Selling a House

[Toad-O-Line]

I'm a first time house seller. I would appreciate any advice as to this whole process.

* What is the normal commission rate?
* Any hidden legal fees?
* Any excess banking fees?
* Any house closing fees?

Thanks in advance.

Toad-O-Line

[Big Daddy]

I am buying a house, and would like to suggest certain things that most sellers might find surprising.

1. Be sure that you plan for additional expenses that a prospective buyer might ask you to do. This is usually due to home inspection by the third party. If you have any faults in the house then buyer may ask you to repair before you close.

2. The cost item could be if a buyer asks you to install the Radon Mitigation System. Make sure that you don't have that problem in the house. This may require at least $1,00-1,500 US dollars.

[Bobo]

Ohhhhhh Man. This is a big topic.

I'm just completing my house sale, after trying to sell private for a while. My agent, someone I've known for a long time, suggested to try selling the house privately as it is a nice, clean, presentable home in a good neighbourhood. Selling it privately got me in touch with a lot of whining cheap skates. In fact, one phucking buy tried to screw me out of a lot of money when I was selling it privately to him. I could have killed the motherf(#*@#. I eventually gave up dealing with idiots, and called my friend up who is selling the home. The sale should go through very soon.

I learned a few things about selling yourself. You have to have patience, some marketing skill, and advertise it properly in the media. If you don't have the time, get a good agent. Agents are always dying for listings.

When selling, expect a 4-5% commission rate. Call around, and get the names of a few agents-- word of mouth advertising is always a good start. The purchaser covers for legal fees, home inspection and mortgage appraisal fees.

Good luck with the experience. Moving is never easy.

[Sheik]

Originally posted by Toad-O-Line
* What is the normal commission rate?
* Any hidden legal fees?
* Any excess banking fees?
* Any house closing fees?


Normal commission runs 3 to 6% depending on what you work out with the agent as posted by CC

Hidden legal fees would be lawyers fees, always work this out in advance with the selling agent as usually they have a lawyer they refer to for a set rate.

Banking fees depend on what you have on your mortgage. Sometimes there is a cancellation fee or fine. Again, talk to your bank about what you will get hit for. If you purchase a new house, the mortgage can be transferred and renegotiated.

Closing fees might be from the utilities (bell, gas, hydro) to home inspection or repairs that have to be made. In addition to transfer taxes etc. Talk to the agent and work out the details in advance and insist that the house sale is "as is".

Remember with the OPSEU strike, land registration is delayed so be expected to have the closing delayed numerous times until the strike is over. Also right now this is a sellers market which means if you have a house in a desirable area you should be prepared to get multiple offers. Don't bite the first offer that comes unless it is a very good offer.

Good luck, you know how to reach me if you have any other q's

[Paul Waters]

All good points so far.

I have one to add. Try to leverage your new situation with your current one.

If you have to discharge a locked in mortage and face a penalty, make sure that all of your banking arrangements are part of the discussion. Mortgage on new place, RRSP's, etc. You want to lessen or wave the penalty.

Even a little thing like your phone. Ask Bell if they will wave the installation fee if you stay with them. Otherwise go with Sprint.

Good luck!

[james t kirk]

My experience is that the agents will all try to tell you 6% commission, which the seller pays.

Ha

Nice try.

In this market you can negotiate.

Frankly even 4% is too much, but if you get 4, you are doing ok.

You can probably get a better rate with you listing agent if you are buying another house at the same time. Say for example you live in parkdale and you are moving up to Forrest Hill.

You say to your perspective agent, ok, you can sell my house for 4% and you can then find me another house to buy (which they will get half the commision for.)

As far as home inspections go, they may or may not tell you what needs to be done to the house. (If they catch it.)

I know though that the way the market is these days (multiple offers, bidding wars) if i was selling my house and some dope tried to tell me that i had to put a roof on it before he will buy it, i would tell him to get stuffed.

It's supply and demand.

If you live in a hot neighbourhood - Beaches, leaside, Bloor West Villiage, Annex, Little Italy, there will be people lining up to buy your place, bad roof or not.

Makes you think you could bang a piece of plywood into your front lawn with 4 sale spray painted on it and move the house.

I agree with the above poster though that there are a lot of flakes out there.

If you wanted to try it yourself, you could merely say, i am taking bids on such and such a day. See what you get offered, then play one off against the other till you get the highest bid.

If you don't like what you hear, go the agent route. I firmly believe that you have nothing to loose since it is the lawyers who actually close the deal, not the real estate agent. If you can find a guy to buy your place at the price you want, just get his lawyer to call your lawyer and save the commission. On 300 grand, 5 percent is 15,000 bucks on a house that probably will be on the market for all of a week or two.

Plus i find real estate agents to think they are hot shit. Most barely have high school.

Location location location.

If you are in the right location at the current time, it's madness out there.

cheers

oh yeah, if anyone wants the name of a good real estate lawyer PM me. His price is reasonable, but most of all he's a good enough guy. He cut me some serious breaks in my break up with my ex. Serious breaks. I think he must have gotten fucked around by a woman in the past so he felt sorry for me.

[iguana]

I just spent months and months to buy a house. Selling is a beautiful place to be in TO these days. I have seen houses which were falling apart sell for $50K over asking. As for home inspections, most people wouldn't dare ask for repair etc. these days. Be sure to have a couple of open house weekends, then take offers on a Sunday night. All the high sellers I saw had this pattern. Also try to be out of the house during showings.

[Lapper]

i'm reviving an old thread here. anyone else have experience selling homes privately???? thinking of selling mine privately but don't want to waste time. my home is in oak ridges/aurora.

[pool]

Let me move in before you sell.

Bad Ronald (http://www.imdb.com/title/tt0071186)

[Ref]

Let me move in before you sell.

Bad Ronald (http://www.imdb.com/title/tt0071186)

A classic and one of my favourites!

What ever became of Bad Ronald or Toad-O-Line?

[n_v]

I'm a first time house seller. I would appreciate any advice as to this whole process.

* What is the normal commission rate?
* Any hidden legal fees?
* Any excess banking fees?
* Any house closing fees?

Thanks in advance.

Toad-O-Line

www.torontorealestateboard.com

[chicagotim]

Here's what I've learned as a homeowner from selling a few houses in Toronto.

1. If you try to sell privately, let all your neighbours know that you're selling. They may have friends or family looking to buy in your area.

2. Most buyers already have an agent and their agent will either not show them your house or discourage them from buying because there's no money it for the agent. Remember, their job and livelyhood is to generate commisions. Also, you cannot get on the MLS without an agent so your house is not exposed to active buyers.

3. If you get an agent, choose one who is based in your area. A local agent knows your particular market and recent selling prices for similar houses.

4. Ask prospective agents how they intend to market your house. Ads in local papers, websites, open houses, etc.

4. The seller (you!) pays everybody. Most agents will tell you the standard commision is 5 or 6% (which is split between the two agents). On a $300k house, that's $15,000 - $18,000.

5. When you've chosen you agent, you'll be asked to sign an agreement. When they bring the agreement over, inform them that you are willing to pay 4%. They'll bitch, but they'll take it. You've just saved $3,000.

6. Limit the duration of the agrement to 60 days.

7. And most important, understand that even though you're paying the agent, his job is not to get you the highest price. His job is to get your house sold as quickly as possible, collect his commision and move on. So if you're not happy with an offer, don't let him convince you to take it. Be realistic, but look out for your interests -- their not the same as his.

[johnyboy]

Remember when your ass was being well serviced when you bought the house and it didn't cost you a thing...well this is when you pay :D
Sell privately and you have just incurred huge risks, hassle but not necessarily a better net price. Want cheap commission you will get cheap service. Pay a salesperson well regardless of the product and you motivate big time. Get an agent who does a decent business but not a top seller because it will be all about them!!

[marcus aurellis]

When I sold my Riverdale TH 2 years ago I originally listed it with a "full service", 6% commision agent. What a mistake.

The guy would call me several times a day, always complaining about something. The price was too high, the place wasn't up to par (even though it was only 4 years old and had top-of the-line everything), etc.

I eventually let my listing with him lapse, 60 days I believe, relisted with a 4% agent who only called when I had an offer and sold the house for almost the asking price and save myself $7200 in commisions.

Shop around, you'll save big in the long run.

Marcus Aurellis
"what we do in life, echoes in eternity"