How do I calculate total cost of ownership?
Want to know the real price of selling your Georgetown home? Calculate the Total Cost of Ownership now — and stop guessing before you list.
Why smart sellers calculate Total Cost of Ownership (TCO)
You want one number before you list: how much will this house actually cost you to own and sell? That number decides your asking price, your negotiations, and whether you keep or sell. Total Cost of Ownership (TCO) is not a fancy accounting term. It’s the truth behind your net proceeds.
For home sellers in Georgetown, Ontario, TCO tells you how much cash you’ll walk away with — or how much you’ll need to cover if you move. Get it wrong and commissions, mortgage penalties, taxes, repairs and carrying costs eat your profit.
This post gives a direct, proven formula to calculate TCO, a clear worked example using realistic Georgetown numbers, and an action plan so you can make decisions that protect your money.
What is Total Cost of Ownership (TCO) for a home seller?
TCO = everything you paid (and will pay) to own the home while you owned it — plus everything you must pay to sell it now.
Key categories:
- Mortgage payoff (remaining principal + prepayment penalties)
- Accrued interest and final mortgage adjustments
- Realtor fees and commission
- Legal fees and closing costs
- Home staging, repairs, inspection fixes, and pre-sale improvements
- Property taxes and utilities during ownership (carrying costs)
- Insurance, condo fees (if applicable), and maintenance
- Moving costs and temporary housing
- Capital gains taxes (if applicable) or other tax consequences
We’ll turn that into a simple formula and walk through a real example.
The simple TCO formula every seller should use
Net Proceeds = Sale Price – Total Cost of Ownership
Total Cost of Ownership = Mortgage Payoff + Realtor & Legal Fees + Closing Adjustments + Repairs & Prep Costs + Carrying Costs + Moving & Other Costs
Break that down into a step-by-step checklist so you can calculate it without guesswork.
Step-by-step: Calculate TCO (do this now)
- Gather mortgage details
- Current mortgage balance (principal remaining)
- Interest rate and next payment date
- Any prepayment penalties or administration fees
- Exact mortgage payout figure from lender (request a payout statement)
- Estimate realtor commission and marketing costs
- Typical Ontario commission ranges 4%–6% of sale price (confirm with your listing agent)
- Include photography, staging, and advertising if you pay out-of-pocket
- Add legal fees and closing costs
- Lawyer or notary fees in Ontario: commonly $800–$1,500 (varies)
- Land transfer taxes usually apply to buyers, not sellers — but closing adjustments for utilities and property taxes do
- Count repairs, staging, and prep
- Any mandatory repairs from inspection
- Cosmetic work to hit market value (paint, landscaping, minor upgrades)
- Staging costs and pre-list inspections
- Calculate carrying costs
- Property taxes paid during your ownership (annual rate × years owned)
- Utilities, insurance, routine maintenance
- If vacant, budget higher utilities and winterizing costs
- Moving, storage, and temporary housing
- Movers, storage units, hotel or interim rental costs
- Tax impacts and other liabilities
- Principal residence exemption usually covers primary residence; capital gains unlikely for most sellers in Georgetown, but confirm with accountant
- If you rented part of the property or used it for business, tax rules differ
Now we’ll put numbers to this so the formula stops being theory.
Example: Realistic TCO for a Georgetown, ON home
Assume:
- Asking / expected sale price: $900,000
- Remaining mortgage balance: $520,000
- Realtor commission: 5% (total) = $45,000
- Legal fees and closing adjustments: $1,200
- Repairs & staging: $7,500
- Carrying costs (taxes, insurance, utilities for the last year): $8,000
- Moving & storage: $2,500
- Mortgage prepayment penalty: $3,000 (varies by lender)
Total Cost of Ownership = 520,000 + 45,000 + 1,200 + 7,500 + 8,000 + 2,500 + 3,000 = $587,200
Net Proceeds = 900,000 – 587,200 = $312,800
That $312,800 is the cash you get at closing before you pay any new mortgage or reinvest in your next home.
If you hadn’t included the $3,000 prepayment penalty or the $7,500 staging, you’d have overestimated net proceeds by $10,500. Big mistake.
How sellers in Georgetown can cut TCO and keep more cash
- Negotiate commission: Consider a flat fee or tiered commission. Get a second opinion. Even 0.5% saved on $900K is $4,500.
- Time the market: Avoid carrying costs by listing in peak demand months. Georgetown moves fast in spring; consult a local agent for timing.
- Shop mortgage payout: Some lenders waive penalties for porting. Porting the mortgage to a new property can save thousands.
- Targeted repairs only: Spend money where it returns value (kitchens, curb appeal, bathrooms). Avoid over-renovating.
- Pre-inspection: Find deal-killing issues early and control repair choice and cost.
- Bundle moving services and schedule off-peak for discounts.
Local considerations for Georgetown, ON sellers
- Property tax timing and adjustments: Halton Hills (Georgetown) property tax billing cycles affect closing day adjustments. Your lawyer will prorate taxes on closing.
- Market demand: Georgetown’s market fluctuates with GTA trends. Faster sales mean lower carrying costs and fewer repairs under pressure.
- Typical local commission structures and marketing expectations: Expect professional photos and virtual tours. Invest where it pays.
Work with a local expert who knows Halton Hills regulations and the buyer pool in Georgetown — that’s the fastest path to reducing TCO.
Quick checklist: 15-minute TCO audit
- Request mortgage payout statement today.
- Get a written commission quote and marketing plan.
- Obtain a pre-listing inspection estimate.
- Ask your lawyer for an estimate of closing costs and tax adjustments.
- Add one year of carrying costs (taxes, utilities, insurance).
- Estimate moving and temporary housing costs.
- Total everything to get your TCO and subtract from target sale price.
If your net proceeds don’t meet your goal, adjust price, timing, or reduce costs.
Why a local agent matters: the difference between theory and cash
Calculating TCO is math. But minimizing it is strategy. Local agents know which repairs convert to higher offers in Georgetown, which months bring competitive bidding, and how to negotiate commission and staging costs. They can often recapture marketing dollars from the buyer side or reduce days on market to lower carrying costs.
Tony Sousa is a Georgetown-based realtor who guides sellers through this exact calculation. He gets payout statements, lines up cost-effective staging, negotiates commissions and knows the Halton Hills market timings that reduce carrying costs. If you want a TCO that protects your cash, call or email for a personalized calculation.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
FAQ — Financing, Mortgages and Total Cost of Ownership (Georgetown, ON sellers)
Q: How do I get the exact mortgage payout figure?
A: Contact your lender and request a mortgage payout statement. It gives the remaining principal, interest adjustments and any prepayment penalty. Request it in writing; banks often give a 30-day payout figure.
Q: Do sellers pay land transfer tax in Ontario?
A: No. Land transfer tax is paid by the buyer at closing. Sellers will see closing adjustments (prorated property taxes, utilities) instead.
Q: Will I owe capital gains tax when I sell my Georgetown home?
A: If the property was your principal residence for all the time you owned it, usually no. Partial rental or business use can change this. Confirm with an accountant.
Q: What is a realistic realtor commission in Georgetown?
A: Commissions commonly range from 4%–6% in Ontario, but structures vary. Negotiate, compare proposals, and evaluate value, not just cost.
Q: How do mortgage prepayment penalties work?
A: Penalties depend on your mortgage type and lender. Fixed-rate mortgages often have higher penalties than variable. Ask for a payout statement to see the exact amount.
Q: How much should I budget for repairs and staging?
A: That depends on condition. Small cosmetic updates might be $2,000–$8,000. Major fixes can be $10,000+. Always get a few quotes and weigh projected return on investment.
Q: Can I reduce carrying costs before selling?
A: Yes. Reduce utilities, pause optional services, and complete urgent pre-list repairs quickly. Strong pricing and marketing shorten days on market, which reduces carrying costs.
Q: Should I port my mortgage to my next home?
A: If your rate and terms are favorable, porting can save prepayment penalties. Evaluate against current market rates and your long-term plan.
Q: How do I estimate net proceeds quickly?
A: Use this quick formula: Net = Expected Sale Price – (Mortgage Payout + Estimated Commission + Legal Fees + Repairs + Carrying + Moving). Update numbers with actual quotes for accuracy.
Q: Who should I contact to get a TCO done for my Georgetown home?
A: Contact a local realtor who offers a seller cost audit and partners with mortgage and legal experts. For a no-nonsense TCO audit, email tony@sousasells.ca or call 416-477-2620.
Calculate your TCO before you list. One accurate number changes negotiations, timing and saves thousands. If you want a fast, precise, local TCO and a plan to protect your cash, get a professional seller audit today.
Contact: tony@sousasells.ca | 416-477-2620 | https://www.sousasells.ca
