CLOSING COSTS
A lot of people are quite surprised when they buy a new home with all the costs they may incur. We call any costs associated with the purchase or sale of a home, “closing costs”. Here is an idea of what you could expect:
SELLING A HOME:
Lawyer fees (with a mortgage): $800-1000
Mortgage transfer/breakage: Often you can transfer a mortgage for very little cost, but paying off a mortgage will usually cost 3 months interest.
Realtor fees: Of course these are negotiable, but a typical contract will pay 7% on the first $100,000 and 3% on the remaining balance. (ie. selling a home for $200,000 would cost $7000+$3000 = $10,000)
Condo Documents: $200-$300. If you live in a condo, and do not have current condo documentation, you will need to supply them for a potential buyer
Real Property Report: An article you recieved when you first purchased your home showing property lines – if you have made any changes to your property since purchase (built a shed, fence, deck, etc…) you will need to get a new one – $600
Property taxes/condo fees: Sometimes these are paid for a year at a time, so depending on the time of year the house is sold, debits or credits may have to be made to the buyer.
Staging: if applicable – $700-$1000/month
Cleaning costs: if applicable – $20-$50/hr for maid service
Moving fees: if applicable – gas, renting vehicles, hiring movers, buying beer and pizza for friends 😉
BUYING A HOME:
Lawyer fees: $800-$1000
Realtor fees: 0. Realtor fees are only payed by seller.
Mortgage Broker fees: Typically 0. The mortgage breaker makes money from the lending company by bringing them clients.
Property inspection: Not necessary, but recommended for sure. $450
Future repairs: the best thing about getting a property inspection, is being able to create a timeline for what expenses may be incurred in the future (ie. new furnace in 5 years, shingles in 10). Although there may not be any immediate costs, it is a good idea to have money set aside for these expenditures that could arise.
Property taxes/condo fees: Sometimes these are paid for a year at a time, so depending on the time of year the house is sold, debits or credits may have to be made to the sellers.
Cost of moving: Same as above
Furniture: Well if you have a nice new home, you need nice new furniture to go with it right 😉
Transfer of utilities: If you havent had your name on epcor, direct energy, shaw, telus, etc… before quite often you may need to put down a deposit on your account. Avg per utility – $200-$300
Insurance: It is definitely recommended to get insurance on your house and its contents, but could also be a good idea to get insurance on your mortgage should something happen to you in the future and you cant make your payments ~ $100-$150/month
That should cover most things. Keep in mind you may need to buy specific things such as lawn mowers, snow shovels, etc….if you have a yard to look after now.
Hope this helps! Feel free to email me if you think I missed anything, and Ill add it to the list.
