Additional Costs for the Home Buyer in Edmonton
In addition to the 10 Steps to buying a home you will need to consider the following up-front costs in order to determine if you have the appropriate cash reserves to get the home buying process started:
The Initial Deposit: Typically $1000 - $5000 on a purchase price up to $400,000 - The amount of deposit money is negotiable between the buyer and seller in the transaction and it also varies with the value of the property as the example above. Sometimes the amount of the initial deposit will be a huge factor if you find yourself in a multiple offers situation. It also indicates the seriousness of the buyers when submitting their offer to the sellers.
Additional Deposit: Just as it sounds. An additional deposit that is added to your deposit at a later time that was agreed between the buyers and sellers. ( Sometimes buyers cannot come up with their full deposit at the time of their offer and need a week or two to complete that deposit )
Inspection Fee: $400 - $600 is what you should budget for the home inspection. This is the Buyers responsibility to pay the home inspector. The home inspection should be one of the conditions of buying a home. The Canadian Association of Home & Property Inspectors is the only national home & property inspection organization that has highly qualified inspectors. CAHPI home & property inspectors that have met the requirements of the provincial/regional associations are allowed to use the term "Registered Home Inspector" or "RHI". The registered designation identifies members of the Canadian Association of Home and Property Inspectors. Currently, Alberta & British Columbia are the only provinces have regulations on home inspectors.
Lawyers Costs: $600 - $1600 Legal fee's are unavoidable in a Real Estate transaction. The home buyer is responsible for paying their legal costs before closing. Real Estate Lawyers will Transfer Title of the Land, Title Search, Acquire Title Insurance if necessary, Convey the closing monies and other legal responsibilities involved in the transaction.
Tax Adjustments: Depending on how the Sellers pays taxes and the time of year the buyer purchases the home. It can result in a reimbursement to the seller.
Moving Costs & New Utility Set Up Costs: $1000 - $2000 for paying for a moving company, renting a Uhaul vehicle, buying moving boxes, paper, and other costs associated with the move & setting up new utility accounts.