Preparing for all costs associated with purchasing a new home

When purchasing a home, it is important to budget for all of the additional fees that come along with it. Below is a list of costs you can expect to pay. (Keep in mind, each individual situation is different so there may be other fees that are specific to your situation).

  • Home Inspection Fee (approximately $500): When looking at purchasing a resale property, it is highly recommended to have a professional home inspector examine all potential properties you are interested in. Home Inspectors can inform you of existing or potential problems, and can end up saving you thousands of dollars if a major problem is discovered.
  • Legal Closing Costs (1-2% of the purchase price):  To complete the home purchase you will need a Real Estate Lawyer. They complete title searches on the home, prepare and register all required legal documentation, and make sure there are no liens against the property. They also identify any reimbursements you will have to pay to the seller for prepaid utility bills, property taxes or other charges.
  • Appraisal fees ($100 - $250): Some lenders will cover this cost, or it may be a fee you are able to negotiate. Regardless, many lenders require an appraisal of the new property as part of the mortgage process.
  • Land Survey (up to $1000): Most resale homes will already have a land survey, but if they do not it is something that lenders require when you are purchasing. This is a matter that can also be resolved with the Real Estate Lawyer.
  • Insurance (usually $100 or less, depending on location and size of home): For a mortgage to be approved, both home and fire insurance are required. The cost of insurance can vary depending on multiple factors.
  • Moving Expenses: This cost can vary immensely, depending on the distance. Whether you are renting a moving truck or buying pizza and beer for all of your friends, this is an important cost to remember to budget for when moving.

If you are looking to buy or sell a home in Saskatoon and area, I can help you to understand additional costs associated with moving and make buying or selling your new home as enjoyable as possible.

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