Here's a question for all you first time home buyers out there. When you're buying a home, the price you pay is the price you offer - true or false? The answer is false. When you're buying property, whether it's a house for sale in Mississauga, Ontario or a condo here in Chattanooga, Tennessee, there are many incidental costs that can jump out and surprise you if you don't know what you're doing. Here are some of the costs to watch out for so you can draw up an accurate budget.
Lawyer's Fees
The contract you and the seller sign that officially grants you ownership of the house must be drawn up by a lawyer. It cannot be done by your Royal Lepage Oshawa real estate agent. Lawyers usually charge by the hour and their rates are $100 or more.
Taxes
Any and all governments whose jurisdiction the property falls under will want to take their cut of the transaction. You'll have to pay property taxes on your house as well as transfer taxes when the property changes hands and stamp taxes to make all the papers official. This can add up to several thousand dollars.
Mortgage Fees
Even if your credit score is good enough to admit you into the Sutton members program, you won't get the bank to look at your mortgage application for free. They'll still charge you in the vicinity of a thousand dollars in fees to review your application, underwrite the mortgage, and whatever else they think they can get you to pay.
Insurance
Most banks will not give you a mortgage unless you agree to buy homeowner's insurance which covers you in the case of fires or other disasters. Premiums for home insurance can be in the neighborhood of several hundred to more than a thousand dollars per month.
Inspection Fees
Smart home buyers know not to purchase anything of the MLS in Mississauga until they've gotten a professional to come in and take a look around. Building inspectors that judge the soundness of the construction cost several hundred dollars. If you want an appraisal, that will be at least $200 more, and then the surveyors will need several hundred more dollars to come in and determine the lot size.
Association Fees
If you're buying into a gated community, whether it's a suburban neighborhood with a homeowners' association or just a single high rise full of Yorkville condos, you're going to have a monthly fee of upwards of $100 to maintain common areas.
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