When the time comes to sell your home, you’ll no doubt be focused on selling for the best price possible. However, there will also be certain expenses that come with the process. You’ll want to know about these costs so you can effectively budget for your upcoming move.
Keep reading for a breakdown of common home-selling expenses in Ontario.
What Does it Cost to Sell a Home?
Here’s the scoop. There’s no one-size-fits-all price for selling your house. Instead, every home will come with a wide range of costs that can change based on the property, market conditions, and your individual selling goals. Another important detail to note is that you’ll incur costs at different stages of your sale, from before your house is even on the market, all the way up to after closing.
At the end of the day, understanding your selling costs, their impact (and value), and where they occur in your selling journey is essential as a seller.
Have more questions about home selling? Explore these related blogs.
- How Long Will It Take to Sell My Home?
- What Happens on Closing Day?
- Decluttering Tips For Home Sellers
Making Your Home Market Ready
To kick things off, let’s first look at some of the costs that can come with getting your home market-ready.
At the end of the day, if you want to get the best result possible from your home sale, you’ll need to put some work in. Even if your home is in great condition, there are always a few upgrades that can help you get a better price. Even just a fresh coat of paint in key rooms can have a decent payoff.
With that in mind, getting your home market-ready will usually involve some level of upfront investment. Since every home is different, the costs will be unique to your house and goals.
That being said, not all home improvements offer the same value, so professional guidance is key. Always consult your real estate agent before embarking on any renovations or improvement projects. They’ll let you know which upgrades have the best ROI, and which are worth skipping. Your agent can also connect you to trustworthy local contractors if needed.
Breaking Your Mortgage
Mortgage penalties are another cost that can come up when selling your home. Although you’re allowed to sell a house before you’ve completely paid off the mortgage, certain financial penalties may apply. Exact costs will depend on your specific mortgage agreement. So, it’s a good idea to reach out to your lender directly for an accurate assessment of how much you may owe.
Legal Fees & Closing Costs
Given the various legal, financial, and regulatory parts of the process, selling your home involves working with a real estate lawyer, whose services will come at a cost. Rather than a flat fee, most lawyers charge based on time and the type of services needed.
Although every sale is unique, a standard residential real estate transaction in Ontario typically comes with one to two thousand dollars (plus HST) in legal fees. For a more accurate estimate of your legal expenses, you can ask your Realtor after they have assessed your home.
Hoping to get a great result from your home sale? Read these blogs next!
- Should I Renovate My Home Before Selling It?
- Why You Should Choose Your Asking Price Wisely
- How to Choose the Right Agent When Selling Your Home
Working With a Real Estate Agent
Finally, the most significant expense that comes with selling a house is agent fees – also called commission or dues. No matter what your goals are, working with a knowledgeable, high-performing real estate agent is essential to a successful home sale. Beyond simply walking you through the complicated aspects of selling, your Realtor is there to help you sell for the best price, in as little time as possible.
Like other costs on this list, real estate agent fees don’t follow a flat cost model. Instead, your Realtor will charge you commission based on the final sale price of your home. Every professional is different; however, most agents in Ontario will charge between 3-8% commission.
Similar to pre-market upgrades, your choice of Realtor is a crucial investment in a successful sale. An agent’s commission typically reflects their experience, expertise, and the level of service they offer. Opting for a low-cost or discount Realtor may lead to less money in your pocket when all is said and done.
Looking to sell your home? Get in touch to find out how our expert agents can help. Send us an email at info@bosleyrealestate.com or call 416-322-8000.
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