What Does It Actually Cost to Sell Your Home? A Honest Breakdown for Sellers

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One of the first questions every seller has — even if they don't always say it out loud — is: how much of that sale price am I actually going to walk away with?

It's a great question, and one you deserve a straight answer to. Selling your home does come with costs, and understanding them upfront means no unpleasant surprises on closing day.

Here's what to expect.

Real Estate Commission

In Canada, the seller typically pays the commission for both the listing agent and the buyer's agent. This is usually structured as a percentage of the sale price and is negotiated between you and your listing agent before you sign a listing agreement.

Commission rates vary by market, brokerage, and the scope of services provided. The key thing to understand is what you're getting for that commission — marketing, professional photography, negotiation expertise, transaction management, and representation from listing to close.

As with most things, value and cost are not always the same. An agent who commands results may well be worth more than one who simply charges less.

Legal Fees

You'll need a real estate lawyer or notary to handle the legal side of your transaction — preparing the transfer documents, discharging your existing mortgage, and distributing funds on closing day. Seller legal fees are generally lower than buyer legal fees, but budget accordingly. Your lawyer can give you an estimate upfront.

Mortgage Discharge Costs

If you have an existing mortgage on the property, there will be costs associated with discharging it at closing. This typically includes a discharge fee from your lender.

If you're breaking a fixed-rate mortgage before its term ends (because you're selling before your renewal date), you may also face a prepayment penalty. This can range from a few hundred dollars to several thousand, depending on your lender, your rate, and how much time is left on your term. It's worth calling your lender before you list to understand exactly what your penalty would be.

Home Preparation Costs

These vary widely based on the condition of your home and the work you choose to do before listing. Some sellers spend very little. Others invest in painting, staging, landscaping, or minor renovations.

Whatever you spend here should be considered in the context of what it returns. Targeted, smart preparation typically more than pays for itself in a higher sale price or faster sale. Overcapitalizing on renovations right before you sell, on the other hand, rarely returns dollar for dollar.

Moving Costs

Don't forget this one. Whether you're hiring professional movers or doing it yourself, budget for the cost of actually moving out.

Capital Gains Tax — A Note

If the home you're selling is your principal residence and you've lived in it throughout the time you've owned it, the sale proceeds are generally tax-free in Canada. That's the principal residence exemption, and it's one of the most valuable tax advantages available to Canadian homeowners.

If the property is an investment property, secondary residence, or was rented out for a period of time, the rules are different and there may be capital gains tax implications. This is something to discuss with your accountant before you sell — not after.

How to Calculate Your Net Proceeds

Before you list, sit down with your realtor and your mortgage documents and work through this math:

Estimated sale price Minus: Real estate commission Minus: Legal fees Minus: Mortgage balance and discharge fees Minus: Prepayment penalty (if applicable) Minus: Home preparation and staging costs Minus: Moving costs

= Your estimated net proceeds

Knowing this number going in gives you clarity, confidence, and a much better ability to plan whatever comes next.

I provide every seller with a detailed net proceeds estimate before we list — so you know exactly where you stand. Let's run your numbers. — Cassie Schellenberg, Personal Real Estate Corporation