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Buying or selling a house can be a big deal. So, if you are thinking about it, then you must know the real estate fees in British Columbia. Remember that over time, the cost can add up quickly. But don't worry! Here, we will help you understand everything that you might need.
Real Estate Agent Commissions in BC
If you plan to use a realtor, make sure you understand their commission structure. An expert real estate agent firm like The Valley Life can help with all your paperwork and handle offers.
But in British Columbia, commissions are not fixed. Most real estate agents charge 7% on the first $100,000 of the home’s sale price and 2.5% on the rest. Here's a breakdown for you:
Suppose your home is selling for $700,000. In that case:
7% of $100,000 = $7,000
2.5% of $600,000 = $15,000
Total = $22,000
What Are the Legal and Notary Fees?
You will need a lawyer or a notary to help you with your transaction. But what are their fees? Even though these fees are negotiable, here's an idea for you:
Legal fees: For this, you will have to be prepared with a $900 to $1,300 budget.
Notary fees: It can be around $650 to $1,500. Mostly, it depends on the complexity of the transaction.
These fees will cover services:
Reviewing and preparing documents
Registering the property title
Managing mortgage documents
What Are the Closing Costs for Buyers?
Some buyers may be eligible for the BC Home Owner Grant, which can lower their costs.. However, here are the closing costs for you:
Property Transfer Tax (PTT): You will have to pay 1% on the first $200,000. 2% on the amount up to $2,000,000, and more if your home costs more than that.
Home Inspection: You hire a home inspector to check the house and find out if anything is wrong with it. It will cost between $300 and $500.
Appraisal Fee: If you get a mortgage, you might have to give your lender an appraisal to assess the property's value and protect their investment. This can cost about $300.
Legal or Notary Fees: Like we said above, plan for $800 to $1,500.
Moving Costs: Hiring a moving truck or company can cost a few hundred dollars. It mostly depends on how far you're going and how much you are moving.
Title Insurance: To protect your title and be safe, you might need to spend $200 to $400.
What Are the Closing Costs for Sellers?
For sellers, the cost might seem different; still, they will have to pay it. Prepare yourselves with this information:
Legal Fees: It costs around $1,200 and covers document preparation and title clearance.
Strata Documentation Fee (for condos): This is the cost that the Strata management company charges to gather and give documents. You will have to add documents like an information certificate and a certificate of payment.
You will also need strata meeting minutes, financial statements, strata bylaws, and rules. Lastly, an insurance certificate. And you need to pay anywhere from $35 to $200 for this.
GST on Commission and Legal Fees: Getting services means you will have to pay a 5% tax.
Moving Costs: Your moving costs can be around $400 to $2,000.
Mortgage-Related Fees
If you are buying a home with a loan, your bank or lender might charge extra fees. Here are the fees:
Mortgage Application Fee: Some lenders charge a small fee to process your mortgage.
CMHC Insurance: If your down payment is less than 20%, you’ll need mortgage insurance.
Interest Adjustment: You have to pay the interest fees if you start before the end of the month.
Optional Costs and Considerations
Do you want to know how the market is doing? It might be the best idea if you can check the Fraser Valley real estate stats. Here are some options and things you should keep in mind:
Home Insurance: This will help you save your home from fire, theft, or damage. It’s basically $800 to $1,200 a year in BC.
Storage Fees: If you can’t move in right away, you might need a storage unit.
Cleaning Services: Some people hire a cleaning service before they move in or after they move out.
Conclusion
Buying or selling a house is not an easy task. In British Columbia, you have to think about many things, like legal fees. You should also have knowledge about real estate fees in British Columbia. So, start preparing for the new journey, and if you need any other suggestions, reach out to us.