Thinking about putting your house on the market? It’s an exciting move, but before you start daydreaming about your next chapter, let’s talk dollars and cents. Selling a home comes with a handful of costs that can sneak up on you if you’re not prepared. Here’s a breakdown of the common expenses to anticipate so you can budget like a pro and sidestep any surprises.

1. Real Estate Agent Commissions

The biggest chunk of change often goes to the real estate agents—and yes, that’s plural! Typically, commissions hover around 5-6% of the sale price, split between the buyer’s and seller’s agents. For a $1,000,000 home, that’s $50,000-$60,000 right off the top. Ouch, right? But a skilled agent can make that fee worth every penny by negotiating top dollar—sometimes even above market value—and securing favorable contract terms. Choosing an agent who can deliver that number is key to maximizing your return.

2. Home Staging and Preparation

First impressions matter, and buyers aren’t exactly swooning over cluttered countertops or chipped paint. Staging your home—think professional decluttering, a deep clean, or even renting sleek furniture—can cost anywhere from a few hundred bucks to several thousand, depending on how far you go. Minor repairs like fixing a leaky faucet or patching drywall might also dip into your wallet, but they’re crucial for sealing the deal.

3. Closing Costs

The finish line comes with a fee, too. Sellers often need to hire a lawyer to discharge the mortgage and provide discharge documents, with fees typically ranging from $1,500-$2,000. That’s on top of other closing costs—like title insurance or transfer taxes.

4. Repairs and Improvements

Buyers love inspections, and they’re pros at spotting trouble—like that creaky floorboard you’ve ignored for years. If their report flags issues, you might need to foot the bill for repairs to keep the sale on track. Don’t want to play handyman? Offering a repair credit instead is a popular workaround. Either way, factor this into your planning.

5. Mortgage Payoff and Penalties

Got a mortgage? You’ll need to pay it off at closing, and that’s not always as simple as it sounds. Some lenders tack on early repayment penalties, especially if you’re exiting the loan before its term is up. Double-check your mortgage fine print to avoid a nasty surprise.

6. Capital Gains Taxes

If your home’s been your primary digs, you’re likely in the clear here (lucky you!). But if it’s an investment property—like a rental or vacation home—capital gains taxes could take a bite out of your profit. In Canada, for example, 50% of your capital gains are taxable. A $100,000 profit? That’s $50,000 added to your taxable income. Chat with a tax pro to see how this applies to you.

7. Utilities and Property Taxes

Even after you hand over the keys, you might owe a little more. Sellers often cover prorated property taxes and utilities up to the closing date. It’s not a huge hit, but it’s one more thing to tally up as you prep your budget.

The Bottom Line

Selling a home isn’t just about cashing in—it’s about knowing what you’ll cash out, too.

By understanding these costs upfront, you can price your home strategically, negotiate with confidence, and walk away with a clearer picture of your net proceeds. Ready to make your move? A little planning now can save you a lot of headaches later. Happy selling!