What are the purchase costs of a house?
Trying to estimate the additional costs of your future home purchase?
Then this article is just for you!
Sometimes, home buyers in the Netherlands fail to acknowledge that a house purchase entails additional costs on top of the agreed purchase price. Most fees are excluded from the mortgage and often paid before the home transfer out of the buyer's savings.
That extra money goes for the additional services. For example, carrying out a technical inspection, paying for the appraisal, and the Home buying services. Cases like when buyers who're renovating their newly-purchased home pay for both the first mortgage repayment while still renting a place to stay are pretty standard and require them to cover both from their savings.
Sounds confusing? No worries. Let's break it down!
As said, when buying a house, you are subject to various additional charges. Here we listed down for you the main expenses and their estimated prices:
1. Notary fees:
In the Netherlands, every real estate transaction has to be handled by a notary. It is customary that the buyer is the one who selects the notary office, as he's the one who pays for it. Notary fee increases in case a mortgage deed also needs to be drawn.
2. Structural inspection:
Diagonal Makelaardij always instructs its clients to carry out a structural inspection and include it as a resolutive condition in the purchase agreement. The assessment gives you an overview of unforeseen damages or issues that you may not be aware of. Want to know more? Read here.
3. Transfer tax:
Property transfers in the Netherlands entail transfer tax that is levied from the buyer's side. As of January 1st, 2021, the tax rate ranges from 0% to 8% of the purchase price. The buyer's circumstances determine the rate. Want to know under which rate you fall? Read here.
4. Mortgage advisor (hypotheker):
Most people in the Netherlands buy a house using a mortgage. It is customary to borrow not only from traditional banks but also via mortgage advisors. These advisors often work with multiple lending institutions, where you could compare their fees and terms.
5. Appraiser (taxateur):
For those who need a mortgage, the bank requires hiring an appraiser to evaluate the house's actual value. The appraisal report will serve the bank to determine the extent of the mortgage it is willing to lend to the buyers.
6. Home Buying services:
Most traditional estate agents only join you for second-time viewings or inform you about things you could have found online. However, pretty rare, and perhaps the most important, is having a House Hunter who joins you to first-time viewings, firmly negotiates on your behalf to get you a better deal.
This is precisely Diagonal Makelaardij's specialty!
As the extent of service varies, so is the price.
Want to get a quote for house-hunting? Contact us for a free intake meeting.
Overview of purchasing costs:
Looking for a professional Buying Agent?
€ 1,000 - 2,000
0 - 8 %