What Costs Are There Before I Purchase A Property?

by | Aug 23, 2021 | News, Wills & Estates Probate

We are frequently asked by potential purchasers when we are reviewing contracts as to what they may expect in regards to what we know as ‘hidden fees’ or fees and charges that you may not be ordinarily aware of.

Some of the main ones to factor in that people are often unaware of are as follows:

  1. Inspections – when you are looking to purchase a property there are essential inspections that we recommend including a pest and building inspection, a council building certificate (if needed) and sometimes a land survey. The cost for these can vary greatly but as a minimum its generally anywhere from $500.00 to $1,000.00 on top of your normal purchase costs.
  2. Examination of the contract, particularly in option situations – there are fees in having a contract reviewed prior to attending to bid at an auction. Our office charges $200.00 for review of a contract and this is payable per contract. Please discuss this with us if you have any further questions but it is essential that the contract is reviewed prior to bidding at any auction as you will exchange unconditionally if you are the successful bidder on the day.
  3. Insurance – many lenders if you are proceeding with a mortgage will require building insurance at or before settlement and this is often a cost that parties have not factored in. Please contact us if you need more information.
  4. Repair costs – have a talk to your real estate agent but often there are some minor repairs or upgrades that sometimes are essential before the property is listed and these need to be factored in when you are looking to purchase and/or sell.
  5. Property stamp duty – many people are unaware of the cost of stamp duty particularly for a purchase in NSW. The NSW Government does provide a stamp duty calculator that you can log on to estimate what you may pay depending on the purchase price of the property. For first home owners and in particular situations, there are some concessions available. If you are unsure if you are eligible please contact our conveyancing department.
  6. Application fees – many lenders can charge an application fee and in some situations a valuation fee. Again check with our staff or talk to your bank or broker before proceeding so that you are fully aware of the exact costs of all of these items.