Selling or buying a home is the largest transaction most of us ever become involved in. But the actual purchase price on a house listing is only a part of the ultimate cost of buying or selling it. We’ve created this cheat sheet to cover the 18 common and hidden fees.
These fees are charged by a lawyer or notary, and usually range from $100-$1200 depending on the complexity of the deal. Your lawyer or notary will arrange all transfers, payments and other factors of the funds for the real estate transaction.
This is applied on all purchases of homes. It is a tax that is calculated at 1% on the first $200,000 and 2% on the remainder. There is an exception when the buyer is a first time homebuyer—if the fair market value of the residence is up to $475,000, this transfer tax will be exempt.
This should come out of your legal fees, and your notary will take care of this. You will owe or receive a prorated amount for the remainder of the year’s property taxes.
You will have to pay to have your utilities connected to your new property.
Your lender may require an up-to-date survey of the property. If the seller doesn’t provide you with one, you will pay anywhere from $250 to $350 to have it done.
It is always a good idea to get your new home inspected before you remove subjects. It can be an invaluable way to ensure the safety and structural integrity of your investment.
Before your lender approves your mortgage, you may be required to get an appraisal. This can be anywhere from $250 to $500.
If you get a mortgage where you pay less than 20% for the down payment, you will have to get mortgage loan insurance. This insurance rate can range from 1.75% to 3.25%. There is also a mortgage loan insurance application fee associated with this insurance.
These costs can vary, depending on if you hire a moving service or enlist family and friends to help. Moving expenses can total anywhere from $200-$2000.
This is usually in place to lock out the elevator.
Costs will vary depending on your needs and wants.
You will pay monthly or annually for insurance protection on your new property. Your home insurance premiums are based on the area you live, the property value, the land, etc. They can vary a lot, but a cost of at least $1000 per year is to be expected.
The seller is responsible to pay these fees, unless you negotiate something differently in order to close a deal.
If buying in a heritage neighborhood, you are responsible for verifying that there is no oil tank underground on the property. If there is, you are responsible for removing it. This can cost upwards of $2000.
As noted above, the lawyer/notary fees for closing the sale will vary according to the intricacy of the transaction, but they should range from $500-$700. Again, your lawyer or notary will arrange the transfer of these funds.
For standard agencies such as Remax, Sutton etc. the fee structure is as follows.
7% on the first $100,000 and 2.5% on the remaining balance of the sale price (+5% GST). Of this total, the buyer’s agent is paid 3.255% on the first $100,000 and 1.1625% on the remaining balance. One Percent Realty charges you a flat rate of $6,900 plus GST. Property Guys and other independent avenues charge $200-$1000+ for various services, inclusively.
As mentioned above, these costs can vary, depending on whether you hire a moving service or use family and friends. This can cost anywhere from $200-$2000.
Again, this is usually in place to lock out the elevator.
For more information, or to get a home insurance quote, contact Square One at 1.855.331.6933.
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