Understanding the Costs of Selling Your Home
Selling a home in Winnipeg isn’t just about finding a buyer and signing a contract. There are several expenses that come with the process, and understanding them can help you budget effectively. Here’s a breakdown of the key costs every seller should be aware of.
1. Realtor Commission Fees
In Winnipeg, real estate commission fees typically range between 4% to 5% of the sale price. This fee is usually split between:
- The seller’s real estate agent.
- The buyer’s real estate agent.
Example: If you sell your home for $400,000 and the commission is 5%, you’ll pay $20,000 in commission fees (split between the two agents).
2. Legal Fees & Closing Costs
You’ll need a real estate lawyer to handle the legal aspects of the sale, including:
- Reviewing contracts.
- Ensuring proper transfer of ownership.
- Handling mortgage payouts (if applicable).
Estimated Legal Costs: $1,500 – $2,500
3. Mortgage Discharge Fees
If you still have a mortgage on the property, you may need to pay a discharge fee to close the loan. This varies by lender but can include:
- A standard discharge fee ($200 – $500).
- Prepayment penalties (especially if you’re breaking a fixed-term mortgage early).
Tip: Check with your mortgage provider to understand any penalties before listing your home.
4. Property Taxes & Utility Adjustments
Depending on when you sell, you might need to pay or be refunded for:
- Property taxes (if prepaid for the year).
- Outstanding utility bills.
- Any home association or condo fees.
5. Home Repairs & Staging Costs
To make your home more attractive to buyers, you may need to:
- Fix minor repairs (leaky faucets, paint touch-ups, etc.).
- Stage the home with professional furniture and décor.
- Professional cleaning ($200 – $500 for a deep clean).
Estimated Costs: $1,000 – $5,000 (depending on needed improvements)
6. Moving Expenses
Once your home is sold, you’ll have moving expenses to consider:
- Hiring professional movers ($1,000 – $3,000 depending on distance).
- Renting a moving truck if you’re doing it yourself.
- Temporary storage if needed.
7. Capital Gains Tax (For Investment Properties)
If you’re selling a primary residence, you’re exempt from capital gains tax. However, if it’s an investment property, you may owe taxes on the profit from the sale.
Tip: Consult a tax professional to understand your tax obligations.
How Much Should You Budget?
Here’s a sample estimate for selling a $400,000 home in Winnipeg:
- Realtor Fees (4-5%) – $20,000
- Legal Fees – $2,000
- Mortgage Discharge Fees – $500
- Repairs & Staging – $3,000
- Moving Costs – $2,000
Total Estimated Costs: $27,500+
Selling Your Home? Let’s Maximize Your Profit!
Understanding the costs of selling a home can help you prepare financially and avoid surprises. If you’re thinking about selling, I can help you maximize your sale price and minimize expenses.
Contact me today for expert real estate guidance!