It’s easy to get excited about the idea of selling your home, especially if real estate prices have risen since you initially made your purchase. While there is a good chance that you will come out ahead, you still want to be prepared for how much it will cost to sell your home.
Not every cost applies to every seller. Depending on your specific situation, these are some of the expenses you’ll want to budget for.
Do you want to simplify the home selling process? We have a guide for that! Download your copy right here.
Real Estate Commission
It is generally the seller who pays the Realtor® fees in Ontario. A good real estate agent typically charges a 4-5% commission after your transaction closes. Before you write this off as too much and go with a discount broker (or try to handle your sale yourself), think of all of the benefits of working with a full-service team.
You have an instant network of reputable professionals to help get your home ready for the market. This alone can save you countless hours of effort and frustration.
An up-to-date Realtor® knows how to present and price your home for maximum profit. You can save time and money on unnecessary upgrades and focus on that which offers the highest return. The result is typically a faster sale with less effort and more in your bank account at the end of the day.
Empty-nesters and retirees couldn’t ask for a better place than Guelph to downsize! Learn more in the posts below:
- Is Guelph a Nice Place to Retire?
- What Are the Top Condo Buildings in Guelph For Seniors?
- When is the Right Time to Downsize?
Lawyer Fees When Selling a House in Ontario
After you accept an offer, a real estate lawyer will do a title search and check all of the contracts for accuracy. This is an essential step as it ensures a seamless transfer of ownership without last-minute problems.
Fees will range depending on the service and the experience of the lawyer.
General Moving Expenses
Moving isn’t cheap no matter how you look at it. Packing and moving yourself with help from friends and family can save money. However, there is the cost of your time – as well as replacing anything damaged in transit.
A moving company will have an added monetary cost but makes your transition easier and less stressful. Plus, they typically have insurance to cover any damage. You may also have storage fees if there’s a gap between your closing date and when you take possession of your new home. If you want professional assistance during your move, here are some local services that can step in:
- Macho Movers Inc
- Swan Moving and Storage
- Mike the Mover
- PODS: Click here for a “space calculator” to help you decide what size of pod you need.
Disposal of Unwanted Furniture or Clutter
The total cost will vary based on the weight and material of what you are disposing of. The City of Guelph may pick some items if you make arrangements in advance. Or you can contact 1-800- Got Junk.
Mortgage Penalties
Many lenders charge a penalty for selling your home and breaking your contract early. These are typically lower if you have a variable-rate mortgage, but more severe for fixed-rate contracts.
If you are thinking about selling prior to your mortgage term being up, then it is a good idea to call your lender and find out what your mortgage penalty will be.
Rental Penalties
Typically, buyers will assume a rental contract for a hot water tank but if you have any other rental or lease-to- own contracts, it would be a good idea to find out what the penalties are for breaking them. This can range depending on how far into your rental agreement you are.
If you want to make your home sale a resounding success, the posts below will help:
- What Are the Best Ways to Increase Your Home’s Value?
- Refining Your Offer Strategy When Selling First House
- What Are the Best Ways to Increase Your Home’s Value?
Bridge Financing
This is a common expense that is often overlooked. Many sellers like to have a couple of days to move into their new house before their old house closes. To do this, most people will have to get bridge financing from their lender.
It is not necessarily a huge expense, but it helps to find out the exact cost. The price depends on how much you are borrowing and how much your lender’s admin fees might be.
Do you have questions about the process of selling your home? Get in touch with our top Guelph real estate agents for answers to all of your questions. Reach out today at info@gowylde.ca or call 519-826-7109 for more personalized guidance.
