Buying and selling can be exciting and nerve-wracking at the same time, not to mention how the costs can add up. It is best to be prepared and budget accordingly. Below are some of the costs to be aware of. As always, if you have any questions, please reach out to me.

1. Realtor Fees

It is important to pick a skilled realtor when buying or selling. If you’re selling, it is a good idea to budget 3.5% of your homes value for the costs involved. It is a good idea to speak to your realtor up front and make sure you are all on the same page. Keep in mind, if your home is considered luxury, you may need to consider a seller’s bonus. As a buyer, there are NO realtor fees.

2. Legal Fees

There are legal fees associated with buying and selling a home. These fees include disbursements and registration fees. You can talk to your realtor or mortgage professional to get an idea of what these fees may be, but usually, they are upwards of $1200.

3. Moving Costs

Whether you’re hiring a professional moving company or getting your friends and family to help you move, there are costs associated. You should budget for a big meal feeding your friends and family after they’ve helped you move (unless you want some hungry and grumpy people around). Renting a truck or hiring a moving company will also come at a price. Be sure to ask around to ensure you find a reputable moving company! It’s always good to pick a moving company that is referred by a friend or family member. Contact me if you’d like a name and number.

4. Time Off Work

During the home buying process, there are a lot of days where you will need to schedule meetings with home inspectors, lawyers, realtors and mortgage professionals. It is important to account for the fact that you may need some time off work.

5. Mortgage Penalties

Even though there are portable mortgages available, you may not qualify. There have been some recent changes to guidelines involving portable mortgages. It is important to check with your mortgage consultant to see if they can approve the port.

6. Property Transfer Tax

Unless you qualify for an exemption, you are required to pay property transfer taxes on any property that you may buy. It is calculated on the date of registration and involves using the fair market value of your property. Take a look at this link to find out more: Property Transfer Tax B.C

7. Increases in Home Insurance

There are many things that may increase your home insurance cost with a new home, including piping and electric wiring. Don’t assume that just because you are buying a less expensive home, your insurance costs will go down! Talk to your insurance provider to get an idea of what costs you may incur.

8. Increases in Transportation Costs

When you’re buying a new home, take into account the potential costs associated with transportation. If you’re moving farther away from work, you may need to regularly budget more for gas or maintenance on your car. Also, take into account personal time that you are going to be sacrificing if you are moving farther away from work.

9. Making Your New Place a Home

After moving, you are definitely going to want to look into little projects that will make your place feel more homely. Even small things like lining the kitchen cabinets or fixing minor things around the place will add up. Account for any renovations that you see taking place before you move in.

10. Home Cleaning

You might be able to clean your old home yourself, but if you are not able to, you should look into reputable cleaning services. You may also have to hire someone to clean the home that you are moving into. Consider any garbage removal that you may have to do as well, such as getting rid of old couches.

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Herjit Driver

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