Selling your home in the Greater Toronto Area (GTA) involves various costs that can impact your net proceeds. Here’s a clear breakdown of the expenses you should prepare for and how I can help you save along the way.
1. Real Estate Agent Commissions
Real estate commissions in Ontario are typically 5% of the home’s selling price, split between the listing and buyer’s agents. For example, if your home sells for $800,000, the commission would be $40,000.
How I Add Value:
I offer a competitive Full-Service Commission package that includes:
- Free staging to showcase your home’s potential.
- Comprehensive marketing, including professional photography, virtual tours, and targeted advertising.
- Personalized support to ensure your home sells quickly and for top dollar.
2. Legal Fees
A real estate lawyer is essential for preparing and reviewing contracts, managing the title transfer, and ensuring a smooth transaction. Legal fees in the GTA typically range from $1,000 to $2,000.
3. Mortgage Discharge Fees
If you’re paying off an existing mortgage, discharge fees typically range from $200 to $600. If breaking a fixed-rate mortgage before its term ends, you may also face a prepayment penalty, which can vary depending on the remaining term and lender policies.
4. Home Preparation Costs
Preparing your home for sale can significantly increase its market appeal and value.
- Repairs and Maintenance: Fixing minor issues like leaky faucets, chipped paint, or outdated fixtures.
- Staging: Homes that are staged sell faster and often for higher prices. Professional staging typically costs $2,000 to $5,000.
- Cleaning: A deep clean ensures your home makes a great first impression.
How I Help:
To ease this burden, I offer:
- Free staging services to highlight your property’s best features.
- Free handyman services to tackle minor touch-ups and repairs.
- Help with cleaning costs, so your home shines for showings and open houses.
5. Moving Expenses
Moving costs depend on the distance and size of the move. In the GTA, local moves typically range from $1,000 to $2,500.
6. Capital Gains Tax
If the property is not your principal residence, you may be subject to capital gains tax on the profit from the sale. Half of the gain is added to your taxable income. Consulting a tax professional can help you understand your obligations.
7. Additional Costs to Consider
- Status Certificate Fee: If selling a condo, you’ll need to provide a status certificate, which costs around $100.
- Utility Adjustments: Prepaid property taxes or utilities are adjusted so that buyers cover costs for the period after closing.
8. Harmonized Sales Tax (HST)
HST applies to professional services such as real estate commissions and legal fees, adding 13% to these costs.
9. Closing Adjustments
These are reimbursements to the buyer for prepaid expenses, such as property taxes, condo fees, or utilities covering the period after the closing date.
10. Optional Pre-Listing Inspection
Some sellers opt for a pre-listing home inspection to uncover potential issues early. This typically costs $400 to $600 but can help you avoid surprises during negotiations.
Understanding Your Net Proceeds
To calculate your net proceeds:
- Start with your selling price.
- Subtract the total of the above costs.
By preparing for these expenses and leveraging my value-added services, you can maximize your profits while minimizing stress. Let’s work together to make your home-selling journey smooth, successful, and rewarding!