Smart Strategies to Minimise New Home Buyer Costs and Fees

So you've set your sights on a stunning property and are fully prepared to proceed with the purchase. However, in addition to the purchase price, you now have a several additional 'buyer's costs' you may not have seen coming.

Whenever you purchase a property you can almost always expect to incure some kind of buyers costs. Whilst theses costs can add up, fortunately, there are pratical ways to reduce them.

So, if you want our top tips on how to minimise buyer's costs keep reading, because you're in the right place!

What exactly are buyer's costs and why are they important?

In the Netherlands, buyer's costs could include transfer tax, notary fees, real estate agent fees, and advisory fees from a financial advisor. These costs are added to the purchase price of the property and MUST be paid by the buyer (person responsible for the property purchase).

Buyer's costs are important because they add to the total expense of purchasing a property, impacting your overall budget and financial planning. Understanding these costs helps you avoid surprises and ensures you're fully prepared for the true cost of homeownership.

So, how can you save on these 'buyer's costs'?

Pay less transfer tax:

Normally, transfer tax is a fixed percentage of the purchase price. For private buyers (who intend to live in their home and not purchase a property as an investment), this percentage sits at 2% as 2024. However, there are two different ways to qualify to pay less transfer tax:

1. If you're purchasing a home and you fall into the 'starter' category, then you're eligible for an exemption from transfer tax. Be aware that you must meet various conditions to qualify for this though! If you fall into this category, that already saves a significant amount, 2% less of the total purchase price! Which could save you thousands of euros.
   

2. Negotiating the purchase price of a property can also have a lot of indirect influence on the amount of transfer tax you pay. If you manage to lower the purchase price, then the transfer tax you need to pay will also be lower.

Example Calculation

Suppose you do not qualify for the starter exemption from transfer tax and you need to pay the usual 2% transfer tax. Here is a calculation example of how much money you can save by negotiating to lower the purchase price of a property:

Suppose a property has an asking price of €350,000. The transfer tax you need to pay on this would be (2% of €350,000) is €7,000. If you manage to negotiate the purchase price down to €330,000, then the transfer tax would be (2% of €330,000) €6,600. You could quickly save hundreds, even thousands of euros just through negotiations alone!

Save money on a cheaper notary

Notary fees can vary greatly. However, if you are not dealing with a project notary, you are free to choose your own notary. This gives you the opportunity to save a lot of money on notary fees by comparing prices at different notary offices.

Tip: Don't automatically go for the cheapest notary, but also pay attention to the experiences of others and the quality delivered by the notary office. Choosing the wrong notary can lead to invalid documents, legal and financial complications, delays, privacy risks, and potential liability.

Negotiate lower financial advisory costs

It is often possible to negotiate advisory costs from a trusted financial advisor. You can ask for a discount and some advisors are willing to adjust their rates, especially if you take multiple services. A financial advisor can help you assess your financial situation and ensure that you are fully prepared financially for homeownership, and guide you in choosing the best mortgage options catered to your different needs and lifestyle. They also help you plan for long-term affordability and to avoid potential financial pitfalls. Our advisors also offer a reduced rate especially for starters! This could saves you hundreds of euros quickly and easily just by using our network.

Save costs by using existing building inspection report(s) instead of commissioning a new one (if possible)

In some cases, the seller has already recently had a building report drawn up. If this is the case, then you might consider not having a new building inspection carried out. This can also quickly save you hundreds of euros. A building inspection is not mandatory. By not having a building inspection performed, you can also save money upfront.

Top tip: Make sure you carefully check the existing building report and, if necessary, ask additional questions to the seller to negotiate a lower price.

In summary, saving money on buyer's costs is possible by negotiating a lower purchase price, minimising advisory costs, choosing a competent notary, and in some cases, opting out of a building inspection where possible!