Understanding Seller Closing Costs

seller closing costs

Closing day is pay day! Or is it?…

Hey sellers, are you prepared? Have you made sure you’ve calculated all your costs so you don’t have to bring out your cheque book on closing day?

Alright folks, in this blog we’re gonna chat about the usual expenses for sellers on closing day.

Trust me, by the end of this blog post, you’ll be all set and pumped to move on to your next adventure! Keep reading!

Let’s get into the most common expenses although this isn’t a complete list. Prices may vary by region and will be prone to frequent changes over the years.


 Although you won’t be paying this to your lawyer it’s important to budget for hiring movers if needed or any storage containers you may need.


Real estate commissions will be your largest expense associated with selling your home.

This fee will cover all the legwork for marketing, paperwork, negotiation and advice provided by your agent, as well as the commission to the buyer’s agent.

Yes, sellers pay both in Ontario. Discuss with your agent what they provide within their fees such as photography, staging and so on. If they don’t provide a service that you need or want that’s included, interview a few agents or account for those additional fees in your closing costs. Real estate commissions have no standard and can be negotiated.  You can budget for around four to five percent of the sales price plus tax.  You may be tempted to go it alone, but we will leave this topic for another day. 



Let’s say if it’s a May closing date and you haven’t paid your property taxes yet. You will be responsible to pay for your property taxes up to that date and the buyer will be responsible to pay for the remainder once they are in possession of the property. Same goes if you paid for the whole year in advance. You would get that refund back on closing from the buyer.

seller closing costs


When you have a  financial transaction as big as this, you want to make sure you’re protected.  This cost usually starts around $900 and up.  


 If you’re not up for renewal you may end up paying a fee to break up the term of the mortgage.  Each lender is different but in some cases you may end up paying a minimum three months of interest or a few thousand dollars. Also be aware that some banks may also charge you a fee for closing your account if you plan to pay off your mortgage early with your proceeds. If you’re thinking of selling in the middle of your term, discuss this with your mortgage broker so you can be prepared for these costs.

seller closing fees

A few other fees you could encounter are buyer expenses that you agreed to pay for in your purchase agreement such as inspections, or repairs.

In most situations sellers don’t need to bring money to their meeting but it can happen. For example if the sale price of your home sold for less than you originally bought it for and you still  owe a lot on your mortgage. Your pay off plus the commissions and legal fees owed may exceed the purchase price.  You do need to pay off your lender in full and pay your real estate agent their commissions owed. So you may have to bring money to your closing meeting.


What To Expect Of The House On Closing Day For Buyers

Look out for my next blog where I’m going to discuss what buyers should expect on closing day when they walk through the door. 

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