You may not have heard the rule of thumb that the cost of selling one house to buy another house might cost between 6 – 10% of the value of your home. In Toronto, selling a $500,000 home to buy a $700,000 home might run you $60,000 in fees and taxes. That same transaction in another province might only be $35,000. The costs favour staying put, but in a real estate bull market the increased valuations may have made stomaching these costs more palatable, leading to people moving more often than they might otherwise. I’ve actually heard of people moving four times within the first 10 years of homeownership.
This short video breaks down the costs. If you can’t see the embedded video below, click here to watch it on YouTube.