Selling your property is a significant decision and how you choose to sell it — whether traditionally, through a Realtor, or privately — can significantly impact the final outcome. Each method comes with its own set of advantages and drawbacks. In this article, we delve into the pros and cons of selling your property privately in Ontario, to help you make an informed decision.
Pros of Selling Your Property Privately:
- Cost Savings: One of the primary benefits of selling your property privately is the potential for significant savings. By selling privately, you bypass the standard real estate agent commission fees, which can range between 4% to 6% in Ontario (remember, HST must be paid on the commissions, by law). On a house sold for $500,000, for instance, that’s a saving of $22,000 to $34,000.
- Control: Selling your home privately gives you complete control over the process. You decide the asking price, the viewing times, the negotiation terms, and the marketing strategies. This autonomy allows you to manage the process in a way that best suits your needs and schedule, and not those of a paid “professional” who is mostly motivated to sell and get paid.
- Direct Negotiations: You’ll negotiate directly with the buyer or their agent, allowing for more transparent and immediate communication. This direct interaction can lead to quicker resolutions and a more personal transaction. There’s much less chance of messages being lost or misinterpreted due to the “broken telephone” of seller talking with their agent, who speaks to the buyer’s agent, who speaks with their buyer client, and then all the way back up the chain.
Cons of Selling Your Property Privately:
- Time Commitment: Selling a property can be a time-consuming process. It involves market research, home staging, advertising, hosting open houses, negotiating with potential buyers, and understanding legal paperwork. Doing this all yourself can be quite overwhelming and time-consuming. That’s one of the reasons that many homeowners who choose to sell privately, decide to sell to a cash house buyer company which makes the time commitment virtually nothing.
- Complex Negotiations: Negotiating directly with buyers can be a double-edged sword. Some buyers feel more comfortable dealing with professional agents and might be tougher in negotiations with private sellers. This is most common when you have a complicated property to sell. If it’s a typical house or condo (similar to 95% or more of the properties transacting in your marketplace), then the negotiations are usually very straightforward: Price, closing date, conditions, etc.
- Pricing Challenges: Some real estate agents have in-depth knowledge of the local market and can help set a competitive price. As a private seller, you might struggle with setting the right asking price, which could lead to your property selling for less than its market value – something you may have accepted already if your circumstances are dictating a fast and uncomplicated sale.
In conclusion, selling your property privately in Ontario can potentially save you a significant amount of money. However, unless you’re selling to a professional cash house buyer company, it can require a substantial time commitment, a thorough understanding of the property market, and a willingness to navigate negotiations.
Before deciding, consider your personal situation, resources, and comfort level with managing such a significant transaction. If you decide to sell privately, consider working with a reputable cash house buying company to ensure you’re fully informed about the process. It’s about striking a balance that works best for you, your property, and your financial goals.