Closing Costs in Alberta - 9 Likely Costs when Selling Your House

Posted by Jared Chamberlain on Friday, December 20th, 2019 at 9:31am.

closing_costs_albertaIf you are planning on selling your home or condo, there are closing costs in Alberta that you need to be aware of. Here is our quick guide to the majority of the costs of selling your home.

We’ve broken down this guide into 3 parts:

  1. Costs before listing your home
  2. Costs while your home is listed
  3. Costs before or on your possession

 

Costs Before Listing Your Home

Getting your home ready for sale when living in Alberta can be an enormous task for some, which also goes for the costs. If you are the type of person that keeps your home in great shape and are fixing and continually updating, not only will your costs and time to prep your home be lower but you could also see a greater return on your dollar. This is because your home is in an upgraded condition compared to others that buyers will see.

  • Maintenance and Improvement Costs: A great rule of thumb as being a homeowner is to invest about 1-2% of the value of your home back into it each year. This way, when it comes time to sell, the majority of the main issues are resolved, and you will have done some upgrades to the home, which you could see a return on your investment. Here are some areas that you particularly want to pay attention to:

    • Painting (interior or exterior)

    • Professional cleaning

    • Gardening

    • Small finishing touches like baseboards and trim 

    • Repairs to anything that is broken or hasn’t worked in a long time

  • Pre-Home Inspection can be a great way to help uncover some of the items that you will need to fix or get quotes for so the future buyer of your home can know what the actual costs are for specific issues. A pre-home inspection isn’t going to catch everything wrong on your home, but it is something that will find most of the items, and by doing so will help the ease of your sale process. (Range of $400-$600)

  • Staging your home is essential when selling. This doesn’t mean you need to get rid of all your current furniture or re-paint everything, but it does mean creating your home as a neutral palette so buyers can see themselves living there and helps them fall in love with your home. (Range of $500-$2,000+ depending on services rendered)

  • Storage could be something you may need to consider as you have de-cluttered and need a space to store all the ‘other’ items you have. If you don’t want to pay for storage, we have seen many homeowners pack their boxes and store them in their basement or garage. If you go this route, the best plan of attack is to stack them in the middle of the room or area they are stored in an orderly manner. By doing so, prospective buyers are able to see around them and get a feel for how large the room still is, even though there is all that stuff there.

 

Costs While Your Home is Listed

When you have finally got your home on the market, there are some pro-active items you will want to prepare yourself for. 

For example, if you have a home that is a single-family style home and you own the land, you will most likely have a real property report (sometimes called a survey plan) that you may need to get updated or possibly a brand new one. When a buyer purchases your home, this will be one item that needs to be current with the stamps and approvals from the city on it. It’s best to get ahead of this item and start the process early as not to have any delays on closing. The costs for getting an updated or brand new Real Property Report can range from $500 - $1,000.

Another great example is if you own a condo that is apart of a condominium corporation. You will need to get all the current condo documents for a buyer for their conditions. Many management companies are and have moved to online ordering of these docs, which has saved us days of waiting as well as costs. It’s best to reach out to your management company and get a quote for all the documents you are needing that you are missing. The costs for collecting condo documents now have a cap on them, which is excellent and will save you a lot of money.

 

Costs On or Before Your Possession

There can be some costs outside of the normally expected costs that can come up from the negotiations with your buyers, but for the most part, here are the costs you can expect before the big moving day.

  • Lawyers are needed to close your transaction, and the legal fees will range depending on the law office you work with. You can expect to spend around $1,000 up to $1,500, again depending on your sale price and the office.

  • Real Estate Commissions are paid at the closing as well. Here is a Realtor® Fees Calculator we have created to help explain this process for you.

  • Mortgage Penalties can play a part in the closing. Depending on your mortgage company, and if you are selling and not purchasing a home again, there can be payout penalties to get out of your mortgage. If you are planning on buying again and porting this mortgage, most lenders give you a grace period until they will charge this fee. Please talk with your mortgage lender to understand how they work.

  • Other items you could see come up are property taxes owed, condo fees to be paid and moving costs. There could be others, but this list is a great start to help you out!

Selling and moving is a lot of work and energy but can be very exciting. Take these tips and ideas for the costs you could see when selling and have fun with it. Take time to remember memories in your current home and take them with you wherever you are headed to next!

 

 

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