What Costs Come with Selling a Home

a person sitting at a table using a laptop

Select the section you’d like to navigate to.

There are a number of fees and commissions you should be aware of:

  • the commission you agreed to pay your real estate licensee’s brokerage;
  • the legal fees to discharge any existing mortgage;
  • legal or notary fees for title transfer;
  • the GST on the real estate commission and on your legal fees;
  • any prepayment penalty levied by the financial institution for early pay-out of an existing mortgage; and
  • your share of the property taxes for the year if the current year’s taxes have not yet been paid, plus any penalties due for late payment of unpaid taxes.

What is Your Home Worth?

There are several factors which can impact the value of any property. These are very similar to the factors a buyer will consider when making an offer to purchase a property. Most importantly, be realistic. Most sellers have an emotional attachment to their home but these should not factor into your pricing strategy. Next, focus on what your home’s neighbourhood has to offer which may play into your pricing. Finally, think about what professionals you need to help execute your plan. Consider the questions below when determining a list price.

Are you being realistic?

Do not let your emotional connection to the property play into your pricing strategy. Buyers will base their offer price primarily on what similar properties in the area have sold for.

What features exist in your neighbourhood, such as proximity to schools, shops, and restaurants?

For some buyers, being close to amenities is something they are willing to pay more for. For others, seclusion may be more desirable. Don’t negate the impact your community or neighbourhood has on how desirable your property will be to different parties.

Getting help from a professional?

Professionals know the industry and can help you navigate complicated situations.

Be Realistic With Your List Price

Most sellers love their homes and their design choices, which reflect their personalities and cultures. For that reason, it is understandable that property owners believe that their homes look better than many other similar homes they view. It is important not to let your opinion of your property overinfluence what you try to sell your home for.

A real estate licensee can use statistical data to show you what similar properties have recently sold for in your neighbourhood. This value can then be adjusted to compensate for your property’s proximity to amenities and any upgrades your property may have that comparable properties don’t. Armed with that information you will be in a better position to determine a realistic listing price for your home.