Today, we’re discussing the costs of selling a house in New Brunswick, Canada. Since you’ve landed on this article, it’s safe to assume that you know that when it comes to selling a house, it’s important to be aware of the costs involved to ensure a smooth and financially sound transaction. In New Brunswick, several expenses need to be considered when selling your property. The good news is that, in most cases, you can sell your home of property with ZERO upfront costs. In this blog post, we will discuss the key costs associated with selling a house in New Brunswick, giving you a better understanding of what to expect during the process.
Real Estate Commission
One of the most significant costs when selling a house in New Brunswick is the real estate commission. Typically, sellers pay a commission to their real estate agent, which is a percentage of the final sale price. The commission rates can vary and are negotiable, but they usually range from 4% to 6% of the sale price. It’s essential to discuss and negotiate the commission with your real estate agent upfront. This commission is generally split between the listing real estate agent and the buyer’s real estate agent and is their sole method of income. For example, if a property sold with an agreed upon 5% commission, the listing real estate brokerage would get 2.5% and the real estate brokerage that represented the buyer would get 2.5%. The respective brokerages would take a percentage of that, and the REALTORS® would get the remainder.
Legal Fees
Engaging a real estate lawyer is crucial when selling a house in New Brunswick. They will handle the legal aspects of the transaction, including drafting the necessary documents for title transfer, conducting title searches, transferring funds from buyer to seller, and facilitating the closing process. The legal fees for selling a house in New Brunswick can vary depending on the complexity of the sale, but they typically range from $800 to $1,500. It’s advised to shop around, as legal fees can vary greatly from one lawyer to another. Your real estate agent should be able to provide you with a list of reputable lawyers in your area.
Staging and Repairs
To attract potential buyers and present your house in the best possible light, you may need to invest in staging and minor repairs. Staging involves arranging furniture, decor, and optimizing the visual appeal of your home. Repairing any noticeable issues, such as leaky faucets or peeling paint, can enhance the overall marketability of your property. The costs associated with staging and repairs will vary based on the size and condition of your home. Your real estate agent is a great resource when it comes to home staging. They know what home buyers are looking for, and often know the right people to call when required.
Closing Costs
Closing costs are fees associated with the finalization of the sale. In New Brunswick, sellers are responsible for certain closing costs, including the legal fees mentioned earlier, title transfer fees, and potential mortgage discharge fees if applicable. The closing costs can vary depending on the specifics of your sale and any outstanding obligations related to your property. Your lawyer is responsible for determining exactly how much each party is responsible for when it comes to things like property tax, condo fees, and rental equipment fees, which are referred to as adjustments. These adjustments may add to, or detract from the lawyers fees as mentioned above.
Other Possible Costs
While not typical, there are some other possible costs when selling a home. The cost of any inspections or tests to the property should come at the expense of the buyer. An inspection by the buyer may reveal defects that they ask to have fixed. But, don’t worry, everything is negotiable. If you as the seller don’t have the money to complete the repairs, perhaps a price reduction could be negotiated by your realtor. In rare occasions, issues relating to the title might arise, such as claims to title, boundary discrepancies or encroachments. This may result in extra legal fees, or other professional fees, such as a survey, to remedy the situation.
Example Scenario: Selling a $350,000 Home
Let’s break down the costs of selling a home priced at $350,000 based on the following details:
- Real Estate Commission: 5% of the sale price
- Legal Fees: $1,000
- Adjustment at Closing: $250 payable to the seller
- Mortgage Breakage Fees: None
Cost Breakdown
- Real Estate Commission (5%)
The commission is 5% (0.05) of the sale price:350,000×0.05=17,500 - Legal Fees
Legal fees are $1,000 for the transaction. - Adjustment at Closing
The seller receives a $250 adjustment at closing.
Total Costs
The total costs reflect the commission and legal fees, minus the adjustment received:17,500 (commission)+1,000 (legal fees)−250 (adjustment)=18,250
Net Proceeds Calculation
Subtract the total costs from the sale price to determine the net proceeds: 350,000−18,250= 331,750
Summary
In this example, selling a home at $350,000 with a 5% real estate commission, $1,000 in legal fees, and receiving a $250 adjustment at closing would leave the seller with approximately $331,750 in net proceeds.
Conclusion
Selling a home is a significant financial and emotional process, and understanding the costs involved is a critical part of planning for a successful sale. While this guide outlines many common expenses, it’s important to remember that every property and situation is unique. Factors like the condition of your home, the local market, and your personal circumstances can all impact the total cost of selling.
That’s why having an open and honest discussion with your REALTOR® is so important. They can provide a detailed breakdown of anticipated costs specific to your property and help you navigate potential challenges. A skilled REALTOR® will also offer guidance on how to maximize your home’s value while minimizing unnecessary expenses, ensuring you’re prepared for every step of the journey.
Whether you’re a first-time seller or a seasoned homeowner, partnering with the right REALTOR® gives you the confidence and knowledge to make informed decisions. Selling your home is more than a transaction—it’s a milestone. With the right support, you can move forward with clarity and peace of mind. Reach out today to start the conversation and take the first step toward a successful sale.
