HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOME

By: Lambert Ma

HIDDEN FEES TO BE AWARE OF WHEN PURCHASING A HOME

Tags: Home Fees

 

Purchasing a home is arguably one of the biggest financial decisions you will make in your lifetime. As you start your hunt, don't forget there will be other costs associated with your purchase than the price of the home. Here are 5 fees to keep in mind as you begin to budget.

  1. Home inspection. This is a crucial step in the home buying process. The findings that come from the inspection can help you negotiate price and repairs. Generally, you can expect to pay between $300 to $500 depending on the home and the location.
  2. Title services. Title services encompass the transfer of the title from the seller and a thorough search of the property’s records to ensure to no one will pop up with a claim to the property. Additionally, you may need to buy title insurance which will protect the lender or your investment in the home.
  3. Appraisal fee. Before getting a loan, you will likely be required to get an appraisal of the home to determine its estimated value. This will be conducted by a third-party company and the cost can land anywhere between $300 and $1,000, depending on the size of the home. Your lending institution will generally arrange this for you in a mortgage application.
  4. Strata fees. Strata communities have a strata council that enforces monthly fees. This money is used for general maintenance and updates to common areas. Strata fees are reviewed on an annual basis.
  5. Taxes. The taxes each buyer pays at the closing table differ such as city property taxes. Additionally, there may be taxes for the transfer of the home title (property transfer tax).