The Stuff You Pay For
In our lovely Edmonton, Alberta market, costs associated with buying are a bit different than in other areas of Canada. So here is a quick overview of things you may need to cover:
1) Home Inspection
Home inspections are recommended pretty much all the time. It’s some of the best money you can spend to ensure you limit your risk of really expensive surprises down the road.
This one is really hit and miss. Some mortgage brokers forward this cost on, others don’t… A lot of banks make buyers pay for them, others don’t… It’s definitely not consistent, but it’s something to keep in mind.
3) Condominium Document Review
If you are buying a condominium, we are seeing more buyers trend toward having the documentation package (provided by sellers who pay for this) reviewed by professionals who live, eat, and breathe this stuff. It’s a good option and one we see more people doing in the future for this piece of the purchasing puzzle.
Lawyers are a must. They register your mortgage, process the land title transfer, and guide you through the process once we wrap up the conditions on the Realtor® side. A good lawyer is worth their weight in gold.
I debated putting this in here because 99% of the time, YOU DO NOT PAY COMMISSION ON THE BUYER SIDE. This is because commission is built into most MLS listed properties. The exceptions are with some discount brokerages (real estate offices that provide a lower level of service at a lower rate and expect the rest of the industry to accept a lower commission rate… don’t get me started… that’s a blog for another time) and For Sale by Owner properties.
In the case of some of these anomalies, what normally happens is we build the commission into the sale just like it would be in any typical sale. In exceptionally rare cases where sellers have their expectations wound up and won’t play ball, buyers may choose to pay less for the property and pay their Realtor® directly. It’s pretty rare, so don’t worry about it.
Those are the key things to think about. You may or may not have moving company expenses or utility hookup fees, but in terms of the actual costs related to real estate, those are the usual suspects.