Typical Cost of selling a home in Metro Vancouver:

Real Estate Agent Fees + GST

• Typical commission structure is 7% on the first $100,000 and 2.5% on the balance of the sale price, this is split between the buyer's and seller's agents. This can vary since there is no fixed commission.

• Example Commission on $1,000,000 sale price = $29,500 + GST

Legal Fees + GST

• Expect to pay between $1,000 and $2,000 for legal services. This includes title registration.

Mortgage Discharge Fees

• Any prepayment penalty levied by the financial institution for early pay-out of an existing mortgage.

Utilities and Property Tax

• Your share of the property taxes and city utility for the year if the current year’s taxes have not yet been paid, plus any penalties due for late payment of unpaid taxes and city utilities. This cost will be adjusted by your lawyer/ notary at the time of closing.

Strata Fees

• If you live in a strata property, consider any fees associated with selling, like obtaining a current strata document package, plus any fees owed to strata corporation, and move in/ out fee. 

Capital Gains Tax

• If the property is not your principal residence, you may be subject to capital gains tax on the profit from the sale. Speak to your accountant for details.

BC Home Flipping Tax (The "730-Day Rule")

Effective January 1, 2025, this is a provincial tax on the profit made from selling a residential property (including pre-sale assignments).

• The Timeline:

  • 0–365 Days: A flat 20% tax on the profit.

  • 366–729 Days: The rate gradually declines from 20% to 0% on a daily sliding scale.

  • 730+ Days (2 Years): No BC Flipping Tax applies.

• Who it affects: Anyone selling a BC property, regardless of whether they are a resident or a non-resident.

• Primary Residence Deduction: If the home was your primary residence for at least 365 days, you can deduct up to $20,000 from your taxable profit before the tax is calculated.

• Filing Requirement: If you sell within 2 years, you must file a separate BC Home Flipping Tax Return within 90 days of the sale, even if you think you qualify for an exemption.

Federal Anti-Flipping Rule (The "365-Day Rule")

Effective January 1, 2023, the Canada Revenue Agency (CRA) changed how they view short-term sales.

• The Rule: If you sell a property you've owned for less than 365 consecutive days, the profit is automatically treated as 100% Business Income.

• The Consequence:

  1. No Capital Gains Treatment: Usually, only 50% of a profit is taxed (capital gains). Under this rule, 100% of the profit is added to your income and taxed at your marginal rate.

  2. No Principal Residence Exemption: Even if you lived in the house, you cannot use the exemption to avoid tax if you sold it in under a year.

• Intent Doesn't Matter: Previously, you could argue "life changed." Now, it's a "bright-line test"—if you sell under the 1-year mark, the CRA assumes you are a flipper by default.

Comparison Table

Other Costs to Consider

Moving Costs

Pre-Listing Inspection

Home staging

Renovations and repairs

Disclaimer: This information is for general educational purposes only and does not constitute professional tax, legal, or financial advice. Tax laws in BC and Canada are subject to change. Always consult with a qualified accountant or tax professional before making real estate decisions.