Property Management
What are your house's purchasing costs?
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!
Home Purchasing Costs
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 includes research and handling fees, and it 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 (hypotheekadviseur):
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. Need a recommendation on a reliable and professional mortgage advisor? Contact us.
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. Need a recommendation on an available and professional appraiser? Contact us.
6. Home-buying agent:
Most traditional estate agents only join you for second-time viewings or inform you about things you could have found on Funda.nl. However, Diagonal Makelaardij, with its unique house-hunting services, the Guidance Package which includes the basic services every home-buyer needs. For those who want more, there are supplementary services upon request offers, that complete a full toolkit with a competitive price.
Overview of purchasing costs:
Service | Price |
|---|---|
Appraisal | € 500 |
Mortgage advisor | € 2,000 |
Notary fees | € 1,000 - 2,000 |
Structural inspection | € 400 |
Transfer tax | 0 - 8 % |