More about how home sale proceeds are calculated
As outlined above, home sale proceeds are calculated by adding up the costs that you may incur at the time of selling your home, such as legal fees, outstanding mortgage, other debts associated with your property, realtor commission, moving cost and deduct it from the selling price of the home (actual or estimated). The amount you get from subtracting these potential costs from the sale price is the potential final home proceeds you could get.
Some other factors that could impact your home sale proceeds are:
Outstanding property tax: If your property taxes are not paid up to date then your lawyer will be required to pay out any balance owing prior to closing the sale of your property.
Liens or garnishments: Should you have any liens registered against the property or government garnishments (i.e. CRA income tax arrears, child or spousal support arrears, workers compensation, etc.), these amounts would need to be paid out by the lawyer prior to any proceeds being released to you.
Inspection cost: Typically this cost is paid by a potential buyer however it is something to note. A certified home inspector examines the home to ensure everything is in good working order, examining any repairs or renovation that may have been completed. A thorough examination of the home can give you and/or a potential buyer an idea of its structural, mechanical and electrical systems and an estimate of any future renovation cost the home might require. A home inspection would cost around $500-$1500 depending on the size of the home.
Repairs or Renovation Cost: If the house you are planning to sell needs big repairs to maintain the value of the property, like roof repairs, kitchen or bathroom renovations, a basement renovation or even just general maintenance or touchups, it can get quite expensive. Repairs or renovations can cost thousands of dollars, so it is important to contact us for a consultation prior to completing any work being completed. This can help avoid unnessessary work and can ensure that we can help you factor in only nessessary work and costs.
Appraisal costs: Financial institutions charge a fee for appraising a property. A certified professional who carries out a home appraisal (an estimate of the current market value of the home) will charge a fee to conduct the service. This again is most often paid for by the buyer, unless you are looking to leverage the equity in your home. Ask us more about these options.
Staging fees: While some real estate agents offer staging services, others hire staging companies to prepare a home for selling. Professionally staging a home gives potential buyers an idea of what their future home would look like and this can really enhance their property viewing experience. We firmly believe in the value of staging and offer packages to include these costs. Ask us for more information about listing package options.
Move-in, move-out cleaning fees: Move-in, move-out cleaning could cost anywhere around $300-$600 which includes deep cleaning washrooms, wardrobes, kitchen appliances and cupboards, walls, etc. If you are buying or selling a home, it would be an added expense to clean up unless you take the time and have the energy to do it yourself!