Closing costs when selling a home

Selling your home is a process that needs some serious attention. Many decisions must be made, big and small, to get the highest possible price for your home. Here is an overview of selling costs to expect when selling a home.

Real Property Report (RPR)

$0-$1000. A real property report is basically a drawing of the lot, including the home, the garage, decks, concrete paths etc. If a seller didn’t make any changes to the property, the current RPR does not need updating. However, if a seller, for example, changed the deck, added a garage, added a window well to new basement windows or added air conditioning, then the RPR needs updating. Prices for a brand new RPR hover between $500 to $1000. Updates to the RPR are usually cheaper.

Lawyer

$800-$1500. A lawyer takes on the closing of the transaction, including transfer of land at the Land Titles Office, transferring the funds of sale. In Calgary, expect a lawyer to cost, on average, between $1000 and $1500, including disbursements and depending on the (many) tasks involved.

Realtor commissions

Realtor fees in Alberta are not standard, but the most used structure is 7% on the first $100,000 and 3% on the balance. Calgary (and Alberta) have the lowest realtor commissions in Canada. This fee includes everything, from getting your home to market, as well as the commission fees for the buying realtor. In Calgary, most transactions, more than 95%, involve two realtors. a selling and buying realtor, each working in the best interests of their client. Who you work with is important! Learn more on how to choose a realtor.

 

Ask us for a free monthly Market Report

All sold data, including home features, number of days on the market and the ratio list price vs selling price. Sold data is a great way to understand the real estate market in your community.

 

Renegotiation costs

Most buyers get a home inspection done and pay for this inspection out of their own pocket. Very few homes in Calgary are perfect and issues arise. It is between the buyer and the seller to negotiate who pays for these issues. Depending on the extent of the issues, a seller can expect a buyer to renegotiate on price.

Condo documents

$10-$400. When selling a condo, the contract between buyer and seller states that the seller must provide the buyer with a number of condominium documents. The cost for condominium documents in Calgary can cost up to several hundreds of dollars. Management companies establish their own set fees for these documents, and some companies charge more than others.

Estoppel Certificate

$150 – $300. A seller of a condo also needs to provide an Estoppel certificate. This certificate relates some very important information for a buyer, such as arrears in condo fees and any known special assessments. The Estoppel certificate is usually purchased via the lawyer and costs roughly between $150 and $300, depending on the management company. If any special assessments are in place, the cost is assumed by the seller, unless otherwise negotiated.

 

 

Staging

$0 – $2500. Staging is important for the sale of a home. There are several routes to choose for staging when selling a home. Some are costly; some are less expensive.

• If the home is still occupied, the seller can use the existing furniture and personal items for staging. Sometimes, just removing or moving some furniture can already make a big difference. Alternatively, a seller can buy a few (inexpensive) items for staging, or even borrow a few things from a friend.
• A step up in staging is to hire a professional stager. A professional stager gives you tips and pointers. Some stagers rent out furniture or decorations to make the home look better for sale.
• If the home is vacant, a professional staging company can stage the home. Staging an entire home is not cheap. To save on costs, a seller can choose to only stage the living room and kitchen, and perhaps a bedroom.

 

Cleaning and decluttering

$0-$500. Cleaning the house may be the best investment to sell a house for more money. Do it yourself or hire a cleaning company to make the home sparkle. A clean home creates a positive impression that stays with a buyer throughout the complete home viewing. Decluttering the home is essentially part of the cleaning and can work miracles in selling the home. We created a post on getting your home ready for sale.

Small fixes

Buyers can be ‘tire kickers’. In other words, if one light bulb is not working, a buyer may be convinced that something is wrong with the entire electrical circuit. Try to fix all the smaller things. Get all the light bulbs to work, fix little holes, paint that wall that has too many scuffs, clean the carpets, etc.  Find a full list of tips to get your home ready for sale.

Moving costs

The cost of moving varies from a truck rental and pizza for friends to a professional moving company. Whichever way is chosen, moving homes costs money.

 

Disclaimer: Costs are based on our personal experience in Calgary and on an average home.