Surprises are great, but not when it comes to your wallet. Selling your home is an exciting journey, but before you plant that 'For Sale' sign, it's crucial to understand the potential costs. While some surprises are fun, surprise expenses are definitely NOT!

Understanding the Preparation Costs: Getting Your Home Ready to Sell

Are you ready for the full scoop? Selling your home involves more than just finding a buyer; it's a whole journey with unexpected costs. The first cost to consider is in the preparation—getting your home ready to sell. You've likely already factored in costs to create a great first impression, including cleaning, landscaping, and general tender loving care (TLC).

If you're feeling adventurous, you might be budgeting for upgrades. But before you break out the sledgehammer, give us (or any realtor) a call. Seriously, call us. Not all upgrades are created equal, and we'll make sure you're spending your hard-earned dollars in the right place, if you need to spend anything at all!

Post-Sale Adventure: Additional Expenses You Didn't See Coming

Fast forward, and congratulations, you've received an offer from a buyer. But wait, the adventure—and the costs—don't stop here. Let's tackle the elephant in the room—commissions. You're responsible for both the buyer and listing brokerage's commission. You likely negotiated the rate with your agent before listing and already planned and budgeted for it.

But here's an expense you may not have prepared for: HST. In Ontario, you're required to pay HST on commission. Many sellers are in the dark about this and are hit with the news of extra costs in their lawyer’s office just before closing. Now you're in the know, so don't be one of those people. Plan for that extra 13% tax on your commission fees.

You're likely aware that you'll be paying closing costs—the less glamorous part of selling. Legal fees, title insurance, and land transfer taxes—oh my! Closing costs vary depending on where you live and the complexity of the transaction.

You may not be aware, but if the property you're selling isn't your primary residence, you may be faced with capital gains taxes too! There's a formula to calculate the amount you'll owe the government, and there are ways to avoid the capital gains tax, but that needs to be done long before you put your property on the market for sale.

The Move: Packing, Boxes, Pizza, and Beer for Your Helpful Friends

So, you've survived the planning, the sale, and all of the costs associated with that. Now, let's talk about the move. Packing, boxes, pizza, and beer for your helpful friends—moving costs, often the most forgotten but oh-so-important costs.

And if you find yourself in a housing limbo, transitioning between homes, be prepared to budget for accommodation costs. From a few days in a hotel to rent, deposits, and utilities—these costs add up too.

Phew, that was a lot to unpack!

But don't worry, we've got a handy guide with all these costs laid out for you. Just click here to download our free guide and make your home-selling journey a breeze.

And as always, if you have questions or just want to chat about real estate, we're just a message away.