The sale price isn't what lands in your bank account. Before you list, add up every cost so you know your real number, and so you can plan your next purchase around it.
Here's what Vaughan sellers should budget for.
Real estate commission
Commission is the biggest cost for most sellers. It's negotiable, and it covers both the listing brokerage and the buyer's brokerage. Ask any agent you interview to put their commission and what it includes in writing: photography, staging, marketing, open houses.
HST at 13% is charged on the commission, not on the sale price. Sellers often forget this part.
Legal fees
You'll need a real estate lawyer to close. They prepare the documents, discharge your mortgage and handle the funds on closing day. Get a quote up front and ask what's included, since disbursements are often billed on top of the fee.
Paying off your mortgage early
If you're selling before your mortgage term ends, your lender may charge a prepayment penalty. On a fixed-rate mortgage, it's usually the greater of three months' interest or the interest rate differential. That second number can be large.
Call your lender before you list and ask for a written payout statement. Some mortgages can be ported to your next home, which can avoid the penalty. There's also usually a small discharge fee.
Getting the house ready
Paint, small repairs, cleaning, and sometimes staging furniture. For most homes this is a modest cost compared to what it adds to the sale price. My post on getting your home ready to list covers what's worth doing and what to skip.
Moving and the gap between homes
Movers, packing, and sometimes storage. If you're buying and selling at the same time and the closing dates don't line up, you may need bridge financing or a short rental.
Capital gains tax
If the home is your principal residence for every year you owned it, the gain is generally tax-free. If it's a rental, a second property, or was a rental for part of the time, talk to your accountant before you sell.
Costs you don't pay in Vaughan
Land transfer tax is paid by the buyer, not the seller. And since Vaughan isn't in the City of Toronto, there's no municipal land transfer tax on either side.
Property tax and utilities are adjusted on closing, so you pay only for the days you owned the home.
Put it all together
Before we list, I'll sit down with you and build a net sheet: the expected sale price, minus every cost above, so you know what you walk away with. It's the most useful number in the whole process. Reach out here if you'd like one done for your home.
