It’s a dream come true to own your home. Gearing up to a buy home for the first time is exciting, stressful, exhausting and overwhelming all at the same time. Finding the right house to buy and moving in is not as simple as it may seem to many new home buyers. It’s easy to get carried away with the excitement of owning and settling in your own house and overlooking the extra costs attached to moving. Being aware of all the possible concerns ahead of time can protect you from costly mistakes.
Planning your budget and finances is an important part of house moving. Often we know the major areas where the money will be going, but then some expenses pop up for which we had not planned. Moving cost is actually calculating all the costs involved in buying or selling your home. It is not just the mortgage cost; it is far and beyond that. There are other costs that need to be taken into account when calculating the overall budget. Before the keys of your new house are handed over to you, deposit costs, mortgage down payment, home inspection/surveyor’s fee, and the valuation fee, put a strain on your pocket. These expenses can be especially difficult to control for first-time home buyers. However, having a good real estate agent by your side can make the things a lot less complicated for homebuyers. Estate agents have a broad network of relevant contacts like surveyors, conveyancing, removals, mortgage advisers and builders. Hiring an agent to help you buy or sell a house will give you access to her/his fellow-professionals and contacts. Thus, professional real estate agents can not only help you list all the likely expenses but also connect you to the service providers.
If you don’t want any unpleasant surprises, make sure you don’t miss out on any costs while planning and listing your house moving budget from start to finish.
Moving Costs when Buying a Home
Here is a list of costs most likely to be incurred during house moving.
It is the amount you put towards the cost of the property when you buy your home.
It is a government tax paid on homes costing more than a certain amount. This varies from state to state.
It is paid for the inspection. When you buy a house, you should have it checked out by a surveyor to know if there are any issues with the property before you buy.
It is required to protect your new home against damage from fire, floods, subsidence and anything else. Make sure your house is fully covered for any unfortunate situation.
Loan Application Fee
It is charged by the bank when you apply for a loan.
Bank Valuation Fee
It is charged by the bank for arranging independent valuation of the property.
It is the cost of packing and transporting your household. This also includes the cost of insuring your belongings against any damage during the move.
Moving costs depend on your decision whether you let professionals handle your entire move from packing up your belongings to actually moving them to your new place and storing or if you do it yourself by renting a truck (which charges per mileage) and doing the rest on your own.
Storage cost is incurred if you have to keep your things in storage for a while, you must enlist this cost while working on your overall budget.
Maintenance and Repair
Maintenance and repairs are inevitable. When you move into your new home, you may find that it needs a bit of sprucing up to make it livable. Your survey should have highlighted any problems that need fixing straight away. Such repairs incur costs which need to be kept in mind.
Once you have bought the house, you would like to thoroughly clean it before moving in and unpacking your belongings. Cost amount depends on whether you will do the cleaning yourself or hire professional services. This also includes any cost related to waste removal.
These will be the running expenses that you will have to bear. An example of a running cost are the bills for utilities such as gas, electricity and water, cable, TV packages and internet service. Keep these deposit charges in mind when planning your moving budget, as they can really take a toll on your budget.
Moving Costs when Selling a Home
Estate Agent’s fee Commission to agents for their services is only paid by sellers, not buyers, and is negotiated when they put the property on the market and is usually 1% to 3% of the sale price plus 20% VAT.
Land Registry Fee is paid for the documents to confirm that you are the legal owner of the property which you are going to sell.
Leaseholder Costs is actually the ground rent paid by the owner of a leasehold property to the person who owns the freehold.
Telegraphic Transfer Fee is to transfer money to pay off your existing mortgage.
Moving Costs Common to Both Buyer & Seller
Legal Fees are paid to the solicitor to carry out all the legal work when buying and selling your home.
Mortgage Fees may include a booking fee and a mortgage valuation fee.
Buying your first home brings about a lot of excitement and if you have the proper knowledge to make the right decision your excitement will be equated with satisfaction! The more accurately you estimate your house moving cost, the better you will be able to manage it. So, it’s not just the money on the price tag you have to pay, make sure you have enough cash to pay for all the costs that crop up.