Selling your home in a market shaped by tighter mortgage qualification criteria, affordability constraints, and cautious buyers requires a clear understanding of today’s housing market. Your home is likely your largest asset, so taking the time to prepare it for sale and researching the state of the Canadian housing market can ensure you set a price that will lead to a successful sale. Knowing how to navigate the selling process can help avoid delays or costly mistakes when upsizing, downsizing, or relocating.

---

Key Takeaways

• Preparing the interior and exterior of your home for staging is essential to making a great first impression for potential buyers.
• Higher mortgage qualification rates are reducing buyer pools in some cities.
• Your competitive home pricing strategy is now more critical due to cautious market sentiment.

---

Prepare Your Home for Sale

Getting your home ready for sale is one of the most important steps in the selling process. A well-prepared and staged property creates strong first impressions that can attract more buyers and lead to faster offers at better prices. 

Declutter and Deep Clean

Start by decluttering and deep cleaning each room to highlight the space and flow. Remove personal items like family photos and excess furniture to open up the space and help potential buyers visualize themselves living in the home. Consider having your home professionally staged, as staged homes typically sell quicker and for more.

Repairs and Touch-Ups

Minor repairs and cosmetic updates can boost appeal and show buyers the home has been well-maintained. Patch any holes, touch up or re-paint, replace burned-out light bulbs, and ensure all fixtures are in working order. Fix leaky faucets and consider smaller updates like adding new hardware to kitchens and bathrooms to make the space look like it has had a refresh. 

Curb Appeal

Curb appeal is a buyer’s first impression of the home. Mow the lawn, trim hedges, and consider adding planters with colourful flowers. Consider professional landscapers to boost the curb appeal of the home. 

Choose How You Want to Sell Your Home

Once your home is ready to list, the next decision will be how you want to sell it. Homeowners typically choose between hiring a licensed real estate professional or selling privately without an agent. Your choice will depend on how much time, expertise, and support you want throughout the process, from marketing and showings to negotiations and completing closing paperwork. 

Hire a Real Estate Professional

Working with a licensed real estate professional can simplify the selling process and provide access to valuable tools and market expertise. A qualified agent will help you price your home strategically, list your property on the Multiple Listing Service (MLS), and promote your home through targeted marketing. They will also be able to coordinate showings, handle any buyer inquiries, and help you negotiate offers.

Real estate agents typically charge commissions, calculated as a percentage of the sales price, split between the buyer’s and seller’s agents. For many sellers, the convenience and negotiation skills of an experienced real estate agent are well worth the cost. 

Sell Privately

Selling your home privately or For Sale By Owner (FSBO) means that you will take on the responsibilities of pricing, marketing, negotiating, and managing the sale of your home. Many private sellers use online listing platforms, social media, and local advertising to promote directly to buyers. Selling privately gives you complete control over the process but requires more time, effort, and knowledge. You must coordinate showings and negotiate directly with buyers or their agents. 

This option allows you to avoid paying commissions to a real estate professional, which can result in significant savings. Private sales can be a good fit for experienced sellers, hot local markets, or when selling to a known buyer.

Set a Competitive Asking Price

Once you’ve decided how to sell the property, the next step is to set the asking price. Setting the right asking price is crucial, as a price that’s too high can discourage interest and cause your listing to sit on the market, while a price that’s too low might mean you leave money on the table. The goal is to strike a balance between current market conditions, comparable sales in your area, and your home’s unique features to determine a price that will help attract interest. 

Today’s market is especially price-sensitive due to higher interest rates, stricter loan qualifying criteria, and tighter buyer affordability. That makes it even more important to be strategic. Consider local supply and demand, seasonality, and how your home stacks up regarding condition, size, location, and upgrades. 

In some regions, having a listing price slightly below market value can spark multiple offers, while in slower markets, a sharper price from the start may lead to a faster sale. Staying flexible and open to feedback once your home hits the market is also key to getting the best outcome.

Comparative Market Analysis (CMA)

A Comparative Market Analysis (CMA) is a tool used to estimate your home’s fair market value by comparing it to similar properties recently sold in your area. Real estate professionals typically prepare a CMA by analyzing factors such as size, age, condition, location, and features of your home relative to nearby listings and recent sales. 

A CMA helps you understand what price your home could demand in the current market and supports a pricing strategy that aligns with buyer expectations. This can also help justify your asking price during negotiations, especially in competitive or shifting markets. 

Review Offers and Negotiate

Once your home is listed and showings begin, you’ll start receiving offers, each of which should be carefully reviewed before you make a decision. Offers don’t just vary in price, but also in conditions and timelines. Common conditions include financing approval, home inspection, or the sale of the buyer’s current property. 

You’ll need to review and asses the entire offer rather than focusing on the sales price alone. A lower offer with fewer conditions and a quick close may be more attractive than a higher offer with uncertain financing or conditions that could create longer delays. 

Negotiations are a normal part of the process. You can accept, reject, or make a counteroffer to revise terms like the purchase price, closing date, or specific conditions. If you’re working with a real estate professional, they will handle these discussions on your behalf and guide you on how to respond strategically.

Accept an Offer and Close the Sale

The final phase begins once you’ve accepted an offer. This involves satisfying any conditions in the agreement, such as the buyer securing financing or completing a home inspection. During this stage, your real estate lawyer will handle the legal aspects of the transaction, such as reviewing documents, coordinating with the buyer’s lawyer, and ensuring all paperwork is complete and accurate. 

Once this is completed, you will close the sale. On the possession date, the keys are handed over to the buyer, and the sale proceeds minus any fees, legal costs, or mortgage payout are transferred to you. 

Costs Associated With Selling Your Home

Selling your home comes with several costs that can affect your net proceeds. One of the largest expenses for most sellers is the real estate commission, which could range from 3% to 7% of the sales price, depending on the region. The commission is typically split between the buyer’s and seller’s agents. 

Other costs include legal fees, mortgage discharge fees, taxes, prorated property tax adjustments, and final utility balances.

Costs to Expect

• Legal fees
• Realtor commissions
• Taxes (capital gains, non-resident, property flipping, if applicable)
• Mortgage discharge fees (if applicable)
• Adjustments for utilities/property taxes

Capital Gains Tax

If the home you are selling is not your primary residence, you may be subject to capital gains tax on the profit made from the sale. The taxable amount is calculated based on the difference between the sale price and your adjusted cost base (what you originally paid plus eligible expenses). 

While you won’t owe tax on the entire gain, you must include 50% of the capital gain as taxable income for the year the property is sold. If the property was your principal residence every year you owned it, you can claim the principal residence exemption to avoid paying capital gains tax.

Non-Resident Tax

If you’re considered a non-resident of Canada for taxation purposes and are selling a property, you may be subject to additional tax requirements under the Income Tax Act. Non-residents are required to notify the Canada Revenue Agency (CRA) of the sale when disposing of Canadian property. 

Property Flipping Tax

Under the new residential property flipping rules, any profits from homes sold within 12 months of purchase are fully taxable as business income, rather than capital gains. This means the entire profit is subject to tax, and the principal residence exemption does not apply. A few exceptions exist for life events such as death, divorce or relocation.

Frequently Asked Questions

Final Thoughts

Selling a home in Canada involves more than just putting a “For Sale” sign on the lawn; it requires thoughtful planning, market knowledge, and the right pricing strategy. Each step plays a key role in a successful sale, from preparing and pricing your home competitively, deciding how to sell and navigating closing details.

Whether working with a real estate professional or selling independently, preparing ahead of time will increase your chances of attracting serious buyers, negotiating a fair deal, and closing with peace of mind. 

For a mortgage strategy that supports your next move, contact nesto mortgage experts today.

---