Buying a house is a huge financial commitment, usually the biggest you will make in your lifetime. It may seem obvious, but understanding the true cost of buying a property and moving house can help you to be fully prepared for the process, and to avoid any unexpected additional expenses.
For most people, buying a house involves a loan, usually in the form of a mortgage. This will be arranged through a bank or building society, and the process of satisfying a lender that you are a safe borrower may be long and time consuming. It’s a good idea to get this process started as soon as possible, but it’s very important to be aware of all the hidden costs of purchasing a property so that you can ensure that you are borrowing enough.
The Hidden Costs Of Buying A House
1. Property price. The advertised price of a property is only the first step in financial deliberations, and there will usually be a period of negotiating between the seller and the potential buyer to agree a purchase price. This can be a stressful time as you may need to communicate with mortgage lenders, estate agents and others in your proposed chain. Once you have had an offer accepted, or agreed a price with a seller, your solicitors will draw up contracts based on this.
2. Professional fees. Your solicitor, estate agent/auctioneer and your surveyor will all need to be paid, although the seller is usually responsible for the estate agent fees. You should obtain a quotation from your solicitor before you instruct him or her to act for you, and you can shop around for a survey that suits your budget.
3. Stamp duty. Stamp duty applies to all property sales, and you will need to speak to your solicitor to find out if you or the person you are buying from will be liable for this cost.
4. Search fees. Your solicitor will arrange for several searches to be carried out concerning the property and the local area. Fees vary according to the nature of your purchase, so it is important to find out how much these costs are likely to be in your case.
5. Registration fees. Your ownership of the property will need to be registered with the Land Registry or the Registry of Deeds, and your solicitor will take care of this for you once your sale is completed. These fees are usually standardized, so it should be easy to find out how much this will cost you.
6. Insurance. You must insure the property you are buying as soon as you become responsible for it, usually when you exchange contracts, and it is a good idea to discuss this with your solicitor to ensure you have the right level of cover in place. This insurance will be a condition of your mortgage, if this is applicable to you, so it is essential to factor it into your calculations.
Find Experienced Property Solicitors in Cork
If you are looking to buy a home or another property, you should consult a solicitor who specializes in this area to handle the legal proceedings for you. Contact Irwin, Kilcullen & Co Property Solicitors in Cork City for a free consultation without obligation. Simply contact us online or call us today on +021 4270934 to talk to our experienced and helpful team.