Many sellers focus on the sale price and forget that several costs come off the top before the money reaches their account. Knowing these in advance helps you set realistic expectations and plan for your next move without surprises at closing.
Real estate commission
Commission is usually the largest cost of selling. It is negotiable, typically expressed as a percentage of the sale price, and generally split between the brokerage representing you and the one representing the buyer. HST applies on top of the commission in Ontario. Ask your agent to spell out the total in dollars on a sample sale price so there is no confusion later.
Legal fees and closing costs
A real estate lawyer handles the paperwork, discharges your mortgage, and manages the transfer of funds. Expect legal fees plus disbursements. If you are discharging a mortgage, your lender may charge an administrative fee, and breaking a fixed-rate mortgage early can trigger a prepayment penalty that is worth confirming before you list.
Preparing the home
Getting a home market-ready has a cost too. Cleaning, minor repairs, painting, staging, and professional photography all add up. These are optional in theory, but homes that show well typically sell faster and for more, so treat reasonable preparation as an investment rather than an expense.
Do the full math before you list
Add commission, legal fees, mortgage discharge and any penalty, and preparation costs together, then subtract from your expected sale price and your remaining mortgage balance to estimate your net proceeds. That net number, not the sale price, is what you actually have to work with for your next purchase. A good agent and lawyer can help you build this estimate early.
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