Lynn Tribbling

Unequivocally, this is an excellent time to sell. Price and sales volumes are historically high, but.sellers should be aware of additional costs associated with disposing of real estate. Here is a brief summary of some key costs:

1. REAL ESTATE COMMISSIONS Yes, Commissions are negotiable, especially in this hot market. Fees will reflect the anticipated speed of the sale and services provided. In a normal, balanced  market, the total fee for full-service marketing, is typically 5% + HST, distributed 2.5% to the listing brokerage and 2.5% to the selling brokerage. If there is only one brokerage involved, and only one Realtor, the commission may be reduced to 3%. In a seller's market, the listing Realtor may further adjust fees because there are fewer advertising costs. The selling fee will likely remain the same, 2.5%. All agreements regarding commissions and adjustments must be in writing and 13% HST tax applies. Handling multiple offers is a complex legal process, fraught with liabilities for sellers. The listing agent requires outstanding competencies and integrity . Generally, you get what you pay for.

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2. LEGAL COSTS Depending on the complexity of the transactions, legal fees generally range from $750.00-$3000. plus disbursements. Ask your lawyer for a detailed written quotation in advance.. 

3.  HOME INSPECTIONS Cost for a professional report range from $200-$600 and STATUS CERTIFICATES required when selling a condominium, cost between $100-$125. It is recommended that these important documents be obtained by the vendor prior to listing.

4.  STAGING, REPAIRS, CLEANING, DISPOSAL These are discretionary expenses and will vary from a few hundred dollars to thousands. A general rule is that the amount spent on home-staging prior to selling should be approximately 1% of the of the market value of the home. Ask your Realtor for advice.

5.  ADJUSTMENTS These are additional costs due on closing and may include outstanding amounts owed by the seller. (taxes, condo fees, utilities, work orders etc.)

6.  MORTGAGE PENALTIES AND DISCHARGE FEES These amounts can be thousands of dollars, especially if you are breaking a closed mortgage. Always verify these charges in advance with your lending institution. Sometimes you can negotiate a discount on discharge fees if you are porting the mortgage to your new property.

7.  MOVING COSTS This expense varies depending on services, time and distances involved. Get several quotes, but most moves cost between $2000-$5000. Also, condos often charge elevator and security fees when moving out which may be non-refundable. All theses costs add up. Be prepared.

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8. CAPITAL GAINS TAX: Generally, principal residences are exempt from taxes on profits, but investment properties require that you pay taxes on 50% of the gain. CRA is monitoring "flips" very carefully so it is imperative that you seek professional accounting advice when you sell.