Selling a home
How much selling your home can cost
Standard costs you can expect to pay include:
- legal costs for services, including a statement of adjustment
- a mortgage discharge fee to remove the collateral hold on your home (known as a “release” in Quebec)
Other potential costs include:
- realtor or real estate agent fees
- moving costs
- staging fees
- cleaning fees
- mortgage prepayment penalties, if you sell your home before the end of your mortgage term
Setting your home’s sale price
To help you set the right sale price for your home, you can:
- compare current listings of similar homes in your neighbourhood
- ask a realtor to suggest a price
Remember to factor all of your selling costs into your sale price.
Selling your home with a realtor
If you use a realtor, you pay a commission based on the home’s sale price. Realtor commissions may be negotiable, but typically range from 2% to 6%, depending on your location.
A realtor can help you:
- choose the right time to sell
- list your home on an online site such as multiple listing service (MLS) or Centris
- identify ways to increase the value of your home before you sell
- determine an appropriate sale price
- arrange showings and open houses
- complete the necessary paperwork
Selling your home yourself
Some people choose to sell their home themselves. By selling your home on your own, you won’t have to pay a realtor a commission. It will also mean taking on all of the responsibility for selling yourself.
Conditional home sales
Before you sell, consider whether you’re willing to accept a “conditional sale”.
Often, a potential buyer will make an offer to buy your home on the condition they can withdraw it if certain terms aren’t met.
- if the buyer isn’t satisfied with the home inspection
- if the buyer can’t get mortgage approval
- if the buyer isn’t able to sell their current property
Important documents your homebuyer may need
Once your home is on the market, gather any documents that will help you with the selling process, including:
- property tax receipts
- renovation contracts
- transferable warranties
Tax implications of selling your home
In most cases, you won’t pay tax on the money you make from selling your home. This is the case if it was your principal residence every year since you bought it.
You may generate an income with your home. If that’s the case, you must report the sale of your home on your tax return. For example, if you rented part or all of the property while you owned it, you must pay tax on the net proceeds of the sale.
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