If you are looking for a real estate agency in Bellarine Peninsula to buy a home, you must budget for the costs besides the agent’s commission. That is because reputable real estate agencies charge inspection fees, property valuation, and premium services, and other costs from buyers.
However, when you fail to account for these expenses, you end up blaming the agents for asking fees with hidden costs. In fact, mortgage application, insurance, building inspections, and other administration fees are part of the agent’s efforts before making a property available for your purchase.
In this blog, you will understand the agent’s hidden costs, why they incur, and what is included in the costs. So, continue reading the blog till the end to make a proper budget for property purchase in Bellarine.
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Implicit Costs of Purchasing a Home in Bellarine Peninsula
Hiring a real estate agency in Bellarine for buying a home comes with a costly investment. Here are several least known costs that you must know.
● Loan Application and Lender Fees:
If you are applying for a home loan through the help of a real estate agent, you must be ready to pay for the mortgage application process.
That is because property agents usually network with mortgage brokers or financial advisors. And so the fees come from securing a home loan, collecting and submitting documents, accessing off-market listings for pre-approval of a home loan, and coordinating with lenders.
Before agreeing to any charges, it is useful to ensure that your agent discloses the home loan assistance fees upfront.
● Lender Mortgage Insurance:
Getting home loan approval is not the end of the mortgage costs. You must have money in your bank to pay higher down payments and settle less on mortgages.
However, if you end up paying less than 20% of your home’s price as a pre-installment, lenders fear that you may not have enough money to repay the higher loan amount. As a result, lenders charge a premium for mortgage insurance to protect them from losing too much money. Real estate agents do not directly charge these fees but it often goes beneath the mortgage costs.
Fortunately, a real estate agency in Bellarine suggests lenders or loan options even when you don’t have full 20% savings to pay upfront.
● Building and Pest Inspections:
Building and pest inspections are another hidden cost. This price from agents stems up when they are paying a fee to the qualified building inspectors for comprehensive house inspections. This covers costs for finding out structural damages, plumbing issues, major repairs, pest infestations, and adhering to local zoning laws.
Many agents charge a small fee to pay the home inspectors. House check-up prevents brokers from any legal or financial penalties later on. However, the cost depends on the condition and size of the property.
● Conveyancing Fees:
Conveyancing fees are also hidden from the buyers, which often results from hiring a conveyancer for handling legal paperwork. Realtors cover fees for confirming the seller’s legal ownership, outstanding dues on the property, mortgage documents, and other identity documents as part of the home conveyancing fees in the contract.
A real estate agency in Bellarine network with reliable conveyancers to ensure full and final settlement of the house.
● Property Valuation Fees:
Another most obvious hidden cost is the property valuation fees. Many agents ask small fees to value a property’s market value in which you are seriously interested. Also, the costs might cover the lender’s fees for detailed valuation reports.
● Stamp Duty (Property Transfer Tax):
In Victoria, stamp duty is often hidden in the property’s final price. This is essential property transfer tax, levied by the State government on all types of property transactions. Whether you are buying a townhouse, apartment, or land, your realtor will definitely guide you through the stamp duty applicable on the property’s value and its type.
It is important to point out that property agents can only estimate the stamp duties. You still have to wait for the time of property transaction to get an accurate tax figure. However, in most cases, an estimate is enough to budget for the hidden expenses included in the property price.
● Real Estate Fees:
While only sellers pay commission fees to real estate agents, some agents ask for a small fee from buyers too. The amount, although, varies depending on the premium services of a real estate agency.
Real estate agent services often feature costs for the personalised property searches, access to the off-market listings, and scheduling open house viewings for a specific buyer. It is good to negotiate with a broker to reduce these expenses or be clear about the applicable charges early on.
Final Words
We hope you found this blog useful. Coming to an end, it is clear that buying a home in Bellarine Peninsula comes with several hidden costs in the final purchase price. It is natural to overlook these prices until and unless you have a clear knowledge.
As mentioned in this blog, the implicit prices start right from the loan settlement, lender insurance, inspections, to the settlement costs, stamp duty, and real estate agent’s commission.
Remember, knowing every small and unforeseen cost beforehand can make the budgeting simple and effective for home buyers like you. Take the next step – hire a real estate agency in Bellarine – https://pavilionpg.com.au/ with wide knowledge and market insights, and gather detailed and transparent quotes.
