THINKING OF SELLING? COSTS YOU NEED TO KNOW

Selling a home sounds simple, but the math can surprise you.

Your “profit” isn’t just sale price minus your mortgage balance.

Here’s what sellers often forget 👇

1️⃣ Real estate commission costs

Using a REALTOR® typically means paying 4–6% of the sale price.

This is split between the listing agent and the buyer’s agent.

✔️ GST/HST applies on commission

✔️ FSBO still has setup and marketing fees

✔️ buyers’ agents may still expect commission

Commission is usually the largest selling expense.

2️⃣ Mortgage discharge fees and penalties

If you have a mortgage, there is always a cost to discharge it.

Penalties vary depending on the type of mortgage.

✔️ fixed mortgages may include an IRD penalty

✔️ variable mortgages are often 3 months’ interest

✔️ HELOCs may still include admin fees

Penalties can range from a few hundred to several thousand dollars.

3️⃣ Legal fees to close the sale

A lawyer is required to confirm clear title and complete the discharge.

Costs can vary depending on complexity.

✔️ expect $500–$1,000

✔️ higher if multiple payouts are involved

✔️ required even in private sales

Legal fees must be paid at closing.

4️⃣ Property tax and utilities

You must pay taxes and utilities up to the exact day you no longer own the property.

✔️ mid-month closing = pay your portion

✔️ equalized billing shortfalls must be paid

✔️ buyer receives adjustments on the statement of adjustments

These final readings and balances often surprise sellers.

5️⃣ Capital gains considerations

Primary residences are exempt from capital gains tax.

Investment properties are not.

✔️ 50% of the gain is taxable

✔️ taxed at your marginal rate

✔️ must be reported properly

This is critical to calculate early.

6️⃣ Repairs and pre-sale improvements

Small repairs help maximize your selling price.

✔️ painting and drywall patching

✔️ fixing leaks and flooring issues

✔️ cleaning gutters and yard work

Budget around 0.5%–1% of the sale price for prep work.

7️⃣ Moving costs

Selling your home means you still have to move everything.

✔️ truck rental and supplies

✔️ professional movers if needed

✔️ cost varies based on distance and volume

Don’t forget to budget time and money for moving day.

💬 Final Thought

Selling a home comes with more costs than most people expect — but planning ahead prevents surprises.

If you want help estimating your selling costs and next steps, message The Frontline Mortgage Group anytime. 💬