If you're considering selling your home in Vancouver or the Lower Mainland, understanding the costs involved is crucial to estimating your take-home profit. Here's a breakdown of key expenses to expect when selling your property in the Lower Mainland:
Home Preparation and Pre Listing To-Dos
First impressions matter in Vancouver’s competitive real estate market. Buyers often see multiple homes in one day, so standing out is key. Home preparation and staging can significantly impact your sale price. Common preparation costs include:- Painting (interior/exterior)
- Professional cleaning
- Landscaping and repairs
- Renovations, if needed
- Storage for decluttering
- Staging (light touch-ups to full professional setups)
Strata Documents (Condos/Townhomes)
If selling a strata property, buyers will want to review strata documents. Ordering these from your property management company costs $300-$500, depending on urgency. Having them ready early can lead to a subject-free offer.Real Estate Commissions
Commissions are typically the largest selling expense but are essential for marketing your home effectively. In Vancouver, realtors charge 2-4% of the sale price, depending on experience, services, and results offered.Full-service realtors often include:- Professional photography, videography, and floor plans
- Online marketing, social media ads, and flyers
- Staging and cleaning
- Pre-listing home inspections
Legal Fees (Notary/Lawyer)
Legal representation is required for all real estate transactions. Legal fees range from $1000-$2500, depending on the complexity of your transaction. Using the same notary or lawyer for both buying and selling can save time and money.Mortgage Penalties
If selling before your mortgage term ends, your lender may charge a discharge penalty. This can amount to thousands of dollars, depending on your mortgage agreement. Speak with your lender or mortgage broker to understand these details before listing.Property Taxes and Adjustments
When selling your home, you’ll need to ensure your property taxes are paid up to date. If you’ve prepaid your taxes for the year, the buyer will reimburse you for the remaining portion as part of the closing adjustments.Capital Gains Tax & GST
Capital Gains Tax in Vancouver applies if the property you’re selling is not your principal residence (e.g., a rental or investment property).Additional Costs
Other costs may include:- Strata move-in/move-out fees ($100-$300)
- Moving trucks or professional movers
- Pet boarding (during showings or open houses)
- Extra keys or fobs for buyers
Selling a home in Vancouver involves various costs, including taxes on services like real estate commissions and legal fees. Proper preparation and expert guidance can maximize your profits and make the process smoother. For personalized advice or assistance, please get in touch with me today!