How Does Selling a Home Work? Home Selling Basics for First Time Home Sellers

Although there are a lot of similarities between buying and selling a home, getting the experience of selling can be quite different. You want to make it as easy as possible when learning how to sell a home fast. These tips help you to know what to expect as you get ready to list your home for sale.

Choosing Who Will Sell the Home

The first thing a seller must do is decide who will sell the home. Most hire a real estate agent to do it for them, but you may be wondering how to sell a home without a REALTOR®. Friends and family might encourage you to do the latter, because you will save money on the agent's fees. However, this is a route that you should be wary of taking, especially if you are new to the home selling process. Your real estate agent acts in your best interest by getting your home in ideal selling condition to draw buyers to the property and help you get the best sale price possible, even in competitive markets like Northwest Edmonton. This effort and expertise is more than worth the cost.

Basic Selling Process

There are several steps involved with selling your home, that will go something like this:

1. Decide to sell.
2. Locate a real estate agent and get some input from them on how to sell your home fast.
3. Select a sale price, based on the comparable homes in the neighbourhood.
4. Sign some paperwork agreeing to work with the agent or company.
5. Make some choices about upgrades for your home and arrange to have it deep-cleaned and staged for sale.
6. Have pictures taken of the home and the agent prepare the listing.
7. The agent lists your home and starts arranging for showings or an open house.
8. Buyers come to see the home and make offers if they want to buy.
9. You accept an offer and sign a contract with the buyer.
10. The buyer provides money for the sale, and you transfer ownership.

If everything is in order, the entire process of selling your house may only take a few months from start to finish.

Costs Involved With the Sale

Although selling a home should probably involve some profit after the sale is complete, sellers will also have to pay some fees and other expenses related to the sale. First, sellers must pay for their real estate agent to help get the home ready for sale and then to sell it. An agent will often take payment from the sale profits. If the seller decides to make improvements to increase the sale price rather than selling a house as is, it will be paid for out of their own pocket. The seller will also have to pay legal fees for the transfer of the deed, and possibly a discharge fee when the mortgage is paid off. All mortgage, property tax and utility payments must be kept up-to-date before selling.

Reporting the Sale

There has been a recent change from the Canada Revenue Agency concerning reporting the sale of a home on your taxes. Before, you did not have to report the sale on your income tax and benefit return if it was your primary residence and you had no tax liability on the capital gain. As of late 2016, you must report it whether or not you owe any capital gains taxes in order to claim the principal residence tax exemption.

Knowing how to sell a home is tricky, especially if you lack experience. With these tips, you will be better prepared to go through the home selling process.