The real estate industry is ever changing, as are the associated fees and potential rebates that you may be eligible for when purchasing property. Though each real estate transaction comes with its own unique circumstances, there are some common costs associated with buying a home:
A deposit is a monetary “good faith” that is required by the buyer upon a successful (or firm) agreement of purchase and sale of a home. This deposit forms a part of your down payment, and thus a part of the total purchase price.
In order to complete your real estate transaction, you’ll need to invest in a real estate lawyer or notary. Your fees include the legal professional’s time to prepare all closing documents, complete a title search for deficiencies, facilitation of the transfer of funds as well as transfer of the property title. These tasks if completed incorrectly can stall possession dates or worse, create costly future issues.
Property Transfer Tax
In British Columbia properties are subject to a transfer tax of 1% on the first $200,000 plus 2% on the portion of the fair market value greater than $200,000 (up to and including $2,000,000.) There are 2 common exemptions that may waive a portion or all of the property transfer tax fees; First Time Home Buyer Exemption and Newly Built Home Exemption. For a list of potential exemptions and a property transfer tax calculator, head over to the Government of BC’s informative portal
Home Inspection Fees
Purchasing property may be the largest financial investment you make in your lifetime. It’s recommended that you hire a professional home inspector who will examine a potential property, noting any maintenance and repair concerns. A home inspector will detail their property findings in a report to ensure you have the knowledge you need to make an educated purchase. Foregoing an inspection may result in missed property defects and in turn financial consequences.
Your lender may require an appraisal to establish the value of a property, confirming the offer price is appropriate for the area and features of the home. Appraisal fees differ depending on the lender and property style, in some circumstances your lender may waive or rebate the fee during a promotion.
Utility Connection Charges
Many utility companies such as natural gas, water, electricity and communications services charge a service fee to connect or disconnect your services.
When you’re ready to move you may choose to forego the heavy lifting on your own and instead invest in a professional moving service. Moving services vary in price, taking into account the weight of goods being moved, the distance to be travelled, the physical barriers a property may present, etc. Connect with a trusted local Shuswap moving company to capture a complimentary quote.