What You’ll Pay in Realtor Fees and Closing Costs When Selling
Selling your home can be one of the biggest financial transactions you’ll ever make—so naturally, you want to know exactly how much of your sale price will end up in your pocket. Among the most common concerns for sellers is: How Much Are Realtor Fees and Closing Costs? It’s a smart question to ask upfront. The truth is, these costs can add up fast and often vary depending on your location, the price of your home, and the professionals you work with. In competitive markets like Mississauga, it’s crucial to budget carefully to avoid surprises.
If you’re considering putting your property on the market, especially in sought-after neighborhoods like Port Credit, understanding the fine print around these fees can give you a major edge. Let’s break down everything you need to know—plus a few things most websites won’t tell you.
Realtor Fees Explained
What Are Realtor Fees?
Realtor fees (also known as real estate commissions) are typically the biggest expense when selling a home. These fees are paid out of the proceeds of the sale and usually cover both your listing agent and the buyer’s agent. In Canada, the standard commission is about 5% of the home’s final sale price, although this percentage is negotiable and varies by region.
How Is That 5% Split?
Generally, the 5% is split evenly between the listing and buyer’s agents (2.5% each), though some agents may offer different arrangements. For example, on a $900,000 Mississauga home, you could be looking at:
- Total Commission: $45,000
- Split: $22,500 to your agent, $22,500 to the buyer’s agent
This fee often covers marketing, open houses, listing photography, paperwork, and negotiation on your behalf. But it’s essential to ask your agent for a breakdown—some may include staging and others may charge extra.
Are Realtor Fees Negotiable?
Absolutely. In fact, you should feel empowered to negotiate. Some agents are willing to lower their commission, especially if:
- You’re also buying a home with them.
- Your home is likely to sell quickly due to high demand.
- You’re selling a luxury or higher-priced property.
Don’t automatically choose the agent with the lowest fee. Instead, evaluate the value they bring—marketing strategy, negotiation skills, local expertise, and success track record.
Typical Closing Costs for Sellers
While Realtor fees get most of the attention, closing costs can also eat into your profit. Sellers in Ontario should expect to pay an additional 1% to 3% of the home’s price in closing costs, separate from commissions.
Here’s what those include:
1. Legal Fees
In Ontario, sellers are required to hire a real estate lawyer to help close the sale. Legal fees typically range from $700 to $1,500, depending on the complexity of the transaction. This includes discharging your mortgage, reviewing the offer, and transferring ownership.
2. Title Insurance
Although optional for sellers, this is sometimes required by the buyer’s lender. If needed, it could cost around $250 to $400.
3. Mortgage Discharge Fees
If you still have a mortgage, your lender may charge a discharge fee (usually $200 to $400) to officially close your loan. If you’re paying off your mortgage early, you may also face a prepayment penalty, which can amount to three months of interest or the interest rate differential.
4. Adjustments (Property Taxes and Utilities)
You may need to reimburse the buyer for prepaid expenses like property taxes, utilities, or condo fees. These are pro-rated based on the closing date.
5. Capital Gains Tax (If Applicable)
If the property wasn’t your principal residence (e.g., rental or investment), you may owe capital gains tax on 50% of the profit. While primary residences are exempt in Canada, always consult an accountant to confirm.
Budgeting for Realtor Fees and Closing Costs in the Canadian Housing Market
Let’s talk real numbers. Selling a $900,000 Mississauga home might come with the following costs:
| Expense | Estimated Cost |
| Realtor Fees (5%) | $45,000 |
| Legal Fees | $1,200 |
| Title Insurance | $350 |
| Mortgage Discharge Fee | $300 |
| Property Tax Adjustment | $400 |
| Estimated Total | $47,250 |
Sources:
- Canadian Real Estate Association (CREA)
- Ontario Real Estate Association (OREA)
- Canadian Lawyer Magazine – Real Estate Fee Survey
What many websites don’t tell you is that some real estate brokerages may charge admin fees (typically $300–$600) on top of the commission. These fees cover office and brokerage costs, so make sure to ask about them upfront.
Additional Expenses You May Overlook
Selling a home isn’t just about Realtor and legal fees. There are several other optional but common costs to consider:
Repairs and Concessions
Buyers may request repairs or credits after a home inspection. If you want to avoid negotiations, getting a pre-listing inspection and addressing issues can give you a stronger position.
Home Staging and Photography
According to the Real Estate Staging Association, staged homes sell 73% faster than unstaged ones. In Mississauga, professional staging can range from $1,000 to $3,000, while high-quality real estate photography costs about $300 to $500.
Moving Costs
Don’t forget the expense of moving out. Hiring movers, renting trucks, and temporary storage can add another $1,000 to $2,500 to your overall cost.
Ways to Save on Realtor Fees and Closing Costs
Looking to stretch your dollars a bit further? Here are a few smart ways to reduce selling costs:
1. Work with a Flat-Fee or Discount Brokerage
Some brokerages offer fixed-rate packages that cap commissions—ideal for higher-priced homes.
2. Consider FSBO (For Sale By Owner)
You can bypass Realtor fees by selling your home yourself, but you’ll need to manage marketing, negotiations, legal paperwork, and showings. FSBO homes often sell for less than agent-assisted homes, so weigh the risks.
3. Shop Around for Legal Services
Real estate lawyers vary in price. Be sure to get quotes from multiple firms and confirm what’s included (e.g., mortgage discharge, title transfer, tax certificates).
Special Considerations for First-Time Home Buyer Closing Costs
If your buyer is a first-timer, you may be able to offer incentives to make your home more attractive. These could include:
- Covering part of the legal fees or closing costs.
- Offering a home warranty.
- Including appliances or furniture to sweeten the deal.
Many first-time buyers benefit from programs like the First-Time Home Buyer Incentive or Land Transfer Tax Rebate in Ontario. Knowing what your buyers might qualify for can help with negotiations and speed up the sale.
Mississauga Homes: Sell Smart with Port Credit Real Estate Experts
The Mississauga housing market continues to be one of the hottest in the GTA, with neighborhoods like Port Credit offering a unique blend of waterfront living, urban convenience, and high resale value. If you’re selling a home in Mississauga, working with a local expert makes a huge difference.
Our Real Estate Agent Port Credit professionals understand what buyers are looking for in this dynamic market. From pricing strategies to smart marketing and negotiation, we help you maximize your sale price while minimizing stress and expenses.
Whether it’s a condo, townhome, or detached property, our team is here to ensure a seamless and profitable experience from listing to closing.
Wrapping It Up
Selling your home involves more than just finding a buyer and signing papers. Between Realtor fees, legal costs, and various closing expenses, it’s easy to lose thousands if you’re not prepared. But with the right knowledge—and the right team—you can plan ahead, negotiate wisely, and walk away with more money in your pocket.
Ready to Sell Your Mississauga Home?
Selling your home is a big decision, and you deserve expert support every step of the way. Our Port Credit Real Estate Agents are here to provide transparent advice, personalized service, and local market insights to help you sell smarter. Don’t leave money on the table—let’s talk about how to price, prepare, and promote your property the right way.
Book a free consultation with our team today and take the first step toward a successful home sale.
Contact us now and let’s get your home sold—on your terms.
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