With many Homes for Sale in Vancouver and those looking to put their Vancouver Yaletown Condos up for Sale also, the question I’m often asked by my sellers is: Who Pays the Closing Costs When You Sell a Home? – which I am here to answer!
Homes for Sale in Vancouver
If you’re thinking of putting your Home up for sale in Vancouver, you will definitely have affluent buyers at the ready to purchase your property. And, you will definitely come out ahead on your investment based on the real estate selling price boom in Vancouver. Although some condo owners may worry about their next buying decision and the cost that will involve, which leads me to the question at hand.
Who Pays the Closing Costs When You Sell a Home?
First of all, let’s define “closing costs when you sell a home” as it pertains to buying and selling real estate in Vancouver.
Whether your are buying or selling a home, your real estate agent will get paid once the sale completes. This fee comes out of the proceeds of the sale on the sellers side. It is a small price to pay for all the variables involved. So decide accordingly.
Roughly $1200 for each the Buyer and Seller in legal fees will also be part of the process. This is due to registration transfer of title.
Unless your home is paid in full, there are usually bank charges involved in your closing fees. Costs such as: a discharge fee or prepayment penalty on your mortgage are most common. Alternately, if you are buying another piece of property and simply transferring your mortgage, your mortgage broker ‘may’ wave this fee.
Utility fees include the following, but not limited to, Shaw, Telus, BC Hydro, Fortis Gas, garbage removal, water fees.
- BC Hydro charges a small fee (about $12.50) for moves and new accounts
- Fortis Gas charges roughly a $25 fee for moves and new accounts
For apartment owners and owners of condos for sale in Vancouver, usually charge a move in/move out fee which can usually range from $100-250
Property taxes, for sellers, are paid up until Possession date on the Contract of Purchase and Sale. So, if you have already paid for the year, you may receive a credit back, depending on when your home sells. If you haven’t paid taxes for the year yet, be sure to budget for this expense.
Capital Gains Tax
If you are an investor, looking to capitalize on the profits of your investment, be sure to talk to an accountant who will advise you of the pros and cons of selling. You may experience a huge or minimal Capital Gains Tax based on your current income. Make sure you keep any and all receipts that has anything to do with your investment as your accountant will use them as well.
Other Fees Include…
Foreign taxes, capitol gains taxes and Empty Home Tax in Vancouver. Like they say: death and taxes are the only sure things in this life!
- Foreign taxes is a big nest of unknowns for this realtor. I suggest you reach out to a tax professional well in advance of selling your home. As a non Canadian resident, there will be some holdbacks if the forms are not completed properly well in advance which can delay the release of any funds. If there are a delay of funds released and theres a mortgage on the property, you will incur extra costs from the lender for not being able to discharge the mortgage on time.
- The Empty Home Tax will be charged to the property if it is empty. Vancouver has new bylaws which requires vacant homes to be used as rentals. Have you filled out your Status Declaration? Every owner of residential property in Vancouver is required to submit a property status declaration each year to determine if their property is subject to the Empty Homes Tax.Failure to declare by the extended deadline of March 5, 2018, will result in your property being deemed vacant and subject to a tax of 1% of its assessed taxable value and a $250 penalty.
So if you have a Vancouver Yaletown Condo for Sale, or are looking to Sell a Home in Vancouver – I’m here to help and look forward to doing so. I can answer any additional questions about closing costs when you sell a home. My proven Marketing Strategy works to get you the most amount of money, the quickest sale and the fewest problems possible!
Whats your home Really Worth? Prices are crazy right now…
… aside from the closing costs when you sell a home. Request your No-Obligation Home Valuation on your property, you are only a few steps away from knowing the real value of your home.