Selling a home is one of the largest financial transactions most Canadians make. This guide walks through every stage from deciding to sell to closing day, and the costs along the way.
Step-by-Step Timeline for Selling Your Home
The selling process typically takes 2 to 4 months from start to finish. Here is what to expect at each stage.
| Step | Timeline | What Happens |
|---|---|---|
| 1. Decide to sell | 2–3 months before listing | Assess your finances, research the market, interview agents |
| 2. Prepare your home | 4–8 weeks before listing | Declutter, make repairs, deep clean, stage |
| 3. Set your price | 1–2 weeks before listing | Agent prepares CMA, agree on list price strategy |
| 4. List on MLS | Day 1 | Professional photos, listing goes live, marketing begins |
| 5. Showings and open houses | Days 1–30+ | Accommodate buyer visits, keep home show-ready |
| 6. Receive and negotiate offers | Varies | Review offers, counter-offer, negotiate terms |
| 7. Conditional period | 5–15 business days | Buyer satisfies conditions (inspection, financing, etc.) |
| 8. Closing day | 30–90 days after acceptance | Lawyers exchange funds, keys transferred, title changes |
Costs of Selling a House in Canada
Many sellers focus on their sale price without fully accounting for the costs involved. Here is what you can expect to pay.
| Expense | Typical Cost | Notes |
|---|---|---|
| Real estate commission | Often 3%–5% of sale price, plus sales tax | Split between listing and buyer’s agent (national survey average: 4.1%) |
| Legal fees | $1,000–$2,000 | Lawyer handles title transfer and mortgage discharge |
| Staging | $2,000–$5,000 | Professional staging of occupied or vacant home |
| Pre-sale repairs and improvements | $1,000–$10,000+ | Painting, flooring, landscaping, fixtures |
| Professional photography | $200–$500 | Included by many agents |
| Mortgage discharge/penalty | $0–$20,000+ | Depends on mortgage type and remaining term |
| Moving costs | $1,000–$5,000 | Local moves; long-distance moves cost more |
| Capital gains tax | Varies | Only applies if not your principal residence |
On a $600,000 sale with a 4% commission ($24,000 plus sales tax), total selling costs can reach roughly $30,000 to $45,000 before any mortgage penalty.
Real Estate Agent vs Selling Privately (FSBO)
You have two main options when selling: hire an agent or sell the home yourself.
| Factor | Real Estate Agent | For Sale by Owner (FSBO) |
|---|---|---|
| Commission | 3%–5% of sale price | 0%–1% (may still offer buyer agent commission) |
| MLS access | Full MLS listing and syndication | Limited or paid MLS services (e.g., PropertyGuys) |
| Pricing expertise | CMA and market knowledge | You research comparable sales yourself |
| Negotiation | Agent handles all negotiation | You negotiate directly with buyers/agents |
| Legal paperwork | Agent coordinates with lawyers | You manage paperwork (still need a lawyer) |
| Marketing | Professional photos, virtual tours, ads | You handle all marketing |
| Time investment | Minimal for seller | Significant (showings, calls, inquiries) |
| Sale price | Wider exposure and negotiation | Often fewer buyers; Canadian data on the price gap is limited |
Most sellers use an agent. FSBO tends to suit sellers who already have a buyer, know the local market well, or are comfortable negotiating.
How to Price Your Home
Pricing is one of the biggest decisions in selling. Too high and the listing tends to sit; too low and money can be left on the table.
Your agent will prepare a Comparative Market Analysis (CMA) that examines:
- Recent sales of similar homes in your neighbourhood (last 3–6 months)
- Active listings currently competing with your home
- Expired listings that failed to sell (often overpriced)
- Market conditions like average days on market and sale-to-list price ratio
- Property-specific adjustments for lot size, upgrades, condition, and location
In a seller’s market with limited inventory, pricing slightly below market value can trigger multiple offers and drive the price above asking. In a balanced or buyer’s market, a price at or slightly below market value keeps the listing competitive.
Preparing Your Home for Sale
First impressions matter, both at the door and in the listing photos.
Declutter and depersonalize. Removing excess furniture, personal photos and collections helps buyers picture themselves in the space.
Strategic repairs. Leaky faucets, drywall patches, burnt-out bulbs and obvious deferred maintenance. A pre-listing home inspection ($400–$600) can help you identify issues before buyers do.
Staging. Professional staging often costs $2,000 to $5,000; at a minimum, each room with a clear purpose, neutral decor and good lighting.
Professional photography. Most buyers start their search online, so listing photos are the first showing. A professional shoot often costs $200 to $500.
Curb appeal. Landscaping, a freshly painted front door, clean walkways, and exterior lighting all make a stronger first impression.
Understanding Offers
Offers differ in more than price.
Firm vs conditional offers. A firm offer has no conditions and is binding on acceptance. A conditional offer includes clauses like financing approval, home inspection, or sale of the buyer’s current home. Firm offers are less risky but may come with a lower price.
Multiple offers. In a competitive market, you may receive multiple offers. Your agent will present all offers, and you can accept, reject, or counter any of them. Some sellers set an offer date to concentrate interest and drive competitive bidding.
Key terms to watch:
- Deposit amount — Larger deposits signal a more committed buyer
- Closing date — Does it align with your timeline?
- Conditions and timelines — Fewer conditions with shorter timelines mean less risk
- Inclusions and exclusions — Appliances, fixtures, and window coverings can become sticking points
Closing Process
Once you accept an offer and conditions are satisfied (or waived), the deal moves toward closing.
Your real estate lawyer will handle the title transfer, mortgage discharge, property tax adjustments, and key exchange. Legal fees for a sale are often $1,000 to $2,000. The lawyer needs your mortgage details, property tax account, and any condo documentation.
On closing day, the buyer’s lawyer sends the purchase funds to your lawyer, who pays off your remaining mortgage, deducts fees, and transfers the balance to you. The title is registered in the buyer’s name, and you hand over the keys.
Tax Considerations
Principal residence exemption. If the home was your principal residence for every year you owned it, the entire capital gain is tax-free. You must designate the property on your tax return in the year of sale using Form T2091.
Capital gains on investment property. If the property was a rental, investment, or second home, you owe capital gains tax on the profit. The taxable capital gain is 50% of the profit, with no threshold (a 2024 budget proposal to raise it above $250,000 a year was cancelled in March 2025 and never took effect), taxed at your marginal tax rate.
Assignment sales and flipping. Since January 1, 2023, the profit on a home in Canada you owned for less than 365 consecutive days is business income (fully taxed, with no principal residence exemption) unless the sale was due to a listed life event: death, a household change, a relationship breakdown, a threat to safety, serious illness or disability, job loss, a relocation for work or school, insolvency, or the home's destruction or expropriation. How the flipping rule works covers assignments.
Provincial Differences
Selling a home involves different rules and costs depending on your province.
- Ontario — An industry survey (Payotte) puts the average total commission at 4.3%, against 5.7% in Newfoundland and Labrador and 4.09% nationally. Land transfer tax is paid by the buyer.
- British Columbia — Additional disclosure requirements. Property transfer tax is the buyer’s responsibility.
- Quebec — The civil law system means different contractual processes. When a broker is involved, the seller completes a seller’s declaration about the property.
- Alberta — No land transfer tax (only land titles fees, usually paid by the buyer).
The Bottom Line
Selling a home in Canada usually costs about 5% to 8% of the sale price in total. Preparation, pricing and timing do the most to shape the final price, and the choice between an agent and FSBO depends on the market and your comfort with the work.
Related Resources
Sources
The figures and rules on this page come from these sources, last checked against them between September 23, 2026 and September 29, 2026. How we check facts.
- Canada Revenue Agency: Capital Gains – 2025
- Canada Revenue Agency: Residential Property Flipping Rule
- Department of Finance Canada: Government of Canada announces deferral in implementation of change to capital gains…
- Government of Canada: Archived - Chapter 8: Tax Fairness for Every Generation | Budget 2024
- Payotte: Real estate commission in Canada (2026): the real numbers by province | Payotte
- Prime Minister of Canada: Prime Minister Carney cancels proposed capital gains tax increase