If you're buying a home, the price on the sign and in the real estate listings is exactly what it would cost for you to become the owner of that property, so you should plan to have a mortgage for exactly that amount, right? Wrong! If you're a first time home buyer, you can be forgiven for your naivety. People new to real estate often find themselves with overly large mortgages and extra debt because they weren't aware of the unexpected or hidden costs of buying or selling a home. Don't let this be you. Read this article to prepare yourself for how much it will REALLY cost.
Real Estate Agents
If a Oakville real estate agent or his Saskatoon counterpart is involved in the sale of a piece of real estate, the agent must be paid for his services in the form of a percentage of the sale price of the home. Percentages differ depending on the agent, and some even work for a flat fee, but the responsibility for paying the agent always rests with the seller. Buyers get the agent's services for free.
Assessments
Whether you're a buyer or a seller in the home sale process, you should always assume that the other party doesn't trust you to know what you're talking about. As such, before the home is even listed by a real estate broker, certain property valuation assessments have to take place. A building inspector needs to verify that the home is structurally sound. A home appraiser needs to come in to rate what it is worth, and the property value assessor from the city or county will need to come in to resurvey the property lines and determine how much the taxes will be. Payment for these services can come from buyer or seller, depending on their agreement.
Fees
Assessors aren't the only ones who are going to be looking for fees during this process. You can get a full list from your cousin who's an Etobicoke real estate broker, but a short list of fees you might have to pay would look like this. For sellers: you're looking at fees to discharge a mortgage that hasn't been fully paid. Both parties are going to need to shell out for lawyers' fees, as you'll need their help to draw up kosher sale documents.
For a buyer: mortgage application fees (paid to each bank you apply to), heating oil for the house, membership fees for condo or homeowners association You'll have to pay $3 per $1,000 to re register the home under the new owner, but luckily there's no Land Transfer Tax, here which would amount to a percentage of the sale price if you were to buy Mississauga townhouses for sale.
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