Home to some of the most happening cities in Canada, Alberta is attracting more people to its beautiful landscape. This has skyrocketed the sale of homes in this Canadian Province. Alberta home sales were at $2.9 billion in August 2021, a whopping 22.4 percent increase in one year.
You can sell your home in many ways, such as hiring a realtor, multiple listing services, or selling privately. This article discusses the occasions when you can consider a private sale when selling a house in Alberta.
- When You Know the Buyer
- When You Want to Save on Commissions
- When Your Property is in a Rural Area
- When You Want to Fast-Track the Sale
- When You Want to Be in Control of the Entire Transaction
- When You Want to Save on Taxes
- When You Want to Avoid Conflict
- When You Want to Keep it Simple
- When You Want to Avoid the Hassle of Viewings
- When You’re Selling a Distressed Property
- When You’re Selling a Unique Property
- Handling the Property Sale
When You Know the Buyer
A private sale is often executed when the buyer and seller know each other or have a mutual acquaintance. Usually, in the case of private sales, about 51 percent of sellers know the buyers. Selling to an acquaintance also saves you the effort to market the place, which can otherwise be tedious.
When You Want to Save on Commissions
When you hire a realtor, you’re expected to pay a percentage of the sale value to the realtor in the form of commissions. Commissions can range from 3 percent to 7 percent of the sale price, a hefty amount. You can save on this commission and use it for something more valuable by selling your house privately.
When Your Property is in a Rural Area
Usually, buyers in rural areas prefer to buy privately, eliminating the need for a realtor. The reason is, even if they don’t know the seller directly, it’s easy enough to gather information because of the close-knit community. They prefer handling things on their own and are untrustworthy of intermediaries. Therefore, it makes sense to carry out a private sale when selling a house in Alberta’s rural areas.
When You Want to Fast-Track the Sale
When you know the buyer, they’re likely to make an offer quickly; you could close the deal much faster than when you would with an intermediary. The chain of communication is shortened and saves time in the negotiation process. Once both parties decide on the price, their respective attorneys can carry out the paperwork.
When You Want to Be in Control of the Entire Transaction
There are times when the realtor may want to take over the entire process of selling your house and not let you do anything. Right from staging the home with a new interior style to arranging viewings and handling negotiations, they will be hands on. It may result in you losing a prospective buyer just because the realtor thought the price was low. You would have settled for it.
When You Want to Save on Taxes
When selling a house through an agent, you’re expected to pay the capital gains tax as the law dictates. On the other hand, if you sell your home privately, you can avoid this tax. You need to keep in mind that the fair market value of your property should be equal to or less than what you bought it for to avoid this tax.
When You Want to Avoid Conflict
When you sell your property through an agent, there’s always the chance of conflict between the buyer and seller. Since you’re involved in a direct deal, such conflicts can easily be avoided by selling privately.
When You Want to Keep it Simple
A sale without an agent is simple and straightforward. There are no expenses incurred on advertising the property and no intermediary to deal with. You deal directly with the buyer and can close the deal however you deem fit. This gives you an edge over realtors when selling a house in Alberta.
When You Want to Avoid the Hassle of Viewings
During a private sale, you can choose if you want viewings or not. You can restrict open houses and show properties only for serious buyers. This saves a lot of time and effort on your part.
When You’re Selling a Distressed Property
In some cases, there may be a foreclosure sale in which you sell your property for much less than its actual value. In such cases, it is better to stay away from agents and save money on commissions.
When You’re Selling a Unique Property
In cases of unique properties with high commissions, it’s better to sell your property privately. In such cases, there is usually a lot of competition with realtors, and you can get a much higher offer for this type of property. When selling a house in Alberta with a unique design or features, a private sale is the way to go.
Handling the Property Sale
When you sell privately, you control the entire process from the beginning to the end. This means you handle the negotiations yourself. So even if the price is a little less than your expectation, but you like the buyers, you’ll close the deal.
Home sales are a big part of Alberta’s economy. If and when you’re ready to sell your house, do it privately for the reasons above. Selling a house in Alberta privately has many advantages, including saving on commissions and knowing the buyer.
