Estimated reading time: 3 minutes
If you’re in the process of selling your first home, you’re likely unfamiliar with many of the common costs involved in a traditional home sale.
If this is the case, then this very article, along side our ‘Home Seller’s Guide’ are just what you need to familiarize yourself with both the process and the costs involved in a traditional home sale.
So now that you are selling your first home and looking for your forever home, you are probably wondering "How much does it cost to sell your home?"
The truth of the matter is that without paying careful attention, the costs associated with the sale of your home can easily add up and eat away your down payment.
So, to help you prepare as you begin the process of selling your Niagara home, here is a list of expenses to keep an eye on:
1. Realtor Commissions
Realtor commissions vary depending on the Realtor you work with, among other factors. In 2013, the average commission for a home sale was between 2.5% and 3%. If you ask anyone that has successfully sold their home alongside an experienced Realtor they’ll tell you it was money well spent!
Trying to sell a home on your own requires a lot of work and even more knowledge. Your Realtor can handle all of it for you, making sure your house is marketed properly, and bringing qualified buyers through the door.
When you sell your home quickly for top dollar, you'll be happy you chose to hire a Realtor.
2. Legal Fees
As you already know from purchasing your first home, you can't avoid the legal fees associated with buying or selling a home in Niagara or anywhere else in North America for that matter.
Without getting into too much detail, the transfer of ownership of land in Ontario is a lengthy, detailed process and that’s why there are legal professionals trained in real estate law to handle things for you.
In Ontario, the legal fees associated with selling your home rarely cost less than $500, so budget appropriately.
3. Home Staging
From the moment your home goes on the market for sale,, it is no longer your home, but someone else's future home.
So, while you might love the bright hues on the walls or the quirky chair in the corner, it might not be to everyone's taste.
Be prepared to paint your walls with some neutral colours, renting storage space for some of your personal belongings or even hiring a professional if you think you need it.
4. Land Transfer Tax
If you are buying a new home, land transfer tax can easily be one of your biggest expenses.
The tax is based on a percentage of selling price of the home, ranging from 0.5% to 2% of the total selling price.
Example: A $200,000 home sale would require $1725 Land Transfer Tax.
5. Moving Costs
After helping out with hundreds of home sales and overseeing as many moves, I know first hand that moving expenses are one of the most overlooked expenses of all when it comes to selling your home and successfully upgrading (or downsizing).
Even if it’s just renting a truck for a day and supplying food and beverages to your wonderful friends and family who showed up to help, you could easily be on the hook for a couple hundred dollars. Should you have to hire professional movers who help you pack, load and unload, you’re easily looking at $1000 or more for the day.
NOTE: When hiring professionals to help you move, be sure to get at least 3 quotes and read the fine print along with reviews! There’s nothing worse than a lackluster team of movers come moving day!
Don't let this list of costs overwhelm you. While selling your house in Niagara does come with additional, and often unexpected costs, it is worth it.
This home has completed its purpose for you, and now it's time to upgrade to a space that better suits you and your family's needs, and allows you to live a more fulfilling life.
By preparing and budgeting for these costs, you will be able to enjoy the process of selling your home and finding your family's forever home.