Your sale price isn't what lands in your bank account. Before you list, it pays to know every cost of selling, so you know your real number: what you walk away with.
Here's the full list for a home in Vaughan.
1. Real estate commission
Commission is the biggest cost of selling. It's agreed with your brokerage before you list, and it's paid from the sale proceeds on closing, so it doesn't come out of your pocket up front.
2. HST on the commission
In Ontario, 13% HST is charged on the commission. It's easy to forget. Every $10,000 of commission adds $1,300 of HST.
3. Legal fees
You need a real estate lawyer to sell. Your lawyer transfers the title to the buyer, pays out your mortgage from the sale proceeds and handles the closing funds. Hire one as soon as your deal is firm.
4. Paying out your mortgage
Your remaining mortgage is paid off on closing day from the sale proceeds. The cost people miss is the prepayment penalty: if you break your mortgage before the end of its term, your lender may charge one. Ask your lender for the number before you list.
5. Getting the home ready
This one's up to you, and it often pays for itself.
- Paint, lighting and small repairs return the most. Fresh neutral paint, bright modern light fixtures, fixing leaky taps, cracked tiles and worn caulking, and a tidy front yard cost little and change how buyers see the home.
- Staging ranges from a few hundred dollars for a consultation using your own furniture to several thousand for a vacant home.
- Big projects, like a new kitchen, rarely pay back their full cost right before a sale.
What you don't pay
- Land transfer tax. In Ontario, the buyer pays it, not the seller.
- Capital gains tax on your home, usually. The principal residence exemption generally covers the gain on the home you live in. Investment and rental properties are taxable, so talk to your accountant before you sell one.
Work out your net
Here's the simple version:
- Start with your sale price
- Minus commission
- Minus 13% HST on the commission
- Minus legal fees
- Minus your mortgage payout (and any penalty)
- Minus prep and staging
- = what you walk away with
Try it with your own numbers on our cost to sell calculator.
The number that matters most
Every cost on this list is small next to the sale price itself. Pricing from real recent sales, a home that shows well, and a strong launch week do more for your net than anything else. On 82 Highland Park, that plan brought in five or more offers and $210,000 over asking.
Want your exact number?
We price your home from real sales nearby and run your net with you before you list, so there are no surprises on closing day. Call or text 647-694-3109 or get a free home evaluation below.
Michael Barillari, Broker, RE/MAX Premier The OP Team, Brokerage. General information only; talk to your lender, lawyer and accountant about your situation.