Most first time home buyers will be really excited and happy to purchase their first home. Though the purchasing task is stressful, it gives double the pleasure and excitement to the buyers when they mention to friends or relatives that they have purchased a home. It actually shows their financial worth and capacity to make smart investments. There are several costs that are connected to purchasing a home. For example, if you fix a budget of a certain sum, then you need to allocate one-third of the budget to meet other expenses. It has to be paid either at the time of purchasing or at a later time but, however, the property owner remains responsible for the additional cost. Some reputed sellers will inform the buyers clear about any additional expenses while most fail to say, and they would be a buyer in a critical situation in the last minute.
Let us look at some of the common additional expenses that come with the purchasing cost of the home.
Agent’s commission: If you are purchasing a home through a broker or agent, then you have to purchase a percentage of the amount as the broker’s fee. The percentage will differ from one broker to another. It is necessary to discuss the commission rate when you start to deal with the broker. It is negotiable and varies from two percent to six percent of the total amount. It has to be paid both by the seller and the buyer. If you are buying a house in London, we recommend Wetherell, real estate agents from Mayfair.
Legal fees: These are the most important fees you need to bear in mind. Legal fees are paid to the lawyer where he would have maintained some transactions and legal procedures of your property. The transactions would include registering a property, signing and preparing a mortgage, conducting researching and title search about the property, conveyance, and other adjustment costs. There are several lawyers in the real estate market. It is necessary to consult them from start to end of the project. If you are going to purchase a home, you need to choose a notary or lawyer experienced in home conveyances. When you want the documents to be drafted you have to allocate at least $500 to $1500 as legal fees.
Annual maintenance: It involves a large sum of money which you have to pay directly to the seller if he is going to provide you maintenance services. It covers security system, maintenance of home and other possessions around the home. If you are planning to paint or remodel your home, replacing furnaces and appliances and replacing things like roof shingles, then you have first to consider the age of the property. It determines the expenses and renovation work you need to do to the property.
Appliances: It is essential to read the agreement deal in brief and clear manner. The appliances have to be included in the agreement and if it is not included you need to move out and purchase the appliances.
Moving cost: It is not easy to move homes without the help of professional packers and movers. The cost will depend upon the area you are moving to and the distance from the current area to the new area.Read More