When buying a home a certain portion of the purchase will be from savings – this is what is referred to as the down payment. The rest will be financed and in most cases will be via a mortgage. However there will be additional expenses incurred as various inspections are conducted, the mortgage is registered and the title is transferred. These expenses are known as closing costs and must be paid before the home can be considered sold. Therefore, saving on ‘closing costs’ while buying a home is often questioned.
So can you cut closing costs and save money when buying a home?
First, a bit more detail on what these costs entail. In Saskatchewan, most of the costs consist of two parts. The first is a non-negotiable fee charged by the province when property title transfers from one owner to another. This fee (of 0.03% of the property’s value) is paid by the buyer’s attorney and then charged back to the buyer through the legal fee invoice. The second part consists of legal fees, which vary depending on the property selected and the legal focus it requires.
So yes it is possible to lower legal fees – namely, by choosing one attorney over the other. However, you will want to have an attorney with the experience, skill, and resources to handle your closing properly. The attorney helping you buy will be an integral part of the process when buying a home, and the fee you pay well worth the legal protection you will gain.
Therefore the best way to cut costs is to shop around for a real estate lawyer who will work well with you and at a reasonable cost. The best strategy is to discuss this matter completely with the real estate professional helping you buy. Get a number of attorney recommendations and request a free quote from each office so you may compare and make a selection
The real estate agent helping you buy a home may be able to also offer saving avenues. My clients, for example, receive AIR MILES® on purchases and sales, which they may apply toward household purchases. They can also purchase furniture or appliances from select merchants at wholesale prices, or utilize proven home contractors, known to me, which further contributes to savings. To recap, saving on closing costs may be achieved by:
Shopping around for a reasonable and experienced real estate attorney
Working with a real estate professional who can connect you to great deals and discounts
With a bit of work, you can save at the closing table and have a bit of extra cash to enjoy, along with the satisfaction of having a new home.