Expected Fees
Posted on Jan 10, 2014 in Blog, Featured | 0 comments
Many clients, both past and present, are confused about what fees the “seller” pays, and what fees the “Buyer” pays. If you’re one of them, don’t feel bad—these fees differ wildly according to the local market and different lenders. Many of these fees can also be “negotiated” and sometimes eliminated (mortgage lenders are in a competitive business).
Below you will find a brief explanation of these costs, yet it may not include all items required specific to your property, or the area in which you have purchased. This is a guideline only–you’ll want to discuss them with a professional.
Costs can range from 1% to 6% of total purchase price, excluding down payment.
Buyer’s Fees
For example, a purchase price of $150,000 would yield:
| Fee | Amount |
|---|---|
| Inspection Fees – General/Structural | $300 – $500 |
| Additional Inspection Fees – Detailed (roof, mould, asbestos, water damage, etc) |
Varies |
| Mortgage Application and Appraisal (may be waived by bank) |
$200 – $400 |
| Mortgage Insurance (can be added to the mortgage) |
$2000 +/- |
| Legal Fees & Disbursements (due at time of closing) |
$600 + |
| HST (for new homes only) |
Varies |
| Home and Content Insurance | $450 |
| Moving and/or Storage Expenses | $500 |
| Land Transfer tax | $1225 |
| Title insurance | $200 – $400 |
| Survey – New | $500 – $700 |
| Survey – Updated | $250 – $400 |
Seller’s Fees
Costs can range from 1.5 to 5% of total sale price.
For example, a sale price of $250,000 would yield:
| Fee | Amount |
|---|---|
| Real Estate Commissions | Negotiated |
| Tax Proration | Varies |
| Unpaid Homeowners Fees | Varies |
| Legal Fees & Disbursements (due at time of closing) |
$700 – $1000 |
| Survey – New | $500 – $700 |
| Survey – Updated | $250 – $400 |
| Mortgage Interest Adjustments – if applicable (due at time of closing) |
$350 |
| Home and Content Insurance | $450 |
| Moving and/or Storage Expenses | $500 |