The Real Cost of Selling: Every Fee, Explained

The number on your listing agreement is never the number that lands in your account — here’s exactly where the difference goes.

Most sellers anchor on their sale price. It's the number on the sign, the number in the group chat, the number that feels like the win. But it's not the number that actually shows up in your bank account after closing — and when the real number comes in lower than expected, it's rarely because anything went wrong. It's because no one walked through every line item before the home ever hit the market.

Here is every cost that typically comes off the top between an accepted offer and your wire transfer, so you go into your sale with a real number in mind — not just the listing price.

1. Real Estate Commission (Plus GST)

Commission is almost always the largest single cost of selling. It's typically charged as a percentage of the sale price — sometimes a flat rate, sometimes tiered (a higher percentage on the first portion of the price, a lower percentage on the remainder). GST applies on top of whatever the commission works out to.

Commission is negotiable, and it's worth understanding exactly what it pays for before you compare numbers between agents. A typical listing commission covers:

•       MLS listing and syndication to major home search sites

•       Professional photography, video, and marketing materials

•       Pricing strategy and comparative market analysis

•       Negotiation and contract management through to closing

•       The co-operating commission paid out to the buyer's agent

2. Mortgage Discharge Fee (and a Possible Prepayment Penalty)

Your lender charges a flat discharge (or reconveyance) fee to remove their claim from title once your mortgage is paid out. That part is minor.

The part that catches sellers off guard is the prepayment penalty. If you're paying off your mortgage before the end of its term, most lenders charge a penalty — and on fixed-rate mortgages, this is often calculated using an interest rate differential (IRD), which can run into the thousands of dollars depending on how much time is left on your term and how rates have moved since you signed. Variable-rate mortgages typically carry a smaller, flat penalty.

Before you list, call your lender and ask for a mortgage payout statement. It's the only way to know your real penalty, and in some cases porting your mortgage to your next purchase can reduce or avoid it entirely.

3. Legal or Notary Fees

In BC, a lawyer or notary handles the paperwork on your sale — reviewing the contract, preparing the Statement of Adjustments, issuing payout instructions to your lender, and transferring funds after closing. Fees vary by firm and by how complicated the file is.

[Adjust: insert the typical legal/notary fee range you quote clients in your market.]

4. Property Tax, Strata, and Utility Adjustments

At closing, your lawyer or notary prepares a Statement of Adjustments that settles up anything you've prepaid or still owe — property taxes, strata fees, utilities — based on the possession date. Depending on timing, this can work in your favour or add a small cost.

If you're selling a condo or townhome, expect a strata fee for the Form B / estoppel certificate the buyer's lender requires — typically a modest, one-time charge paid to the strata corporation.

5. Home Prep and Presentation Costs

Staging, minor repairs, decluttering or short-term storage, and a deep clean before photos are the most common prep costs. Some of this may be bundled into your listing package; some of it may be billed separately. Worth clarifying upfront so it isn't a surprise.

6. Capital Gains Tax (If It's Not Your Principal Residence)

If the property you're selling has been your principal residence the entire time you've owned it, the principal residence exemption generally shields the gain from tax. That changes if it's a rental, a recreational property, or a home you haven't lived in full-time — in which case capital gains tax can apply. Talk to your accountant before you list, not after you've already accepted an offer.

7. Moving Costs

The most commonly forgotten line item in the whole process: movers, storage, cleaning the home you're leaving, and deposits on the next place. It isn't a closing cost in the technical sense, but it comes out of the same pool of proceeds — so it belongs in the math.

Putting It All Together: A Sample Net Proceeds Snapshot

Every sale is different, but seeing the fees stacked against a real sale price makes the math easier to picture. The figures below are illustrative only — replace them with numbers that reflect your actual mortgage balance, commission structure, and closing costs.

Know Your Number Before You List

None of these costs should be a surprise on closing day. If you're thinking about selling, I'll walk through a personalized net sheet with you before your home ever hits the market — so you know exactly what to expect to walk away with, not just what the sign in the yard says.

Best,

Aaron