2. UNDERSTAND ALL OF THE COSTS
One big difference between buying and selling real estate are the affiliated costs. When buying a house in Toronto, you luck out because your agent’s commission is paid for by the seller. However, when you become the seller, you’re faced with this added expense. Commission fees will vary but the standard is about 5% (2.5% to your agent and 2.5% to the buyer’s agent).
It’s no secret that your agent will earn a percentage of your sale price but be sure to do the math ahead of time. If you’re selling your Toronto home for one million dollars, that 5% equates to $50,000 you’ll need to deduct from those earnings. That’s not all, you’ll also be paying taxes on that commission. So the $50,000 you’re paying in commissions is actually $56,500.
As with any real estate transaction, you’ll need to hire a lawyer, so ensure you’re budgeting $1,500-$2,000 for lawyer fees. Other expenses you may be faced with are things like cleaning, staging and photography. A good Realtor will include some, if not all, of these elements with their listing services but be sure to ask these questions before starting the process.
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