When buying a property, whether it’s your first or you’ve lived in several places before there are certain costs that you might forget about. The process is undeniably stressful, and along the way things might slip your mind. And these costs could cause an issue along the way if you haven’t budgeted for them effectively.
If you’re thinking of purchasing a property in the near future, here are 5 costs that you must remember:
- Estate Agent Fees
When you’re purchasing a property for the first time, you won’t have to consider this. But if you’re moving from another property, you’ll have to budget out how much you will have to pay the estate agents that are selling your previous home. Although typically prices are negotiable, they tend to be up to 3% of the final sale price plus VAT. This can prove to be very pricey and cause a significant dent in your finances if you’ve forgotten to include it in your final budget.
- The Cost of Surveyors
When purchasing a house, no matter what the age of it, it’s a good idea to get a survey done on it. This will identify any issues and hazards within the house and be used as a marker for what offer you’ll put in. However, many people tend to skimp on the survey, opting for the cheapest one possible.Although this might save you in the short run, having a less comprehensive survey can come back to bite you later. It could miss huge issues that if left, will cost you a lot in the future – whether this be holes in the roof or ‘hidden’ damp in certain areas of the house. This is why it’s worth investing in a full structural survey. Keep in mind, though, that these can cost anywhere from £450 up to £1000 and more.
- Maintenance and Repair
Following on from the above, it’s vital that you acknowledge the potential costs of any maintenance and repair within a property before you invest in it. Although this arguably could be hard to do initially, by taking the time to have a survey and visit the property numerous times before putting in an offer, you’ll save yourself money down the line.
Throughout the years your house is bound to have issues – whether that be with the roof (which will involve maintenance care such as Timber Conservation, with the plumbing, etc. So it’s essential that you factor in these potential costs upfront.
- The Electronic Transfer Fee
This is one that people often forget about – but it’s still an annoyance that you’ll have wished that you knew about. When moving property, you’ll need to pay your electric provider a transfer fee so that the service is continued within your new home. Although this is quite a small fee, it’s still something to pay attention to.
- Any Mortgage Fees
As well as your deposit, you’ll have to remember what fees and charges are associated with your mortgage. In order to process your application, your mortgage provider can add on certain charges, such as valuation fees and booking fees. Costing up to £2000 depending on the provider and the fees, it’s not something that comes cheap.