The process of selling your current property and investing in a new house involves a number of expenses. While you might be aware of what sort of mortgage you qualify for and roughly how much you can afford to spend on a property, it is also important to remember the other costs you will have to manage.
Failure to consider all costs involved in selling a home can lead to a tricky financial situation when all is said and done. It is better to make yourself aware of what you are getting into ahead of time so that you can plan accordingly.
Moreover, there are a few things that you might wish to pay a bit more for in order to ensure the simplest, most stress-free process for yourself at the end of the day. By putting up a bit more on the front end of things, you can reduce the chances that something will go wrong and throw a wrench into your plans.
With that in mind, here are several of the main expenses that you should look to keep in mind when you are preparing to sell your home so that you can move into your next one as quickly and efficiently as possible.
Your Real Estate Agent
One of the most important people to have on your team when you are selling your home is the right real estate agent. Such an individual should come with plenty of experience working in your region and the right attitude for the job. They should also, however, come at the right price.
Real estate agents work on commission, meaning that if your house doesn’t sell, they don’t get paid. On average, such a commission will fall somewhere between 3% and 7% of the property’s value. Before you officially decide to go with a particular agent, make sure that you know how much they charge in commission and that you are comfortable with that cost.
You can figure out roughly what you can expect to pay based on the area in which your property is located as well as the overall value of the home. Bear in mind that a home being sold in Caledon might have a very different value from that in another area. Run the numbers and make yourself aware of all the facts before agreeing to work with a certain agent.
Aside from your agent’s commission, you will also have to take care of some closing costs. For instance, your legal fees will essentially cover things like the legalizing of the sale documents by an attorney or a notary public. Depending on the particular terms of the sale, you should expect to pay anywhere between $500 and $1000 for this service.
Other closing costs include your land transfer tax, your survey fee, and an appraisal fee. Ideally, to cover all of your potential closing costs, you should have at least 3% of the property’s purchase price set aside for such purposes.