Imagine if a real estate deal was as simple as exchanging a cheque for keys. However, that is not the case, and there are even some costs involved that you may not be aware of. We break down six costs you should know about when selling your home to help you prepare.
Real Property Report (RPR)
An RPR is needed when you sell a home or bare land condominium. It’s described as “a legal document that clearly illustrates the location of significant visible improvements relative to property boundaries.” Wondering if you have one of these? You do! When you purchased your home, you would have received the RPR in the documents from your lawyer.
If during the time you have lived in the home, you have added anything to the property i.e. a garage, shed, hot tub, deck, and/or fence, you will have to UPDATE your RPR by calling the surveying company that stamped it. If you have lost or misplaced your RPR you will have to get a new one, as it is required for the sale of your home.
Once you have a firm sale on your property you will give the RPR to your lawyer to send to the buyer’s lawyer. The cost? An updated or new RPR can range from $500 – $1200
Commissions
As the seller, you are responsible for paying the commission of both the buyer’s agent and the seller’s agent. The standard commission in Calgary is 7% on the first $100,000, and 3% of the remaining balance of sale price + GST, split between agents. Please refer to our listing services for what is included in this cost!
Mortgage Payment Penalties
Make sure you talk to your bank or mortgage broker if you are thinking of selling before your mortgage hits maturity, as most lenders charge an early payoff penalty on closed mortgages if a debt is paid prior to maturity of the term. The most common penalty is: The greater of three months interest penalty OR the interest rate differential, so whichever amount is the larger of these two figures will be your penalty.
Legal Fees, Disbursements and Tax Adjustments
Your real estate lawyer will handle all the closing costs associated with the sale of your home including tax adjustments and disbursements. The cost will be $800+ – $1500 depending on the value of your home.
Home Staging – Vacant Homes
It is imperative that a home shows its absolute best during the selling process. If your home is vacant, you should consider hiring a staging company. Home stagers bring in furniture, art, and accessories to create an ambience in the home that appeals to the buyer’s emotions and senses; thus creating value to the buyer and in turn helping you get the most money in your pocket.
Staging ranges in price depending on the size of the home and the number of rooms that will need to be staged. Usually, a flat fee is charged for bringing in the furniture and setting up and then a monthly fee for “renting” the furniture is charged.
Condo Documents
If you are selling a Condominium:
Condo Documents have to be purchased from your Management Company – we are required to provide a FULL set of current documents to the Buyer upon acceptance of an offer. The cost will range, depending if you have some of the documents already. Prepare to pay anywhere from $100 – $500.
We want to give you, our customers, confidence during your selling process and by understanding these costs, we hope you will consider us when you’re ready to take that next step and sell your home!