Buying a home involves sneaky hidden costs that are often overlooked. Be prepared for fees that go beyond the mortgage. The time for you to budget for those "end" expenses is now!
Concluding our three part series is the evaluation of potential additional fees you may be faced with during the buying process. Our previous blog posts regarding MANDATORY FEES & MORTGAGE FEES can be found here: Hidden Costs I & Hidden Costs II
POTENTIAL ADDITIONAL FEES
Home Inspection Fee: While this is not required, it is highly recommended to have a thorough home inspection in order to check for any major issues that may arise. Typical costs range from $500 to $700 for an inspection. Given the situation in which there are some complications, the inspector may recommend an external specialist to review such suspicions.
Land Survey Fees: Only if required by lender.
Appraisal: Typical costs for an appraisal run at $300 and this fee may be charged back to you by the lender.
Contract Buyouts: In situations in which there is a contract buyout, you are required to reimburse the seller for any prepaid contracts that are currently in place such as monthly security services.
Moving Expenses: Prepare yourself for any additional expenses that may potentially arise from the actual moving process. Think about moving truck rentals, strata move-in/move-out fees, incidental costs relating to your move etc.
Lastly, once you're finally settled into your new home, be prepared for ownership expenses as well. These include home insurance, utilities expense, property tax etc.
By being adequately equipped with knowledge of these often overlooked fees, you are now prepared to budget accordingly. Don't let these hidden costs frighten you but rather, let this enlighten you and prepare you for the purchase of your new home!
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