Are you thinking about selling your home but are unsure of what to expect it to cost? You’re probably already picturing the dollars pouring into your bank account – after all, home prices are up across the country, so the odds are pretty good your home has appreciated over the years. So it only makes sense that you’d stand to make a profit, right?
But what’s easy to forget is selling a home costs money – sometimes a lot! We like to call this a Reality check.
There are so obvious costs of selling a home that you’re probably already budgeting for, such as Real Estate fees (which are typically 5% of your home’s selling price) and legal fees. But there is also a variety of smaller expenses to factor in. Here are some ideas on where your money might go and how much you can expect to pay for it.
Home preparation, repairs and cleaning
These can add up quickly! A 2019 Zillow study found that owners spent an average of $6500 on getting their home ready to sell! Make sure you talk to your agent before investing in major repairs or renovations to make sure you get your money back through your sale price.
Condo Status Certificate
If you live in a condo building you can count on having to order a Status Certificate for your sale. You can typically budget anywhere from $100-$300 depending on your location and how quickly you want it.
Mortgage penalty
If your mortgage isn’t up for renewal and you’re not porting your existing mortgage (in other words, taking that mortgage and using it to fund another property) you’ll have to pay a mortgage penalty – and a fair warning, that penalty can be significant. Talk to your bank or mortgage broker to understand the best options for you.
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 $6500+ to the cost of selling. Make sure you are taking these into consideration when budgeting.
Moving costs, including utility connection charges
Moving costs can vary substantially. If you’re planning on having friends and family help you move and simply renting a moving truck you can definitely keep this on the affordable side. If you’re thinking about hiring a moving company, make sure to get a quote in advance to ensure you have budgeted the proper amount!
Thinking of buying? Check out our blog post on the costs you can expect when buying a home.
