Home
purchasing can turn into a stressful as well as an exciting task, both at the
same time. Usually buyers, especially the first timers, seem to forget the fact
that the overall costs linked with the buying of a new home are much higher
than the actual purchase price of the property. In order to make you aware of
all these costs beforehand, the real estate advisors from the Kamal Khetan
group has compiled below some of the other major costs that are usually
associated with the purchase of a new home.
1 1. Agent’s Commission
Both the
real estate agents on the buyer’s as well as the seller’s side receive some
percentage of the final sales price as commission. As a general rule of thumb,
a typical commission expense can lie anywhere between three to six percent of
the total selling price. However, these rates and percentages are always
negotiable. The commission expense takes in to account both the seller’s
realtor as well as the buyer’s realtor. This particular cost is generally
supposed to be paid by the seller only. Therefore, you must always pick advisors
from credible and reputed companies like the Kamal Khetan Group.
2 2. Closing Costs
The
closing costs usually cover all the liabilities such as the legal fees, utility
adjustment costs and the property taxes. In addition to this, certain provinces
also demand land transfer taxes.
3 3. Legal Fees
This
covers all the costs that you are supposed to pay to your associated lawyer,
with respect to all sorts of legal transactions that may have been brought into
action during the purchase of the house. Some of these prime legal transactions
include the signing and preparing of the mortgage, conduction of property title
search, review of the terms of the made offer, registration of the new title,
determination of appropriate adjustment costs, obtaining relevant documentation
and other conveyance charges.
4 4. Mortgage Life Insurance
Many
insurance companies provide special coverage for the cost at which your
mortgage will be discharged under an event of severe illness or death. These
days many lenders have started to provide for the mortgage insurance. However,
the amount for the same is not fixed and directly depends on the condition and
state of your mortgage.
5 5. Service Charges