Selling a home is a big decision. Whether you’re upgrading to a bigger house or moving for work, it’s important to know the real costs involved. Many homeowners in Kitchener-Waterloo are surprised to learn that selling a house comes with several expenses. Knowing these in advance can help you plan better and avoid stress later.

Let’s break down the typical costs you can expect when selling your home in the Kitchener-Waterloo area.

1. Real Estate Agent Commission

The biggest cost for most sellers is the real estate agent commission. In Ontario, the standard total commission is around 4% to 5% of the final sale price (plus HST). This is usually split between the seller’s agent and the buyer’s agent.

For example, if your home sells for $700,000, a 5% commission would be $35,000 + HST.

While this may seem like a lot, a good agent helps you price the home correctly, stage it, market it, and negotiate the best price—which often leads to a higher sale.

2. Legal Fees

To finalize the sale, you’ll need a real estate lawyer. Legal fees usually range from $800 to $1,500 depending on the complexity of the transaction.

Your lawyer handles paperwork, reviews the offer, deals with the buyer’s lawyer, and ensures the money transfer goes smoothly. It’s a small price to pay for peace of mind.

3. Mortgage Payout and Penalties

If you still have a mortgage on the home, your lender will require full payment on closing day. If you’re breaking your mortgage early, you may also face a mortgage penalty.

This penalty could be a few thousand dollars, depending on how much time is left and the type of mortgage you have (fixed or variable). It’s best to call your bank before listing your home to know the exact amount.

4. Home Preparation and Staging

To attract buyers, your home needs to look its best. Some sellers invest in staging, deep cleaning, minor repairs, or even painting. These costs vary widely, but you can expect to spend anywhere from $500 to $3,000 or more.

Remember, homes that are staged often sell faster and for higher prices.

5. Moving Costs

Once your home is sold, you’ll need to hire movers or rent a truck. Local moves in Kitchener-Waterloo can cost between $1,000 to $2,000 depending on the size of your home and how much stuff you’re moving.

Also factor in costs for packing materials, storage (if needed), and any overlap in rental or new home payments.

6. Utilities and Property Tax Adjustments

On closing day, your lawyer will calculate adjustments for things like property taxes, condo fees, or prepaid utilities. You may owe or be owed a small amount depending on the timing of your sale. These are usually a few hundred dollars and settled between lawyers.

Bonus Tip: What About Capital Gains?

If the property you’re selling is your primary residence, there are no capital gains taxes. But if it’s an investment property or rental, you may need to pay tax on the profit. Always speak to an accountant in such cases.

Final Thoughts

Selling a home is not just about finding a buyer. It involves many small and large costs that add up. Being prepared helps you set the right asking price and manage your finances smartly.

For those also considering home buying Kitchener & Waterloo, ON, remember that selling your current home smoothly is the first step toward your next one. If you’re searching online for “home buy near me”, make sure you know both sides of the real estate journey.

Are you ready to sell and move forward? Reach out for a free home evaluation and cost breakdown tailored to your situation.