What is the Cost of Selling a House in Ontario?

A Team Who Gets It.

Are you thinking about selling but also want to have an idea of how much this will cost you? Then you have come to the right place. In this blog post, we break down the common costs of selling a house so you know what to expect.

Together, we will explore commissions, expected closing costs, Lawyer fees, and other expenses, which vary depending on the services offered by your brokerage.

Real Estate Lawyer Fees

Lawyers are an inevitable part of your real estate transaction, actively overseeing all legal due diligence, ethical practices, and the intricacies overlooked by the common buyer. Picking the right Lawyer is a key pathway to long-term success. Strong Lawyers are reputable in the community, are referenced by real estate professionals, and work for a well-known real estate firm in your area.

Ultimately, the cost of a Lawyer depends on the intricacies of the transaction. In Ontario, buyers and sellers can expect fees ranging from $1,000 to $3,000. However, other Lawyers prefer charging by the hour, particularly for complex transactions. Common cost increases are associated with title disputes, estate sales, and deals involving multiple owners.

If you are selling or have just sold your home and are in the midst of finding a Lawyer, we are happy to provide you with a list of strong referral Lawyers in the area.

Planning on selling your house? Explore these related blog posts for more advice!

What Does Home Staging Cost?

Another common expense when selling a home is staging. Staging can cost anywhere from $700 to $ 3,000, and this cost fluctuates heavily depending on what the design consultant deems necessary for your home. In many cases, the staging team can work with the pre-existing furniture and add a few decorative items to replace dated or bulky items, helping to lower the costs.

The Value of Staging

This fall, we sold a home for our clients at 165 Hadati Road in Guelph, ON. This charming brick bungalow featured an updated kitchen and a neutral colour palette. The home underwent a staging consult, which concluded that, with additional decorative items such as wall art, throw pillows, new bedding, and tablescaping, the home would come together beautifully. Once the home was staged, photographed, and went live on REALTOR.CA, the initial buyer interest resulted in the sale of 165 Hadati in under 48/Hrs.

At Capstone, when staging is needed, your agent pays for it. We do this because it allows our clients to get the most out of their home, and 165 Hadati is a testament to the effect that staging a property can have on buyers.

Realtor Fees in Ontario

Commission structures allow your Realtor to provide you with the best service possible. The percentage paid out to your agent will vary depending on the average commission for that area. The average commission for Guelph/Centre Wellington is 2.5%. This means 2.5% is paid to the listing agent and 2.5% to the buying agent, for a total of 5% commission.

In Kitchener-Waterloo and Elora, the commission is 4%, meaning 2% to the listing agent and 2% to the buying agent.

What is a Real Estate Agent’s Commission?

Commission is the remuneration structure by which your real estate agent is paid out for the sale and all of the back-end work, marketing, prospecting/vetting buyers and their all-encompassing time put into the property. In many cases, real estate agents will include specific service costs in the sale, offering to pay for marketing, cleaning, and/or staging costs.

If you choose not to hire an agent, you should plan for the unexpected costs associated with selling your home. We understand that hiring a Real Estate Agent can be intimidating, which is why we want to walk you through what your Realtor should be doing to help you have a strategic sale.

Hiring A Moving Company

The choice to move is an expenditure. From moving trucks to packing and supplies, there are various cost levels depending on the size and distance of your move. If you choose to hire a moving company, you are paying for both their time and labour. In Guelph, the average cost of hiring movers for a move from a 3-bedroom home can range from $ 1,000 to $2,000+.

While hiring a moving company adds on another cost, we highly recommend moving with professional help. They will ensure the truck is packed properly, delicate items are protected, such as mattresses, artwork and decorative pieces, and the move is executed with ease.

We recommend finding a moving company in advance, particularly if you are planning on moving at the beginning or end of a month (as these are common closing dates for real estate transactions).

Potential Costs to Take Into Account For Closing

There will inevitably be unpredictable costs associated with selling. One of those costs is the mortgage and discharge fees, which are to be paid out at close. If your home is not paid off, the outstanding amount will be settled before the home is closed.

Another common expense is the appraisal cost. Even if you choose not to work with a Realtor, we highly recommend hiring an Appraiser to walk through the home and provide an opinion of value. Beyond cosmetic issues, which are visible to the naked eye, an appraisal will uncover the hidden issues.

At Capstone, we pride ourselves on our agents’ due diligence. The process of selling a home can be overwhelming, leading to check-ups on the working order of items such as appliances, heating/AC systems, water softeners, foundation/waterproofing, and electrical systems being overlooked. When you work with our team, our agents will walk through your home to identify potential future issues and common cosmetic and structural problems.

Want to sell your house for top dollar? Find more helpful advice in these blogs!

Hidden Costs When Selling a House

The buyer’s closing costs can also fluctuate depending on the terms of the agreement of purchase and sale. For instance, if the home is sold conditionally with a home inspection condition and the Home Inspector finds a significant issue affecting the home’s existing value, the new buyers have the right to flag this impact. We often see the cooperating agent contact the seller and their agent to request financial assistance to cover the cost of the necessary fixes. Another common place opinion is that a price reduction/amendment to the Agreement of Purchase and Sale be drafted, with a price improvement agreed upon by both parties.

These selling costs/ closing costs are not something that sellers can anticipate. However, you can prevent unexpected issues by working with qualified contractors throughout your time as the owner of the home. If you are looking to sell your home but want to complete repairs and or renovations first, we would love to recommend some of our favourite, trusted local contractors.

Selling With Capstone

We make things easy for you by including everything you need to know about selling in one place, our Seller Guide (and we would love to provide you with a copy!). Our seller guide breaks down our fair pricing strategy, marketing statistics, and overall approach.

However, the best way to learn more about our team, who we are, and how we work for you is to schedule an in-person or online meeting with one of our agents. We offer home evaluations through our website so that you know what your home is worth in today’s market. Let’s face it… the market is always changing… and knowing your basis point helps us focus on guiding you through the preparation required for selling a home, one decision at a time!

If you are interested in finding out more about our Team Members, check out our agents page and find the fit that feels right for you.

Budget Like A Pro For Your Move

All in all, closing costs will vary depending on the circumstances and the size of the transaction. While we have gone over a few of the unexpected costs, such as the price of staging, mortgage costs, moving/packing costs and commission splits, the best choice you will make is contacting a Realtor to understand how these costs appear and why they matter.

With all of this information and the selection of the right Realtor, you can make an informed decision about selling your home.

Ready to sell? We can help! Reach us by email at info@capstonereps.com or by phone at 519.824.9050.

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Thinking about buying or selling a home in Guelph or Wellington County? Start the conversation with our team today.

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