Selling Your Downtown Toronto Condo? Here’s What You Should Expect
Saturday Jul 01st, 2017
When selling your condo, you may have a dozen questions about the selling price. How much will your condo would sell for? And how can you add more value to your property? While these are some important questions, it’s important to keep an open mind.
Market prices tend to change frequently. Your property may be selling for a specific price for a certain period of time, but it may change within a couple of months.
If this is your first time selling property in downtown Toronto, here’s what you should expect:
Paying the Legal Fees
When you’ve sold your property, you will need a lawyer to take care of the closing. This will include a title search.
A title search confirms that the seller has legal rights to sell the property. It will also confirm that the seller has no liens on the property. The seller will also be responsible for paying funds to the realtor, and lenders.
While every lawyer has their own charges, you can expect to pay around $1200–1500.
Paying the Estate Agent
Your estate agent will charge you a commission fee. The cost is typically 5 percent of the value of your home. This also includes HST. The 5 percent you pay will be divided; 2.5 percent will go to the listing agent, and the other 2.5 percent will go to the purchaser’s agent.
While 2.5 percent may seem a lot, your listing agent will put in a lot of expenses to list your condo. This includes advertisements, pictures, marketing costs etc.
See if you can negotiate the commission fee. But this will come from the listing agent’s side.
Bargaining with the purchaser’s agent is not a good idea. This will lead to giving them less incentive to show your condo.
Renovating Your Home
Depending on the condition of your home, you may need to renovate it. This includes repairing and reinstalling important fixtures. If your property has a damaged door, you will need to get it replaced. Check for lighting, bathroom and kitchen taps, as well as the fire hydrant. Make sure everything is working properly.
Remember that potential buyers will inspect everything so make sure to have anything that needs fixing, repaired.
Paying for Capital Gains:
What exactly are capital gains? The CRA’s (Canada Revenue Agency) definition of capital gains is:
“When you sell, or are considered to have sold, a capital property for more than the total of its ACB (The Adjusted Cost Base) and the outlays and expenses incurred to sell the property, you have a capital gain.”
This means that if you’re selling property that isn’t your residence, you will have to pay a fee to the government. This is when your property’s value goes up, and you sell it for more than you’ve expected.