December 3, 2024

How much does it cost to sell a home?

So you’ve decided to sell your house. Congratulations! Before you put a For Sale sign up on your lawn and embark on this new adventure, you’ll have some fees and services to pay for. Find out the cost of selling a house.

Selling a property can be a complex process. Check out our complete 12-step guide to selling your home so you’re well prepared. You’ll find relevant information as well as real estate tips and advice.

1. Brokerage fees or commission

When you think about selling your home, the brokerage fee or the real estate broker’s commission is probably the first thing that comes to mind.

Since the real estate broker’s remuneration depends on many factors, we can’t provide an approximate amount, but it is often calculated as a percentage of the sale price. It can also be a lump sum. You should also be aware that the seller pays for the broker’s services. The brokerage contract provides that a portion of the fee that is payable to your broker will be shared with any other broker who is involved in the sale of your property.

Selling your home is a major decision, and there will be ups and downs. A professional with in-depth real estate knowledge will understand the market in your area and will be able to advise and support you throughout the entire process. That’s why selling with a broker is good for your peace of mind.

2. Minor work or renovations

The average cost? It depends!

To get the most out of the sale, you may find that it’s necessary to give your house a bit of TLC before letting it go. Take a look at our complete home renovation guide for a list of tips on steps, budget and more.

Of course, it’s always a good idea to do minor work such as a fresh coat of paint, minor repairs and lubricating door hinges.

You can also revamp your bathroom at low cost. Discovering that their dream home has a modern bathroom can be highly attractive to a buyer! Is your kitchen stuck in another era? You can apply our bathroom revamp ideas to your kitchen or plan a complete kitchen renovation.

	Tips and tricks Before embarking on major renovations, ask your real estate broker to help you pinpoint the most profitable renovations before the sale based on comparables in your neighbourhood and current buyer preferences. Your broker’s expertise will help you prioritize improvements to maximize the appeal and value of your property. Remember, if you’re undertaking major works, it’s always best to hire a certified contractor.

3. Inspection fee

Average cost: $750 to $850

Having your house inspected is a must when selling. Unfortunately, many buyers decide otherwise, which can be risky!

More and more sellers are having an inspection done before putting their house up for sale, even though the home inspection is typically organized by the buyer. Doing so has many advantages for sellers. You can find out which renovations or repairs need to be done and get an up-to-date overview of your property.

4. Certificate of location

Average cost: $1,500

Ideally, the certificate of location should be up to date before the sale, even before you put up your For Sale sign. Although a certificate of location is valid for 10 years, if there have been any changes to the property (an extension, a new shed, pool, or even just a cedar hedge), it must be redone.

You still have some time, as the certificate of location will only be used to fully evaluate your property when you visit the notary. The certificate of location is therefore considered mandatory during a real estate transaction. Don’t put it off too long, as it typically takes four to six weeks to get it done, depending on the real estate market.

	Tips and tricks A land surveyor will produce the certificate of location. You can find a land surveyor via the Ordre des Arpenteurs-Géomètres du Québec directory.

5. Notary fees

Average cost: $1,500 to $3,000

The buyer usually pays the notary fees for the sale of a house, but these fees can be shared with the seller depending on the circumstances, for example if a correction of titles needs to be made.

Before you head to the notary’soffice to sign the sale documents, the notary must carry out a complete evaluation of your property. This includes consulting the index of immovables and plans and deeds in the land register, examining titles, and preparing the deed of hypothec, bill of sale and the notices of address. This is especially important before the sale.

	Tips and tricks Before going to the notary, make sure you have the following documents ready to go: Title deeds Updated certificate of location Municipal and school tax bills Civil status certificates of both parties

6. Prepayment penalty and other mortgage fees

The average cost? Each situation is unique.

A prepayment penalty on your mortgage is an amount that your bank (the lender) will charge you if you decide to sell your home before the end of your mortgage term.

This penalty and other related costs are specific to your situation. The best way to understand the exact amounts is to contact your mortgage advisor, who will be able to inform and guide you.

However, you should know that it may be possible to avoid these costs by transferring your mortgage, along with the interest rate and conditions, to your new property. This option has many advantages, but it’s only possible if you sell your old house and buy a new one at the same time. Ask your mortgage advisor about it when you discuss the mortgage penalty.

7. Moving expenses

Average cost: $120 to $180

Selling your house inevitably means moving and the costs that go with it. How much does it cost to move? The average price indicated is for one hour with two movers. While this can be a significant sum, there are many advantages to using professionals:

Less stress
No strenuous effort (and no appointments at the chiropractor afterward!)
Basic insurance for your belongings

There are other options for moving, such as renting a truck or a container and asking your friends for help. In both of those cases, you’ll need strong arms!

	Tips and tricks Want to simplify this process? Platforms like MovingWaldo are designed to make your life easier. In just a few clicks, you can find reliable movers, compare several estimates instantly and book your movers online. A dedicated agent will support you throughout the process, ensuring a stress-free experience.

8. Taxes on the sale of your home

If you sell your home or your apartment building, the money you make must be reported as a capital gain. Generally, half of this amount is taxable. However, if it is your primary residence, you may be eligible for a partial or total tax exemption, unless the property has been used to earn income.

If you bought a house to flip it and are reselling it within a short period of time, you should know that there is now an anti-flipping tax. This means any profits you make will be 100% taxable if you owned the property for less than one year.

Consult your financial advisor for more information on what to expect.

9. Other possible costs related to the sale of a property

As you now know, there are many costs associated with selling a property. Here are a few other relevant costs:

Home staging

Home staging shows off the full potential of a space to make your property more attractive to a future buyer. Home staging is more than just decorating—it allows buyers to fully appreciate your home’s value.

Concessions during negotiations

It is almost inevitable that some concessions will be made during the negotiations between the two parties. In addition to the sale price, concessions may involve including some household appliances in the sale, sharing notary fees, completing specific repairs or changing the date when the buyer will take possession.

Appraisal fees

The real estate broker calculates the approximate value of your property before putting it up for sale. If the house has particular features, they may suggest that the market value assessment be done by an accredited appraiser.

Specialized tests

Following the inspection, specialized tests may be required to find out if there is pyrite in the foundation, or vermiculite or asbestos in the insulation. Air quality tests may also be requested to detect mould or radon.

Clean and depersonalize

Before you put your house up for sale, some spring cleaning is in order. This means cleaning, tidying up and decluttering both the interior and exterior of your home. A good first impression is crucial! If you’re extremely busy or would prefer to devote your energy to other tasks, hiring professionals to do a deep clean can be a great solution. This will let you focus on other aspects of the sale. Consider depersonalizing your space, for example, by packing up framed family photos. You can hang artwork or nature photographs instead.

Anticipate costs for a successful sale

Several costs need to be taken into account when selling a property beyond the sale price itself. It is essential to properly anticipate these costs to avoid surprises. Planning your sale carefully and taking into account all the associated costs will increase your confidence when selling and help you optimize your return on investment. Ready to put your property up for sale? Get support from a real estate broker.