What You Need to Know About Closing Costs for Home Sellers in Airdrie

Selling a home is exciting, but it comes with expenses that can catch you off guard. Imagine this: you’re at the lawyer’s office, expecting to walk away with a solid profit, only to see thousands of dollars deducted from your proceeds. That’s the reality of closing costs, and if you don’t prepare for them, they can take a big bite out of your earnings.

In this post, we’ll break down the costs sellers in Airdrie typically pay, why they exist, and how to keep more of your money when selling your home.

What Are Closing Costs?

Closing costs are the final expenses you pay to complete the sale of your home. In Alberta, these include legal fees, real estate commissions, and potential mortgage discharge costs. On average, sellers in Airdrie pay between 4% and 7% of the home’s sale price in total closing costs.

Understanding these costs ahead of time can help you budget properly and avoid last-minute surprises.

The Most Common Closing Costs for Home Sellers

1. Real Estate Agent Commissions

Real estate commissions are typically the largest expense. These fees are split between the listing agent and the buyer’s agent.

How much do commissions cost?

Most commonly, 7% on the first $100,000 of the sale price and 3% on the remaining balance, then split between the two agents.

Why do sellers pay commission?

Agents manage marketing, showings, negotiations, paperwork, and more.

Example: On a $500,000 home, commission would be $19,000.

A skilled agent can often help you earn more than you'd save by going without one.

2. Land Transfer Taxes

Good news for Alberta sellers: there are no provincial land transfer taxes in Alberta.

However, buyers will pay nominal land title registration fees to the Land Titles Office based on property value. These are not the seller’s responsibility.

3. Legal Fees

In Alberta, you’re required to hire a real estate lawyer to complete the sale.

What do they do?

Your lawyer will discharge any existing mortgage, review the sale agreement, handle title transfer, and ensure funds are properly distributed.

Cost: Typically $800 to $1,200, depending on complexity.

4. Mortgage Discharge Fees

If you still owe money on your mortgage, your lender will charge a discharge fee.

What does that involve?

A legal discharge fee (usually around $300), and possibly a prepayment penalty if you break the mortgage before the term ends.

Cost: Penalties vary—check with your lender. Fixed mortgages usually charge either 3 months’ interest or an Interest Rate Differential (IRD).

5. Adjustments for Property Taxes and Utilities

Property taxes in Airdrie are paid yearly but are often prorated between buyer and seller.

How is it calculated?

You’ll pay your portion based on the number of days you owned the home that year. Your lawyer handles this through the Statement of Adjustments.

Utilities are typically settled by the seller before closing.

6. Condominium or HOA Fees (if applicable)

If your property is part of a condo corporation or HOA:

• Outstanding fees must be cleared before closing.
• A Condominium Estoppel Certificate (or status certificate) may be required, usually costing around $200. This is often paid by the seller but can be negotiated.

7. Moving Costs and Pre-Closing Repairs

These aren’t formal closing costs, but sellers should plan for:

• Moving truck or service fees
• Temporary storage
• Final cleaning
• Minor repairs, painting, or staging

How to Reduce Your Closing Costs

Closing costs can take a sizable chunk out of your home sale profits, but the good news is there are ways to cut them.

1. Negotiate Agent Commissions

Some Airdrie agents are open to adjusting their commission structure, especially in a hot market.

2. Sell Without an Agent (FSBO)

Going “For Sale By Owner” means no listing commission, but you’ll still likely pay a buyer’s agent 2.5–3%.

You must also handle all legal, marketing, and negotiation steps yourself. This works best if you already have a buyer or experience.

3. Ask the Buyer to Cover Some Costs

In competitive situations, buyers may agree to pay for things like the condo certificate or small repairs instead of negotiating a price reduction.

4. Shop Around for Legal Services

Many Alberta law firms offer flat-rate real estate packages. It pays to compare.

Preparing for Closing

1. Review the Statement of Adjustments Early

This document outlines all amounts owing, prorated taxes, and final costs. Your lawyer will send it before closing—review it carefully.

2. Finalize Repairs and Paperwork

Make sure any agreed-upon repairs are complete, accounts are closed, and documents are submitted to your lawyer before possession day.

Final Thoughts

Selling a home is more than just finding a buyer. Closing costs can add up quickly, but by knowing what to expect and planning ahead, you’ll protect your profits and avoid last-minute stress.