There are various costs that you may not be aware of when selling your home. These expenses can reduce the amount you expect to earn or pay down on your next home. You will realize a profit from your house sale only if you are aware of these expenses and budget carefully.
If you are selling your home through a Nanaimo Realtor then they will prepare a written market valuation for your home.
However, if you plan to do it alone, then you will likely want to hire an appraiser to prepare an appraisal for you so that you know what your home is worth.
Penalties for not paying your mortgage
You may be tied to your mortgage for a set number of years. You may need to pay the penalty off early or remortgage with another bank. It's essential to call your bank and ask how much it will cost to terminate your mortgage.
If you're buying a new home straight away, you might be able to get your bank to waive the penalty if you get a new mortgage from the same lender. For a closed, fixed-rate mortgage, the prepayment penalty is often the difference between the interest on your outstanding mortgage debt for three months and the interest rate differential. This is not always the case, so you’d be best to speak to your lender.
You may be forced to make costly repairs before putting your home on the market. Consider repairing the roof, kitchen, toilets and even the bedroom areas. Many purchasers will be turned off by a home that needs extensive repairs. If severe issues are identified after your home has been sold, you may be responsible for paying a professional to fix them.
However, if you sell your home in its current condition, you can disclose any flaws you are aware of and avoid repair fees. A home sold as-is-where-is will have a lower total cost and value. The buyer understands that there are no guarantees and accepts the home's possible flaws. The vendor often receives a lower price for the home but is usually not liable for future repairs.
Fees for Realtors
When a real estate agent sells a home, he or she receives a portion of the sale price. This amount may vary so its best to speak with your Realtor about their fee. Commissions in BC are plus GST.
Staging involves modifying the appearance of your home to appeal to possible buyers, such as renting furnishings for a room. If your home is vacant, or if you're selling a home that could use some updates, staging it could help you sell it. Staging a home might be costly, but it is usually a wise investment.
Other costs of selling a home in Nanaimo that you may not be aware of include;
Cancellation of insurance
Alterations (property taxes, utilities, condo fees, etc.)
Penalties for defaulting on a mortgage and discharge fees
Costs of relocation
Using a moving company or renting a truck
Materials for packing
Expenses for a hotel room, if necessary
Getting Rid of Junk
Depending on whether there are special circumstances with your home, the expenses noted above are the most common seller’s expenses.