There are plenty of pros and cons to weigh for someone considering entering or re-entering the real estate market. For those who are looking at this as a purely financial decision, often this means comparing the overall cost of purchasing a property to how that same investment might perform if invested elsewhere. When doing this math, it is important that prospective buyers in Alberta consider the costs associated with real estate transactions outside of the sticker price of the home.
The first cost people should consider when purchasing a home are professional services related to the purchase. Before finalizing a purchase, people often undergo home inspections, property appraisal and surveying, all of of which cost money to have performed. Additionally, costs are involved with having a lawyer draw up and validate the paperwork needed to secure the sale.
Insurance is another cost to consider, as mortgage providers will require home insurance upon closing. In addition, buyers who start with a downpayment of less than 20 percent must also consider private mortgage insurance as an added cost. Finally, adjustment costs are typically involved to compensate a current owner for property taxes and utilities that have already been paid but cover a time period after the close date.
Fees can vary a great deal depending on how far someone is moving, the lenders' policies and whether a new or previously owned property is being purchased. In general, however, buyers should be prepared to spend an additional 2 percent on top of the sale price of their home to manage fees related to finalizing the sale. When preparing for this, one of the first services that Alberta buyers should look into lining up is that of a lawyer to protect their interests throughout any real estate transactions.