What does the selling price include?
Want the exact breakdown of what the selling price covers — so you don’t leave money or expectations on the table?
The short, direct answer
The selling price is the dollar amount the buyer agrees to pay for your property. That number covers the physical property (land and permanent fixtures) and any items you explicitly include in the Agreement of Purchase and Sale. It does not automatically cover your costs to sell, mortgage payouts, or taxes you may owe on a gain. In Milton, ON, the selling price is the headline number buyers see, but your net proceeds come after a set of predictable deductions and local closing adjustments.
What the selling price includes — line by line
- Land and building: The property lot and all permanent structures are included.
- Fixtures: Built-in items that are affixed to the property (lighting, bathroom fixtures, built-in cabinetry, furnace, HVAC systems, plumbing fixtures, and hardwired appliances) are normally included unless the seller specifically excludes them.
- Agreed chattels: Freestanding items — like fridges, washers, dryers, window coverings, and garden sheds — are included only if the contract lists them.
- Rights and easements that convey with title: If a legal right or easement transfers with the land, it’s part of the deal.
- Any terms in the Agreement of Purchase and Sale: If the buyer and seller sign it, those written items become part of the sale.
What the selling price does NOT include — know the difference
- Real estate commission and brokerage fees: Those come off the gross sale price and reduce your net.
- Closing costs and legal fees: You will pay your lawyer to close the sale.
- Mortgage payoff and discharge costs: Any outstanding mortgage balance must be paid out of the sale proceeds; penalties may apply if you break a term.
- Pre-paid utilities, property tax adjustments, condo fees: These are settled at closing through adjustments.
- Capital gains tax (if applicable): If the property is not your principal residence, tax may apply on gains.
- HST on new builds: Resale homes typically don’t carry HST on the purchase price; new homes do. If you’re selling a new build, HST implications must be addressed.
How inclusions and exclusions are handled in Milton, ON
Ontario law and standard real estate practice treat fixtures as part of the land unless explicitly excluded. That means the general rule in Milton and across Ontario is: fixtures stay, chattels do not — unless the Agreement of Purchase and Sale specifies otherwise.
Practical steps:
- Inventory the items: Create a short list of what you intend to leave and what you’ll take.
- Be explicit in the contract: Use clear language — “fridge included” or “light fixture excluded.” Vague language creates disputes.
- Use photos or a written addendum for clarity on unique items (custom blinds, antique fixtures, built-ins).
Local specifics that matter in Milton
Milton is part of Halton Region and within the Greater Toronto Area commuter belt. That affects selling price components in several ways:
- Buyer expectations: Buyers from the GTA expect move-in-ready homes. Including appliances and many fixtures can boost perceived value and speed up sale.
- Condo vs detached timing: If selling a condo in Milton, include a status certificate clause and highlight condo fees. Condo buyers look at monthly costs as part of total price acceptance.
- Closing date sensitivity: Many buyers coordinate move-ins with school schedules or GO Transit access. A tight closing window can impact offers and sometimes the negotiated price.
- Local market demand: Rapid growth and limited inventory in Milton tends to push gross selling prices higher. But net proceeds still shrink by the predictable costs listed below.
Your true bottom line: how to move from selling price to net proceeds
Most sellers fixate on the selling price headline. Smart sellers calculate net proceeds before they commit. Here’s a basic formula you can use for Milton listings:
Net proceeds = Selling price – realtor commission – mortgage payoff (including discharge) – legal fees – adjustments (property tax, utilities, condo fees) – repairs agreed in the contract – any HST or other applicable taxes
Typical costs to budget (approximate ranges, confirm with your agent and lawyer):
- Realtor commission: Varies; commonly 3%–5% of selling price split between listing and buyer’s agents. HST may apply to commission in Ontario.
- Legal fees: Expect a flat fee plus disbursements. Ask your lawyer for a clear estimate based on your file.
- Mortgage discharge: Check with your lender for payout amounts and early payout penalties.
- Home repairs or credits: If inspection or conditions require fixes, that reduces your final cash in hand.
Negotiation levers tied directly to the selling price
If you want to influence the selling price, control these inclusion levers:
- Appliances and chattels: Offering modern appliances and washer/dryer sets can increase buyer interest and sometimes justify a higher price.
- Closing flexibility: Offering a flexible closing date to match the buyer’s needs can bring more offers and better price.
- Condition and staging: A staged, well-maintained home nets higher offers. The selling price often reflects perceived move-in readiness.
- Transparency on inclusions: Explicitly list items included — avoid later disputes that can derail a sale.
When new home rules change the selling price math
New construction has different rules. A new-build selling price typically includes HST components and appliance packages may be optional extras. If you sell a new unit you developed or flipped, talk to an accountant about HST and income reporting. For most resale houses in Milton, HST is not charged on the selling price.
Practical checklist for sellers in Milton, ON
- Prepare a written list of included and excluded items.
- Get a pre-listing market assessment from a local agent who knows Milton neighborhoods.
- Request a mortgage payout statement and ask about discharge penalties.
- Budget for commission (ask about HST) and legal fees.
- Clarify any condo-specific requirements if applicable (status certificate, condo docs).
- Decide on realistic closing dates and communicate them in the listing.
- Inspect and fix obvious issues; consider offering an inspection report to buyers.
Why local expertise matters
Milton’s market moves differently than downtown Toronto or other GTA suburbs. Pricing strategy, what buyers expect to be included, and the speed of sales change across neighborhoods. Working with a Milton-focused agent who knows local buyer psychology, school zones, and transit timelines ensures you convert selling price into maximum net proceeds.
If you want a clear, written estimate of your net proceeds for your Milton property—ready in 48 hours—start with a concise inventory of included items and your mortgage payoff number.
Contact for a local, no-nonsense consultation: Tony Sousa — tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Common questions Milton sellers ask (and direct answers)
Q: Does the selling price include appliances like the fridge and washer in Milton, ON?
A: Only if they are written into the Agreement of Purchase and Sale. In Ontario, freestanding appliances are chattels and do not automatically transfer. If you want to include them to increase buyer interest, list them explicitly. If you want to keep an item, note that in the contract as an exclusion.
Q: Will I pay HST on the selling price when I sell my resale home in Milton?
A: Generally, no. HST typically does not apply to the sale of a used residential home. HST does apply to new construction or certain commercial property sales. If you’re unsure—especially if you’re a builder, developer, or flipping homes—get a tax advisor involved.
Q: What typical seller closing costs should I expect in Milton?
A: Expect realtor commission (commonly 3%–5% split), legal fees, mortgage discharge costs if applicable, and adjustments for property taxes, utilities, or condo fees. You may also pay for repairs agreed in the contract. Ask your agent for an itemized estimate before accepting an offer.
Q: If my buyer wants certain fixtures removed after the offer, who pays?
A: If the item was a fixture (part of the home) and the buyer expected it to stay, removing it without consent can lead to a breach. If the buyer asks for removal or credit during negotiation, either the buyer or seller must agree. Get everything in writing in the amendment to the contract.
Q: How should I list inclusions and exclusions in my Milton listing to avoid disputes?
A: Be explicit. Use a simple bullet list in the MLS remarks and mirror that same list in the Agreement of Purchase and Sale. Examples: “Included: built-in dishwasher, window coverings, gas stove. Excluded: garden shed, free-standing freezer.” Consider photos of unique fixtures to add clarity.
Q: Does the selling price include provincial or municipal adjustments at closing?
A: The selling price is the agreed amount. Municipal property taxes, condo fees, and utility prepayments are adjusted at closing. Those adjustments are calculated by your lawyer and will increase or decrease the amount you receive on closing day.
Q: Can offering to include more items increase my selling price in Milton?
A: Yes. Strategic inclusions like high-quality appliances, window coverings, and recent furnace or AC equipment can make a listing more attractive and sometimes lead to higher offers—especially in a competitive Milton market.
If you want a realistic, written net-proceeds estimate for your Milton home or a precise checklist of what to include in your listing, email tony@sousasells.ca or call 416-477-2620. No fluff. Clear numbers.
