Are you a potential home buyer looking for a home that comes with a fair price? It can be incredibly daunting to find a home that is perfect like a dream and also reasonably priced, considering that there are other costs involved before and after buying a home. It is best to be aware of these costs so that you can prepare yourself better financially and emotionally and get assistance on time if needed. We have listed below all the extra costs that you have to consider when buying a home.
Earnest Money
To show a developer or property seller that you are serious about buying the apartment you may have to pay an initial earnest money. It could be a very small amount, ranging from 1-5% of sale price but it could be more. The earnest money gives the seller the impression that you are committed to purchase the home, and the seller will take the property off the market. Should you change your mind, the seller will put the property back into the market, possibly at a slightly lower price. The earnest money protects a seller for these reasons. After paying the earnest money, you have two options. You can either pay for the apartment straight away or via a home loan. When you are financed by a home loan you will first pay the down payment and then the rest of the instalments in a timely manner.
Appraisal Fees
Usually when you pay for an apartment straight away it is easier for both the seller and the buyer. However, things can get slightly complicated with home loans. If you are looking for a home loan you have to understand that your eligibility and individual credit score will have an impact on how much loan you can avail. Financial institutions and banks assess the worth of the property and your ability to pay back the loans and then come up with a long-term plan of paying back with interest. The entire process comes at a cost called the appraisal fee. If you are availing a home loan you have to pay these fees which can vary among lenders.
Inspection Fees
Home buyers can hire professionals to inspect homes or even do it themselves. However, we would recommend hiring inspection agents because they have a greater eye for detail, can explain things about the property you have not observed before, and can offer you perspective about how you will have to maintain the property in the future. Ultimately, home inspection is an option that you do not have to pay for, but it is every bit worth it.
Utilities
You will have to pay bills for electricity, gas, and water as soon as the property is handed over to you. There are other costs such as internet connection and cable TV that also need to be dealt with as soon as you move in. Establishing first time connections and utility lines via a deposit in the first month can be expensive, but after that it becomes manageable.
Property Management Costs
For first time home buyers property management costs can be overwhelming and quite shocking. As soon as you move in you will have to pay a monthly service charge to the building community or society. Service charges from all homeowners are collected to be used in the maintenance, repair, and care of the property. Service charges can vary in amount based on the number of features to be maintained in the property, the location of the property, the number of homeowners, and more. For example, the service charges in Gulshan are way more than service charges in Moghbazar, because maintaining a home in Gulshan is far more expensive. The more the number of homeowners the more the total service charge is divided. Therefore, individual homeowners would then have to pay less. Service charge includes the salaries of caretakers, managers, gardeners, security personnel, cleaning personnel, lift servicing, swimming pool maintenance, plumbing issues, and more. Therefore, if a property has many personnel involved round the clock the service charge would be higher. If a property has no swimming pool or lift, the service charge would be a lot lower than a property with a swimming pool and lift in the same area.
If this article helped you to get familiarized with all the extra costs associated with buying a home, you can now enjoy the process with ease and peace. Making homeownership a joyful experience is our priority and we hope that you get your dream home in no time. Call 16604, or Whatsapp: +8801313401405 or visit www.btibd.com to explore our full range of apartments in Dhaka and Chattogram.