You’ve probably heard of buying and selling costs, but do you really know what they include? Read our “FAQ” on sales charges to learn more about what they are.
Buying and Selling Expenses, What do they represent in Montreal?
Buying and selling costs are all costs that must be paid at the time of sale. These fees may vary depending on the region in which you live but, generally, sales fees include :
- Notary fees
- Transfer costs
- Transfer taxes
- Appraisal fees
- Inspection fees
- Origination fees
- Registration fees
- Title insurance
- Bank charges
- Postage costs
- Transfer fees
- Retention rights that must be repaid to clear title to the property
- Credit report fees
- Administrative costs
- Legal fees, if any
- The balance of your mortgage and loans secured by the property
- Costs related to renovations or pest extermination, if so decided
- COMMISSION FEES!
Who pays?
Although the buyer usually pays a large part of these costs, it’s important to note that it’s always the seller who pays 100% of the commission fee. These are in the order of 4-6% + of the selling price, not including taxes. Apart from the balance of your mortgage, this is by far the highest cost of sale. It is becoming increasingly common to negotiate other fees during the sales process. In an attempt to attract more buyers, more and more sellers are taking the invoice at the time of sale.
As the seller, you will also have to pay your share of property tax. In fact, payment up to the day of sale will be your responsibility. Expenses related to the syndicat de copropriété or any other organization should also be prorated.
What’s in it for the seller?
This amount will be negotiated between buyer and seller. In fact, it’s up to the seller to decide what percentage of the selling costs he’s willing to pay. For example, you could offer $3,000 to relieve your buyer of the costs associated with the sale. In the end, paying selling costs is a small price to pay to get buyers to close!
Can you avoid these costs?
Yes ! By working directly with a buyer who will take care of all the costs associated with the sale! Selling directly to a cash buyer, without going through an agent, saves you commission fees. In many cases, direct buyers will take care of all the costs, saving you the expense and hassle of selling.
Are renovations included?
This is another matter to be negotiated between the buyer and the 
seller. If a home is in need of major renovation, the seller will often take the initiative to take care of it before putting the house up for sale. However, if an inspection shows that further repairs are required, the buyer may make an offer on condition that these repairs are carried out. Both buyer and seller will make these decisions before closing the sale.
