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The Costs Associated With Buying a Home

Buyers   |   October 23, 2023   |   Wright & Co Estate Agents

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Buying a new home is a very exciting process. However it’s also a major life decision that requires careful planning and research, and a new home is a huge investment. Whether you are a first-time home buyer or an experienced one, the process will require some due diligence to ensure that you make the best decision possible for you and your family. It is important to think about your needs and preferences when selecting a home as well as the local market conditions. Not to mention, you also need to bear in mind your budget. 

There are lots of different costs that you need to consider when you’re buying a property and lots of people don’t realise how many costs are involved with the process. To help you ensure that you’re fully prepared for what the buying process entails, below our estate agents have listed the main costs associated with buying a new home.  

House deposit 

This is one of the biggest expenses associated with buying a home and it’s one that most people are aware of. The majority of people need a mortgage to buy a property as they can’t afford to buy outright, and they will need to have a deposit. Typically, a deposit is at least 5% of the purchase price but most commonly, buyers will have a 10% deposit unless they can afford to put down a bigger percentage. Depending on the purchase price and the type of mortgage you get, the amount you need to save for a house deposit can vary quite significantly.

Professional’s fees

During the buying process, you will work alongside a range of professionals including mortgage advisors and solicitors/conveyancers. Many of these professionals will charge for their services and you will have to consider their fees when determining how much your house move will cost you. It’s important to note that there are various disbursements that you need to be aware of too. For example, you will have to pay for various local searches and Land Registry fees. 

Stamp Duty Land Tax (SDLT)

Most people will have to pay Stamp Duty Land Tax (SDLT) when they’re buying a home and this is another considerable expense. This type of tax is paid on increasing portions of the property price and it applies to properties over £250,000. You can use the Government’s SDLT calculator to work out how much tax you’ll pay, so you can budget for it in advance. 

Property survey 

Although it’s not compulsory to have a survey carried out on the house you’re buying, it’s highly recommended that you find out more about any potential structural damage or common problems like damp. There are different types of property surveys available and some are more affordable than others, but they’re all beneficial. Take a look at the Royal Institution of Chartered Surveyors (RICS) website to find out more about the different surveys and how to find a surveyor. This is something that an estate agent will be able to assist you with as well. 

Insurance policies 

Whenever you’re buying a home, there are a few key insurance policies that you should take out. As a minimum, you should have buildings insurance and life insurance, but it’s also advisable to have contents insurance and sometimes income protection insurance. It’s beneficial to double-check whether your mortgage provider requires you to have any insurance policies too as sometimes you’re unable to get a mortgage without suitable insurance. 

Moving day costs

It can be easy to overlook moving day costs when you first start looking for a home, but you should budget for them from the outset. Moving day costs are the costs associated with the process of moving from your current house to your new home. These costs can include the cost of renting a removal van, hiring a team of professional movers and purchasing packing materials, and they can quickly add up. 

Looking for estate agents in Bishop’s Stortford?

Hopefully, you will now know a little bit more about the costs associated with buying a home and you can make sure you’re correctly budgeting for everything. If you have any questions about the buying process and you’re looking for estate agents in Bishop’s Stortford, our team at Wright & Co is here to help. We are situated just outside of Bishop’s Stortford in Sawbridgeworth and we can help you find the perfect new home for you and your family.

At Wright & Co, we have high expectations for ourselves and we are committed to providing the best service possible to homebuyers. Our knowledge of Bishop’s Stortford, Sawbridgeworth and the surrounding areas is impeccable, we know the schools, pubs, transport links and local services, and we can provide you with some advice when you’re browsing the local property market. To find out more about how we can help, feel free to contact us today. 

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