— We take our content seriously. This article was written by a real person at BREL.
If you’re thinking of selling your home, you’re probably already budgeting for real estate commissions and legal fees. But there are some other costs you need to be ready for:
- Home preparation, repairs, cleaning and staging– These can add up quickly! A 2019 Zillow study found that the average Seller spent $6,500 getting their home ready for a sale, including staging. Make sure to talk to your real estate agent before investing in any big fixes or renovations to ensure you’ll get your money back through a higher sale price.
- Pre-listing home inspection (house) or status certificate (condos) – if your sale strategy involves providing this information to Buyers in advance
- Storage and junk removal costs – if your decluttering efforts result in having to move items off-site
- Mortgage penalty – If your mortgage isn’t up for renewal or you’re not porting it to a new property (in other words, taking that mortgage and using it to fund another property) you’ll have to pay a mortgage penalty – and fair warning, that penalty can be significant. Talk to your bank or mortgage broker to understand your options.
- HST on commission and legal fees. Paying HST sucks, but there’s no way to avoid it. HST on commission and legal fees when selling a million dollar home can add $6,500+ to the cost of selling.
- Title insurance fees – you can read more about title insurance here (note: some lawyers include this cost in their legal fee)
- Pet boarding or extra childcare costs – while the home is for sale
- Property survey – not commonly required in Toronto, but sometimes necessary
- Moving costs, including utility connection charges
For a full analysis of all the selling costs you should be ready for, read How Much Does it Cost to Sell