What it costs to sell a home in Edmonton, and what you walk away with

Selling a home in Edmonton comes with a handful of costs that are easy to overlook until closing day: paying out your mortgage, legal fees, a Real Property Report or a title insurance credit, getting the home ready and moving out. Alberta charges no land transfer tax, and there is no GST on the sale of a home you have lived in, so neither comes off your proceeds.

Here is each cost, what drives it, and how to estimate what you will walk away with.

Paying out your mortgage

Your lawyer pays off your mortgage from the sale proceeds on closing day. Two costs can come with it:

• A prepayment penalty, if you break a mortgage before the end of its term. Fixed-rate penalties are often the larger of three months' interest or an interest rate differential; variable-rate penalties are usually three months' interest. Lenders calculate this differently, so ask yours for a payout statement before you list.
• A discharge fee to remove the mortgage from your title.

If you are buying again, ask whether your mortgage can be ported to the new home. That can avoid the penalty entirely.

Legal fees

Your real estate lawyer reviews the contract, receives the buyer's money, pays out your mortgage, discharges it from title and sends you the balance. Fees vary, so get a quote that includes disbursements.

Real Property Report or title insurance

For most detached and duplex sales in Edmonton, the standard purchase contract asks the seller for a current Real Property Report with evidence of municipal compliance from the City. Condominium sales usually do not need one.

If you do not have a current RPR, it is common for the seller to offer to pay for the buyer's title insurance instead, often up to about $350. The buyer has to agree to that in the contract. We explain the trade-off in title insurance or a Real Property Report. Ordering the RPR early, before you list, is the surest way to keep it from delaying your closing.

On a condo, the condominium corporation charges a fee for the estoppel certificate the buyer's lawyer needs.

Getting ready, and moving out

Staging, cleaning, touch-up paint and small repairs are the costs you control most. Fix what a buyer's inspector will find, and make sure past work has permits. Large renovations rarely pay back before a sale; read what is worth doing before you sell. Then budget for movers and any overlap if you are buying at the same time.

Adjustments on closing

The statement of adjustments squares up property tax and condo fees with the buyer. Edmonton property tax is due June 30. If you have paid the full year and close after that, the buyer repays you for the rest of the year. If you close earlier and have not paid yet, you credit the buyer for the days you owned the home. These usually move the total by a few hundred dollars either way.

Your agent's fee

Your agent's fee is agreed in writing in your listing agreement before your home goes on the market, and it is paid from the proceeds when the sale closes, not before. GST applies to it. We go through it with you, line by line, at the pricing consultation, along with everything it covers.

Taxes on the sale

If the home was your principal residence for every year you owned it, the principal residence exemption generally means no capital gains tax. If it was a rental for any of those years, or you owned it for less than 12 months, federal tax rules can treat part or all of the gain as taxable. Talk to an accountant before you list.

Putting it together

Start with the sale price, subtract the mortgage payout and the costs above, and you have your net proceeds. Our seller net proceeds calculator does the math: enter your own mortgage balance, quotes and fees, and it shows what you walk away with.

If you are thinking about selling, start with what your home is worth. We will prepare a written market analysis from recent sales in your community, then walk you through your costs and net proceeds.