Buying a home these days involves more costs than a few years ago. It used to be possible to finance almost all additional costs within the mortgage. This is no longer permitted, meaning the additional costs must be paid from your own resources. You can avoid certain costs. For example, you can have a building inspection performed to prevent unforeseen costs for repairs and maintenance.
A building inspection report will give you a much better understanding of the condition of your house or apartment. This will save you a lot of unexpected costs. However, there will always be certain additional costs associated with buying a house. We call these the KK (Buyer's Costs). These are not always clear to many buyers. Homekeur therefore provides insight into the six most important additional costs when buying an existing home. The costs for new construction are different. Read more about the costs of a building inspection here.
In the vast majority of cases, you'll need a (partial) mortgage to purchase a home. You'll then be charged advisory and brokerage fees. These are often fixed amounts that are disproportionate to the property 's price. You should budget for an amount of €1,500 to €2,500.
You can choose to hire a buyer's agent. They can handle the negotiations on your behalf and have their own portfolio of properties for sale (privately or otherwise). The buyer's agent fee can be fixed in advance, or you can choose to charge a percentage of the purchase price. This means the higher the price of the property, the higher the fee.
Having your home appraised is often required to finalize a mortgage with the bank. In some cases, a property appraisal is sufficient. This is an estimate of the property's value, without a report, and is prepared by a real estate agent . However, if you hire a valuer because you need a report for the bank, you should expect to pay an average of around €400.
The NHG, or National Mortgage Guarantee, is only available for homes with a value of up to €325,000 (as of 2021). If you're looking to buy a more expensive home, you won't be able to get a mortgage with an NHG, so you won't incur any costs. The NHG costs are proportional to the property price. If you buy a home for €150,000, you'll pay €1,650 in NHG costs. This amount increases to €2,611 for a home price of €245,000. Having an NHG mortgage has advantages, but you should discuss this thoroughly with your mortgage advisor.
Notary fees are among the fixed costs for every property. They are therefore not proportional to the property price , but they should certainly not be overlooked. You will always face these costs. The property must be transferred, a deed of sale must be drawn up, and your information must be correctly registered with the Land Registry. You should expect to pay around €1,500.
Tip: Compare notary fees online. This can save you a lot of money!
Finally, there's the transfer tax , which does increase as the property becomes more expensive. This was abolished for first-time buyers as of January 1, 2021, but increased again for investors. For example, on a home worth €150,000, you pay 2% tax on €3,000 in transfer tax. If you buy a home worth €450,000, this amount increases to €9,000. If the home is even more expensive, such as €550,000, you pay €11,000 in transfer tax.
As you can see, you'll be faced with quite a few additional costs that can quickly add up. For an affordable home, priced at €150,000, these additional costs can reach almost €12,000. For more expensive homes, priced at €500,000 or more, they can reach €18,000 to €20,000. It goes without saying that you don't want to be faced with unforeseen costs for hidden defects in or on your home. You can prevent this by having a building inspection performed.
The cost of a building inspection (up to 250 m²) is only €489 including VAT. We'll conduct a comprehensive building inspection and you'll receive a building report. Do you have any questions? We're happy to help and can schedule an appointment with an expert inspector right away if you wish!
