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Selling your home
Selling your home involves many difficult, far-reaching decisions. With Pedram Homes, we are here for you every step along the way. Our experience in selling homes goes beyond the transactional, taking into consideration the emotional journey you and your family are about to embark upon.
Home much is your home really worth? How long will it take to sell? How do you manage buyers that make an undesirable offer? Under our steady guidance, we will navigate you through the stress in selling your home and take you to the best possible outcome.
As top Toronto real estate agents, we will get the maximum value for your home within your time frame.
Visit our Marketing Services page to view our exclusive, seven-step pledge on selling your home.
Closing costs
Closing costs are a list of charges your lawyer presents to you on the closing date of your home. Many people are surprised at the additional costs over and above the price of the home. With Pedram Homes, you will receive expert advice on your anticipated closing costs so you can buy and/or sell with no surprises, just total peace of mind.
According to the CMHC and Genworth Financial, you should reserve at least 1.5% of the purchase price for closing costs in addition to your down payment (though we recommend you hold back around 2.5% to be on the safe side).
Closing costs vary among provinces and cities. Below you will find a brief explanation of these costs. Please note these are some of the closing costs you may encounter depending on your specific situation. Use the information below as a guideline, then speak with your lawyer for a more realistic estimate on your situation.
Appraisal fee
An appraisal provides the lender with a professional opinion of the market value of the property. This cost is normally the responsibility of the homeowner and it can cost between $100-$300.
Home inspection
A professional inspection of the home, top to bottom, is for the benefit of the buyer. A home inspection can cost anywhere from $300-$400 and is well worth the investment. When hiring a home inspector, make sure the inspector has liability insurance just in case they overlook something significant.
Fire insurance
Mortgage lenders require a certificate of fire insurance to be in place from the time you take possession of the home. The amount required is generally the amount of the mortgage or the replacement cost of the home. This cost can vary on the property size, amount of coverage, the insurance company and the municipality. The cost can vary anywhere from $250-$600 annually for most properties.
Provincial sales tax on mortgage insurance
If your mortgage is insured, (CMHC or Genworth Financial), you will be required to pay the applicable taxes on the insurance premium on closing. While the insurance premium can be added to the mortgage amount, the tax must be paid at closing.
Land survey or title insurance
A recent survey of the property is usually required by lenders. If one is not available, the cost can range between $600-$900 for a new survey. In lieu of the survey, most lenders today will accept title insurance, which can cost considerably less.
Land transfer tax
Most provinces charge a land transfer tax payable by the purchaser; Toronto also charges a land transfer tax in addition to the provincial tax. The amount varies depending on the province. Land transfer tax is based on the purchase price. First-time homebuyers purchasing a new or re-sale home may be entitled to a refund.
New home warranty
In most provinces, new homes are covered by a new home warranty program. The cost to the purchaser for this warranty is approximately $600. Should the builder default or fail to build to an agreed-upon standard, the fund will finish or repair the deficiencies to a maximum amount. For more information on the new home warranty in Ontario, visit tarion.com.
HST
HST is payable on the purchase of newly constructed homes only. If you are purchasing a new home, make sure you know who pays this – you or the builder. On the offer, the purchase price will say “Plus HST” or “HST Included” and who gets any HST rebates. Many builders have included this cost into the purchase price so the buyer does not have to come up with the funds at closing.
Closing adjustments
An estimate should be made on closing adjustments for bills the seller has prepaid such as property taxes, utility bills and other charges. Any bills after the closing date are the responsibility of the purchaser. A lawyer will let you know what they are once the various searches have been completed.
Making an offer
With Pedram Homes, you will receive a comprehensive analysis of the current market you wish to purchase in before we draft your offer to purchase. Drawing on our market experience, we will provide you with invaluable insights into your offer and work hard to get you your ideal home at the ideal price, with your preferred conditions.
We are also highly experienced in multiple offer bids, and will provide you with sound and steady, professional advice during these highly emotional scenarios.
Offers to purchase:
Firm Offer to Purchase
Usually preferable to the seller because it means buyers are prepared to purchase the home without any conditions.
Conditional Offer to Purchase
Usually means there is one or more condition on the purchase, such as “subject to home inspection“, “subject to financing” or “subject to sale of buyer’s existing home“. The home is not sold until all the conditions have been met.
Acceptance of Offer
An Offer to Purchase is presented to a seller who may accept the offer, reject it, or submit a counter-offer. The counter-offer may be in reference to the price, closing date, or any number of variables. Offers can go back and forth until both parties have agreed to terms or either side ends the negotiations.
Land Transfer Tax
Unless you live in Alberta, Saskatchewan, or rural Nova Scotia, land transfer taxes (or property purchase tax) are a basic fact of life. These taxes, levied on properties that are changing hands, are the responsibility of the purchaser. Depending on where you live, taxes can range from a half a per cent to two per cent of the total value of the property. If you are purchasing in Toronto, you will also have to pay a municipal land transfer tax in addition to the provincial tax.
Ontario Land Transfer Tax
0.5% on the first $55,000 1.0% on portion between $55,000 – $250,000 1.5% on balance over $250,000 2.0% on anything over $400,000 Qualifying first time buyers receive a $2000 credit
Toronto Land Transfer Tax
0.5% on the first $55,000 1.0% on portion between $55,000 – $400,000 2.0% on anything over $400,000 First time buyers are exempt on the first $400,000
Calculators
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