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Cost of Selling a House in Calgary - Call (587) 330-8519

The major costs of selling a house (or seller closing costs) include the real estate commissions, legal fees, and sales tax on real estate commissions. These vary based on province, region, and your agent’s commission cost structure. You can expect to incur a value of $500 to $1500 on legal fees, which account for the preparation and recording of official documents.

1. Real Estate Commissions.
The commission rate on the first $100,000 of the final purchase price of the property is usually 3% to 4% while the commission rate on the remaining balance is 1% to 2% . For a $1M home, the commission would be $17,000. This is the sum of the commission on the first $100K of $3,500 and the commission on the remaining portion of $13,500. The commission is typically split between the seller and buyer agents based on an agreed upon amount.

2. Real Estate Lawyer.
Real estate lawyer fees generally range between $500-$1000 but the actual cost you pay may vary. Some of the services that your lawyer provide for you include:
Title Search: The seller lawyer must ensure that the seller closes any outstanding permits and agrees to pay any outstanding items from the proceeds of the sale of the house.
Letter of Direction: The seller lawyer will verify any mortgages and line of credit on the property and provide the buyer lawyer a Letter of Direction that states that any proceeds from the sale of the property will be used to pay off debt and taxes owing.
Statement of Adjustments: The Statement of Adjustments is a list of the expenses owing or prepaid by the seller at the time of closing. Closing Date:On the closing date, the buyer lawyer will electronically transfer funds to the seller lawyer. Do you pay tax on real estate commissions? Yes. The closing cost calculator calculates the sales tax for the combined real estate commissions for both the buyer and seller agents.

3. For Sale by Owner.
There are many considerations to be aware of if you choose to sell your house yourself (For Sale By Owner/ FSBO). The main advantage of selling your home by yourself is that you will be saving on the seller agent commission, which is one of the major closing costs. The issues you should take note of when self-listing your home include pricing/staging/marketing, proper legal disclosures, and buyer agent commission. You will also need to price your home at a fair market value by performing a comparative market analysis of the nearby real estate transactions in your neighbourhood.

You should also consider offering the buyer agent a commission and signing an agreement stating the percentage fee or you run the risk of buyer agents not showing the home to prospective buyers.

As there are many considerations involved with For Sale by Owner, we recommend that you hire a real estate agent unless you have experience with real estate transactions.
Real estate agents are also experienced negotiators in pricing and they are familiar with the closing process. Finally, your seller agent will have insurance against errors and mistake omissions for legal disclosures.