An Introduction

For most people, selling a home or property represents one of their most significant financial transactions and one of their most complex undertakings. Every sale involves important decisions that can impact the outcome, whether you’re selling for the first time or are experienced in the market.

A well-informed approach is essential to maximizing your financial return, from understanding local market trends to implementing effective marketing strategies and managing legal and financial considerations.

This essential guide walks you through the general selling process in Canada and was developed to help you understand what to expect, the roles of those involved, and to address frequently asked questions. However, in an ever-changing real estate market, any seller should consult an experienced listing real estate agent for guidance specific to their needs and situation.

Our Commitment: Expertise, Innovation, and Global Reach

At Sotheby’s International Realty Canada, our commitment is unwavering: we deliver exemplary marketing and service to every client, regardless of a property’s neighbourhood, size, or price range.

For over 275 years, Sotheby’s has been trusted to market the world’s most valuable possessions, and today, we bring that same legacy of excellence to your property. We offer unmatched global reach with over 1,100 offices in more than 80 countries, including across Canada.

When you list with us, you’ll receive a customized marketing plan designed to maximize exposure to the most qualified buyers. Additionally, with Folio™, one of our proprietary technologies, you’ll receive real-time updates on each stage of the selling journey, including performance-based data to strategically analyze and adjust our sales and marketing plan as necessary.

The 10-Step Journey of Selling a Home in Canada

Selling a property is a multi-step process, and having a clear understanding of each step can make your journey smoother.

Define Your Goals: Define your personal goals, timeframe, and any unique circumstances.
Select the Right Agent: Choose a real estate professional who will represent your best interests.
Prepare Your Home: Make repairs, declutter, and stage to maximize your property’s appeal.
Property Marketing: Showcase your property with professional photos, online listings, and targeted marketing.
Showings and Open Houses: Host private or open house tours to attract buyers.
Review Offers: Evaluate your offers based on price and conditions.
Negotiate Successfully: Work with your agent to negotiate the best possible price and terms.
Accept an Offer: Finalize and commit to the offer that best meets your goals.
Managing the Sale: Coordinate inspections, moving, and required paperwork.
Close the Deal: Hand over keys and celebrate the sale.

Key Financial & Preparation Considerations

Anticipated Costs of Selling

There are several costs you should anticipate and keep in mind before selling your property:

Inspection fees: Your agent may recommend a professional property inspector to identify any potential issues before listing.
Repairs or renovations: If the inspection identifies problems, you may pay for repairs, or minor renovations may be recommended to improve the chances of your property selling faster and for a higher price.
Appraisal costs: A pre-listing appraisal can help you determine a competitive asking price and what improvements could maximize your property’s value.
Cleaning costs and staging fees: Hiring a cleaning service or professional home stager is recommended to present your property in the best possible light and maximize its appeal.
Moving costs: Anticipate and consider the costs of moving your belongings, which may include hiring a moving company or purchasing packing supplies.
Mortgage prepayment penalties: If you sell your property before the end of your mortgage term, your lender may charge you a prepayment penalty.
Real estate agent commission: These are the fees paid to real estate agents for their services, typically based on the final sale price.

Preparing Your Home (Step 3)

To maximize your financial return, ensure your property is in its best possible condition.

Key steps include:

Property Inspection: Consider a professional pre-listing inspection to identify any significant issues requiring repairs. Addressing these early will minimize the chance of delays later.
Curb Appeal: Maximize your curb appeal, as the exterior of your property is a buyer’s first impression.
Decluttering: Declutter the interior and consider renting a temporary storage unit for excess personal items.
Cleaning: A clean home makes a strong first impression; focus on key areas like kitchens and bathrooms.
Home Staging: A professional stager can help highlight your home’s best features and create an inviting environment, which has been shown to help properties sell faster.
Prepare Documentation: Organize documents such as a title search, a registered strata/condo plan, and financial statements for potential buyers.

A staged property helps buyers envision their future home.

Parties Involved When Selling

There are several key individuals and groups you will work with during the sale.

Your Real Estate Agent (Selling/Listing Agent): Your dedicated guide throughout the selling process, helping you determine an appropriate listing price, strategize marketing, review offers, negotiate, and support you through paperwork.
The Buyer’s Real Estate Agent (Buying Agent): Helps the buyer find properties, provides unbiased support, negotiates in their client’s interest, and writes the Offer of Purchase.
Appraiser: Provides an unbiased assessment to determine an accurate market valuation of the property.
Real Estate Lawyer or Notary: Provides legal expertise to ensure your property sale is completed smoothly and in accordance with the law, typically becoming involved once an offer is accepted. A notary may fulfill a similar role in certain regions.
Property Inspector: Inspects the home and property, evaluating structural components, roofing, plumbing, electrical systems, and more, providing a detailed report for the buyer.
Land Surveyor: Provides a detailed document (a survey) outlining the property’s legal boundaries and information about the land’s topography and structures.

FAQs of Selling Real Estate

When is the best time to sell my property?

Some advise that spring is the best time to list your property. However, there are many other factors to consider:

Current market supply and demand: You’ll likely attract more potential buyers and close at a higher sale price when demand is high and available housing options are more scarce.
Your financial situation: Consider how close you are to the end of your mortgage term to avoid having to pay penalties for paying off your mortgage too early.
Economic circumstances: People are more likely to buy a new home when the economy is relatively stable and interest rates are low.
Personal timing: Consider whether this is a suitable time for you and your family to undergo the change.

Your real estate agent is your best resource to help you determine the right time to sell based on the various factors that may come into play.

How is the listing price of my property determined?

Several different factors determine an appropriate listing price for your property. Your licensed real estate associate will use their expert knowledge of the local market to develop a pricing strategy. Factors include:

Market conditions and comparable sales: Your real estate agent will provide a Comparative Market Analysis (CMA) to assess similar properties in your area that have recently sold.
Characteristics of your home and property: Details such as square footage, number of bedrooms and bathrooms, and layout can contribute to the property’s value.
Location: Proximity to amenities, such as parks, public transportation, and reputable schools, can be attractive to buyers.
Age of your property: Older properties that have not undergone updates may not draw higher prices compared to newer properties.

Can I sell my home without an agent?

While it is not required to sell your home with a real estate agent, working with an expert can help get your property sold faster and possibly at a higher closing price.

Some of the benefits of working with a qualified real estate agent include:

Market expertise: Your agent will have an extensive understanding of real estate and the selling process.
Dedicated service: Your agent is guaranteed to put your interests first and will dedicate a significant amount of time to marketing your property, communicating with potential buyers, and organizing paperwork.
A network of resources: A qualified real estate agent can refer you to professionals who can assist with the sale process, including home stagers, property inspectors, and legal advisors.
Sophisticated marketing tactics: Sotheby’s International Realty Canada offers unrivalled marketing through multiple channels, including exclusive promotion with reputable media sources.
Expert negotiation skills: Your agent will assist you in evaluating offers and negotiating with a buyer’s agent to help you get the best value for your property.

Step 10: Close the Deal

The final steps: coordinating paperwork, funds transfer, and key handover.

The closing or completion day is the day the buyer becomes the legal owner of the property. Leading up to this, you’ll meet with your lawyer or notary to sign the final paperwork.

It is your responsibility to ensure the property is clear of personal belongings and in the agreed-upon condition for the buyer’s final walk-through.

Your lawyer or notary will provide you with a statement of adjustments outlining all costs and credits, including legal fees, prepaid taxes, and utility adjustments. If you have an outstanding mortgage, it will be discharged, and any remaining proceeds from the sale will be transferred to you.

Your agent will coordinate the key handover once the sale is officially closed. In some cases, legal possession and key handover happen on the same day as the closing, but possession may take place a day or two after, depending on the agreement terms.

Celebrating a Successful Sale

Selling your property is a major milestone, and achieving a successful sale requires navigating each step with clarity and confidence. We hope this guide has been a helpful and insightful companion for your property journey.