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Before you pack your bags it is good to know exactly what it will cost you and what expenses could come up during the process.  Knowing these numbers will help you to set money aside and be more prepared for what is to come.

 

  1. Commission
    • This will be one of the first discussions you have with your real estate agent, you will determine what it will cost to invest in their knowledge and skills.
  2. Taxes
    • Take note that, even though you may not have received a tax bill, you will be responsible for any taxes owed during the time you are living in the property; right up to the possession date.  This cost will be dependent on when taxes are paid, when you move and how much your taxes are.
  3. Payout Penalties
    • Having a mortgage means having an agreement that the mortgage will last for a certain number of years.  It is often five years but can vary.  Should you decide to move before this term is up you can encounter a penalty of anywhere from hundreds to thousands of dollars; this is based on the agreement and the lender.  We recommend that you contact your mortgage broker prior to selling to verify this potential cost.  If a mortgage is being carried from one property to another this penalty is generally waved.
  4. Real Property Report (Survey)
    • A real property report breaks down what and where structures are on your lot and it also informs the city as to whether or not they are in the right place.  Every city has guide lines as to what can be built and what codes need to be followed, your real property report will let buyers know that everything is built to the city's standards.
  5. Title Insurance
    • Instead of purchasing a real property report sellers can choose to invest in title insurance as it is less time consuming to complete.  However, before choosing this route it is best to make sure that all parties will be ok with it; parties will include the buyer, their lawyer, etc.
  6. Permits
    • Permits are a reassurance to buyers that any work that has been done on a home has been done safely and up to code.  If you have done extensive work and do not have permits they may be requested for by the buyers.
  7. Encroachment Checks
    • Buyers will usually ask for an encroachment check when purchasing a home.  These checks are free to complete and will inform a buyer that, for example, the garage has not been built over a gas line.  Costs that could come with these checks arise when there is an issue found and corrections need to be made.
  8. Repairs And Maintenance
    • Once a home inspection has been done there may be costs associated with repairs that you and the buyers agree need to be taken care of before the possession date.
  9. Legal Fees
    • Sellers do in fact need lawyers.  This cost can include transferring the title from one person to another, for additional time put into the transaction by the lawyer, etc.
  10. Moving Costs
    • This is the final piece of the puzzle, how will you get your possessions from A to B?  After looking at your moving budget you can decide whether or not to hire packers and/or movers or to do it yourself.