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