The Real Costs of Selling a House in Alberta

Sale price is not proceeds. Between the offer and your bank account sits a list of costs that varies with how you sell. Knowing that list is the only way to compare selling routes fairly.

Costs on a traditional Alberta listing

• Realtor commission, plus GST on the commission
• Real estate lawyer fees and disbursements
• Mortgage discharge fees and, if you break a term early, a prepayment penalty
• Repairs and updates to make the home showable
• Staging, photography and cleaning
• Property tax and condo fee adjustments at closing
• Carrying costs — mortgage interest, taxes, insurance, utilities — for every month it's listed
• Repair credits or price reductions negotiated after inspection

Costs on a direct sale

• Real estate lawyer fees and disbursements
• Mortgage discharge and any prepayment penalty
• Tax and fee adjustments at closing
• Payout of any liens, writs or arrears registered against title

No commission, no prep, no staging, and far fewer months of carrying costs. That's the trade being made against a lower gross price.

The cost people forget

Carrying costs. On a typical Alberta home, mortgage interest, property taxes, insurance and utilities can run well over a thousand dollars a month. Four months on market is four months of that — often more than the difference between a listing price and a direct offer.

How to build your own comparison

Write two columns. In each, put the expected sale price, then subtract every applicable cost above and the number of months of carrying costs. Compare the bottoms of the columns. Ask your lawyer for a fees estimate and your lender for a payout statement — both are free and both make the comparison real.

This article is general information for Alberta property owners, not legal, tax or financial advice. Always get independent advice from your own lawyer or accountant before selling.