Budgeting for a new home can be tricky. Not only are there mortgage installments and the down payment to consider, there are a host of other—sometimes unexpected—expenses to add to the equation. The last thing you want is to be caught financially unprepared, blindsided by taxes and other hidden costs on closing day.

These expenses vary: some of them are one-time costs, while others will take the form of monthly or yearly installments. Some may not even apply to your particular case. But it’s best to educate yourself about all the possibilities, so you will be prepared for any situation, armed with the knowledge to budget accordingly for your move. Use the following list to determine which costs will apply to your situation prior to structuring your budget:

1. Purchase offer deposit.

2. Inspection by certified building inspector.

3. Appraisal fee: Your lending institution may request an appraisal of the property. The cost of this appraisal is your responsibility.

4. Survey fee: If the home you’re purchasing is a resale (as opposed to a newly built home), your lending institution may request an updated property survey. The cost for this survey will be your responsibility and will range from $700 to $1000.

5. Mortgage application at your lending institution.

6. 5% GST: this fee applies to newly built homes only, or existing homes that have recently undergone extensive renovations.

7. Legal fees: A lawyer should be involved in every real estate transaction to review all paperwork. Experience and rates offered by lawyers range quite a bit, so shop around before you hire.

8. Homeowner’s insurance: Your home will serve as security against your loan for your financial institution. You will be required to buy insurance in an amount equal to or greater than the mortgage loan.

9. Land transfer (purchase) tax: This tax applies in any situation in which a property changes owners and can vary greatly.

10. Moving expenses.

11. Service charges: Any utilities you arrange for at your new home, such as cable or telephone, may come with an installation fee.

12. Interest adjustments.

13. Renovation of new home: In order to “make it their own,” many new homeowners like to paint or invest in other renovations prior to or upon moving in to their new home. If this is your plan, budget accordingly.

14. Maintenance fees: If you are moving to a new condominium, you will likely be charged a monthly condo fee which covers the costs of common area maintenance.

There is no set equation to determine how you’ll reach an offer price. Rather, the process involves a range of research and comparison that will vary with each situation. You’ll need to look at sales of comparable properties, and factor in additional data such as the condition of the property, the current market, and seller circumstances. With this information in hand, you will be able to determine a fair price range and, from there, establish the price you’re willing to offer. Concentrate on the following areas to help you determine an offer price:

Comparable Sales

• Compare prices of homes that are similar to the property you’re considering in the following areas: number of bedrooms and bathrooms, square footage, lot size, type of construction, and garage space.

• The most comprehensive and in-depth information can be accessed through the Multiple Listing Service (MLS). Your REALTOR®, who will be working closely with you to set your offer price, can help you navigate this service.

Property Condition

• Observe how the property compares to the rest of the neighbourhood. Is it average, above average, or below average?

• Look at structural condition: walls, ceilings, windows, floors, doors.

• Pay close attention to: bathrooms, bedrooms, condition of plumbing and electricity.

• Also check the fixtures: light switches, doorknobs, drawer handles, etc.

• What is the condition of the front and back yards?

Home Improvements

• Cosmetic changes can be largely ignored, but any major improvements should be taken into account.

• Take special note of: room additions (especially bedrooms and bathrooms).

• Items such as swimming pools may be taken into account, but usually won’t affect your offer. Your REALTOR® can offer you guidance in these matters.

• Also check the fixtures: light switches, doorknobs, drawer handles, etc.

• What is the condition of the front and back yards?

Market Conditions

Seller’s Market

• A seller’s market is considered a “hot” market. It happens when demand exceeds supply—more buyers than available homes.

• Homes typically sell quickly, with multiple offers.

• Many homes sell above the asking price.

Buyer’s Market

• Occurs when supply is greater than demand—more homes than buyers.

• Homes may stay on the market longer, with fewer and less frequent offers.

• Prices may decline, and buyers have more flexibility to negotiate lower prices.

• Sellers are more likely to respond with counter-offers if initial offers are low.

Balanced Market

• Supply and demand are roughly equal.

• Prices remain stable, and homes sell within a reasonable timeframe.

• Buyers have several options, and sellers may or may not face competition for offers.

Comparable sales information helps you establish a price range for the home you’re interested in. Adding in the additional factors mentioned above will guide your decision of whether you consider a “fair” price to be near the upper, lower, or middle limit of that range.

Keep in mind, this price should be one you’d be satisfied with once all negotiations are complete. The price you decide to begin with depends on your particular style of negotiation. Most buyers start negotiations with an offer lower than the “fair” price they’ve determined.

Each homebuyer has different ideas of what will constitute the ideal home for them, these notions often based on particular aesthetic preferences. But one thing that unites all potential homebuyers is the desire to find a home that is fundamentally sound—in areas beyond the immediate sweep of the eye—and that will provide a safe, comfortable, and efficient foundation for their life behind a new door.

This is where the services of a home inspector come in. During a home inspection, at least 30 areas of the home are placed under the home inspector’s “microscope.” We’ve compiled the ten most common weaknesses uncovered in a typical home inspection. If not addressed, these problems could cost you thousands of dollars in the long-run. So, knowing what to look for, and performing your own thorough pre-inspection, will help you to identify areas for repair or improvement before they grow into costly problems.

1. Damp Basement

• A mildew odour, which is difficult to mask, is often the first sign.

• Inspectors look for whitish mineral deposits on walls and judge whether items can safely be stored on the floor.

• Repairs may cost from $200 to $15,000.

2. Poorly Installed / Defective Plumbing

• Common in older homes.

• Inspectors test for leaks, clogging, and water pressure (e.g., faucets and toilet flush test).

• Dirty water on first use may signal rusted pipes.

3. Older / Poorly-Functioning Heating and Cooling Systems

• Inspectors assess the age and condition of systems.

• Cracked heat exchangers in forced air gas systems can leak carbon monoxide and must be replaced.

• Replacements improve efficiency and reduce energy bills.

4. Older / Unsafe Electrical System

• May include undersized service, aluminum or knob-and-tube wiring, or poor renovations.

• Over-fused circuits create fire hazards.

• Upgrading to a circuit panel costs several hundred dollars.

5. Older / Leaking Roof

• Asphalt roofs typically last 15–20 years.

• Leaks may indicate shingle deterioration or storm damage.

• Inspectors check how many layers of shingles exist before recommending full removal and replacement.

6. Minor Structural Problems

• Includes cracked plaster or slight foundation shifts.

• Common in older homes and should be addressed early to prevent escalation.

7. Poor Ventilation

• Bathrooms and kitchens without vents promote mold and fungus.

• Poor air quality can trigger allergies and damage surfaces.

• These issues should be fixed before permanent harm occurs.

8. Air Leakage

• Drafts may be caused by poor seals, old caulking, or worn weather strips.

• These are usually inexpensive and easy to fix.

9. Security Features

• Inspectors evaluate locks, smoke detectors, and carbon monoxide detectors.

• Missing or outdated security features should be updated for safety.

10. Drainage / Grading Problems

• The most common issue found by inspectors.

• Causes basement dampness and mildew.

• Solutions include new gutters, downspouts, or lawn re-grading to divert water from the home.

Finding a real estate agent who is right for you requires doing a little homework, and asking the right questions. Choosing an agent is a decision that could ultimately cost or save you thousands of dollars. Keep in mind the individual you choose will be handling almost every maneuver in the biggest financial investment of your life. Experience, interests, and expertise vary from agent to agent, so you should be asking very specific questions in order to align your own needs with the abilities of an appropriate representative. Use the following list of questions as a guide to finding the agent that is right for you:

1. How long have you been involved in residential real estate in this area?

If the agent hasn’t been connected to the residential real estate market for several years, s/he will be out of touch with the cyclical nature of the current market. Your REALTOR® must be familiar with trends of the local market and have an eye for the ways in which it will change. This knowledge could mean the difference of thousands of dollars in the long-run.

2. What is your marketing strategy for my home?

A REALTOR® should be able to lay out for you, in detail, a marketing plan to sell your home. Examine this plan carefully. How much money does the REALTOR® allot to advertising? What type of media does s/he use? S/he should be able to demonstrate the effectiveness of one form of media over another, explaining why his/her particular marketing strategy will sell your home faster and for top dollar. The REALTOR® should employ current, innovative marketing techniques that indicate creativity and a willingness to market outside of the box. Stay away from REALTORS® who rely on traditional, dated forms of advertising. They simply won’t work in the current real estate market.

3. How do you support a buyer throughout the process?

A REALTOR® should be able to indicate how s/he will support you through each step of the home-buying or selling process, offering you a unique system to suit your needs and goals. Also, ask if a specialist will be available at each level of the sale. Your REALTOR® should always be on hand to answer questions, but the specific resources of an expert can be invaluable during different stages of the process.

4. What other properties has your company sold in my area?

The REALTOR® should be able to provide you with a complete, detailed listing of their own sales in your area, as well as other comparable sales. You should get a clear idea of what you might be able to expect both from the REALTOR® and from the current market.

5. What is your experience with financing options? How would you suggest I approach my own financing plan?

Each buyer requires a different financing strategy. A REALTOR® should be able to suggest a plan catered specifically to your financial background and needs. Don’t just depend on your lender for information and guidance on financing a new home. Let your agent lead the way.

6. On average, how close is the selling price of your listings to their asking price, and how long do they take to sell?

You can contact the Real Estate Board to obtain information on the selling record of an agent. The Board also has statistics on a broader scale, so you can see whether an agent’s selling performance is higher or lower than the board average, and whether s/he tends to sell faster or slower than the board average. Placing the REALTOR®’s performance on a scale will help you get an idea of how much you might expect your home to sell for, and how long it might take to sell.

7. What is your philosophy/method of negotiation and how will you apply it when selling my home?

Your REALTOR® should be able to articulate effective and informed negotiation tactics that demonstrate a commitment to securing the best price for you.

8. Do you have a reference list of clients I could contact?

Do some homework! Choose a few names on the list and call them. The stories of others who have gone through the home-selling process can be a valuable source of information.