Buying a real estate property can take a lot of time, research and effort, not to mention planning. However, the real deal starts once you have finalized on a particular property and you it’s time for payment. While the majority of buyers consider the price of the property to be the ultimate payment, there are many other things that you need to consider along with it. This includes the services you hired from the agent, any other fees you have to pay, taxes, interest, documentation charges and the cost of an attorney. The sum total amount that you have to pay before buying a real estate property is what is known as the all-inclusive rate.
An all-inclusive rate of a real estate property can be defined in a number of ways. Here mentioned are the two most common definitions people resort to.
i. The all-inclusive rate is the sum total expense that covers all services that are provided by any third-party agency or organization. It can include values of agency fees, attorney fees, documentation fees, etc.
ii. The all-inclusive rate includes every cost that is included in any financial transaction concerning a property purchase. This can include preliminary, intermediary and the final expenses as well. In short it is the addition of all expenses incurred during the purchase process.
All-inclusive rate has a myriad of uses in the real estate industry. Further mentioned here you will find some of the most notable ones.
1. Firstly, it provides a fair idea of what kind of monetary expenses you might have to incur during a purchase. The most common mistake home buyers make is to think that the asking price for the property is the only amount they will be paying. However, a glance at the all-inclusive rate can help you plan your expenses and not ruin your financial stand in your daily life.
2. Secondly, you can easily avoid any gimmicky tricks that real estate developers might put forward. Often, to sell the properties faster, real estate developers use schemes like ‘no payment till possession’ or ‘ buy now pay later’. These are nothing but elaborate schemes that hide the overall costs of possessing the property. It will take a number of premiums from you, in turn making you spend much more than otherwise. An all-inclusive rate chart further helps you understand these costs, avoiding any such schemes.
