Selling your home is typically about making a profit. However, that doesn’t mean that it doesn’t come without costs. Here is an overview of some of the major costs you’ll be responsible for paying.

Mortgage Balance

This is the remaining balance on your original home loan. You will need to pay off your mortgage in its entirety when your home is sold.

Home Equity Loans (2nd, 3rd Mortgages)

Any loan against the value of your home will also need to be paid in full after the sale of your home.

Payment Penalties

The bank or lending institution that currently owns your mortgage title may access a prepayment penalty. You should speak to your lender now, ask if they plan on assessing a prepayments penalty, and figure exactly how much that amount is. You may be able to negotiate with your lender to reduce or waive the prepayment penalty, if there is any. You’ll also want to submit a formal prepayment notice to your lender.

Pre-sale Preparations

In most cases, it’s not advisable to make major investments in your home right before a sale. There are, however, a few things that can be done to increase your home’s curb appeal, fix minor problems, and otherwise make your property more attractive. Together we can identify what items should be addressed and create a budget for these pre-sale preparations that are sure to show a significant return on investment.

Closing Costs

All closing costs associated with the sale of your home will be listed for you and for the home buyer in the Closing Disclosure form. Listed below are some of the closing costs:

• The real estate broker commissions

• Title costs (examination and insurance)

• Legal documents and service fees

• Recording/filing fees

In some cases, buyers make a request for you as the seller to cover their closing costs as part of their purchase offer. We will negotiate these requests if they are made and we will help you understand why it would be advantageous to cover the buyer closing costs (if it is) and what limitations we can set to make sure we know the exact net on your home sale before closing.

Moving Costs

Moving isn’t only a hassle, it can also be very expensive. Whether you’re moving to a new house in your neighbourhood or across the country, it’s important to estimate and plan for the full cost of moving for your home once it’s sold. If you’re working with a moving company, you’ll want to get a full idea of what you’ll be charged for what service. If you’re moving yourself, you’ll most likely need to rent a van. And don’t forget the packing materials including boxes and tape. The more preparation you do in your moving planning, the less likely you are to avoid overpaying for your move expense.