What Are The Costs To Sell My Home?

Selling your home involves various costs that you should be aware of. Here’s a breakdown of the most common expenses:

HOME REPAIRS

Before listing your property, you may incur necessary repairs and improvements expenses. Fresh paint can cost a few hundred to a few thousand dollars. Landscaping and other repairs require substantial investments, depending on what must be completed. This can range from $500 to $20,000, depending on your home’s value, condition and size.

HOME INSPECTOR PRE-INSPECTION REPORTS

Some sellers opt for a pre-inspection report to provide assurance to potential buyers. These reports typically cost between $700 and $800. We can advise whether a pre-inspection report is a good part of your marketing strategy.

PENALTY FOR EARLY DISCHARGE OF MORTGAGE

You may incur a discharge penalty if you discharge your mortgage upon selling your home. Consult your mortgage broker or bank to understand these costs. Even open mortgages can have processing fees.

LEGAL FEES

A real estate lawyer will handle the sale. Legal fees for selling a home are generally lower than for purchasing one, typically ranging from $1,000 to $3,000, depending on the property’s value.

REAL ESTATE BROKERAGE FEES

Realtor fees are usually based on the selling price of the property. Typically, 50% of the gross commission goes to the cooperating realtor and 50% to the listing realtor. Additionally, HST is charged on collected commissions, which you should consider when calculating your net profit.

MOVING COSTS

Moving expenses can vary widely depending on the size of your home, the amount of your possessions, and the distance to your new property. Moving costs can range from hundreds to thousands of dollars.

CAPITAL GAINS TAX

Primary residences in Canada are exempt from capital gains tax. However, investment properties are not. Consult with your accountant to understand your specific tax obligations.

By being aware of these potential costs, you can better prepare for the financial aspects of selling your home in Toronto.

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