How to Sell a House

Selling your home can be an incredibly emotional and sometimes even stressful process that can reduce even the most buttoned-down professional to a pile of nerves. That’s why it’s important to follow the right steps when selling your home.

Whether you know a little or a lot about how to sell a house, we’ve put together a quick, step-by-step guide on the process to help point you in the right direction and ensure your selling experience is as easy and stress-free as possible. 

Decide to Sell Your Home and be Ready for Costs You May Incur

Make sure you’re ready to sell your home, both emotionally and financially.

How much does it cost to sell a house? There are major and minor costs to selling a house, and none should be overlooked.

The major costs associated with selling a house (or seller closing costs) include: 

• Real estate agent commissions (these vary based on province, region, and your agent’s commission cost structure), as do the taxes on these fees
• Payment of legal fees to lawyers, plus the taxes on these fees. Real estate lawyer fees for sellers generally range between $1,000 and $2,000, but your actual cost will likely vary.  A list of just some of the services your lawyer will provide for you include: 

• • Title Search: Ensures that the seller closes any outstanding permits and agrees to pay any other outstanding items from the proceeds of the sale of the house. If the buyer’s title search reveals any restrictions or easements, the seller’s lawyer will offer solutions designed to keep the transaction moving forward. 
  • Letter of Direction: The seller’s lawyer will verify any document and outstanding mortgages or lines of credit on the property and provide the buyer’s lawyer with a Letter of Direction that states that any proceeds from the sale of the property will be used to pay off all debt and taxes owing on the seller’s house. The seller’s lawyer also verifies any property tax information and provides it to the buyer’s lawyer. 
  • Statement of Adjustments: The Statement of Adjustments is a list of the expenses owing or prepaid by the seller at the time of closing. This list includes utilities, property taxes, parking permits, condo or HOA fees, and more. For example, if the seller has already prepaid their yearly property taxes but the house is sold halfway through the year, the buyer must pay the seller the balance for the second half of the year. The seller’s lawyer is required to verify the amounts and terms of all the items on the Statement of Adjustments. 

• Closing Duties: On the closing date, the buyer’s lawyer will electronically transfer funds to the seller’s lawyer. The seller’s lawyer will confirm receipt of the funds and use them to pay outstanding mortgages and debts as per above. The seller’s lawyer also prepares a final report on all of the above and releases the keys to the buyer’s lawyer. The seller’s lawyer then deducts the seller’s closing costs (such as real estate commissions and legal fees) and credits the final remaining balance to the seller – all usually within 24 hours of closing the sale! 

Other expenses that might be incurred when selling your home include: 

• Home preparation (including damage repairs, renovations, painting and cleaning) 

• Staging 

• Pre-listing Home Inspection or Condo Status Certificate. While a pre-listing home inspection by the seller is NOT usually required, condo buyers almost always want to view a recent Condo Status Certificate. The Condo Status Certificate provides an in-depth overview of a condo building’s management policies, financial statements, general health, and any relevant information about your particular condo unit. 

• Mortgage Penalty (if you’re selling before your mortgage term ends or are unable to port your mortgage) 

• Bridge Financing costs (if you’re selling and buying at the same time, and your buying and selling closing dates don’t coincide) 

Consult with a Local Real Estate Professional

No financial or other commitment is required on your part for the initial meeting with an agent. It will be educational and help you determine if you and the real estate agent are a good fit. Your RE/MAX agent will provide you with a comparative market analysis and talk about all the tools they’ll be using to help sell your home the fastest. 

Pricing Your House Correctly: Or How to Sell a House Fast

Once you’ve chosen an agent, they’ll help you establish an asking price for your property. Houses that are priced in keeping with what the market will bear generally sell the fastest. 

Prepare Your Home for Sale

View your home through the eyes of the buyer and ask yourself what you would like to see when you open the front door. You’d likely want to see a clean, freshly pained and uncluttered space where you could see yourself living, right? If you’re unsure what to take on, your real estate agent will give you tips on de-cluttering and other things to help your home be more saleable. This will be especially useful if your home has more than its fair share of “interesting” quirks. And if you’re wondering how to sell a haunted house, well, your real estate agent can probably dig up some tips on that topic as well.  

List Your Home for Sale

When everything is in place, your agent will put your home on the open market and MLS. But your RE/MAX agent will also work hard behind the scenes, marketing your property to colleagues, clients and other contacts! 

Schedule Showings

Potential buyers may ask to see your home on short notice. It is best to accommodate these requests if you can, as you never know which buyer might be “the one.” After each showing, your RE/MAX agent will follow up with those who viewed your home to hear their feedback. 

Begin Negotiations & Accept Offer

If everything goes well, a buyer’s agent will present your agent with an offer. You have three choices – accept, counter, or reject the offer. Your RE/MAX agent’s knowledge of your needs will enable them to represent you in the best way possible. 

Being Under Contract

At this point, you’ve accepted an offer and have agreed to all the terms set forth in the contract. 

Understanding the Conditional Phase

When the agreement of purchase and sale is accepted and signed by all parties, the Conditional Phase begins. The buyers will have a pre-determined amount of time to fulfill items, including home inspection, financing, home insurance, etc. On the date the conditions are removed, you’ll have a firm and binding contract for the sale of your home, and you can place the “SOLD!” sign out front. 

Closing

This is the date of transfer of funds and ownership that was agreed upon in your binding contract. Be sure you are packed up and ready to go before this date!