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What can you expect to pay when you buy or sell a home in Calgary?
One of the areas where Calgary home buyers most frequently run into problems is with closing costs. Buyers often do not accurately anticipate the costs associated with closing a Calgary real estate transaction, and the resulting cash crunch can add stress at a time when you need it least. Certain fees are automatically assigned to either the Buyer or the Seller; other costs are either negotiable or prorated to the Buyer or the Seller.
Below you will find a brief explanation of these costs, yet it may not include all items required specific to your property, or the area in which you have purchased. This is a guideline, but your lawyer can provide a fairly close estimate, and is the best resource.
Buyer's Fees
Costs can range from 1.5% to 5% of total purchase price, excluding down payment.
For example, a purchase price of $250,000 would yield:
Deposit Your deposit will likely be around 5% of the purchase price. The deposit is then deducted from the amount owed for your down payment at a later date. | $5,000-$10,000+ |
Inspection Fees - General/Structural | $400 - $500 |
Additional Inspection Fees - Detailed (roof, mould, asbestos, water damage, etc) | Varies |
Realtor® Commissions | Dependant on contract but usually $0* |
Adjustment Costs (Property Tax) | $0-$3,000 |
Land Transfer Fee | $200-$1,000 |
Mortgage Application and Appraisal (may be waived by bank) | $200 - $400 |
Mortgage Insurance | $2,000+ |
Legal Fees & Disbursements (due at time of closing) | $1,000 - $2,000 |
GST (for new homes only) | Varies |
Home and Content Insurance | $1,500+ |
Moving and/or Storage Expenses | $1,000+ |
* In most cases, in Calgary, the realtor fees are paid for by the seller. In the rare case that the commission is not paid by the seller, it is often with discount brokerages, builders and self-represented sellers.
Seller's Fees
Costs can range from 1.5% to 5% of total sale price.
For example, a sale price of $250,000 would yield:
Home Staging | $2,500+ |
Realtor® Commissions | Negotiated* |
Property Tax Proration | Varies |
Unpaid Homeowner/Condo Fees | Varies |
Legal Fees & Disbursements (due at time of closing) | $1,000 - $2,000 |
Real Property Report - New | $500 - $1,000 |
Real Property Report - Updated | $250 - $400 |
Mortgage Interest Adjustments - if applicable (due at time of closing) | $350+ |
Home and Content Insurance | $1,500+ |
Moving and/or Storage Expenses | $1,000+ |
* Most real estate agents receive a commission from the seller as part of their contract. For example, in Alberta, realtors receive a commission of 7% on the first $100,000 and 3% on the remaining balance of the home’s sale price. This fee is usually split 50/50 between the buyer’s agent and the seller’s agent.
Please note that these closing costs are subject to change and are based on gathered averages.
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