Incidental purchase costs for real estate: What costs will I incur? – Calculation

Calculating the purchase price – Buying a property is not always cheap. But so that you don’t rush blindly into financing, the final purchase price can be calculated quite easily. You can find out how here! Important factors here are the incidental purchase costs, which include the land transfer tax and the broker’s commission. Here you can find out how these costs contribute to the final purchase price of your first home. This way, nothing can go wrong with your first real estate purchase!

Buying real estate: What costs will I incur?

When buying a property, you always have to reckon with compound costs. On the one hand there is the purchase price, or the price for which the property is advertised, and on the other hand there are the ancillary purchase costs.

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Incidental purchase costs: What are they?

The ancillary purchase costs are not always the same, they differ depending on the federal state. Therefore, always inform yourself in advance about the land transfer tax and the brokerage costs of the federal state in which you want to buy. The notary costs and the land register entry, on the other hand, always remain the same in percentage terms.

Incidental purchase costs are derived from:

  • Real estate transfer tax (3.5-6.5%); varies by state
  • Notary fees (1.5%)
  • Land register entry (0.5%)
  • Broker commission (3.57-7.14%; 50:50 for private purchase); varies by state

How do I calculate the total cost of my dream property?

The calculation of the service charges and the subsequent total costs of a property is actually quite simple. So that you understand it directly, we have an example calculation for you here. Let’s assume you buy a condominium in North Rhine-Westphalia with a purchase price of 200,000 euros. The final price is made up of six steps.

The six steps to the final price:

  1. Purchase price
  2. Real estate transfer tax
  3. Notary fees
  4. Land register entry
  5. Brokerage costs
  6. Incidental purchase costs

Step 1: Purchase price of the property?

Let’s start with the purchase price. In this example, it is 200,000 euros for a condominium in NRW.

  • Purchase price: 200.000 Euro

Step 2: Amount of real estate transfer tax?

In NRW, the land transfer tax for each property is 6.5%. For our apartment, this means a surcharge of 13,000 euros

  • Real estate transfer tax: 13,000 euros

Step 3: Amount of notary fees?

The notary fees are the same in every federal state. They amount to 1.5% of the purchase price, which corresponds to 3,000 euros.

  • Notary fees: 3,000 euros

Step 4: Costs of the land register entry?

The costs of the land register entry are also the same in every federal state, namely always 0.5%. So another 1,000 euros are added to the purchase price.

  • Land register entry: 1.000 Euro

Step 5: Calculation of the brokerage costs?

When you hire a real estate agent, you always pay a certain fee in brokerage costs in addition. These costs vary depending on the federal state. In NRW these costs amount to 3.57%. The positive thing about it? The brokerage costs are divided equally between the buyer and seller, i.e. 50:50%.

  • Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Step 6: The result of the total cost

Once you have calculated the incidental costs in relation to the purchase price, you can determine what you will ultimately have to pay.

  • Purchase price: 200.000 Euro
  • Real estate transfer tax (6.5% in NRW: 13,000 euros
  • Notary fees (1.5%): 3,000 euros
  • Land register entry (0.5%): 1,000 euros
  • Brokerage commission: (3.57% [7,140 / 2]): 3,570 euros

Total amount:

  • Total incidental costs: 20,570 euros
  • Total price at purchase: 220,570 euros

The next step: land transfer tax

You have found your dream apartment at a dream price? Good, but the purchase price is accompanied by ancillary costs, which include land transfer tax. But how high is the land transfer tax that I have to pay additionally, once when buying my first own apartment? Depending on the state in which you buy, the land transfer tax has a different percentage. How you can easily calculate this, you can find out here!

Determine maximum purchase price: Creditworthiness, equity & Co.

How much real estate can I afford at all? This question is asked at the beginning of the process of buying what may be your first home and depends on many factors. These include your creditworthiness and self-disclosure, in terms of assets, the monthly asset balance (repayment), the equity and the mortgage lending value of the property to be financed. Here you will learn everything you need to know to determine the maximum purchase price.