Remember when you bought your home? There were logistics to be tackled—and closing costs to be covered. Unfortunately, the same is true when it’s time to sell. You’re going to have paperwork, due diligence, and (you guessed it) expenses to deal with. While it’s true that you’ll have fewer costs this time around, knowing about them will help you budget for a smooth and successful sale.

If you’re ready to sell your home, here are the costs you can expect…

Agent’s Commission

In most cases, a seller’s biggest expense is commission—which typically comes in at around 4 or 5 per cent of a home sale. This amount will be split between your agent and the buyer’s.

There are two important things to keep in mind here. First off, an experienced agent is invaluable. From expert pricing advice to strategic home preparations to tackling closing details, we’re here to help! Second, you’ll only pay for a successful result (which is to say, if your home sells).

Repairs

Before you sell, you’ll want your home to be in the best possible shape. Along with decluttering, cleaning, and staging, prepping a property often means performing some basic repairs.

Of course, there are also times when it makes sense to sell as-is. When that’s the case, you may choose to factor the work that buyers will have to do on your home into your price. Your agent can help you decide what makes the most sense given the circumstances.

Pre-listing inspection

While most buyers will want to set up an inspection, there are situations where you might choose to get one ahead of time. Doing so allows you to discover the condition of your property, make a more informed pricing decision, and streamline the process (since many buyers will be satisfied with the report you provide).

A pre-listing inspection typically costs a few hundred dollars, though it can vary depending on where you live.

Legal fees

There’s no way around it: when you’re selling your home, due diligence is a must-do. A lawyer can help you understand every aspect of the deal you strike—and the potential implications of the decisions you make.

The fees you pay will depend on the legal representative you work with. It could be $500, or it could be well over $1000. The thing to remember is, you want to work with an experienced professional who focuses on real estate law.

Mortgage discharge fee

Ready to pay off your mortgage before you move? Not so fast. First, you’ll need to undergo the discharge process. That means setting up an appointment with your lender and real estate lawyer to ensure the proper paperwork is filled out.

Mortgage discharges come with a fee, which is set by your lender. As a rule, it’s somewhere around $300 or $400.

Moving costs

Don’t forget about moving costs! These pesky expenses are often viewed as an afterthought, but they can add up. First, there are boxes and other packing supplies. While they may be free if you’re willing to scrounge, they can tally hundreds of dollars if you have a large home and purchase them brand new.

The cost of getting your belongings out one door and through another can be steep, but the overall price depends on the level of service you’re looking for. You can rent a truck for a base rate ($19.95 at U-Haul) plus fuel and mileage, or pay more for a full-service move if you own a house (you could be looking at over $1,500).

Are you ready to buy your next home? Get in touch—we’re happy to answer any questions you may have!