When you’re budgeting for a house move, some financial planning seems obvious. By far the largest expense is the house, of course, as the down payment you have to make to qualify for a mortgage will be substantial, even if you don’t pay for the whole thing outright.
Then, you likely know that the cost of a real estate agent, both to help you look for a new home and advertise your current, can be substantial. That’s why they do it after all, and all real estate agents will quote you a fee you are welcome to accept or reject.
There are also many more hidden costs you may not expect if you hope to do it right. Let’s discuss some ways to achieve that:
Taxes & Registry Fees
Outside of tax season few people have fun thinking about tax, but it matters a lot because theres a chunk that comes with the house itself and it’s not small either. Land transfer tax, property registration, all the paperwork that makes the place officially yours has a price tag, and it’s usually tied to the value of the home so it scales up quickly.
Depending on where you’re buying, it can hit harder than expected, and sometimes you only really see the number after you’ve already mentally committed. It’s worth having a ballpark ahead of time so you’re not cutting into furniture money later.
Surveryancing Fees
You’d think checking the boundaries and confirming the land details would be baked into the process, but it’s often its own separate cost and the bill can land out of nowhere. Especially if the seller doesn’t already have a recent survey, or if the bank asks for one before approving the mortgage, someone’s paying for it and that someone is usually you.
It’s one of those fees you don’t really think about until someone tells you you need it and suddenly there’s another few hundred going out the door. Not fun, but kind of necessary if you want to avoid drama later over fences or property lines.
Electronic Transfer & Admin Fees
These are the charges that sounds tiny when you hear it mentioned, but as with everything we pay for, it does stack up. Little charges for moving funds, for document processing, for someone hitting send on the mortgage payout, you’ll find that this all applies to you and it’s not always laid out clearly before.
However, by the end, it can run into a few hundred you hadn’t exactly penciled in. Such costs will usually come during closing, and because they’re administrative, they feel non-negotiable, like you’re just supposed to pay and keep things moving. But if you know they’re coming, at least you’re not shocked or can discuss. A real estate agent will, for the most part, help guide you through as you find your next place to live.
With this advice, we hope you can more understand the costly process of house hunting.
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