We all know that now is a great time to sell a home. Let’s look at the fees you’ll pay for the three ways to sell your home in Ontario using a: real estate brokerage, for sale by owner, or real estate investor / private home buyer. No matter how you slice it, experts are paid for making it easier.
How much does a real estate brokerage cost me when selling a home?
- Real estate commissions: 3.5% to 5% (usually 5%) in Ontario. The selling agent receives 1 – 2.5% of the commission, and the buying agent receives 2.5%. ($500k Ontario home sale = $29K commissions)
- Real estate lawyer: $500 – $1000 for a title search on the house, verified tax information, a Letter of Direction to a buyer’s lawyer that confirms any outstanding monies owed on the property will be paid off, verified terms and amounts in a Statement of Adjustment, and confirmation of the receipt and use of the buyer’s funds to pay outstanding mortgages and debts.
- Sales Tax: 13% of the real estate commissions of the buying and selling agents (sales taxes vary from province to province)
- Photography, video: $350 – $1200
- Home staging fees: $500 – $800 per month per room for staging a home in Ontario.
How much does “for sale by owner (FSBO)” cost me when selling a home?
- Real estate commissions: 0% – 2.5% of the selling price. There’s a good chance an FSOB seller needs to entice buyers’ real estate agents using a commission structure similar to one with which an agent is familiar.
- Lawyer fees: $500 – $1000 for a title search on the house, verified tax information, a Letter of Direction to a buyer’s lawyer that confirms any outstanding monies owed on the property will be paid off, verified terms and amounts in a Statement of Adjustment, and confirmation of the receipt and use of the buyer’s funds to pay outstanding mortgages and debts.
- Sales Tax: 13% of the commissions paid to the buying agent (sales taxes vary from province to province)
- Appraiser: $600 -$1500. Depending on the complexity of the property, you might hire an appraiser to provide the best comparatives to assess the home’s value.
- Flat Fee Multiple Listing Service (MLS): $300 – $500 is paid to the FSOB brokerage company. Ask to see a list of all their fees upfront to avoid surprise after-closing fees.
- Home Inspection: $500. Always choose a certified home inspector. Although hiring a home inspector is normally the buyer’s responsibility, it will be an advantage to the for-sale-by-owner (FSOB) seller to present this information to potential buyers.
- Photography, video: $350 – $1200, depending on the marketing you undertake.
- Home staging fees: $500 – $800 per month per room in Ontario.
- Lawn Sign: $75 – $120. A lawn sign announcing the home’s sale is sold to a seller by the FSOB brokerage company.
How much does a real estate investor / private home buyer cost me when selling a home to them?
The primary goal of a real estate investor / personal home buyer is to resell or renovate and rent the properties that are purchased. So, although the fees during this transaction are minimal, the amount of money a seller will receive for their property is relative to any renovations that may be done and the current state of the property.
Renovations add value to a property. A private home buyer / real estate investor will take a lack of renovations into account and apply a discount to their purchase offer.
Consider the savings gained when choosing a private home buyer / real estate investor. A seller is paid cash within 21 – 30 days, thereby avoiding another mortgage payment or other house-related costs.
Read our article, ‘How Do I Know a Real Estate Investor is Offering Me The Best Price?’
- Lawyer fees: $500 – $1000 for a title search on the house, verified tax information, a Letter of Direction to a buyer’s lawyer that confirms any outstanding monies owed on the property will be paid off, verified terms and amounts in a Statement of Adjustment, and confirmation of the receipt and use of the buyer’s funds to pay outstanding mortgages and debts.
See DCI Properties’ happy sellers’ reviews here.
DCI Properties are private home buyers located in London, Ontario, and Alberta. Our agents travel throughout the provinces to give you a very fair price for your home.Plus, we make your experience with us pleasant and easy.
Ontario Housing Market Data / FEB 2022:
London & St Thomas
- Residential prices increased by 4% month over month (MOM) and 34.2% year over year (YOY.)
- New listings increased 52.6% MoM and 7.2% YOY.
- Average home selling price: $825,221.
Windsor/ Essex
- Residential prices increased by 10.6% MOM and 44.7% YOY.
- Average selling price: $704,112.
All of Southwestern Ontario
- The number of sales rose by 38.5% MOM and 4.4% YOY.
- The average number of days on market (DOM) was 8 -12 days
Alberta Housing Market Data / FEB 2022:
Edmonton
- Residential prices increased by 9.3% MOM and 9.9% YOY.
- Single-family home (SFH) prices increased by 12.2% YOY.
- Condo prices increased by 3.2% YOY.
- The average number of DOM was down 14.5% YOY.
