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How do prepare to sell my home?

1. Decide When to Sell

Seller’s market
When lots of people are looking for homes but not many are for sale.

Buyer’s market
When there are lots of homes for sale and not many people buying them.

Seasonality
This refers to the fact winter sales tend to be slower in most markets while spring sales typically speed up.

2. Managing Your Money

Before the offers start rolling in, be prepared for the large amounts of money that will pass through your hands. However, don’t forget to take these things into consideration:

Discharge mortgage
This refers to using the proceeds from the sale of your home to discharge or pay off your current mortgage. In an open mortgage, you can pay it all off without any penalties. If you have a closed mortgage, be prepared to pay a penalty.

Portable mortgage
A portable mortgage means you can take your mortgage money with you and buy a new home, without penalty.

Capital gains tax
If you had tenants living in part of your home, such as the basement, you’ll pay capital gains tax on a portion of your profits. You may also owe capital gains tax if you’re selling a vacation or investment property.

Always consult a professional financial advisor before making personal financial decisions.

Blog content from Realtor.ca

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