Sell Your Home Smartly And Retire Sooner

  • Leading financial advisor says Cdns can retire earlier by reducing selling costs
  • Excessive real estate fees hurt Canadians' personal finances, new national survey finds

TORONTO, May 12 /CNW/ - When it comes to selling a home, the majority of Canadians believe that paying too much in real estate commissions hurts their personal net worth, according to a new survey of over 730 Canadian home owners released by PropertyGuys.com.

The new findings show Canadians are thinking more carefully about their home as a financial asset and are scrutinizing the costs associated with selling it.

"Canadian consumers are doing the math and seeing that high-fee commissions don't make good financial sense," said Ken LeBlanc, president and CEO of PropertyGuys.com. "Canadian home sellers are realizing that every dollar they keep can be re-invested in their next home. That's value that keeps growing, making us the envy of our American counterparts, many of whom are in a negative equity position on their homes."

The survey of Canadian home owners conducted by Harris/Decima found that:

  • 62 per cent agree that paying a five per cent commission hurts their personal net worth;
  • 86 per cent believe it's more important how much money is left once all the fees and commissions are paid on the sale of the home than the actual selling price; and,
  • 82 per cent of Canadians are interested in learning more about selling their home for a flat fee rather than a commission.

"People need to think long and hard before agreeing to take five per cent off the top of what is likely their largest financial asset," says Warren Mackenzie, president and CEO of Weigh House Investor Services. "If you keep $16,000 in equity on a home when you're 35 and put it into an RRSP, the savings could be worth over $100,000 by the time you retire. It just makes financial sense to cut transaction costs on any investments whenever possible."

This is the first Spring real estate season since a recent settlement between the national association representing real estate agents and the Competition Bureau clarified that mere postings on a Boards MLS Systems are acceptable.

Canadian home sellers have more options than ever before. The days of having to pay a 5 per cent real estate commission or the equivalent of $18,000 on a home with an average selling price of $375,000 are gone. That amount reinvested in an RRSP, for example, could triple to more than $76,000 in 20 years.

"Pricey real estate agents have a vested interest in convincing people that selling their home is really hard," said Walter Melanson, Director of Partnerships at PropertyGuys.com. "However, it's a lot easier to sell a home than many people think, especially with the right approach."

The Harris/Decima survey of 1,002 Canadians was conducted between March 31st and April 3rd, 2011. It is considered accurate to within +/-3.6 per cent, 19 times out of 20.

PropertyGuys.com is Canada's largest and fastest growing private sale franchise network. It has has 106 locally-owned franchise locations to assist home buyers in more than 600 communities across Canada. PropertyGuys.com is a proud member of the Canadian franchise Association. It is a recipient of Canada's top franchise honour, the Award of Excellence, for several years running.

SOURCE PropertyGuys.com

For further information:

Danna O'Brien
Playbook Communications
danna@playbookcommunications.com
416-690-5777 x163 (o)
416-500-0699 (c)

Walter Melanson,
Director of Partnerships,
PropertyGuys.com
wmelanson@propertyguys.com
1-866-666-9744 ext 103

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PropertyGuys.com

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