Is adventure and the thought of a new home calling you? If so, it might be time to consider selling your home in Ottawa. Perhaps a move out of the city is in order – or maybe you plan to move up the property ladder or downsize to something smaller. Whatever lies over the horizon, a successful sale of your existing home makes it more attainable. A big part of a seamless transition is understanding all aspects of the selling process, including what happens after you accept a buyer’s offer. In this post, we’ll take a deep dive into the closing costs when selling a house in Ontario.

Selling your Ottawa house always begins with an accurate assessment of its worth in the current market. Start today by booking a complimentary home evaluation with our team.

How Much Are Closing Costs in Ontario?

Your home is a valuable asset that could potentially provide you with a healthy return on investment. The longer you have owned it, the more equity you likely have. This can pay dividends when the time comes to move on from your existing home. Still, you should set your expectations for the cost of selling a house in Ontario.

Average closing costs in Ontario will depend partly on the value of your home and what you negotiate in your listing agreement.

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Are you thinking about selling your home to downsize in Ottawa? The posts below will help you plan your move:

• What All Downsizers Need to Know About Buying and Selling in Ottawa
• Is It Better to Rent as a Senior in Ottawa?
• What Is the Art of Letting Go? How to Declutter Your Home At Last

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Legal Fees for Selling a House in Ontario

Lawyer fees are one of the most expensive seller closing costs. All real estate transactions require a lawyer to run a title search to check for any liens and encumbrances.

A clean title means the buyer can take possession with confidence and peace of mind. The price for this is usually around a couple of thousand dollars. However, without a title search, if any issues arise, the cost will increase accordingly.

Your lawyer also prepares a Statement of Adjustments, ensuring a fair distribution of any property taxes and municipal charges for the home. Another task your lawyer performs is to close out your existing mortgage and cover any mortgage discharge fees or pre-payment penalties for breaking the term early. If you’re moving from one home to the next, your contract may allow you to port your loan. Either way, your lawyer handles the details on your behalf.

When Selling a House, Who Pays the Closing Costs?

The seller and buyer will each have their own set of closing costs before the transaction can be finalized. The seller has legal fees and real estate commissions, which are then split between the listing and buying brokerages. Other incidentals include moving expenses and cancelling and setting up new utility services.

Home buyers need their own lawyer to review the Agreement of Purchase and Sale and to advise on any issues that might stand in the way of taking possession. Home inspection costs, appraisal fees, and mortgage insurance can also come into play when buying a home.

Other Costs Associated With Selling a House

Preparing your home for the market isn’t technically a “closing cost.” However, there is typically an investment of some kind – be it financial or a time investment. Nearly every listing will benefit from a certain level of detail, whether it’s painting and a few upgrades to bring it up to date or simply a thorough cleaning and decluttering.

Often, we recommend a pre-listing inspection to identify areas of improvement that can enhance your results. This step can also give buyers a sense of confidence about the quality of your home and encourage more offers.

Home staging is the finishing touch that can help you sell faster while often achieving a higher price. Bringing in a professional stager allows you to appeal to the highest number of potential buyers and fully maximize the value of your sale. The cost of staging can vary depending on the scope of the project and how long your home remains on the market.

All of these steps can work together to make your sale as successful as it can be in the current market. A skilled real estate agent can help you determine the best areas of focus so that you earn the highest possible return for your investment.

Once your house sells, there will also be moving expenses. You may decide to hire professional movers to ease the burden from you and your family. Even if you recruit friends and family members to help, there will be the cost of packing supplies. These are all things to keep in mind as you budget for your next steps.

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Do you have questions about how and when to sell your house? The posts below can guide you through it all:

• Should I Sell My Ottawa Home This Winter?
• How to Sell a House Fast in Ottawa
• Is It Smarter to Buy First or Sell First?

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Buyer Closing Costs

Land transfer tax is included in closing costs, but fortunately, sellers are off the hook for this one. This tax is the buyer’s responsibility, and it’s usually the most expensive closing cost on this side of the transaction. At least in Ottawa, there is only the provincial tax to contend with, unlike in Toronto, which has its own municipal tax on top of everything else.

Land transfer taxes are calculated based on the purchase price of the house, and can add up to thousands of dollars that a buyer must pay in full at the time of closing. Fortunately for first-time buyers, there is a rebate that saves up to $4,000. This assistance can be a much-needed boost for getting that first foot onto the property ladder.

If you’re selling an existing home and then buying a new one, you will need to cover all closing costs on both sides of your transaction. In that case, a real estate agent with a track record of results is necessary to ensure you make the absolute most of your sale. Earning the highest return for the market gives you a solid financial footing for a comfortable and seamless transition.

Do you want a customized plan to sell your home? Connect with our Ottawa real estate agents at 613.829.7484 or email mail@chellteam.com to talk about your next steps.