Extra Costs of Buying a Home in London
You have found your dream home for sale in London and your real estate agent managed to help you snap it up quickly. Congratulations! Just be careful because purchasing a home, inevitably, will come along with many extra costs on top of the stated purchase price. These hidden costs are more complex than they appear to many Buyers and it is advisable that you figure them out to avoid unnecessary disappointments on closing day. A great real estate agent will prepare you for these extras. We are here to explain the most common hidden or extra costs involved with home buying.
Lenders may order property appraisals by professional real estate appraisers to determine the property's fair market value. This ultimately determines how much money your lender is able to lend to you, the borrower. Before buying a home in London, your lender may require such a report to value the property. Appraisals vary in price, often approximately $250 - $350, so be sure to find out if an appraisal is necessary.
Home Inspection Costs
It is advisable that before you make the purchase, you have the house professionally inspected. Even the newest home can have some defects that only a trained specialist will spot. Most Realtors will tell you that having a home inspection is important because you will get to know the property and any deficiencies better. Learning more about your new home only helps you understand how to maintain it and even ready yourself for any issues that creep up. The more you know the better. Let the real estate agents at Van Bart Real Estate Brokerage Inc. help you learn more about your new property!
Of course, you are aware that you have to pay property taxes. Depending on the down payment, lenders can include the property taxes in the monthly mortgage payments. Otherwise, they are typically paid in five instalments throughout the year.
Home insurance usually covers the contents and structure value of your home. Since homeowners insurance protects the lender’s investment on loan, the lending institution will request that you obtain a homeowners insurance plan. As real estate agents in London, we can recommend many home insurers. Some may be more suitable than others depending on the type of property, whether it's your primary residence or an investment property and many other factors. Check out our Preferred Vendors for some great recommendations
Be prepared to pay some extra fees before you can finally sign the closing documents. Closing costs can include legal fees, title insurance fees, appraisal fees, land transfer tax, property taxes and more. Ask your real estate agent in London to help you estimate these costs. If you are with Van Bart Real Estate Brokerage, this is a standard service we offer all of our clients. The closing costs vary greatly depending on the purchase price and whether or not you are a repeat or first-time homebuyer. Check out a more detailed summary of closing costs
You are likely to incur a few more hundred to thousands of dollars in professional moving costs. You may have to endure packing and storing expenses. Hiring a professional mover is a smart idea, not only do the movers know what they are doing, you don’t have to break your back moving all your household possessions! They are fully insured should there be an accident and something accidentally breaks and they will put down protective mats to save your new flooring from any scratches
Moving can be a significant expense, especially to those moving across the country but it’s not always all bad! If your job is the reason you are moving, your employer may have a policy to help with your move and some of the moving costs and portions of the move for work may qualify for tax deductions in Ontario.
Maintenance and Repair Expenses
These costs can include gutter cleaning, driveway repair, fixing wiring and plumbing, painting and replacing roof shingles. Maintenance and repair costs often depend on the age of your new home, climate, and the previous owner’s upkeep. Home ownership is very rewarding, however, it also can be expensive and lots of work!
Be sure to budget for the expense of setting up water, gas, and electricity. These costs will usually vary from region to region and depend on consumption. It is advisable that would-be buyers ask sellers for good-faith monthly utility estimates before purchasing; your real estate agent can definitely help with these requests.