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When people are in the real estate market, they are often caught up in the costs associated with buying a home; however, if you are buying or selling there are costs associated to both.
If you are selling the home you bought as a first-time home buyer, you may not know that there are specific costs associated with selling. What costs are you responsible for in Niagara real estate? Knowing what costs lie ahead will help you prepare for when you decide to list your home. So, I made a list of the costs that you, as a home seller in Niagara, will have to cover.
Covering outstanding costs
Before your property can change hands, you need to make sure that any unpaid fees are taken care of. Whether you have any unpaid (or underpaid) realty taxes or if you own a condominium and have any unpaid maintenance or HOA fees, they will need to be taken care of before closing.
If you have a mortgage on your home that has not been paid off by the time you sell, you’ll have to discharge or settle it. You’ll have several available options depending on your outstanding mortgage balance, the remaining length of your mortgage term and whether your mortgage term is open or closed.
If your mortgage term is open, you may want to try to pay off your mortgage early. If your mortgage is closed, you may receive a prepayment charge on the entire payment if you try to pay the mortgage off early.
Legal Fees and Taxes
You need a lawyer to cover all legal real estate matters on your behalf. Rates for lawyers can vary, so make sure to shop around and find one that suits your budget. Don’t forget that in addition to your lawyer’s time, you must pay for the disbursements that the lawyer pays on your behalf.
Land Transfer Tax
When you purchase land in Ontario, you are required to pay a Land Transfer Tax, which is based on the amount that the property is sold for. It is charged whenever a property changes hands. While you are not required to pay that fee as a seller, remember that as you look to buy a new property, that cost will come with your purchase.
Once all is said and done, it’ll be time for you to say goodbye to your old home and hello to your new one. Moving expenses are often forgotten about when home sellers and buyers make a moving budget. If you forget about moving costs, you may find yourself in a tricky situation. These costs can include:
- Hiring a moving company (shop around to ensure you get the best rate)
- Buying or renting boxes
- Insurance (both moving and storage)
By knowing the costs associated with selling your home in Niagara, you will be more prepared when you decide it’s time to list. Connecting with a Realtor can help eliminate any stress associated with selling your home; we’re the pros and we love to share our expertise. We will prepare you with all of the important information to make the selling process easy, fun and fast.