Sellers’ cost are fewer in number than those for buyers but for sellers the costs can be more substantial. If you’re selling your house in Calgary real estate market, there are some extra costs that you need to think about before you decide list your property.
Because of the Canadian Competition Act, there are not any standardized commission structures. Commission is always negotiated by the seller and seller’s Realtor. With that being said, as a rule of thumb, Realtor® fees are generally 7% of the first $100,000 of the the sale price and 3% on the remainder. While there are companies that may give you a discount on the commission, you get what you pay for. A full service real estate agent will list your home on the MLS, take professional photos, field all of the inquires, provide feedback about showings, market your property and much more. A discount real estate agent will often just list your property on the MLS and leave you to sell your home, on your own.
Legal Disbursements and Fees
A Calgary real estate lawyer will facilitate the transfer of ownership and funds for a real estate transaction and ensure that you are legally protected. Legal fees vary but you can expect to pay between $400-$1000 depending on the firm.
Mortgage Discharge Fees
Mortgage penalties can be substantial. If your mortgage is locked in for a specific term and you are looking sell your home before the end of the term, you will likely have to pay a penalty. The cost varies greatly and it’s dependent on the mortgage value, the time left in the term and the terms of your mortgage but I’ve seen penalties run as high as $15000. However, you may be able port your mortgage (transfer it to another property purchase) and avoid the penalties all together. It is best to speak with your banker or mortgage provider about your Mortgage Discharge Fees.