Best Strategy to limit selling cost (and what is the real selling cost) ?

[zaindo]

Hello fellas, i bought a condo in 2008 which will be hopefully ready for occupancy in around 2012, however my needs have now changed and i think that condo will not be big enough for our family. I do not have an assignment allowance clause so will have to close before i sell the condo.

For all the experienced ub users, what would be the best strategy to limit my selling cost. Assuming the asking price for the condo would be 335000 - what would be the real cash i am going to get after all the closing costs.

Moreover what are the closing costs involved ? (realtor commission is one big one) but what else ? Also if i know i have to sell right after i buy what "kind" of mortgage should i be looking for to limit me from paying any penalties later when i sell.

I am a first time buyer and have this weird situation at hand, and would highly appreciated any and all advise.

Thanks a bunch

 

[NikoS]

From what I know....

-Realtor fees are big, you can limit by finding agents that offer different commission rates based on level of services or try and negotiate reduced commission fee [I believe you also pay hst on fees now]
-Mortgage penalty: talk to your mortgage specialist they can help you find the right deal based on your intentions - having a fixed closed mortgage typically has fees due to the interest rate being fixed. Most likely a variable open mortgage - but they might refund all fees that you incur if you get a bigger mortgage within a specified time.
-Lawyer fees
-Taxes - you will likely be subject to capital gains tax on the net

Since you are a first time homebuyer, you will also have to pay the full land transfer taxes, etc when you buy your next place.

You may consider asking your lawyer to see if they can get the developer to agree on an assignment...

hope this helps.

 

[Wooba]

According to what my lawyer told me he shouldn't need to pay capital gain taxes. Since he intended to live there but his need have no changed it would not be considered an investment.

 

[PinkLucy]

I'd check with a tax accountant to be sure on the capital gains.

 

[Rocky]

Thank You everyone for all the valuable information, Would it be pushing it if we could just guestimate the numbers for the items listed. Also, lets say if the buyer pays the condo fees and property taxes in advance for the year for the condo - is it something that the potetntial buyer will be paying for to the seller for the months that he/she will be occupying the condo in ?

Much appreciated

 

[NikoS]

You would be credited the amounts that you would have pre-paird in tax and condo fees...
This is a very very very crude estimate. I suggest talking to a specialist...
Realtor Fee @ 5% (with HST): 18927.5
Lawyer Fee: 1300
Mortgage Penalty (est with open variable, but check to see if refundable with new mortgage in 90-120 days): 4000
Estimated Cost 24227.5

Credit Property Tax : ?
Credit Prepaid Condo Fees: ?

 

[zaindo]

You would be credited the amounts that you would have pre-paird in tax and condo fees...
This is a very very very crude estimate. I suggest talking to a specialist...
Realtor Fee @ 5% (with HST): 18927.5
Lawyer Fee: 1300
Mortgage Penalty (est with open variable, but check to see if refundable with new mortgage in 90-120 days): 4000
Estimated Cost 24227.5
?

Thanks a bunch Nikos - this is a shocker for someone like me, I never knew the cost to selll a condo could be as high, this is certainly great information to have. Thanks again.

 

[Jewel]

If you can get more involved in selling the condo use www.flatfeeanthony.com. This guy can list your condo on the MLS and pay a flat rate of 500.00. Sounds better than 2.5%, if you are trying to save money...9,000.00!!

 

[Kenny]

You can always get your own real estate license. I have some acquaintances that did that.

 

[ESPNGuy]

5% to list a condo that will sell is a bit steep

For this type of unit you can get the rate down 3-4% shop various agents dont pay the 5%!!1

PS Im a Realtor and will do it for less