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Cost of Selling House

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  • May 23rd, 2006 3:38 pm
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Newbie
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Feb 5, 2006
87 posts
Toronto

Cost of Selling House

I'm trying to find a guide for 'typical' costs of selling a house such as real estate fees, legal costs, bank costs (new mortgage), etc. Does anyone have a link to some good info or can comment?

The market would be Toronto.
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2 replies
Deal Addict
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Nov 28, 2004
1251 posts
20 upvotes
Ottawa
Mortgage cost would be different depending on a number of factors. Mainly, how many years/months/weeks you have left with your current lender. They typically will make you pay a penalty close to what they would've made in interest on your remaining terms.

If you were selling through an agent, you typically would pay the 2.5% to your selling agent and the buying agent would get 2.5%. That varies.

Lawyers cost are typically around $500 to $1000.

The cost of repairs or renovations if the deal has conditions that need to be met. Example, fixing something or upgrading to meet current standards if the house is old.
Deal Addict
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Dec 9, 2003
3785 posts
234 upvotes
Calgary
alkaseltzer01 wrote:If you were selling through an agent, you typically would pay the 2.5% to your selling agent and the buying agent would get 2.5%. That varies.
Actually technically (in your example) you pay your realtor 5% and that is all the MLS contract says. The assumption is that he pays the buyer's agent 2.5%. But technically, if he was unscrupulous and you didnt notice, he could list it with secret realtor code saying the buyers agent only gets 2 % and take 3% for himself (before agency fees MLS costs etc of course)

And clearly if he sells to a buyer who approaches him thru the internet (ie without an agent) he gets to pocket the 5% total himself unless you have specified something else in the contract. While few do it, it would be good when you pick a realtor to get in writing that he will drop his commission to xx percent if there is no separate buyers realtor involved.

Of course many times a realtor will not agree to this, but they will become amenable "at the last minute" to dropping their commission (by providing a kickback to the seller (usually) or to the buyer in order to reach an agreed sale.

And while 5% is the norm for sales in Toronto these days, some will still hold out for the full 6% allowed by MLS and some will drop to 4% Anything less than 4% (unless you DIY) I would steer clear because you wont get the visits from buyers realtors and you may be dealing with a very small or new realtor..
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