Whether it’s been a while since you’ve sold a home, or it’s just been a REALLY BUSY couple of years, Sellers are always asking for a refresher on what costs they need to account for when selling a house.
Typically, a Seller is responsible for a certain percentage of commission, which is split between us (Walker Parker Real Estate) and the Real Estate Agents that brings a Buyer to successfully purchase your home.
HST on Commission
The Ontario Government requires Real Estate Agents ™ to charge HST (13%) on the total Commission amount, and remit that in taxes. There is typically not HST payable on the sale price of resale homes (with some exceptions)
You will need to retain a lawyer to close the sale of your property. Costs will vary based on the complexity of your sale (i.e. how many mortgages need to be closed, any liens/etc.) but a $2000 ballpark figure is generally sufficient. Call and check with your lawyer to ensure the correct amount, before proceeding with a sale.
If you are discharging a mortgage and not porting it to a new property (and always remember to check IF your mortgage is portable) then there may be a mortgage penalty associated with early termination. Ask your Lender to give you an exact penalty figure as per the closing date of your home.
From deciding to get out of dodge the first weekend you go on the market, to completing any number of small “fixes” prior to going on the market, in a perfect world it’s ideal to have a small budget for discretionary items that either help you maximize the sale price of your home (completing any small repairs) or minimizing your stress (i.e. not leaving your house every 2 minutes for showings during the first weekend on the market). However this line item is truly optional.