Buying a house can seem like a scary endeavour. After all, individuals are investing a lot of time in searching for their dream home. They are also investing a lot of money when buying a new home. Our post this week looks at a number of matters that need to be taken into consideration before purchasing a home.
Two Key Issues To Contemplate
One of the most important issues to understand in the home purchasing process is that once the Real Estate Purchase Contract is signed, it is binding on both the purchaser and seller. A prudent purchaser should ensure that it contains the exact purchase price and the terms they want reflected in the agreement.
Another issue to consider is whether a home inspection should take place. Without a home inspection, structural and other defects found in the home may remain unknown. This could prove problematic later on, leaving the new homeowner to carry the costs for repairs. If these defects are discovered before the agreement is signed, a purchaser is in a better position to ask the seller to remedy the defects before the closing date.
What Are The Costs?
Many first-time buyers are unaware of all the costs of a real estate transaction. The purchase price of the home is only one of many costs. Additional costs include:
- Home insurance fees
- Lawyer fees
- Land transfer registration fees
- The costs of obtaining a mortgage
- Goods and services tax
- Real property report
- Property tax adjustments
- The cost of opening utility accounts
- Late interest charges (if applicable)
- Home inspection and appraisal fees (if applicable)
When saving up to buy a home, individuals need to be aware that they may need to save a little more than they may have planned in order to accommodate any foreseen and unforeseen costs.