Selling your home

You can sell your own home yourself. Many do. The costs of hiring a real estate agent can be substantial. But there are advantages to working with one. They can connect you with a wider network of potential buyers and help you get the best price for your home. 

If you hire a real estate agent, you will be asked to sign a listing agreement. The agreement sets out the terms you’ve agreed upon with the agent for selling your home. It’s a binding contract between you and your real estate agent. So read the fine print carefully. You’re free to negotiate on terms, including the amount of the commission and when it must be paid.

There are a few terms to pay particular attention to:

• The type of agreement. There are different types of listing agreements. Most agents use a multiple listing agreement. This means your agent can advertise and show your home to agents from other real estate agencies. 

• How long the arrangement lasts. You can choose how long you want to list your home. If your home doesn’t sell within that time, you can either extend the term or change agents.

• How much you’ll pay. A common approach in BC is for an agent to charge 7% on the first $100,000 of the sale price, plus 2.5% on the rest. As well, GST of 5% applies to an agent’s commissions and fees. In BC, a buyer typically doesn’t have to pay a commission to their agent. The seller pays a commission to their agent. (The amount is usually deducted from the seller’s sale proceeds.) The seller’s agent then usually splits it 50/50 with the buyer’s agent. 

• Who the agent is acting for. Make sure you’re clear on whether the agent is acting on your behalf. Agents can act for either the buyer or seller — typically they cannot represent both. (In very limited circumstances, an agent can work for both the buyer and seller.) When an agent is acting only for you, they have a duty of undivided loyalty to you. They must protect your confidentiality, obey all your lawful instructions, and account for all the money and property you place in their hands. 

If you have a mortgage on your home, you will need to deal with it in some way when you sell your home. 

One option to explore is whether a buyer can assume (meaning take over) the mortgage. Another option is paying off the mortgage when you sell your home. Many mortgages have restrictions or penalties on paying out the mortgage early. In some circumstances, a lender may waive a prepayment penalty. 

For more on mortgages, see our information on mortgages and financing a home purchase.

If someone offers to buy your home, they will present an offer to purchase. This is a contract setting out the terms of the sale of your home. Here, we explain the standard contract of purchase and sale. 

Your real estate agent has to bring all written offers to you to consider. You can decide to do any of the following:

• Accept the offer.

• Ignore or reject the offer.

• Make a counteroffer. This is when you propose changes to an offer that’s been made. Counteroffers cancel any previous offers made. 

If you accept an offer, or if a buyer accepts a counteroffer, it becomes a binding contract on you. This means you can’t get out of it without legal consequences. On the other hand, the buyer has up to three business days to cancel the contract. This is called the cooling-off period. If they do change their mind, they can walk away from the deal. They’ll have to pay you a fee that is 0.25% of the agreed purchase price.

The offer might come with conditions

Buyers often include conditions in their offers to buy more time to look into certain issues. In a contract, these terms are known as “subject to” clauses. These are conditions that the buyer must satisfy (or waive) before they have to proceed with the sale. For example, a buyer can make their offer subject to getting approved for a mortgage. 

A buyer can’t just use the conditions to avoid their legal obligations. They must use every reasonable effort to satisfy the conditions. If you get an offer with a condition, make sure the buyer has only a short time to remove it. As well, the clause should be specific. Don’t accept general clauses the buyer can easily get out of. 

If the home has any material latent defects that you know of, you must tell the buyer. These are problems with the home that can’t be seen or discovered through a reasonable inspection. It includes issues that make the home dangerous or potentially dangerous to the occupants or unfit for habitation. Examples include a leaky basement or structural damage to the property. 

For more, see our detailed guidance on selling your home.

The contract of purchase and sale will state the completion date for the sale. On that day, legal ownership will transfer from you to the new owner. This is in exchange for the purchase price of the home. Typically, the buyer’s lawyer or notary public prepares the transfer documents. 

Consider hiring a lawyer or notary to act for you. Among other things, they can protect your interests by making sure the legal paperwork is in order. They can also help you deal with your old mortgage.

Decide if you want to sell your home yourself or hire a real estate agent. 

Word-of-mouth is a good way to find an agent you can work with. Ask friends, neighbours, and colleagues for recommendations. Pick someone you trust and are comfortable with. You can use the licensee search from the BC Financial Services Authority to check if an agent is currently licensed.

A real estate agent is legally required to present you with this form before providing services to you. It clarifies your relationship with them, and tells you what duties they owe you.

You can get a professional appraisal to tell you what your home should sell for in today’s market. The charge will vary with the appraiser, but is often between $200 and $750.

If you want to save some money, you can contact some real estate agents who work in your area. For no charge, they can tell you what price they would list your home for and what they’d expect it to sell for. A professional appraiser’s opinion can give you more certainty.

If you have a mortgage on your home, find out: 

• how much is owing on the mortgage

• whether the buyer can assume the mortgage 

• if the mortgage includes a prepayment penalty 

To find out these details, check your mortgage agreement. Or check with your lender. 

If you get an offer to purchase, review it carefully. Be sure you understand the effect of any conditions (explained above).  

Sign the documents, receive your money, and turn over your keys. Your home is sold!