How Much Does It Cost to Sell a Home in Surrey, BC?

Selling your home can be exciting, but let’s be honest—it comes with costs. Whether you’re upsizing, downsizing, or moving to a new city, it’s essential to understand the expenses involved in selling your property.

In this blog, we’ll break down the typical costs you’ll face when selling a home in Surrey BC, so you’re prepared every step of the way.

1. Real Estate Commission Fees

This is usually the biggest cost when selling your home. In Surrey, the industry standard rate is typically 7% of the first $100,000 and 3% of the remaining balance. This fee is split between your Listing agent and the Buyer’s agent.

While it might seem like a lot, however hiring an experienced REALTOR® can help you sell faster and for more money. Plus, their expertise often pays for itself in the long run.

2. Legal and Notary Fees

Selling a home isn’t as simple as signing on the dotted line—You’ll need a Real Estate Lawyer or Notary to handle paperwork like the property transfer and closing documents.

Expect to pay anywhere between $900 to $2,500 for these services. It’s worth every penny to ensure everything is handled correctly—this is one area where you don’t want to cut corners.

3. Mortgage Discharge Penalties

If you still have a mortgage on your home, you might face a discharge penalty.

• Fixed-rate mortgages often have higher penalties, which could be several thousands of dollars.
• Variable-rate mortgages are usually more forgiving, costing around three months of interest.

It’s a good idea to talk to your lender early and understand the exact costs. If you’re unsure where to start or need a trusted expert, we can connect you with one of our preferred mortgage specialists. They’ll walk you through the details, answer your questions, and help you avoid unexpected surprises. Just reach out, and we’ll be happy to make the introduction!

4. Home Staging and Preparation

First impressions matter, especially in real estate. Staging your home can make it more appealing to buyers and lead to a higher sale price.

• DIY Staging: A few hundred dollars for paint and cleaning supplies.
• Professional Staging: This can range from $1,500 to $3,000+ depending on the size of your home and the services offered.

Don’t forget other costs like minor repairs or landscaping to boost curb appeal!

5. Moving Costs

Once your home is sold, you’ll need to plan for moving expenses.

• DIY Move: Renting a truck and handling the move yourself might cost $200-$500.
• Professional Movers: Hiring a team could cost anywhere from $1,500 to $3,500, depending on how far you’re moving and the size of your household.

If you’re moving locally within Surrey, you can save a bit compared to a cross-country relocation. Need help finding reliable movers? We work with trusted local moving companies who can make your move seamless and stress-free. Reach out, and we’d be happy to share our recommendations!

6. Property Transfer Tax (PTT)

When purchasing property in British Columbia, it’s essential to understand the Property Transfer Tax (PTT), which is calculated based on the property’s Fair Market Value. Here’s a breakdown of the general PTT rates:

• 1% on the first $200,000 of the property’s fair market value.
• 2% on the portion of the fair market value exceeding $200,000 and up to $2,000,000.
• 3% on the portion of the fair market value exceeding $2,000,000.
• If the property has a fair market value worth over $3,000,000, a further 2% tax will be applied to the residential property value greater than $3,000,000. 

For example: If you’re purchasing a property with an fair market value of $850,000, the Property Transfer Tax (PTT) would be calculated as follows:

• First $200,000:
  • 1% of $200,000 = $2,000
• Remaining $650,000 (i.e., $850,000 – $200,000):
  • 2% of $650,000 = $13,000

Total PTT payable: $2,000 + $13,000 = $15,000

It’s important to note that additional taxes may apply in certain situations. Moreover, foreign nationals, foreign corporations, or taxable trustees might be subject to an additional property transfer tax, click here for the Foreign Buyers Tax.

Please note: As of writing this blog, the Canadian government announced a two-year extension to the existing ban on foreign ownership of Canadian housing in February 2024, now effective until January 1, 2027. This measure aims to address housing affordability concerns by ensuring residential properties are available for Canadian families rather than being used as speculative investments.

For comprehensive details and to explore potential exemptions, please refer to the official British Columbia government website on property transfer tax.

7. Additional Costs to Consider

• Utilities and Taxes: Sellers are responsible for covering utilities (like electricity, water, and gas) and property taxes right up until the closing date. Be sure to confirm the final meter readings and inform your utility providers about your move to avoid overcharges or service interruptions for the new owners.
• Insurance: Your home insurance policy must remain active until the sale is officially finalized. This ensures coverage in case of unexpected events, such as damage or accidents, before ownership transfers to the buyer. Cancelling too early could leave you vulnerable to financial risks.
• Other Fees: Additional costs may apply, such as strata document fees for those selling in a strata property. These fees, typically ranging from $200 to $400, cover the preparation of essential documents like bylaws, financial statements, and meeting minutes, which are critical for the buyer’s due diligence. Make sure to budget for these and check with your strata management for specific costs.

Is Selling a Home Worth It?

Absolutely. The key is to budget wisely and work with professionals who can guide you through the process. With the right team, selling your home in Surrey can be smooth and profitable. Selling a home in Surrey BC, comes with costs, but knowing what to expect can help you avoid surprises.

From REALTOR® commissions to legal fees and moving costs, these expenses are part of ensuring your home sells quickly and for top dollar.

What if I have any questions about moving to Surrey, BC?

Selecting an excellent real estate professional is key to a successful home purchase. The Germyn Group, with our deep understanding of Surrey and its real estate dynamics, is committed to guiding you every step of the way.

We invite you to book a consultation with us. During our meeting, we’ll discuss your needs, preferences, and any questions you might have about the Surrey real estate market.

As you embark on this exciting journey, remember that the right home in Surrey is more than just a property; it’s a foundation for your future. With the Germyn Group by your side, let’s make your dream of homeownership in a beautiful reality.