The Cost of Selling a Home in Waterloo Region

Selling your home is a significant decision, and understanding the costs involved is crucial for planning your next steps. From real estate agent commissions to legal fees and taxes, the total cost of selling a home can add up quickly. In this blog, we’ll break down the key expenses involved in selling a home in the Waterloo Region, giving you a clear understanding of what to expect.

1. Real Estate Agent Commission

One of the most significant costs of selling a home is the real estate agent’s commission. In the Waterloo Region, commission rates typically range from 4% to 5% of the sale price. For the purpose of this blog, we’ll use a commission rate of 4% as an example.

Example Calculation:

  • Sale Price: $700,000

  • Commission Rate: 4%

  • Commission Amount: $700,000 × 4% = $28,000.     

    This commission is generally split between the listing agent and the buyer’s agent, with each receiving a portion for their services.

    2. HST on Real Estate Commission

    In Ontario, Harmonized Sales Tax (HST) is applied to the real estate commission. The current HST rate is 13%.

    Example Calculation:

    • Commission Amount: $28,000

    • HST: $28,000 × 13% = $3,640

    • Total Commission Cost (Including HST): $28,000 + $3,640 = $31,640

               3. Legal Fees

  • Legal fees are another necessary expense when selling a home. A real estate lawyer ensures the transaction is completed smoothly, handles the transfer of ownership, and resolves any legal issues that may arise.

In the Waterloo Region, legal fees for selling a home typically range from $1,500 to $3,000, depending on the complexity of the transaction. For this example, we’ll use an average cost of $2,000.

        4. Other Costs to Consider

  1. Mortgage Discharge Fee:

    • If you’re breaking your mortgage early, your lender may charge a discharge penalty or other fees. These can vary widely but may range from $500 to $5,000 depending on your mortgage terms.

  • Moving Costs:

    • Whether you’re hiring movers or renting a truck, moving costs can range from $500 to $5,000, depending on the distance and size of the move.          


Total Estimated Costs

Let’s calculate the total costs for selling a $700,000 home in the Waterloo Region, using the figures above:

  1. Real Estate Commission (Including HST): $31,640

  2. Legal Fees: $2,000

  3. Mortgage Discharge Fee: $2,500 (example mid-range)

  4. Staging and Marketing Costs: $3,000 (average)

  5. Moving Costs: $2,000

Total Estimated Costs: $31,640 + $2,000 + $2,500 + $3,000 + $2,000 = $41,140

If you’re considering selling your home, we’re here to guide you every step of the way. Contact us today to learn more about how we can help you achieve your real estate goals.

Ready to sell your home? Call or text us at 519-498-8213 to get started!