If you’ve decided to sell your home, it’s important you understand all of the costs involved.
Here’s an overview.
REALTORS® feesYou and your REALTOR® will agree to this beforehand. There is no set fee or commission rate in the real estate profession. A fee or commission depends on the services your REALTOR® provides, which can vary significantly depending on your needs as a client or the business model used by the REALTOR®.
When is a commission or fee payable?The Standard Multiple Listing Contract states the fee or commission is payable on the earlier of the following:
- completion date under the Contract of Purchase and Sale; or
- the actual date that the sale completes.
ContractorsHome owners typically want to spruce up their home to get it ready for sale. This can involve hiring landscapers, home stagers and even Feng Shui experts.
Home inspection feeA seller may want to hire a home inspector to report on the condition of the home, including structural and moisture problems, and the electrical, plumbing, roofing and insulation. The fee ranges from $500 - $700 depending on the size of the home and the complexity of the inspection. Some inspectors also charge an additional fee for an older home or a home with secondary suite, a crawlspace or a laneway home.
Goods and Services Tax (GST)The GST applies to REALTOR® fees, and the fees of various contractors and home inspectors.
Adjustments (see details in the contract of purchase and sale)
- Property taxes - depending on the Contract of Purchase and Sale, you may be required to reimburse the buyer for prepaid property taxes if all parties agree to extend the time you remain in the home.
- Rent and security deposits: if there is a secondary suite or a laneway home rental and the tenancy continues, you will have to transfer the security deposit with accrued interest to the buyer because the buyer is responsible for reimbursement when the tenant leaves.
Legal or Notary Public feesBuyers typically hire a lawyer or Notary Public to assist with drafting documents and ensuring the title of the home is properly transferred.
Final utility paymentsSellers are responsible for utility payments until the date of possession,
Moving feesMoving fees vary depending on the distance moved and whether professional movers do all of the packing. Rates vary.
Costs of clearing the property title
- Discharge fees charged by encumbrance holders; and
- Pre-payment penalties.
If you have questions about selling costs, contact us.