The Unexpected Expenses of Real Estate Transactions
Buying or selling a home in Winnipeg involves more than just the listing price. Many buyers and sellers are surprised by additional costs that can impact their budgets. Understanding these hidden expenses helps you plan ahead and avoid financial surprises.
Hidden Costs When Buying a Home in Winnipeg
1. Land Transfer Tax
In Manitoba, buyers must pay a Land Transfer Tax based on the purchase price of the property. This fee is often overlooked but can add thousands to your costs.
2. Home Inspection Fees
A professional home inspection is highly recommended before purchasing a property. Inspections typically cost between $400 and $600 but can save buyers from costly surprises.
3. Mortgage Insurance & Closing Costs
If your down payment is less than 20%, you’ll need mortgage default insurance through CMHC. Additionally, legal fees, title insurance, and other closing costs can add up quickly.
4. Moving Expenses
Whether you hire professional movers or rent a truck, relocation costs can range from a few hundred to several thousand dollars.
5. Utility Hookups & Property Taxes
New homeowners must budget for property taxes, home insurance, and utility hookup fees for water, gas, and electricity services.
Hidden Costs When Selling a Home in Winnipeg
1. Realtor Commissions
Sellers typically pay real estate commissions, which range between 4% and 5% of the sale price. This fee is split between the buyer’s and seller’s agents.
2. Home Repairs & Staging
Pre-sale repairs, renovations, and professional staging can increase a home’s marketability but come with upfront costs.
3. Legal Fees & Closing Costs
Sellers must hire a lawyer to handle legal paperwork and pay closing fees, which can range from $1,000 to $2,500.
4. Mortgage Discharge Fees
If you’re paying off your mortgage early, lenders may charge a mortgage discharge penalty. The fee depends on your lender and mortgage terms.
5. Moving & Storage Costs
Sellers need to budget for moving costs and may require short-term storage if transitioning between homes.
Final Thoughts: Be Financially Prepared
Understanding these hidden costs ensures that buyers and sellers in Winnipeg can budget effectively and avoid last-minute surprises.
Need expert guidance on buying or selling a home in Winnipeg? Contact me today to navigate the process with confidence!