What Is the Real Cost of Selling a House in Ontario?

Every homeowner hopes to earn a high return when selling their house. The good news is that while real estate values may fluctuate day to day, they tend to grow steadily over time. If you’ve been in the same home for many years and have taken care of your property, there’s a good chance you’ll see a satisfactory result.

Nevertheless, getting there will take some time and effort. If you really want to maximize the sale of your home, you’ll need to ensure that it makes an impact in the market. This means some investment will be involved. Today, we’ll talk about what to expect in terms of the cost of selling a house in Ontario.

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The Initial Cost of Preparing a Home for Sale

It goes without saying that you want your house to impress all potential buyers who come through your door. This rule goes double in a softer market where buyers have options.

However, it doesn’t mean you should start ordering materials or calling contractors just yet. A great deal of thought and research goes into what updates actually add value to a house.

The last thing you want is to invest your hard-earned money and live in a construction zone for weeks only to see no return on your investment, or worse, a negative return. Design and real estate trends change, so this happens more often than many people realize!

It doesn’t seem that long ago that nearly everyone had wall-to-wall carpets in their house. Today, that can be an instant turn-off for many buyers. Then there was the grey phase, where every wall and accessory was one shade or another. That’s another design that is mostly on its way out.

To top it all off, some updates look fantastic and modernize your home, and yet, buyers simply are not willing to pay more for them. Examples could include new appliances or renovating to create an open-floor plan. Sometimes, it’s better to let the new owner decide what they want for themselves.

Other times, you need to make certain repairs to get them to look at your house in the first place. How do you know whether or not a renovation will pay off before you go to the trouble and expense? Simple, just talk to an experienced local real estate agent who knows what is selling in your area.

Do you want more insider tips to help your house stand out above all others? Check out the insights in the posts below:

The Cost of Exposure

Breathtaking presentation is only one component of a successful real estate sale. Next, you have to ensure buyers know about your listing. The more exposure you get, the better. If multiple people are interested, you could get more than one offer, which could increase your final selling price.

The extent of your marketing outreach matters, but so does the quality. You want to attract the attention of people who have both the desire and ability to purchase a home like yours.

Your real estate agent will help you maximize your exposure. The plan will include a mix of offline and online advertising. Some channels, like social media promotion, have a nominal cost. However, all of it depends on high-quality images and videos. There is an expense there, but the investment is well worth it to quickly capture buyer interest.

Closing Costs Associated With Selling a House

Preparing the house and finding a buyer requires an investment of some time and money. The expenses don’t end there, however. Once you accept an offer, there are also closing costs and other fees before the transaction is final.

The seller’s side includes lawyer’s fees, the seller’s share of property taxes and municipal charges (as per the Statement of Adjustment), mortgage discharge fees and penalties (if applicable), and real estate commissions.

Real Estate Commissions

Real Estate commissions are one of the biggest expenses of selling your home. Fees can vary from 3.5% to 5% (plus HST). A discount agent can get your listing on the MLS® and help with the paperwork, while you’re on your own for the rest of the process. It might be tempting to go this route when you look at the discount. The real question is, what are you really gaining by not working with a full-service real estate team?

With a discount service, it’s up to you to prepare your home for the market, and you may even be expected to handle showings and much of the advertising.

Your Experience With a Discount Brokerage Vs a Full-Service Team

As a full-service team, we include things such as hiring a professional photographer to take pictures and videos of your home, formulating a dynamic advertising plan, and staging your home to show it at its best. Much of the cost is included in the fee, which makes the investment well worthwhile.

A discount agent will also not advocate for you the way a full-service team would. We are well trained in all of the ways we can negotiate the highest possible price, and would never advise accepting the first offer unless we know without a doubt that it is an excellent deal for you.

Think of it this way. If a discount broker doesn’t value their own time and is willing to work for a tiny commission, can you really trust them to get better results for you?

Regardless of how much your listing agent charges, the buyer’s agent will still get paid, usually 2.5%, and it is typically the seller who covers the cost. This is yet one more reason you need to maximize the value of your transaction, whether you work with an agent or not.

Remember that thorough de-cluttering, expert staging, and an aggressive advertising campaign to promote the property can result in tens of thousands of dollars more in your bank account on disbursement day. Most of our clients would say that the fees are insignificant compared to the value they received.

The right Realtor® is the key to making your home sale successful, especially in an evolving market. How do you choose? The posts below can help:

Taxes and Legal Fees When Selling a House in Ontario

The amount of taxes you pay to sell your home depends on the property itself. When listing your primary residence, you are fortunately exempt from any capital gains under the principal residence exemption.

Capital Gains when Selling a House

If you are listing an investment property or second home, there could be capital gains on any increase in value since your original purchase. For example, imagine you bought a cottage 10 years ago for $500,000. If you now sell for $550,000, you have a gain of $50,000, 50% of which is taxable and gets added to your income for the year.

Lawyer Fees for Selling a House

Before your home can close, you will need a lawyer to register the title in the buyer’s name. A good lawyer will also review all of the selling documents and run a title search to ensure a seamless close. The cost of lawyer fees to sell a house will also vary depending on the complexity of the transaction. In general, the total can range from about $1,000 to $2,000.

Additional Fees when Selling a House

HST is another expense that can catch some home sellers off guard. Since the lawyer and real estate agent are both considered services, add an extra 13% on all fees. The costs can seem to add up, but it’s important to keep things in perspective.

A successful home sale, where you’ve earned the highest possible price in the market, typically means you will come out ahead in the end. Professional guidance and outstanding service are what lead not just to a profitable outcome, but a positive and rewarding selling experience.

Are you in the planning stages to sell your home?
Our Etobicoke real estate agents are here for anything you need. Reach out today at 647-282-7653 or email contact@sileckythompson.com with any questions or to get started.