The Hidden Costs of Selling Your Home in Ottawa

Hi ,

First and foremost, I’ve created a printable list you can use to calculate your net profits. Feel free to print it out or save it for your records: [Download your Net Profit Worksheet].

Selling a home is a big decision, and a question I surprisingly don’t get often is, “How much will it actually cost to sell my house?” The costs can vary, so I’ve broken them down for you to know exactly what you’ll NET after the sale of your home.

Here’s a quick breakdown of the most important costs involved:

1. Real Estate Commission

• Typically 3-5% of your home’s selling price, split between the listing and buyer’s agents. For a $500,000 sale, this would range from $20,000–$25,000 + HST. Yes, it’s a lot, but it’s worth understanding what’s included in this fee, which we’ll dive into in future newsletters.

2. Legal Fees (Lawyer)

• Expect to pay $1,200–$2,200 for a listing side real estate lawyer to handle the paperwork and title transfer.

3. Repairs or Updates

• Budget $500–$5,000 for small fixes that can increase your home’s appeal and attract the right buyers. The “last 5%” of repairs and renovations are the most important, including fresh landscaping, fresh paint, and simple staging. Even small details like cleaning can have a huge impact.

4. Mortgage Discharge Fees

If you’re paying off your mortgage early, your lender may charge a penalty ranging from $500 to several thousand dollars. Always check with your lender to avoid surprises.

5. Adjustments & Closing Costs

• This includes prorated property taxes, utilities, and condo fees, as well as the cost of moving.

• Tip: If you’re moving locally, consider reserving the truck early to avoid last-minute availability issues. Be sure to plan ahead! [U-Haul Moving Truck Rental].

6 . Calculate Your Net Equity

Let’s say you’re selling your home for $500,000. Use this simple formula to calculate your NET profit after all expenses, OR scroll down to see the total adjusted amounts in the picture below:

Step 1: Start with the selling price of your home

Step 2: Subtract your total mortgage payoff

Step 3: Subtract real estate commission

Step 4: Subtract legal fees

Step 5: Subtract repairs or updates

Step 6: Subtract closing costs

The result will give you your NET amount. Check out the picture example below to see how the math works!

In this example, the homeowner has over $250,000 in equity after the sale of their home—ready to reinvest in a new property, rent, or pursue whatever option makes the most sense for their situation.

Feel free to reach out if you have questions about the costs of selling or need assistance with calculations.

Thinkings of Selling or Buying?

Call or email me today to schedule a no pressure, zero hassle home sale consultation.

THANK YOU 

Thank you for reading this week’s edition of my newsletter. I look forward to bringing you helpful knowledge consistently and being your one stop shop for anything Realestate.

Best regards,

Cale

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