How much does it cost to sell a condo in Toronto?
How much does it cost to sell a condo in Toronto? Well, when you consider factors such as the size of your unit and the area of the city where you want to sell it, along with local demand and any upgrades or renovations that need to be done — it's pretty hard to give an exact number. So we've put together some information to help you get an idea of your situation.
So how much does it cost to sell a condo in Toronto? How long is a piece of string There are many costs associated with selling a property, but let’s break down the cost of selling your condo in Toronto.
Fix & Repair
Iif any repairs or renovations are necessary to make it attractive to potential buyers then expect to spend money on them. Repainting, redoing the flooring, updating appliances and fixtures are all part of the cost. It is vital to make sure you are spending money on the right things that will help to sell your condo, add value and attract buyers.
Before selling your condo, you may need to fix and repair any issues before going to market, especially if your condo is older. This is a significant step to getting your property ready to sell. After years of living in your condo, things get worn or broken and need fixing. The objective is to eliminate objections from potential buyers.
Depending on the size, age and condition of your condo, the cost of repairs can vary significantly. The best way to get an estimate of what to repair and how much it will cost is to consult with your realtor who can advise what should or shouldn’t be done and they will have access to trades to carry out any work you cannot do yourself.
Staging Your Condo
Toronto condos often sell quickly and for a good price. This means that it is important to make your property as attractive as possible by staging your condo. The most important thing to stage is the kitchen and bedrooms and bathrooms.
Staging a condo to sell is a process that's important and not to be taken lightly. Staging is the term for making your home look as appealing as possible so that buyers can imagine themselves living there. There are many things you can do to stage your condo, such as adding decor, staging furniture, and utilizing light and space. While Toronto condos staging costs can vary, Toronto condo staging typically ranges from $500 to $4000 depending on how much work is needed, how much of your own furniture can be used and the complexity of the condo itself. Larger luxury condo staging can easily be $5,000 and up.
Pre-Listing Status Certificate
When selling your condo, the buyer will usually include a condition in the offer for their lawyer to review the status certificate. It’s a good idea to have this ordered and ready by the time you go on the market so it can be provided to the buyer’s agent to pass onto the lawyer. The certificate is prepared by the property management and usually costs around $100-$200 depending how quickly you want it.
The Status Certificate is a report of your condo corporation and shows the overall financial health of the building and information pertaining to your specific condo, plus other rules relating to the building such as by-laws, regulations, the condo declaration, insurance information, management contacts, rules and minutes on the last annual general meeting and any lawsuits against or by the condo corporation.
Real Estate fees in Toronto are typically 5% for full service agents. 2.5% of that goes to your agent and their brokerage, and the other 2.5% to the buyer’s agent and their brokerage. You can get a lower commission from discount brokers, however you get what you pay for, and just think if your agent can’t even negotiate their own commission, how much effort do you really think they will put into negotiating your deal?
Commission is split four ways: your agent and their office, and the buyer’s agent and their office. Your agent will cover the marketing and advertising costs, and possible some of the other costs like the status certificate and possibly staging. Discount agent typically do the bare minimum by placing your listing on mls and maybe some sketchy photos
Real Estate Lawyer Fees
Every real estate transaction needs a lawyer to close the deal, transfer funds between the other party and the bank or mortgage provider. You can expect to pay approximately $1,500 to $2,500 for your lawyer, however different lawyer charge different rates.
Many people are not aware of the hidden costs that come with selling your home. Maybe you will do all the packing and loading yourself or you hire professional packers and movers to do it for you. The cost of moving again depends on how much you have to move, the distance you are moving, packing supplies, boxes, bubble wrap etc. you could be looking at just a few hundred dollars to several thousand dollars.
If you have a mortgage on your condo, you will usually have to pay a penalty to break the mortgage. Check with your mortgage broker or bank to find out how much that will be. Three month’s interest is usually a typical amount to pay. However, if you have bought another property, you may be able to port your mortgage to your new property or your mortgage provider may be willing waiver that fee if you take out a new mortgage with them on your new home. If your new home is ready before the closing on your existing condo, you may need to get bridge financing so again check with your lender to see what those costs will be.
Capital Gains Tax
If the condo you are selling is not your principal residence, but an investment property, you will have to pay capital gains tax on the sales proceeds. This tax is 50% of the net profit.
Selling your Toronto condo? Contact us today to find out how much it will cost you. We can give you an accurate estimate of what the sale price may be, and help with all aspects of marketing to get that number as high as possible. Let’s talk about your needs so we can come up with a plan just for you!
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