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First, a Quick Look at the 2025 NL Market
Let's set the scene: the Newfoundland and Labrador real estate market is on fire. With home sales up 13.1% year-over-year and the benchmark price hitting a record $325,000 (and over $405k for single-family homes in St. John's!), it's a fantastic time to be a seller. Why the boom? Demand is high and the number of homes for sale is down by over 20%. This means more buyers competing for your property. But a higher sale price also means some costs (like commission) will be higher too. Let's dive in.
Realtor® Commissions: The Price of a Pro
This is typically your biggest expense. In NL, the standard commission is 5% of your home's sale price, plus the 15% HST. This fee is the engine of your sale—it pays for marketing, showings, negotiations, and expert guidance. It's usually split 50/50 between your agent and the buyer's agent.
Pro Tip: While 5% is standard, rates can be negotiable. It never hurts to have a conversation with your agent!
Legal Fees: The Dotted Line
You need a lawyer to make the sale official and ensure your interests are protected. They'll review contracts, discharge your mortgage, and handle the money transfer. Budget between $800 and $2,000 for seller's legal fees in Newfoundland. This is money well spent for peace of mind.
Mortgage Costs: Saying Goodbye to Your Lender
If you have a mortgage, you'll have to pay it off. This can come with two potential costs:
Prepayment Penalty: If you're breaking a closed mortgage early, your lender will charge a penalty. This could be a few thousand dollars, so call your lender ASAP to find out the exact amount. It's the most common "surprise" cost for sellers.
Discharge Fee: A smaller administrative fee to remove the mortgage from your property's title, usually around $200 - $400.
Pre-Sale Expenses: Getting "Show Home" Ready
To get top dollar, you might need to spend a little first. These costs are flexible and depend on your home's condition.
Home Staging: A consultation can be $150 - $600, while fully staging key rooms might cost $1,725+. It helps buyers emotionally connect with the space.
Our Exclusive Seller Offer
Here's the best part: when you list your home with us, we provide professional home staging services for FREE! Let us help you maximize your sale price at no extra cost to you.
Pre-Listing Inspection: For around $400, an inspector can find issues before buyers do. This gives you control and prevents scary surprises during negotiations.
Minor Repairs: That leaky faucet or scuffed wall? Fix it! A fresh coat of paint and a little TLC offer a massive return on investment.
Capital Gains Tax: The Tax Man Cometh... Or Does He?
Good news! If the house you're selling was your principal residence for every year you owned it, you likely won't pay any capital gains tax on the profit. Thanks, Principal Residence Exemption! You still have to report the sale on your tax return, though. If it wasn't your primary home, talk to an accountant.
Other Closing Costs: The Final Adjustments
On closing day, you'll settle up any prepaid expenses. This isn't a "cost" so much as a reimbursement. Your lawyer handles this on the Statement of Adjustments.
Property Taxes & Utilities: You'll get credited back for any property taxes or utilities (like furnace oil) that you've paid for beyond the closing date.
Curious About Your Home's Value?
Get a free, no-obligation analysis of your home's current market value in St. John's.
Get My Home EvaluationSo, What's the Bottom Line?
Here's a sample breakdown for a $350,000 home sale in NL. Your numbers will vary!
| Cost Item | Estimated Cost |
|---|---|
| Realtor® Commission (5% + HST) | $20,125 |
| Legal Fees | $1,500 |
| Mortgage Discharge Fee | $300 |
| Pre-Listing Inspection | $460 |
| Minor Repairs & Staging Consultation | $1,150 |
| Total Estimated Costs | $24,660 |
Your Ultimate Seller's Checklist
- ✓Interview and select a top-notch local real estate agent.
- ✓Call your lender to confirm your mortgage penalty (if any).
- ✓Hire a real estate lawyer early in the process.
- ✓Book a pre-listing inspection to avoid surprises.
- ✓Declutter and make those small, high-impact repairs.
- ✓Gather all your documents: property tax bills, surveys, etc.
- ✓Talk to an accountant if it's not your principal residence.
Your Next Step on the Journey
Understanding the costs is a critical piece of the puzzle. Now you’re ready to discover your home's potential market value and see the entire selling process from a bird's-eye view.
Frequently Asked Questions
Got questions? We've got answers.
What is the single biggest cost when selling my house in NL?
Almost always, the real estate commission will be your largest expense. At a standard 5% of the sale price plus HST, it typically outweighs all other costs combined.
Do I have to stage my home to sell it?
No, it's not mandatory. However, in a competitive market, professional staging can help your home sell faster and for a higher price. Even a simple consultation for decluttering and furniture placement can make a huge difference.
Who pays for closing costs in Newfoundland, the buyer or the seller?
Both parties have their own closing costs. Sellers are responsible for their real estate commission, legal fees, and any mortgage discharge fees. Buyers have their own set of costs, including their legal fees and home inspection. The "adjustments" for property tax and utilities are simply a settling of accounts.
Ready to Find Out What Your Home is Worth?
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