own to protect themselves. Further, closing costs can’t usually be paid by the seller on the buyer’s behalf in Canada.
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