You’re selling your property for ₱8 million.

Congratulations. Before you start planning how to spend it, though — do you know how much you’ll actually take home?

For most sellers here in Cagayan de Oro, the answer is not ₱8 million. In this email, I’m going to walk you through every cost involved in selling a property in CDO so there are zero surprises when you get to the closing table.

Who pays what?

Selling a property in the Philippines involves two types of costs: taxes paid to the government, and fees paid to professionals.

Who pays what depends on the agreement between buyer and seller. But here in Cagayan de Oro, the trend is clear: selling prices are net to the seller. That means the buyer shoulders the transfer taxes and fees — CGT, DST, transfer tax at the ROD, and transfer tax at City Hall. The seller shoulders the broker’s fee (typically 5%) and settles any outstanding real property tax and HOA dues before transfer.

Let’s go through each one.

Cost 1: Capital Gains Tax (CGT) This is the big one. CGT is 6% of whichever is higher: the selling price, the BIR zonal value, or the market value reflected in the tax declaration.

What’s zonal value? It’s the BIR’s own valuation of your property — typically updated every 4 to 5 years. Always check the latest figures before pricing your property.

On an ₱8 million sale: CGT = ₱480,000.

That’s almost half a million going straight to BIR.

Cost 2: Documentary Stamp Tax (DST)

DST is 1.5% of the same basis — whichever is higher between selling price, zonal value, or declared market value.

On ₱8 million: DST = ₱120,000.

Cost 3: Transfer Tax — City Hall

This goes to the local government. Cagayan de Oro City Hall charges 0.5% of the selling price or zonal value.

On ₱8 million: Transfer Tax = ₱40,000.

Cost 4: Broker’s Commission

A licensed real estate broker typically charges 5% of the selling price. Some charge 3–5% depending on the property and arrangement.

On ₱8 million: Commission = ₱400,000.

I know that sounds like a lot. But a good broker earns it — qualified buyers, skilled negotiation, all the paperwork handled, and the deal actually closed. Sellers who work with a licensed broker consistently net more, even after commission, than those who go it alone.

Cost 5: ROD Registration, Notarial Fee & Processing fee for title transfer (payable to processor)

The ROD uses its own matrix, so we can’t give you an exact figure — but a 1% estimate is a safe upper bound. Add in the notarial fee and title transfer processing fee, and this is where sellers are often caught off guard.

Cost 6: Real Property Tax Clearance & HOA Dues

Before any transfer can proceed, you’ll need an updated RPT clearance from the city and a clearance from your homeowners association. Any outstanding balance is the seller’s responsibility.

Selling Price: ₱8,000,000

For this tax computation, for a property selling at 8M- all taxes and fees to buyer, considering that the HOA dues and RPT are updated, the net amount is ₱7,600,000.00. Not ₱8 million.

This is why I always tell sellers: know your net before you agree to any price.

What I do with every client is compute the seller’s net proceeds before they accept any offer. And once we’ve agreed on a number, I prepare an Accepted Offer document — e-signed by both parties — so the terms are clear and on paper from day one.

Three things I wish every CDO seller knew:

1. Always compute based on the HIGHER figure — selling price or zonal value. BIR uses whichever is higher to compute your taxes. If you’re pricing your property without checking the current zonal value first, you may be in for a surprise at the BIR counter.

2. Be clear from the start: is the price net-to-seller or inclusive of taxes? This one misunderstanding is behind most of the last-minute deal collapses I’ve seen. Get it in writing before anything else.

3. Bring in a licensed broker early — not just to find a buyer. Finding a buyer is not the finish line. For resale properties, there’s still title transfer, bank coordination, tax payments, and document processing ahead. Without someone who knows the process, deals fall apart at the execution stage. A good broker helps you price correctly, prepares your documents, and walks you through to turnover.

If you’re thinking about selling in CDO:

I offer free property consultations on the full sales process — from pricing to closing. If you want a personalized net computation for your specific property, we can work through that together.

Message me on WhatsApp to schedule a consultation.

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