Realty Bytes- Conversations on Real Estate and Lifestyle

Where the Money Actually Goes When You Downsize

Episode Summary

This episode of Realty Bytes tackles a question almost every downsizer ends up asking, usually right after closing day. Where did the money actually go? Evelyn breaks down the real friction costs behind a typical Ontario downsize: commission and HST, land transfer tax, legal fees, moving costs, and getting the current home ready to sell. Using a real Caledon-area example, selling around $950,000 and buying around $650,000, she shows why a $300,000 windfall on paper usually lands closer to $225,000 to $230,000 in the bank. The episode also answers two of the most common listener questions and closes with a simple checklist for anyone about to run these numbers on their own home.

Episode Notes

Where the Money Actually Goes When You Downsize
Realty Bytes, EP.215

What this episode covers:

• Why "sale price minus purchase price" is the wrong way to estimate what you'll walk away with
• The real cost of selling: commission (4 to 5 percent) plus HST on top of it
• The real cost of buying: Ontario land transfer tax and legal fees on both transactions
• The hidden costs almost nobody budgets for: moving, staging, small repairs, and mortgage discharge if it applies
• A full worked example on a $950,000 sale and a $650,000 purchase, landing at $70,000 to $75,000 in total friction costs
• Two listener questions answered: does this apply if you're mortgage-free, and is commission negotiable
• The one thing to remember before you list

Mentioned in this episode:

• Free Downsizing Guide with a built-in net proceeds worksheet: https://contacts.byreferralonly.com/Form3.aspx?Key=D8BBBA6956BA57D245397E6A157C2264
• Book a no-pressure call with Evelyn: https://calendly.com/evelynlopes/consultation-meeting-evelyn-lopes-realty-team

Link to YouTube Video: https://www.youtube.com/watch?v=uZE6Uzq-IvU