Think selling your home means walking away with a big profit? Not so fast—many sellers are surprised by the hidden (and not-so-hidden) costs that can eat into their bottom line. Here's a quick breakdown of what to expect:
1. Realtor Commissions
Typically, the largest expense, usually split between the listing and buyer’s agents, with HST added. Rates and services vary, so do your research.
2. Legal Fees
Essential for closing the deal and handling paperwork. Costs can vary based on the transaction and property type. Always hire a reputable real estate lawyer.
3. Mortgage Penalties
Breaking your mortgage early? You could owe thousands — especially with a fixed-rate mortgage. Call your lender before listing.
4. Staging & Photography
Staging helps your home show better and sell faster. Professional photography is a must for a great first impression online.
5. Pre-Sale Repairs
Small fixes and cosmetic updates can increase your sale price, but don’t overspend. Focus on what matters to buyers.
6. Closing Costs
Final utility bills, tax adjustments, or bridge financing may apply. Ask your lawyer for a breakdown.
7. Moving Expenses
Hiring movers, renting storage, or temporary housing can add up quickly. Budget $2,000+.
8. Capital Gains Taxes
Primary residences are usually tax-free, but investment or secondary properties may be taxed. Always consult an accountant.
Bottom Line: Selling a home can come with thousands in hidden costs, but with the right knowledge and planning, you can stay in control and protect your profits.
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