Buying a home is a big step, and there are quite a few costs involved. One of the terms you will inevitably come across is "buyer's fee. But where did this concept actually come from and how did it evolve? Let's dive into the history of buyer's fees.
What is cost buyer?
Before we go back in time, a brief explanation. Under buyer's costs (abbreviated k.k.) we mean all the extra costs that come on top of the purchase price of a house. These include transfer tax, notary fees and mortgage advice fees.
The origin
The term "buyer's cost" has been around for decades and stems from the need to clarify the buyer's financial responsibilities. In the early days, it mainly included notary fees and transfer tax.
Transfer tax changes
The transfer tax has always been a big part of the cost of the buyer. This tax has been adjusted several times over the years. Before 2021, the rate was typically 2% for homes and 6% for other real estate. Since 2021, there has been a one-time exemption for first-time buyers between the ages of 18 and 35, which represents a significant shift in the cost structure.
Notary fees
Notary fees were set by the government until 1999. After 1999, notaries became free to set their own fees, leading to a wider range of prices. This gave buyers the opportunity to choose their own notaries, potentially saving costs.
Consulting fees and other ancillary costs
With the advent of more complex mortgage products and stricter regulations surrounding mortgage lending, advisory fees have become an increasingly large part of the cost of buyer. These fees are negotiable and vary by advisor.
The impact of technology
Online platforms have made comparing notary fees and advice costs easier. Apps and websites now even allow people to do part of the buying process, such as comparing mortgages, themselves, which can reduce advisory fees.
Conclusion
The term "buyer's cost" has a long history and has changed quite a bit over the years. Changes in transfer taxes, liberalization of notary fees and the influence of technology have all contributed to how we view these costs today. As always, it is wise to be well informed about the current state of affairs so you know where you stand when you buy a home.
