Does a Buyer Pay the REALTOR Fees?
Deciding to buy a home is a big financial decision. The last thing you want is to be surprised by hidden costs along the way. Let’s talk about fee’s when buying a home.
You work hard for your money and that’s why is so important to know what to expect when buying a home. There is a lot at stake and its good to know what you are on the hook for and what you don’t have to pay along the way.
- Does a buyer pay Realtor® Fees ?
- Does a buyer need to pay for a Home Inspection?
- How much are my legal fees when buying a home?
- Do I have to pay for a bank appraisal?
- What is mortgage insurance and how much is it?
- How much should I save for my down payment and deposit?
- When do I start paying for home insurance?
- Are there any other costs for home buyers?
Does a buyer pay Realtor® Fees?
How do we get paid? Generally speaking, the seller of each home offers a commission. Occasionally, sellers who represent themselves do not offer to pay us, but we can normally negotiate a commission with them. In a situation when there is no commission being offered by the sellers, and they refuse to pay out fee, we will default to the commission agreement which we discuss when signing your buyer representation agreement. Don’t’ worry, we will always tell you before you make an offer if the seller is not offering the full payment.
Does a buyer need to pay for a Home Inspection?
No, you don’t need to get (and pay) for a Home Inspection, but we recommend you do as part of your conditional offer. Generally, these cost around $300 for a condo or $525 for an average house. If you are purchasing a rural property, there are additional recommended inspections such as water quality, flow rate, septic system, etc, each at additional costs. At the home inspection, only you and the inspector are allowed. If you would like any others present, we will have to get permission from the sellers.
How much are my legal fees when buying a home
Real estate lawyers are here to transfer title, hold funds in trust and more. This packaged service will generally include your lawyer’s time, adjustments to taxes etc, disbursements, and title transfer. Roughly (depending on what you are buying), you should budget approximately $1,000-1,500 which is payable prior to closing.
Do I have to pay for a bank appraisal?
In some circumstances, the bank you are acquiring your mortgage through may request an appraisal to verify the value of the home you are buying. After all, they don’t want to lend money for an asset that is either significantly over or undervalued. In some situations, the cost for this is passed on to you but it depends on who your mortgage will be with. We recommend you discuss this with your mortgage broker.
What is mortgage insurance and how much is it
If you are putting less than 5% of the purchase price as down payment, mortgage insurance will apply to you! The cost of it will vary depending on the size of your down payment, so we recommend you refer to your mortgage broker for an accurate cost.
How much should I save for my down payment and deposit?
When making an offer to purchase, an initial deposit will accompany any offer you write which will be deposited within a day or so of your offer being accepted. You will need to be prepared to write a cheque in the range of 1-2% of the purchase price depending on the circumstances of the offer. An additional deposit may be required after the removal of all conditions. That said, don’t worry too much as all deposits count towards your total down payment, which must be at least 5% of the purchase price.
When do I start paying for home insurance?
As of noon on the day of possession, you are responsible for insuring your property (it is 99% of the time a condition of your mortgage). Rates can vary widely depending on what you are buying, so it is wise to shop around a little and if possible, get in touch with your favorite insurance broker once we have a firm deal in place.
Are there any other costs for home buyers?
There are some other costs that you may not think of as part of the buying process. Title insurance for one can be used in conjunction with or in the absence of a real property report and will occasionally be recommended by your lawyer. Generally, this costs under $500 and will cover you for your entire length of ownership. Although you may not need it.
When you buy a home, it goes without saying that you will also need to start paying for utilities like gas, power, water and waste. Most companies will need a deposit when you are setting up a new account with them.
Lastly, you may need movers and well, they cost money too! If you are planning on hiring movers, phone around and get some quotes. We recommend talking to your friends and family about who they used and their experience with them.
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Let Us Guide You Home
Buying a home is one of the largest financial decisions in life. That's why we believe you should be guided with the highest level of professionalism and knowledge. Our advisors will make sure you always have the right data, resources, and professional advice you need at every stage of the buying process, so you can be 100% confident in your home decision.