Joining the Owen Sound Real Estate Market is an exciting experience, particularly for first time homebuyers. Most Buyers begin by looking up listings online right away, whether simply gathering ideas or eagerly looking for that dream home. It is quite common for first time homebuyers, as well as those who have purchased many times in the past, to start their search on their own before contacting their trusted local Owen Sound REALTOR®. This can result in “falling in love” with a home that is outside of your budget, or thinking a home is feasible but failing to consider the Closing Costs in your budget. These costs can be significantly higher than you may anticipate. This is especially true if you have never experienced purchasing a home before and do not know what to expect. Although they are a frustrating part of the Real Estate transaction, they are also unavoidable. Some of these costs are the responsibility of the Sellers but most do fall on the Buyer. Here are a few of the Buyer’s closing costs and how they can affect your budget and down payment.
- Land Transfer Tax – The Land Transfer Tax is a provincial tax, however some municipalities, such as Toronto, have an added Municipal Land Transfer Tax as well. If you are a first time homebuyer you may be exempt from a portion of this cost.
- Legal Fees and Disbursements – Hiring a Real Estate Lawyer is absolutely unavoidable. Your lawyer will ensure there is no legal reason to hinder your purchase as well as much more. These costs vary from firm to firm but generally range from $1,500 – $2,500 and are subject to HST in Ontario.
- Title Insurance – An optional expense, acquiring Title Insurance will protect you incase any problems arise due to encroachment issues, title fraud, un-discharged mortgages, or any other issue relating to the previous owner of the property. For homes with one or more past owners it is highly recommended for peace of mind.
Reducing Closing Costs on Homes for Sale in Owen Sound
Purchasing Homes for Sale in Owen Sound will come with fees that are expected as well as some that are not. It is always recommended that you speak with your Owen Sound REALTOR® as your first step. Let me guide you through the costs involved and help you in making the right decision.