What Does a Settlement Agent Do and What Costs Are Involved?

Buying your first home with a settlement agent

The home you buy is sure to be one of the largest investments you will ever make. You should have the proper guidance throughout this process and especially during the final stages.  Finalizing a real estate transaction can be a lengthy and complicated ordeal. However, when you rely on the expertise of a settlement agent, this can significantly alleviate your stress.  By being aware of all the things this professional can do for you and the costs that are involved, you may be motivated to hire the right person for the job.

Using a settlement agent

You’re sure to be extremely excited about your purchase and may prefer to settle on the home quickly. However, it’s ideal to avoid doing this on your own and choose a settlement agent that you can trust instead. This will help ensure nothing goes wrong, and you can move into your new home without a hitch.

Listed below are some of the things this expert can do during the finalizing of the property:

  • Makes certain all the documentation is accurately done and the certificate of ownership is placed in your name.
  • Works to ensure the proper inspections of the home have been done and there aren’t any issues with the property.
  • Continually updates you on the progress of the settlement and works to inform you of any concerns along the way.
  • Ensures the funds for the home are ready to be transferred to the seller.
  • Attends the settlement of the property for you.

Costs Involved

Settlement agent information

The precise amount you pay for a settlement agent will vary, because this individual can set the fee for the job. However, you and this person must agree on this amount and it’s ideal to sign a contractual agreement with all of the details.

There are varying factors that will impact this fee and some of these are listed below.

  • Strata title – If the property consists of apartments that are on varying levels.
  • First time home buyer – It will be taken into consideration if this is your first home or not.
  • Vacant land – The status of the land will be a factor in the total fee.
  • Resident – If you are living on the property full time will affect the settlement costs

For instance, studies indicate that a home purchased for $400,000 that isn’t strata titled, your first home purchase and one you’ll live in on vacant land will have average settlement fees of $1375.45. Keep in mind there may be additional costs and your agent will inform you of the exact amount of these.

The benefits of having a settlement agent are numerous and is sure to be the only way for you to accurately complete a home purchase. Otherwise, this can be a stressful and complicated process that can take a large amount of time. Be sure to rely on the right agent in Australia today to enable your home purchase to go smoothly.

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