Closing costs are the final expenses that come up when a property changes hands. They’re easy to overlook but important to plan for, whether you’re buying your first home or selling your current one.
đź’¸ For Sellers
The main costs for sellers are pretty straightforward:
• Clearing Title: You’ll need to pay off your existing mortgage or any liens on the property before transfer so the title is clear for the buyer.
• Real Estate Fees: These are usually the largest seller expense and are paid out from the sale proceeds at closing. They’re typically split between the buyer’s and seller’s agents.
Once those are covered, most sellers don’t have many other major costs. The rest of the sale price is yours to keep, minus taxes if applicable.
🏠For Buyers
Buyers face a few key closing costs of their own:
• Property Transfer Tax (PTT): This is the biggest one. In BC, it’s 1% on the first $200,000 and 2% on the remainder up to $2 million, but first-time buyers may qualify for a full exemption.
• Legal or Notary Fees: These cover the cost of finalizing the paperwork, registering the title, and making sure funds are transferred correctly.
Other possible costs include things like title insurance, appraisal fees, and home inspection costs, depending on the situation.
As a general rule, we usually budget around 3–5% of the purchase price for closing costs to keep things safe and stress-free.
âś… The Bottom Line
Closing costs aren’t as confusing as they sound. They’re just the final pieces of the puzzle to make your transaction official. If you plan for them early, there are no surprises when it’s time to sign.
đź“ž Ready to Plan Your Move?
If you’re thinking about buying or selling in Langley or the Fraser Valley and want a clear breakdown of what your closing costs will look like, reach out anytime. I’m always happy to walk you through the numbers and help you budget with confidence — no surprises, just straightforward advice.
