Working with a real estate agent can be a great way to put your property in front of a large audience of potential buyers through the MLS system. This also means that there will be additional expenses that may not be fully apparent at the time of listing your property. Here are five hidden costs of working with a Calgary Realtor.
Staging Fees
If you have a vacant property for sale your Calgary real estate agent will most likely recommend that you stage the property to maximize the property value. This is a good idea from a marketing perspective but its a hidden cost of working with a Calgary Realtor because staging fees are not including in your Realtor’s services and will cost you extra. Staging helps the potential buyer imagine themselves living or occupying this property and often sells the house quickly. The Realtor will often suggest a professional interior design service to come to stage the house for you. You will often have to rent or even purchase the furniture and decor they plan to use to stage your property. Rental rates vary, but they all have a set-up charge and then a monthly rental fee ranging from $1,000-3,000 per month. This can add up very quickly, and all depends, of course, on the value of the property. Usually, the more expensive the property, the more likely you will be encouraged to have it staged.
Curb Appeal and Improvements
The second hidden cost of working with a Calgary real estate agent is curb appeal. Real estate agents will often suggest improving the curb appeal of the property. Your property will most likely sell faster because of the enhanced beauty of a fresh coat of paint and some new pops of color in the flower beds complete with new mulch, but all of this adds up. Painting a home, installing new plants, laying mulch, pressure washing the driveway and other visual improvements will cost hundreds , if not thousands, of dollars.
Property Inspections or Surveys
The third hidden cost of working with a Calgary Realtor is a property inspection or survey. Many real estate agents like to entice buyers with this extra perk in the listing. Having a recent property inspection or survey is a great selling tool, especially if the property has no major issues or property line encroachments. This will give buyers the confidence to submit decent offers, but it will cost you. Typically a Real Property Report (or RPR for short) will cost approximately $1,000+ and are not included in your real estate agents services or fees.
Real Estate Commission Taxes
The fourth hidden cost of working with a Calgary real estate agent is their commission which must be taxed in Canada. The commission structure is explained and typically negotiated at the time of signing the listing agreement, but it’s easy to forget about that while your property is being marketed. You may not truly feel the impact of the brokerage fees until it’s time to sign the closing papers. Here you see all of your fees taken out of your sale proceeds, this will include the brokerage commission plus 5% GST on those commissions. Although 5% doesn’t sound like a lot percentage-wise, it is an extra $750 on an average Calgary house sale that you won’t get in your pocket.