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How much should you budget for closing costs?

Posted by Kirby Cox on Thursday, May 26th, 2016 at 3:20pm.

An area home buyers often forget to budget for is closing costs. Whether you're selling or buying real estate in Calgary, there will be certain costs associated with the finalization of the transaction that you should be prepared for. This is a brief rundown, and just a guideline, your REALTOR® or broker can provide you with more exact numbers.

For Buyers:

  • Costs can range from 1.5 to 5% of total purchase price, excluding sown payment. For example, a purchase price of $250,000 would yield:
  • Inspections: $400-$500

  • Mortgage application (could be waived) $200-$400

  • Mortgage insurance $2000

  • Legal fees $900+

  • GST (for new homes only) - varies

  • Home and content insurance $450 

  • Moving and/or storage $500

For Sellers:

  • Costs can range from 1.5 to 5% of total sale price. For example, a sale price of $250,000 would yield:
  • Real estate commissions - negotiated 

  • Unpaid homeowner fees - varies

  • Legal fees $700-$1000

  • Real property report (new) $500-$700 

  • Real property report (updated) $250-$400

  • Mortgage interest adjustments $350

  • Home and content insurance $450 

  • Moving and/or storage $500

If you want to crunch the numbers specific to your potential home purchase, we're happy to help answer any questions you have about this, or anything to do with the home buying/selling process. For home buyers, first-timers or not, here's an easy free guide to home buying as well.

Kirby Cox

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