Hidden Costs of Selling Your Home
The costs associated with selling
You have spent considerable time and money on home improvements to bring your home into "show" condition. You have taken the dog to the neighbours when your Real Estate Professional hosted open houses. You are pleased that your Real Estate Professional has negotiated the best price on your behalf. The offer has been accepted and you are all set for your move. Congratulations! You have accomplished a major milestone in selling your home.
There are financial items you will want to consider upon the sale of your home. The buyer is typically responsible for these closing costs including:
• legal/notarial fees for handling the sales transaction
• disbursements or out-of-pocket expenses incurred by the lawyer or notary
• property tax and utility adjustments
• land transfer or "welcome" taxes
As the seller, you will also have some debts to discharge before you can access your funds including:
• real estate commissions
• building location certificate or survey
• legal and discharge fees
• outstanding adjustments owed to the buyer
• outstanding municipal/school taxes or public service
• outstanding mortgage balance and any charges associated with discharging your mortgage early (if you are not transferring your mortgage to your new home, or the buyer is not assuming it)
As fees and costs vary from province to province and city to city, your Real Estate Professional can advise you on the costs you are likely to face when selling your home. It is also a good idea to check with your financial advisor, your accountant and your lawyer prior to the sale.