Selling a home can be an exciting—but also complex—process. Whether you’re upsizing, downsizing, relocating, or simply moving on, having a clear roadmap helps you get the best possible price, avoid pitfalls, and make the transaction smooth. In this guide, we walk you through all the steps you need to take to sell a house in Canada, and answer your frequently asked questions.
1. Decide It’s Time to Sell
- Clarify your motivation. Are you moving for work, wanting a change in lifestyle, dealing with financial pressure, or seeking to capitalize on rising property values? Your reason will influence your timing, urgency, and strategy.
- Assess market conditions. Is it a seller’s market or a buyer’s market where you are? Look at recent sales in your neighbourhood, days on market for comparable homes, trends in interest rates. If demand is high and supply is low, you might sell quickly and at good prices. If not, you may need more patience or be willing to make some concessions.
2. Understand Your Financial and Legal Position
- Estimate the net proceeds. On paper, selling price minus commissions, closing costs, repairs, staging expenses, moving costs, outstanding mortgage penalties (if any). Many sellers overlook some of these costs.
- Mortgage and lien status. If there’s still a mortgage, you’ll need to know the payoff amount. If you’re breaking a mortgage contract early, there might be penalties. Also check whether any liens or outstanding property tax payments exist.
- Tax implications. If the house has been your principal residence, you might be exempt from capital gains tax. But if it’s a rental property, investment property, or you haven’t lived there continuously, taxes may apply. Also, newly introduced rules (depending on province) may affect “flipping” (selling quickly after purchase).
3. Prepare Your Home for Sale
- Declutter, depersonalize, deep clean. It’s important that potential buyers can envision themselves in the home, so remove personal photos, excessive furniture, and clean thoroughly.
- Repairs and touch-ups. Fix leaky faucets, squeaky doors, broken fixtures. Sometimes small investments can make a big difference. Avoid major overhauls unless they provide a return on investment.
- Curb appeal matters. First impressions are powerful: mow the lawn, trim hedges, paint the front door if needed, ensure driveways, walkways are clean. If needed, low-cost landscaping improvements pay off.
- Staging. Professionally staged homes tend to sell faster and often for more. Even if you can’t afford full staging, reorganizing furniture, investing in good photos, ensuring rooms are bright and inviting helps.
4. Choose How to Sell
You have a few options; each has pros & cons:
- Hire a real estate agent / brokerage. They bring market knowledge, negotiating power, access to listing services like the MLS, professional marketing, etc. Commissions are typically somewhere between 3-7% of the sale price in many areas.
- Sell privately (For Sale By Owner – FSBO). You save commission on the listing side, but you take on more responsibility: marketing, showing, legal paperwork, negotiation. It can be more work and possibly slower.
- Use an iBuyer or instant sale service. In some areas, companies will buy directly from you, sometimes “as is,” which can reduce hassle and speed up the process—but often at a discount compared to what you might get in the open market. These are less common in many Canadian markets.
5. Price Your Home Correctly - Setting the right price is crucial—too high, and you’ll scare off buyers or sit on the market; too low, and you lose money.
- Comparative Market Analysis (CMA). A real estate agent can compare your home to recently sold homes in your neighbourhood with similar size, condition, features. This gives you a realistic range you should price in.
- Consider current market & seasonal trends. Some times of year are more active. Interest rates, mortgage qualification rules, economic outlook can influence what buyers can afford.
- Price strategically. Some sellers choose to list slightly below market value to generate more interest/competition; others price firmly to allow for negotiation room. Your strategy may depend on how quickly you need to sell.
6. Marketing & Listing
- Hire a good photographer / videographer. High-quality photos, floor plans, perhaps video walkthroughs or virtual tours make your listing look professional and attract more interest.
- Write effective listing descriptions. Highlight strengths—size, upgrades, proximity to amenities, schools, transit, parks. Be honest about condition so you attract the right buyers.
- Use MLS & other platforms. Most buyers begin online. Ensure your listing is on MLS (if you use an agent), and consider additional exposure via social media, real estate websites, signs, open houses.
- Set up showings & open houses. Make the home accessible. Be flexible. Clean, well-prepared, and well-lit showings increase chances.
7. Showing & Staging During the Sale Period
- Keep the house show-ready. Clean, declutter, smell‐free, well lit. Small touches like fresh flowers, good lighting, tidy surfaces count.
- Neutral decor. Let the house be a blank canvas for the buyers. Strong personal design tastes or bold colours can be a deterrent for some.
- Address small maintenance issues proactively. If something breaks or comes up in inspection, you’ll want to have already addressed common red flags (like leaks, mold, structural issues) rather than be caught on the back foot.
8. Offers, Negotiations & Conditions
- Review offers carefully. It’s not just about price. Look at conditions (home inspection, financing, the buyer’s flexibility), closing date, deposit offered, possible costs to you for satisfying conditions.
- Negotiate. You may get counter-offers. Your agent can help you weigh whether to accept, reject, or negotiate. Be prepared to negotiate on price, conditions, or terms (possession date, inclusions etc.).
- Conditional vs. firm offers. Many offers will have conditions (e.g. financing approval for the buyer, home inspection). You must understand these—you might need to resolve or waive certain conditions.
9. Closing the Sale
- Hire a lawyer or notary. Real estate closing involves legal paperwork—title transfer, registration, paying out the existing mortgage, ensuring clear title etc. This is essential.
- Satisfy any conditions. If there were conditions in the accepted offer (inspection, repairs, financing), they must be cleared or waived by deadlines.
- Arrange for the closing date / possession date. Make sure all keys, remotes etc. are ready. The buyer takes possession usually on a date agreed in the contract.
- Final walkthrough. Buyers typically do a final walkthrough to ensure the property is in the condition agreed upon.
10. After the Sale
- Move out / hand over. Organize your move, remove your belongings, hold off on new purchases or remodeling in case inspections are needed before the sale is final.
- Ensure bills / utilities transferred. Utilities, municipal services, property tax, insurance need to be canceled or transferred appropriately.
- Report for tax purposes. Complete whatever forms needed with CRA (Canada Revenue Agency), especially if the property was not your principal residence or had other uses (like rental). Keep receipts (repairs, commissions, legal fees) in case needed for cost basis.
11. Costs to Expect
Here are common cost components many sellers forget or underestimate:
| Cost Item | Typical Range / Notes |
|---|---|
| Real Estate Agent Commission | Often 3-7% of sale price (varies by region) WOWA+1 |
| Legal / notary fees | Depends on province; several hundred to a few thousand dollars WOWA+1 |
| Repairs & staging | Depends on condition; minor touch-ups may be small, larger ones more expensive. nesto.ca+1 |
| Closing / transfer fees | These vary by province and local governments. WOWA |
| Mortgage discharge / penalty | If you are breaking your mortgage early or paying off before term ends. Ratehub.ca |
| Moving costs, utility disconnections etc. | Usually smaller in comparison but adds up. |
12. Timing & Other Considerations
- When to list. Spring often is a busy season in many Canadian markets. But local conditions matter (weather, supply, demand). If interest rates fluctuate, that affects buyers’ financing capacity.
- Disclosure obligations. Sellers have to disclose known defects in many provinces. Non‐disclosure can lead to legal trouble.
- Safety & inspections. Even if inspection is a buyer’s condition, being proactive (getting a pre‐listing inspection) can reduce surprises and strengthen buyer confidence.
Frequently Asked Questions (FAQs)
Q1: Do I have to pay capital gains tax when I sell my home in Canada?
A: If the property has been your principal residence for the entire period you owned it, you may be exempt from paying capital gains tax on sale. If not, or if used as rental or for part of the period, or if you make a short turnover (“flip”), you may owe taxes. Always consult a tax professional.
Q2: How much commission will I pay to a real estate agent?
A: It depends on the province and the brokerage. Generally, commissions are between 3–7% of sale price, often shared between the listing agent and the buyer’s agent.
Q3: Can I sell my house myself (FSBO)? Is it worth it?
A: Yes, you can. FSBO means “For Sale By Owner.” It can save you on paying the listing agent’s commission, but you must handle everything: pricing, marketing, showings, negotiation, legal paperwork. It may take longer, and you may not get as much exposure or help.
Q4: How do I set the asking price?
A: Use a Comparative Market Analysis (CMA) from a real estate agent, or gather data yourself on recent sales of similar homes (same area, size, condition). Consider the condition of your home, upgrades, location, and how fast you need to sell. Being strategic (not overpricing) helps.
Q5: What disclosures am I legally required to make?
A: You must disclose known material defects (problems with structure, pests, mould, water damage, etc.). The precise rules vary by province. If you don’t disclose and buyer discovers a serious issue later, you could be liable.
Q6: Do I need a home inspection? Should I get one before listing?
A: While the buyer usually arranges their own inspection, getting a pre-listing inspection can help you identify issues, fix them ahead of time, and avoid surprises that could derail offers or cause buyers to negotiate down.
Q7: What about staging—does it really help?
A: In many cases, yes. Staging helps the home look its best, which can attract more buyers, lead to better offers, and reduce time on the market. Even small improvements—good lighting, fresh paint, uncluttered rooms—go a long way. n
Q8: How long does it take to sell a house in Canada?
A: That depends on location, market conditions, price, condition of home, marketing, etc. In hot markets it could be weeks; in slower areas it may be months. The more prepared and priced well you are, the faster it usually goes.
Q9: What happens if the buyer’s offer has conditions (like inspection or financing)?
A: Conditions are common. As the seller, you’ll see what conditions are included. Some sellers try to limit conditions, but most offers will have them. If a condition is not satisfied (say buyer can’t get financing) then the buyer may rescind their offer (depending on the contract).
Q10: Who pays for what costs during closing?
A: Generally, the seller pays the real estate commission, legal fees for transferring title, any existing mortgage payoff, any required repairs or conditions agreed upon. Buyers often pay for their own inspection, financing, sometimes some adjustments (utilities, property taxes etc.). But exact responsibilities are set in the purchase agreement.
Key Takeaways
- Preparation is key: the more you prepare (financially, legally, and physically), the smoother the process and often the better price you’ll get.
- Pricing matters: overpricing can kill interest; underpricing means leaving money on the table.
- Agent vs. private sale is a trade-off between exposure, scale, and cost vs. control and potential saving.
- Don’t skip professional help for legal & tax matters.