Selling

Selling: What it costs & how much you get

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I’m going to break down the most important thing sellers want to know about selling their home – how much actually ends up in your pocket when all’s said and done?

There are things you need to budget for that eat into your bottom line so don’t get caught off guard or skip over these important details and end up spending more on your new home than you actually have!

It’s easiest to start with the sale price (or the price you’re looking to get) and work backwards.

BIGGEST EXPENSES

Land Transfer Tax: This one stings the most and can be your biggest expense when you buy your next home. You get hit with two different taxes (Provincial & Toronto) that can equal up to 2% of the value of your home. Read up on all the details here & you can quickly and easily calculate what your costs will be here.

Realtor Commission: This only applies when you sell, not buy. Fees typically run about 5% of the total sale price + HST. This commission is divided 50/50 between the listing and selling agents brokerage. That amount is paid to directly to the brokerage (ie: Sutton) and then a portion is paid out to the agents.

Legal Fees: These can vary. It depends on your particular transaction and the lawyer you’re using. Normally, don’t expect to pay more than $1,500 to get all the t’s crossed and I’s dotted. This is an important corner that can be cut, so no way around it!

What about the lesser expenses that might also take a bite out of your bottom line? We cover the cost of home inspections and staging for our clients and most of the time other listing agents should too that’s not always the case.

  • Home Inspection: You’ll notice that a lot of sellers have taken it upon themselves to have home inspections done before listing. It gives buyers the ability to review any issues with the house before putting in an offer, dropping it from any conditions they might have had. Cost = around $500.
  • Home Staging/pre-sale repairs: Depending on what your home looks like, inside & out, you might want to consider doing some minor repairs, even a fresh coat of paint to give it that extra pizzazz. Staging is an effective way to help prospective buyers envision them living in your home and can translate to a higher sale price so always something to consider.
  • Movers: Keep a couple hundred spare dollars aside for these important folks. Unless you’re moving close by, feel comfortable lifting big furniture & have a truck of your own, they’re essential to a smooth finish to your sale.

We’ll be doing a Q&A with our go-to stagger on the blog in the next few weeks so stay tuned!