Calgary Real Estate Closing Costs
As a homebuyer, you may have heard about real estate closing costs. Closings costs also referred to as hidden costs are additional fees homebuyers are obligated to pay on top of the house purchase price. Closing costs are not flat fee, they vary depending on the property. Here’s a list of expenses home buyers will incur when buying a home.
- Home inspection
it is highly recommended that home buyers hire a professional to inspect your future home. This is to protect you from surprises after buying a home. Home inspection fees vary depending on the inspector and the size of the home. Generally, they cost around $400 – $600. Contact me to request a list of reputable home inspectors me or my clients have used in the past.
- Legal Fees / Lawyer fees
Whether selling your home or buying a home you will work with a lawyer. Again there is no flat fee for your lawyer. The price varies lawyer to lawyer and the price of the property. Usually, costs between $800 – $1400.
The lawyer is probably one of the most important people you work with during the real estate transaction. It’s important to work with a reputable lawyer, contact me for a list of reputable lawyers.
- Condo document reviewer (if buying a condo), typically costs $400 – $500
This applies if you are buying a condo. It is vital that you hire a professional to inspect all the condo documents before signing the dotted line.
- Prepaid Condo Fees
If the seller prepaid for the condo fees, the buyer will have to reimburse the seller. Real estate lawyer will adjust the amount and will be listed on ‘Statement of Adjustments’.
The Same process applies if you are selling your condo, the buyer will pay you back for the amount you have prepaid.
- Property Taxes
Home buyers may have to pay property taxes at the time of closing. If the seller has paid for the property taxes, buyers would have to pay the seller after taking possession of the property.
- Property Insurance
Buyers are required to have insurance due to security for the mortgage. Fees vary depending on the insurance product and the characteristics of the home.
- Appraisal Fee
Depending on the lender, you may have to pay for a property appraisal.
- Moving Expenses
Whether you hire a professional for moving or not, most likely there will be moving expenses.
- Utility connection charges
Some service providers may charge for moving or connection. You will have to contact your service provider to find out.
Calgary home buyers and Calgary home sellers may sometimes overlook closing costs. It’s important to plan ahead and prepare for these additional costs in order to make real estate transaction smooth and hassle-free as possible. There may be other costs associated with the property your lawyer or real estate professional can provide more information.