Many first-time home buyers think that they only need a certain amount of money to pay the home price to close the deal. However, that is not true. You will need more than the exact amount of the house to complete the process.
On top of the house price amount, you will need to pay closing costs, and the total amount depends on the property’s price and location. Here is a summary of closing costs you will likely incur when buying a home in Nova Scotia.
Home Inspection Fee
Once you find the ideal house to buy in Nova Scotia, you should hire professional home inspectors. The team will assess the flooring, basement, home appliances, roof, and everything in the house. Count on them to highlight any defects and recommend solutions. You will pay the home inspection team around $400-$600 for the work.
Well, Septic and Radon Gas inspection/Tests
If your target home has a septic system and a well, you must pay approximately $1,000 to $1500 for inspection and water tests. This prevents you from buying a home with a faulty septic line or a well with harmful water. In addition, you should pay for a radon test, which costs around $300.
Although having an experienced real estate agent can ensure a seamless home-buying process, you may need to hire a lawyer to guide you through the transaction and answer legal questions that may arise. When hiring a real estate attorney, prepare to pay the legal fees.
Deed Transfer Tax
To transfer ownership of the house into your name, you will pay a deed transfer tax to the municipality where the house is located. The deed transfer tax is 1.5% of the home price for Nova Scotia residents but it is 5% for the people living outside Nova Scotia. If the purchaser is planning to move to NS within next 6 months, then the the transfer tax is 1.5% subject to documented proof.
If the seller had paid property taxes to the municipality, you would be required to reimburse the taxes they have already paid ahead. If they have paid property taxes three months ahead, you should do the calculations and refund the money.
If the home you want to buy has a propane fireplace or oil heating, the seller is supposed to refill the tanks a day before closing, and you will refund the money on the closing date. The cost will be $1300 to $1,800 for a full oil tank and similar for propane tank depending on tank size.
If you plan to buy a home in Nova Scotia, it is an excellent idea to prepare with an additional budget beyond the actual home price. This will allow you to pay the home price and closing costs. Of course, not everyone may know about this, and the good news is that our experienced real estate agents in Nova Scotia can help you plan ahead. Contact us here – https://michellemorrow.ca/contact/