Are You Aware of These 6 Costs of Buying Property for Sale in Nairobi?
Plots for Sale in Nairobi OLX and the Costs Implications
Selling and buying of property involves various transactions which attract fees and taxes. Most buyers have no clue on what to expect when venturing into the Real Estate sector. This leads to complete shock on the client’s part when the extra fees and taxes are included when buying the property.
It is important for the buyer to conduct due diligence so as to be informed on what to expect and avoid unnecessary situations.
The transaction fees tend to vary from one firm to the other. Though, some fees are either fixed or valuable depending with the below options;
- Documents needed
- Commissions charged by the property agent
- Location of the property
To name but just a few. It is always wise to be on the know-how of what costs you might incur during the purchase of the property. This information will save you a lot of trouble from Property Agents who like taking advantage of naïve buyers.
With that said, below are some costs you should expect when buying property;
1. Legal Fees
A lawyer in Real Estate is like oxygen, you need one.
A lawyer in Real Estate is a person who will help you in purchasing your property. Their work is to ensure that the documents issued by the Realtor are correct before signing so as to ensure no legal issues have been missed.
He/ She will also conduct the necessary searches and ensure that the process is running smoothly. This will in turn bring some charges to the buyer. The charges are flexible depending from individual lawyer to another. It is good to get an estimation of what you may be charged so as to be on the safe side and to avoid being overcharged.
2. Search Fees
This is necessary when you want to verify the real owner of the property you want to purchase. The property agent will issue you with a copy of the title deed which you will use for verification purposes. Make sure the seller’s name is the one written on the Title deed. In, Kenya land search costs sh. 500 at the eCitizen platform.
The purpose of the search is to avoid land fraudsters.
3. Property Developer
A Property Developer is a person who will take you through the whole process of buying your property. From site visits to negotiations of the property. As a buyer, you will have to set aside some fees for the services rendered. It is always good to know first-hand what your Developer charges though the fee varies; it is not fixed.
4. Valuation fees
Valuation is the process of developing an opinion of value of a property, usually for banks to know the actual amount that they can give as mortgage. The fees charged by valuers are called valuation fees and there is a schedule for calculating the amount which usually comes to approx. 0.5% of the property value.
Valuation of a property also helps you in case you want to sell the land at a later date. You will be able to know the expected price of the property, price range.
5. Stamp Duty
Stamp duty is the tax governments place on legal documents, usually in the transfer of assets or property. This is done after the transaction has been completed and you have been presented with a Sales Agreement. Your lawyer then presents the Sales Agreement to the land office for stamping of duty. The charges may vary depending with the location and price of the property.
After completion of all the fees and taxes, other charges after settling always occur. The buyer should have a clear picture of the charges to expect once they settle down. These are;
- Internet connections
- Any extra utility costs.
As a buyer, always strive to make informed decisions by considering the above costs.
Denver Group Limited is among the Real Estate agents in Nairobi Kenya that offer genuine land with Title Deeds. Invest today and get your Title Deed in 30 days. Call/WhatsApp us: 0701 730 267.