When purchasing a home, the property's price is not the only cost to consider. In addition to the agreed amount with the seller, there are taxes, notary fees, mortgage-related costs, and other potential expenses that are important to know and include in your budget.
Calculating all costs in advance allows you to approach the purchase with greater awareness and avoid surprises along the way.
The Property Price
The first and most obvious expense is naturally the purchase price of the house.
Before starting your search, it is important not to consider only the price listed in the advertisement but to evaluate what the overall budget you can actually afford is.
If a mortgage is necessary, you must also consider the amount of personal capital required by the bank and the ancillary costs of the transaction.
Purchase Taxes
One of the main items to consider involves taxes, which vary based on several factors, including:
- Purchase from a private individual or a company; - Purchase as a primary residence or not; - Type of property.
In the case of a purchase from a private individual, the registration tax generally applies, in addition to mortgage and cadastral taxes.
In the case of a purchase from a company, the tax regime may be different and may involve the application of VAT, depending on the situation.
The benefits provided for a primary residence can also reduce the tax burden if the requirements set by the regulations are met.
Since the tax treatment depends on the specific situation, it is always advisable to verify the applicable conditions with a notary or a tax professional.
Notary Fees
The notary plays a central role in the sale.
Among their activities are, among others, the necessary checks on the property, the preparation of the deed, and the formalization of the property transfer.
The total cost depends on the value of the transaction and the necessary activities.
If a mortgage is taken out, there may also be additional notary costs related to the mortgage deed.
It is therefore advisable to request a quote from the notary before reaching the final stage of the purchase.
Real Estate Agency Commission
If the purchase is made through a real estate agency, a mediation commission is usually expected, as agreed with the agency.
The amount can vary based on the transaction and the agreements made.
It is important to know in advance:
- The amount or percentage of the commission; - When it must be paid; - The possible application of VAT; - What the service includes.
Relying on a professional means not just buying a property, but having support during various stages of the sale.
If Buying with a Mortgage
When the purchase is financed through a mortgage, the costs associated with the financing must also be considered.
These may include:
- Interest; - Possible processing fees; - Possible appraisal costs; - Notary fees related to the mortgage; - Possible insurance costs required by the bank; - Other expenses provided by the financing contract.
Therefore, the mortgage should not be evaluated solely based on the monthly installment.
It is important to compare APR, duration, interest, and total costs, verifying the sustainability of the operation in the long term.
The Deposit and Money Needed Before the Deed
Another aspect to plan for is the sums that may be necessary before the final deed.
When a purchase proposal or preliminary agreement is signed, a sum may be required as a confirmatory deposit.
This amount does not usually represent an additional cost compared to the house price: it is an advance on the total price, as provided by the agreements.
However, it is essential to consider it in your financial plan because it is liquidity that must be available before the deed.
Expenses for Possible Works
A house may require immediate or future interventions.
Before purchasing, it is therefore useful to evaluate also:
- Renovations; - Maintenance; - Replacement of fixtures; - Systems; - Painting; - Furnishing; - Possible energy efficiency interventions.
The purchase price should therefore not be the only parameter for comparing two properties.
A seemingly cheaper house might require significant investments after purchase.
Condominium Fees
If the property is located within a condominium, ordinary condominium fees must also be considered, and any extraordinary works already approved or planned should be verified.
Before purchasing, it is useful to inquire about:
- Average amount of fees; - Any arrears; - Approved extraordinary works; - General condition of the condominium; - Any relevant disputes or issues.
This information can significantly affect the total cost of the purchase.
Costs After Purchase
The budget does not end with the deed.
Once you become an owner, you must also consider recurring costs related to the home, including:
- Utilities; - Ordinary maintenance; - Condominium fees; - Any property taxes, depending on the situation; - Insurance, if provided or deemed appropriate; - Any costs for future interventions.
For this reason, it is important to evaluate not only "how much does it cost to buy this house?" but also "how much will it cost to maintain it?".
How Much Should You Have Saved to Buy a House?
There is no one-size-fits-all figure.
The necessary liquidity depends on the property's price, the percentage financed through the mortgage, taxes, notary fees, mediation, and any works.
Before starting the search, it is therefore useful to build a comprehensive budget, distinguishing between:
House price + taxes + notary + possible agency + mortgage + works + other expenses.
This prevents focusing on properties whose price is seemingly affordable but, considering all costs, are out of budget.
A Practical Example
Imagine wanting to purchase a property valued at €200,000.
The necessary budget will not necessarily be €200,000, as various expenses provided by the transaction must be added.
The final amount can vary significantly based on:
- Primary residence or other property; - Purchase from a private individual or company; - Presence of a mortgage; - Possible real estate agency; - Notary costs; - Possible works.
For this reason, it is important not to use generic percentages to estimate the total cost but to calculate individual items based on your situation.
How to Approach the Purchase with Greater Awareness
Before making an offer, it is advisable to have as complete a picture as possible of the expenses.
At RE/MAX Arcadia, we can help you understand the different stages of the purchase and coordinate with the professionals involved, such as the notary and credit institution, so you can evaluate the operation with greater awareness.
For specific fiscal, notarial, and financial aspects, it is always necessary to refer to competent professionals.
In Conclusion
Buying a house means much more than paying the price listed in the advertisement.
Taxes, notary, possible mediation, mortgage, deposit, works, and management costs are all elements that must be considered before making a decision.
Having a realistic budget from the start allows you to search for a home with greater peace of mind and prevents ancillary expenses from becoming an obstacle during the sale.
Before choosing a house, therefore, it is important to understand how much you can really spend to buy and maintain it.