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

Preparing a home for sale looks different for everyone, and there’s no one-size-fits-all approach. If budget allows, small things can make a real difference — a fresh coat of paint, a fixed faucet, a decluttered room. Staging isn’t always necessary, but when it makes sense, it helps buyers see the potential in your home. Your REALTOR® can help sort out what’s worth doing, and point you toward the right people when needed.

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

There are a few other costs worth knowing about, even if they don’t come up in every sale. Inspections are typically the buyer’s expense, but if one reveals an issue, you may be asked to address it. That doesn’t necessarily mean writing a cheque — a price adjustment is often a reasonable alternative, and your REALTOR® can help negotiate what makes sense for your situation. On rare occasions, title-related issues can surface, such as boundary discrepancies or encroachments. These don’t happen often, but when they do, there may be additional legal or survey fees involved to sort things out.

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% negitated on the sale price
• Legal Fees: $1,000
• Adjustment at Closing: $250 payable to the seller
• Mortgage Breakage Fees: None

Cost Breakdown

1. Real Estate Commission (5%)
   The commission is 5% (0.05) of the sale price:350,000×0.05=17,500
2. Legal Fees
   Legal fees are $1,000 for the transaction.
3. 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.