Key takeaways
- Sellers don’t pay land transfer tax; buyers do.
- Plan for commission plus HST, legal fees and any mortgage penalty.
- Commission is negotiable.
- Know your net proceeds before you accept an offer.
In this chapter
Financial PreparednessUnderstanding Your Next MoveMortgage Payoff ConsiderationsEstimating Closing CostsProtecting Your InvestmentDeposit FundsHandling Buyer InteractionsValuation & Inspection ConsiderationsNavigating Low AppraisalsHome Inspection PreparednessPreparing for a Successful SaleClosing Process ReadinessShowing Availability & ReadinessBest Practices for ShowingsPre-Qualifying Buyers
Selling a home in the GTA requires careful planning and awareness of potential challenges. To ensure a smooth transaction, discuss these crucial factors with your trusted real estate agent.
Visual guide · Listing Magic
Typical selling costs
| Cost | Example |
|---|---|
| Commission (5% example) | $50,000 on $1,000,000; negotiable |
| HST on commission (13%) | $6,500 |
| Legal fees | About $1,500–$2,500 |
| Mortgage discharge | Varies by lender |
| Moving and staging | Varies |
Financial Preparedness
Visual guide · Listing Magic
Net proceeds example, $1,000,000 sale
Understanding Your Next Move
Before listing your home, ensure you are pre-approved for a new mortgage. Market conditions, interest rates, and lender requirements change frequently, so being financially prepared prevents unexpected hurdles.
Mortgage Payoff Considerations
Know your remaining mortgage balance and any prepayment penalties. Some lenders charge fees for breaking a mortgage early, which can impact your net proceeds.
Estimating Closing Costs
Factor in legal fees, real estate commission and HST, any mortgage penalty, and moving costs. Land transfer tax is paid by the buyer, not the seller. Your real estate lawyer and mortgage lender can give you exact figures.
Realtor Commission (5%) $25,000 on a $500,000 home
Legal Fees $1,500 – $2,500
Mortgage Discharge Penalty: Varies by lender
Closing for sellers
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AcceptOffer firm
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InstructHire your lawyer
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PayoutLender statement
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SignDocuments
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Hand overKeys on closing
From sale price to money in hand
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Sale priceThe final agreed price.
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Commission and HSTSubtract the agreed amounts.
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Legal feesSubtract your lawyer’s bill.
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MortgageSubtract the balance and any penalty.
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Net proceedsWhat’s left for your next move.
Protecting Your Investment
Deposit Funds
If the sale falls through, the fate of the deposit should be predetermined. Work with your agent to outline terms for its release or forfeiture to avoid disputes.
The buyer’s deposit
What it isMoney held in trust after an offer is accepted.
Why it mattersIt shows commitment and goes toward the price.
What to doAsk your lawyer what happens if a deal fails.
Handling Buyer Interactions
Avoid sharing personal reasons for selling, as this may signal desperation and encourage low offers. Let your real estate agent manage all buyer interactions to protect your negotiating position.
Valuation & Inspection Considerations
Navigating Low Appraisals
Appraisals influence financing approval. If an appraisal comes in lower than expected, explore options such as renegotiating with the buyer, providing additional comparables, or requesting a second appraisal.
Visual guide · Listing Magic
The buyer’s appraisal came in low
Home Inspection Preparedness
Address common issues ahead of time, such as: • Electrical and plumbing compliance • HVAC system functionality • Roof and foundation condition e Pest or mold concerns
A pre-listing home inspection can help identify and resolve issues before they become deal-breakers.
Preparing for a Successful Sale
Closing Process Readiness
Your real estate lawyer will guide you through legal paperwork, title transfers, and financial transactions. Ensure all documents are reviewed well in advance of closing.
Showing Availability & Readiness
Home buyers expect flexibility when viewing properties. Keep your home in “show-ready” condition to accommodate last-minute requests.
Best Practices for Showings
Do: keep the home tidy and staged, allow flexible viewing times and secure your valuables.
Avoid: being present during showings, declining last-minute requests and discussing your reasons for selling.
Pre-Qualifying Buyers
Ask your agent how buyers will be qualified before you accept an offer. A pre-approval letter helps, but it is not a guarantee of financing.
By addressing these considerations, you can streamline the selling process and achieve the best possible outcome in the competitive GTA market.
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