What are the costs associatied with selling Property

Hey Isabel!

As far as closing cost for you and your buyer it is negotiated with the sales contract. You will have the commission for the real estate agent. If a mortgage is needed you will have sellers title insurance (based on value), bring all property taxes up to date (varies). While the rest used to be the buyers fees in today's market they tend to get split or covered with sellers concessions. Mortgage Fee, 1-4%. credit report, 15, broker processing 350 - 750, underwriting fee, 700, appraisal, 350, inspection 250, survey 150, buyers title insurance (varies), escrows and ho insurance (these are NOT closing cost, they are hard cost that need to be paid regardless if a sale is made but most call these closing cost).

While others use lots of little picky fees the above are the big and in the end the only fees that need to be charges. Hope it helps.

Happy Selling!
Tony Grego - Indiana Mortgage Broker

Sounds like you have a good plan- good luck- I wish you much success.

Isabel - It looks like you got a great answer from Tony,  As a general rule that I tell my clients is that it is going to cost you anywhere from 7 -8% of the sales price to close the deal.  That is just a estimate but it is generally fairly close.  Good luck.

Isabel-Tony gave you a good rule of thumb.  Since you are in Canada those costs may be different.  As a stager I am sure that you have an agent or two that you could sit down with and talk through your idea.  Real estate is different every where and whether this is the market for you to be thinking of buying and rennovating properties to sell will depend entirely on what is happening in your market.  Find an agent you feel comfortable with and be loyal to them and they will assist you with the right decision for your circumstances.  

Hi Isabel,

As REALTOR here in London I would be happy to sit down and discuss your options with you if you like.

Things are different in Canada with regards to "flipping" houses because of changes to capital gain taxes-and revenue being attributed to personal income.  I would suggest getting a good accountant on board who is much better qualified to handle that aspect.

You would also be interested in the new program from CMHC for renovating homes, or second home options.  They have made some changes allowing you to factor renovations into the purchase price on the home, subject to cooperation by our banks.  As well there are factors that allow you to reduce your downpayment requirement on multiple properties.

Those fees Tony listed are possible but not all required at the same time and it depends on the negotiated deal.  Title insurance can replace the need for a new survey as an example.

Best of luck you in your pursuit.

Isabel - Sit down and talk with someone from your area like Adam above our costs here In Ontario are different than in the US. As to investing real estate like anything has its ups and downs as long as you are in a position to hang in there. When it comes to selling timeing the market can make a huge diffeence.