in discussing items related to the house and neighbourhood. Remember, this could be their new home. You’re no doubt excited about moving. But buyers will start second guessing. A casual statement about the house “really being too small for a growing family,” or “the schools are going through some changes” might be enough innocent chatter to squash their interest.
Underestimating Closing Costs
Many sellers only consider the money they are selling their home for (the purchase price). They don’t appropriately calculate all the costs associated with the sale and overlook the following items: • Balance of Purchase Price — the purchase price less the buyer’s initial deposit (the latter could be anywhere from 5% to 20%) • Legal Fees — amount depends on purchase price and lawyer (approximately $1,200 for a $500,000 purchase in Calgary) • Estoppel Certificate (condos only) — included as a disbursement in the lawyer fees ($250-$400) • Realtor Commission — if you use a licensed brokerage/ Real Estate professional to sell your home. • Mortgage payout Penalty — The is calcuated by either 3 months worth of interest or interest rate differential (whichever is higher). • Adjustments/Prorated Costs for Annual Expenses — • Land Transfer Tax - (Not Applicable in Alberta) so it does vary for each province and it depends on purchase price • includes property taxes, condominium fees, and utilities • Real Property Report — This is required for all properties except conventional condos
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