This Week in Real Estate #006 – Closing Costs When Buying or Selling your Home…Who Pays What??

(March 07, 2014 )

Do you have questions about which closing costs you’ll have to pay when selling a home? Have you added up how much you’ll need for closing costs beyond the down payment when buying a home? If you haven’t taken time to learn which closing costs are your responsibilities, then you may not be prepared to go to closing.

The amount of closing costs could vary depending on where and what type of property you plan to buy or sell. Those who go into closing armed with information about whether any fees are negotiable or unnecessary come out on top. Are you armed with this information?

If you’re interested in learning facts regarding the closing costs when selling or purchasing a home then you’ll want to invest 20 minutes to listen to this installment of This Week in Real Estate where your host Nick Jaworski interviews Lance Marples from Sutton West Coast Realty about closing costs, including what the buyer and seller are responsible to pay on closing and how taxes and home insurance figure into all of this.

The market for high-end homes in Western Canada gained serious drive in 2013. ReMax Upper-End Market Trends reports that over 1600 luxury homes were bought or sold in this time period. This interview is a chance to learn what closing costs you are responsible for when buying or selling in the Greater Vancouver area.

Adding Up the Amount of the Closing Costs

The episode begins with an explanation from Lance about the fees buyers and sellers can expect to pay at closing. He describes what taxes apply specifically to properties in British Columbia, including which exemptions apply to what types of purchases, the property transfer tax, a temporary type of tax, and more.

Lance confides that when it comes to adding up the total amount that a buyer or seller will need at closing, even he has to use a tool on a website. It’s a complex procedure that relies on factors such as first-time home buyers, and buying or selling a home that’s newly constructed or majorly renovated.

Sellers can attract more buyers by including taxes into the price of the home they are selling. Lance describes what options buyers and sellers have in this type of closing, and which alternative that, in his experience, saves the most time and money.

If you plan to buy a home and only save up for the down payment, then you could be putting the purchase of your dream home in jeopardy.

Answers to Questions about Closing Costs

Your real estate agent is just one person in a team of professionals required for buying or selling a home. Each one typically charges a standard fee for their services. During the episode Lance discusses these professionals in more detail and goes on to answer these questions:

- What costs do I have to pay when buying a home?
- Can you explain real estate taxes and insurance to me?
- If I sell a home, then what fees am I obligated to pay?
- What real estate services does a notary republic offer?

Now take a minute or two to determine if you understand your obligations for paying closing costs when buying or selling a home. If buying, then can your finances handle paying more than the amount of the down payment? Do you understand the fees involved for selling your home? If you answered no to either of these, then you could unintentionally delay the transaction.

What You Need to Know about Taxes and Insurance

After a short break, Lance explains a tax that only applies to new properties. He then segues into other taxes involved in the sale, and discusses when they’re due and how to determine who’s responsible.

Next Lance talks about tax incentives that could apply to first-time home buyers, and mentions a huge benefit that buyers receive when purchasing a home in the United States. While the process is basically the same in both countries, there are some specific differences between the two.

When moving from one home to another, it is easy to fall victim to common mistakes. Your real estate agent is there to answer your questions. So what’s holding you back from asking them?

The episode wraps up with an explanation from Lance about important dates when closing on a house, such as the day you buy it and the day you take possession of it. He also explains how this affects real estate insurance, and why more insurance is better than not enough.

Are You Ready to Close on a Real Estate Transaction?

Do you want to learn more about buying or selling a home on the South Slope? Could you use more information about closing costs for homes in Greater Vancouver? Listen to the entire podcast now, and then ask your questions or share your comments below.

Lance and Connie Marples are a high energy team with the real estate experience to help their clients achieve their real estate goals, whether they’re buying or selling. Give Lance and Connie a call at (604) 538-8888 with all of your real estate questions and needs.

Marples Marketing Group
Sutton Group – West Coast Realty
15595 24th Ave
Surrey, BC
V4A 2J4

Lance Marples
Office: (604) 538-8888
Mobile: (778) 840-1500

Connie Marples
Office: (604) 538-8888
Mobile: (778) 840-1700