How Much Does it Cost to Sell a Home in Calgary, AB?

When most people plan for a home sale, they’re already thinking about what they’ll earn once the deal is done. However, financially speaking, there are more considerations to be mindful of than just your returns.

If you’re planning on selling your home in Calgary, you’ll want to be aware of the costs that come with it. Being unprepared for some of these expenses could lead to unpleasant surprises before or after your sale.

Real Estate Agent Commissions

Right off the bat, let’s look at what’s (usually) the biggest cost involved in selling your home – working with an agent.

When you sell your home with a real estate agent, you’ll wind up paying a commission after the sale. This commission then gets divided between your agent and the buyer’s agent.

Here’s where things get a little tricky. In Alberta, real estate commissions follow a different structure compared to other markets like Ontario. Usually, agents charge one rate of commission for the first 100K of the home (on average around 7%) then a second rate for the remaining amount (on average around 3%). Finally, these commission costs also face 5% GST.

Every agent has their own commission structure and may charge a different rate based on the type of services they offer. So, you’ll want to do your due diligence when speaking with real estate agents and ask for information about their commission or fee scales.

What’s Included in an Agent’s Commission or Fees?

The main reason why commission rates can vary widely is because no two agents are the same. Like any type of service, you often get what you pay for when it comes to working with an agent. As a seller, it’s important to understand the value that an agent brings, including their market experience, negotiation skills, and ability to attract qualified buyers.

Choosing your agent based solely on commission rates alone can be tempting, however, lower fees typically mean you’re not getting the best possible strategies for your sale. As a result, you may end up leaving money on the table.

Thinking about selling your home? Explore these related blogs for more advice.

Working With a Real Estate Lawyer

A real estate agent won’t be the only professional involved in your home sale. Because of all the legalities that come with selling a home in Calgary, you’ll also be working with a real estate lawyer.

A lawyer’s role includes reviewing the purchase contract, ensuring that title transfers are completed correctly, and addressing any legal issues that may arise. The cost of these services can vary depending on the complexity of the transaction and any additional requirements, such as clearing encumbrances or addressing discrepancies in the property’s title.

Making Your Home Market Ready

If you’re looking to get the best result from the sale of your Calgary home, you’ll need to do some work upfront. Just like working with a real estate agent, choosing to do things the right way rather than going with the cheapest option can pay dividends when your house hits the market.

Presenting a home in its best possible condition is key to attracting buyers and potentially achieving a higher sale price. That said, preparation costs vary widely depending on the property’s condition and your overall goals.

For instance, fresh paint and minor touch-ups can have a big impact on a home’s appearance without being too costly.

Proper outdoor maintenance like mowing the lawn, trimming bushes, and even planting seasonal flowers can also give your home a boost without being super costly (if you already own the equipment). In the winter, keeping walkways and driveways shoveled tells buyers that the home has been well looked after over the years.

While optional, upgrading kitchens, bathrooms, or other areas can potentially increase the sale price but require a more substantial investment. Your agent can make informed recommendations based on the state of your home and the ROI of certain projects.

Moving Day Costs

Although not a direct selling expense, moving costs are often an overlooked aspect of selling a home. Whether hiring professional movers or renting a vehicle for a do-it-yourself move, these costs can vary significantly depending on the volume of belongings and the distance involved. If you need recommendations on trustworthy movers in Calgary, you can ask your real estate agent.

Looking for more insights about selling in Calgary? Read these blogs next!

What About Tax?

One common question we hear from sellers is whether or not they’ll pay tax on the sale of their home. Here’s the good news – if the house you’re selling is your primary residence, you’ll be exempt from paying capital gains tax on the money you earn from the sale.

However, for properties that were used as investment properties or secondary residences, capital gains tax may apply. This tax is calculated on a portion of the profit made from the sale and is added to your taxable income for the year. If you’re in this scenario it’s best to consult with an accountant or real estate agent to understand the potential tax implications and ensure proper reporting.

Selling a home in Calgary? Partner with Dolce. Call 403.999.5882 to get in touch or send us an email at info@dolcerealestate.ca.

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