Everyone knows there are expenses when it comes time to sell a home, but for first time sellers, it can sometimes be confusing to know exactly what to budget for. Here’s what you need to know.
Home Inspection
While you’re not obligated to do a pre-listing home inspection, it can definitely be a benefit to get this done so you’re prepared for any issues that might come up. Your buyer will have a home inspection done before signing anything, so getting this done ahead of time means you can deal with these issues for a quicker sale. Some REALTORS® include this in their fee, but if they don’t, prepare to spend between $325 and $790 for this service.
Legal Fees
The legal fees you’ll have to pay when selling your home can vary widely, depending on the law firm you use and where your home is located. Typically, these fees range between $1,000 and $3,000, also depending on how much work the transaction requires.
Real Estate Agent
Agent fees are negotiable but will likely be around 5-6 per cent of the price your home sells for. On top of that, you have to pay the 13 per cent HST on their portion of the sale.
Bank Fees
If your mortgage isn’t completely paid off by the time you’re ready to sell your home, you’ll have to pay a mortgage discharge fee. This can typically be around $200 to $350. You may also be required to pay a prepayment penalty—of which the cost depends on just how long you have left on your mortgage, and can add up to a significant chunk of change. It’s possible to avoid these fees if you’re buying another home right away, by requesting to transfer your mortgage balance to the new mortgage.
