Additional costs when buying a house

The dream of owning your own home is still a life goal that many people strive for. Realising it is often easier than it first appears. This is because there is one essential element that many buyers lack: the necessary security! Yes, buying a house involves a great deal of responsibility. However, such statements often seem daunting, but they don’t really have to be.

Because one point that plays a major role here is the right preparation. Many people do not realise what they are getting into when buying a house and what costs are involved. But nobody should be put off by this. Because if you know where to obtain the necessary information and what you should be prepared for, you can approach buying a house with much more confidence. This blog post will explain what is important and how you can concentrate on the important things: the anticipation of owning your own four walls.

 

Basic information on purchase price and ancillary costs

One element that many prospective buyers factor in first and foremost is the purchase price of the property. Although it forms the basis for the initial calculations, there are other costs that will definitely be incurred when buying. You should not be discouraged by this. There is also one thing to bear in mind: this is an amount that only has to be paid once.

Good to know: Many home buyers include the ancillary costs in their financing and therefore have a more flexible buffer that they can use to pay the costs incurred without stress.

What exactly these ancillary costs include is relatively variable and will be explained in detail in the following section.

 

What are the ancillary costs when buying a house?

There is one thing that homebuyers are immediately confronted with and that may seem daunting at first: Terms they don’t know the meaning of. However, you can quickly recognise the meaning if you just look into it a little. So here is a short list of the most frequently mentioned terms, including an explanation:

● Brokerage fee: This includes the typical estate agent’s commission. However, these costs are only incurred if an estate agent has been entrusted with the sale of the house. The costs for the commission are usually split equally between the buyer and seller. The exact amount of the costs can always be found in the estate agent contract. Depending on the estate agent, they amount to between 3 and 7.14 per cent of the purchase price.
● Notary fees: A notary is called in to conclude a legally valid contract when buying a house. Both the buyer and the seller have nothing but advantages from using a notary. This is because the notary is familiar with the legal aspects of buying a house and is able to draw up a professional purchase contract that summarises all the necessary information. He is also available to advise both parties if any questions arise. Notarisation is carried out through him. The big advantage: the notary will also make the changes to the land register entry, giving the buyer even more security. This gives the buyer one less thing to worry about. The notary’s fees amount to around 1.5 to 2 per cent of the purchase price.
● Real estate transfer tax: Anyone who buys a property pays a one-off tax. This varies depending on which federal state you live in. This is another 3.5 to 6.5 per cent of the purchase price.

This summarises the typical costs incurred when buying a house. However, in order to be fully prepared, other elements should not be ignored.

Tip: If you would like to have a nice place to live in your new home, you should certainly consider refurbishing or at least renovating it. These costs are not absolutely necessary, but the house will increase in value as a result. This plays a role, for example, in a possible later sale. The same applies if the house was bought to rent out.

The cost of this depends on the work involved and the work to be done. Depending on how necessary they are, they can also be put on the waiting list for the time being. It should be noted, however, that there are one or two regulations for statutory renovation work that should not be postponed for too long. Nevertheless, these should not be an obstacle to buying a house.

If you want to factor in refurbishment or renovation costs directly, you should also consider consulting an expert. They play a particularly important role in such a project. This is because they have one main task: to help the homebuyer with questions and guidelines that need to be observed during the upcoming work. This includes, for example, compliance with listed building regulations – which in turn do not apply to every house.

 

How high are the ancillary costs when buying a house?

In order to get an initial impression of the amount of incidental costs incurred, percentage figures have already been provided above. However, it is important to note that all fees and taxes are regulated by law.

It is also always helpful to obtain and compare several offers. These are not initially binding. Only when the price is right and you are sure that you are working with the right contractors will fees become due.

As it turns out, buying a house is one thing above all else: a good investment in your own future. Of course, it comes with a certain amount of responsibility, but with the right preparation, the effort is worthwhile. After all, it’s about your own four walls, which give your life a great deal more security.

We are also happy to answer any questions you may have and hope we can help you realise your dream of owning your own home.