In a December 5 piece for MoneySense
, realtor and senior editor Romana King said that choosing not to use an agent makes sense when one wants to avoid the additional cost of paying commission fees.
“Keep in mind, though, these savings are typically only for the seller, who is responsible for both the buyer agent and the seller agent commissions. Also, going it alone, without an agent, doesn’t mean you avoid all fees,” King cautioned.
“The best option is one where you’ve considered all the costs and all the work required to sell your home or buy a house. If you feel capable, and you have the time, going it alone is certainly a possibility and it could save you a bundle of money.”
However, even when going solo, one still needs to report any successful home sales to the Canada Revenue Agency, especially considering the recent changes to federal regulations governing mortgages and property taxes.
“Starting with the 2016 tax year (forms that are filed in April 2017), any person who sells a property in Canada will be required to report basic information such as date of acquisition, date of sale, proceeds of disposition and a description of the property on their income tax and benefit return,” King explained.
“These new rule changes didn’t kill the capital gains tax exemption on the profit earned on the sale of a principal residence, but it now requires buyers to provide evidence (if asked) to prove that they are legally eligible for the exemption.”
to find other responses to common home selling misconceptions.
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Contrary to popular messaging that touts the benefits of an industry professional’s assistance during a home sale, there is no Canadian law or regulation that mandates sellers to work with a real estate agent.