Truth be told, not all businesses observe transparency and that includes the real estate's buy-and-sell. Unless you have unlimited cash resources, you will always be conscious about how much money you spend. Knowing the exact money you are about to let go of your pocket requires transparency.
Whether you are a buyer or a seller, you deserve to know the nitty-gritty of your financial transactions. In money matters, you don't want anything hidden from you, not even a single cent.
So, what are these buy-and-sell charges that are unknown to you?
Home Insurance
As a renter, you might deal with a lender who requires insurance. When this happens, you have to ask him whether this home insurance includes the construction materials or not. Investopedia reveals that home insurance costs more since you pay for the likelihood of rebuilding your home other than the replacement of your personal belongings. The sad part is, insurance charges increase yearly and living in a calamity-prone area is another story. Sometimes, insurances can be deceiving, hence, consider the pros and cons of home insurance first before saying "yes" to it.
Land Transfer Charges
Also known as the "property purchase tax," this land transfer tax is a percentage of the actual purchase price. If you are a buyer, here's what you should know about - the calculation of this tax varies from city to city and from province to province as recorded in Style At Home. You need to be updated of the rates from time to time and from place to place then. If you are from Canada, you can check the existing land transfer tax rate at relocate-canada.com.
Appraisal and Inspection Costs
Hiring an inspector means an amount to spend and the appraisal and inspection proper is another cost. You pay the inspector for checking the items that need replacement, major or minor repair, or that which should be monitored closely. He will also have to check the security of the house and other safety issues. One more thing, expect additional expenses if you want a really great inspector to do the appraisal for you. However, this is worth the expense as a great inspector explains to you the routine maintenance that your house should have and will keep on updating you as to when it should be performed as related by Amy Fontinelle, author at Investopedia.
