There are costs related to selling your property. You must become familiar with those expenses that you may encounter so that you will be prepared during the sales process. Here are some expenses to plan for:
If you are selling your property mid-term on your mortgage, you may encounter a penalty to terminate the mortgage early. Your lender will calculate the penalty based on several factors including the interest rate, term, total loan value and other methods contained in your agreement. Speak to your lender about this, or speak to a mortgage broker. You may be able to “port” your mortgage- that is transfer it to your new home. You may also be able to transfer it to the people who buy your property.
There will be legal costs related to the sale of your property. Typically a real estate lawyer or a notary will charge approximately $1000 for legal services related to the sale. This is required to ensure you are protected and that the buyer is held accountable to the agreed offer to purchase. There will also be disbursements that are paid on your behalf; outstanding taxes, utilities and other potential charges. Depending on your property tax schedule, there may be an adjustment to be made. The real estate commission will also be due at the time of closing. We charge 7% on the first $100,000 and 2.5% on the balance.
Giving your property a thorough cleaning is required. Having the property staged by a professional staging company may help to sell the home faster. We can recommend an excellent stager. Also, refurbishing and or renovations may be required. The costs will vary depending on the nature of the work.
Should you decide to move your belongings on your own, figure $200 for a truck rental, and don’t forget your labour! We can recommend professional movers who can provide you with a detailed quote for your move.