Selling a house is a major life event, and proper financial planning is essential to ensure a successful and profitable transaction. Whether you are upgrading, downsizing, or simply relocating, knowing the costs to anticipate can help you avoid unpleasant surprises and maximize your net proceeds.
In this comprehensive guide, you will learn about:
- How real estate broker commissions work and the concept of commission sharing
- The notary fees typically paid by the seller
- Why a valid certificate of location is crucial for a smooth transaction
- The potential expenses related to repairs and home staging
- Key tax and fiscal obligations to keep in mind
- Moving costs to budget for once the sale is finalized
We will also highlight an important detail about broker commission: in cases where no cooperating broker represents the buyer, you might negotiate a lower rate. At the end, you will find a comprehensive FAQ covering frequently asked questions about notary fees, broker commissions, home staging, and more.
Quick Index
- 1. Real Estate Broker Commission
- 2. Notary Fees for the Seller
- 3. Certificate of Location
- 4. Costs for Repairs and Home Staging
- 5. Taxes and Fiscal Obligations
- 6. Moving Expenses
- 7. Recap Table of Main Costs
- FAQ
1. Real Estate Broker Commission
One of the first costs sellers consider is the broker (or realtor) commission. This fee typically ranges between 4% and 6% of the final sale price. What does this commission cover?
- Market Analysis and Pricing – The broker assesses recent comparable sales and market trends to help you set a realistic and profitable listing price.
- Marketing and Exposure – Professional photos, listings on multiple platforms, open houses, social media promotion, and more.
- Negotiations – Brokers manage offers, counteroffers, and contingencies, ensuring you secure the best possible deal.
- Administrative Guidance – Assistance with necessary paperwork, deadlines, and legal aspects of the transaction.
How commission sharing works: Generally, the broker for the seller and the broker for the buyer split the total commission. For instance, if the commission is 4%, it might be divided into 2% for the listing broker and 2% for the cooperating broker.
However, if the buyer does not have a broker, you can discuss a possible reduction in total commission. In such a scenario, there is no need to split the commission with a cooperating broker, so the seller’s broker may offer a lower rate. This is often reflected in advertisements that say “commissions starting at…” because the final rate can indeed be lower when only one broker is involved.
To learn more about how a professional can help you navigate a sale efficiently, discover how Samuel Jacques can support you in selling your property for the best possible price.
2. Notary Fees for the Seller
Notary fees are often misunderstood. In many jurisdictions, the act of sale (or closing document) is prepared at the buyer’s expense. However, the seller is still responsible for certain additional costs, including:
- Mortgage Discharge (Quittance) – If you have a mortgage on the home, it must be officially discharged. The notary publishes a discharge document, which usually costs $300 to $600.
- Title Search – The notary will verify the property’s ownership history and check for any legal encumbrances. This may cost around $200 to $300.
- Title Insurance – In some cases, title insurance is required to protect the buyer from any past legal issues with the property. Expect this to cost roughly $400 to $800.
For more insight into notary services, consult this article from notaire link about the notary’s role in real estate transactions.
3. Certificate of Location
A certificate of location is an essential document in many real estate transactions. Produced by a land surveyor, it details the boundaries, structures, easements, and any encroachments on the property.
If your existing certificate of location is outdated—perhaps you built a deck, erected a fence, or installed a pool—you will likely need to update it before closing. Typical fees range from $1,000 to $2,000 for a new certificate.
For more detailed information, visit this article from Centris to learn about everything involved in a certificate of location.
4. Costs for Repairs and Home Staging
To maximize your sale price and attract more buyers, consider investing in minor repairs or home staging. Even small improvements can greatly enhance your home’s appeal and reduce the time it stays on the market.
- Repairs – Think about fixing leaky faucets, repainting walls, replacing worn flooring, or addressing any lingering maintenance issues.
- Home Staging – This involves rearranging furniture, decluttering, and possibly adding décor to create a welcoming, neutral space that buyers can imagine themselves living in.
Depending on the property’s current condition, these enhancements can cost anywhere from $1,000 to $5,000. Though this might seem like a large outlay, such improvements often shorten the time to sell and can boost the final sale price.
If you are looking for practical tips, check out our guide on selling your house to learn more about effective strategies and best practices.
5. Taxes and Fiscal Obligations
Taxes and fiscal obligations can vary depending on your personal situation and the type of property being sold. Two common considerations include:
- Capital Gains Tax – If the property you are selling is not your principal residence, you may have to pay taxes on 50% of the profit (the capital gain) when filing your income tax. The exact amount depends on your overall income and the tax rules in your region.
- Sales Taxes (TPS/TVQ) – Some properties, such as new constructions or commercial buildings, may be subject to sales taxes. Residential resale properties are typically exempt, but verify your situation with a qualified professional.
For more details about capital gains, see my blog on gains in capital
6. Moving Expenses
After a successful sale, you will likely have to move into a new home. While often overshadowed by other fees, moving costs can add up quickly. Anticipate expenses between $500 and $2,000, which may include:
- Truck Rental – Plus the cost of boxes, tape, and protective materials.
- Professional Movers – Labor costs, insurance, and potential additional fees for handling larger items or long distances.
- Travel Costs – Fuel, meals, and lodging if your new home is far away.
7. Recap Table of Main Costs
The following table summarizes the most common costs for selling a house that you should factor into your budget:
| Type of Cost | Approximate Amount |
|---|---|
| Real Estate Broker Commission | 4% to 6% of the sale price (commonly 2% for the seller’s broker and 2% for a collaborating broker) |
| Notary Fees (Mortgage Discharge, Title Search, etc.) | ~$300–$600 (discharge) + $200–$300 (title search) + $400–$800 (title insurance) |
| Certificate of Location | $1,000–$2,000 |
| Repairs / Home Staging | $1,000–$5,000 (depending on the scope) |
| Taxes and Fiscal Obligations | Varies (capital gains, applicable sales tax, etc.) |
| Moving Expenses | $500–$2,000 |
Conclusion: Plan Ahead for a Smooth and Profitable Sale
By anticipating each cost of selling a home, you can approach your transaction with confidence and avoid last-minute stress. From the real estate broker’s commission to the notary fees, certificate of location, potential taxes, and moving expenses, comprehensive financial planning is key to optimizing your proceeds.
For additional resources, feel free to check out my other blogs. If you are curious about the market value of your property, you can request a real estate evaluation for a more precise estimate.
Need one-on-one support? Contact me directly for personalized guidance throughout your selling journey.
Important Note
All cost estimates in this article are approximate and may vary based on factors such as location, market conditions, and service providers. This information is subject to change without notice. Always consult with professionals—such as notaries, accountants, or licensed real estate brokers—for specific advice tailored to your situation.
FAQ
1. How much is a real estate broker’s commission?
Typically, the commission ranges from 4% to 6% of the final sale price. This amount often splits between the seller’s broker and the buyer’s broker. If the buyer has no broker, you may be able to negotiate a reduced fee since there is no commission to share.
2. How much do notary services cost for the seller?
Sellers generally cover the cost of discharging a mortgage (around $300–$600), title searches ($200–$300), and potentially title insurance ($400–$800). The buyer usually covers the main act of sale fees.
3. How long does it take to sell a house?
It depends on market conditions, the property’s location and condition, your asking price, and the time of year. In a hot market, homes can sell within a few weeks; otherwise, it may take several months.
4. What does a real estate broker do?
A broker handles property valuation, marketing, showings, negotiation of offers, and all related legal and administrative tasks. They guide you through every step, potentially helping you sell faster and at a better price.
5. Is home staging mandatory?
Home staging is not legally required, but it can significantly increase your home’s appeal and often leads to a faster sale at a higher price. Investing in professional staging and minor cosmetic fixes can pay off in the long run.
