The most important ancillary costs at a glance

How high the incidental costs actually are when buying a house depends on the purchase price, the condition of the property, the use of experts and the respective federal state. We have compiled an overview of the possible ancillary purchase costs in the form of a table.

Notary fees

1.0 % of the purchase price (in accordance with the fee rates laid down in the German Law on Court and Notary Fees (Gerichts- und Notarkostengesetz, GNotKG))

Land register costs

0.5 % of the purchase price

Land transfer tax

Depending on the federal state, 2.5 to 6.5 % of the purchase price

Broker's commission*

The commission is usually 7.14 % of the purchase price and is paid in equal parts (3.57 %) by the buyer and the seller

Building survey*

1.000 - 3,000 € depending on the type and scope of the report

Refurbishment costs*

600 - 1.200 €/m2

Everyone has to plan for these additional costs when buying a house

Hidden" costs are the costs that buyers incur in addition to the purchase price when buying a property. The obligatory ancillary purchase costs that are incurred with every property purchase include:

• notary fees

• fees for entry in the land register

• land transfer tax and

• the ongoing ancillary costs

With these costs, it makes no difference whether you buy your dream property with the help of experienced estate agents or directly from the owner. It also doesn't matter whether you want to buy a detached house, a terraced house, a semi-detached house or a condominium.

Incidental purchase costs: What you have to reckon with

A property is an investment. Only a few buyers have sufficient capital to finance a house purchase from their own funds. Therefore, purchases are usually made through property financing. In order to determine the amount of financing you need, the ancillary costs play an important role when buying a house, in addition to the purchase price and your equity share.

When it comes to incidental costs when buying a house, a distinction is made between obligatory and flexible incidental purchase costs as well as financing costs. While you cannot avoid the obligatory costs, the flexible costs do not automatically arise with every property purchase. If you are financing your house purchase with a real estate loan, you must also take ancillary financing costs into account in your financial plan.

These additional costs always arise

In addition to these one-off costs, you must also plan for ongoing ancillary costs when buying a house. In addition to heating, electricity, water and sewage costs and refuse charges, these also include insurance to protect your property and the annual property tax.

Additional costs when buying a house

The new owner of a property must be registered in the land register. This incurs fees at the land registry. Notarial assistance is mandatory for the notarisation of the purchase contract, the entry of the land charge in the land register and the transfer of ownership. Notary fees are incurred for this work. In addition, a one-off land transfer tax is payable on the purchase of a property.

The most important incidental costs when buying a house in brief

• A distinction is made between obligatory, flexible and ongoing costs.

• The amount of incidental costs when buying a house is around 10 to 15 % of the total costs.

• You can save on incidental costs with a few simple tips.

Savings potential: flexible ancillary costs

While you cannot avoid the obligatory ancillary costs when buying a house, the flexible ancillary purchase costs do not necessarily arise when buying a property. Possible types of costs include

• Estate agent's commission

• Costs for experts such as surveyors, structural engineers or architects

• Modernisation costs and

• Financing costs

Hidden costs when buying a house

If you buy a newly built property, there is usually only a little work to be done in order to design your new home according to your wishes. However, buying an older property or one in need of renovation does have its charms. Here, however, you have to reckon with additional costs for the modernisation, the so-called "hidden" costs, when financing. How high the costs turn out to be depends on the condition of the property and your ideas.

What you should look out for during the inspection

With these "hidden" costs, it is always worthwhile to take a close look at the building fabric and the condition of the roof, heating, windows, electrical wiring and sanitary facilities during the inspection. You can avoid trouble and unplanned renovation costs with the help of expert support from building surveyors, structural engineers, craftsmen or architects. Plan the consulting costs accordingly in the ancillary purchase costs.

Repayment costs for financing

If you finance the purchase of a property with a loan, you include the lender's one-off arrangement and processing fee in the incidental costs of building a house. In addition, there are the monthly commitment interest and repayment instalments as well as fees for possible unscheduled repayments. If you are interested in real estate financing, we will of course be happy to advise you.

Who pays the ancillary costs?

Whereas a few years ago ancillary purchase costs were co-financed by the banks, they are now borne by the buyer himself. Construction financing usually only covers the costs of renovating or modernising a property. Both the obligatory and the other flexible ancillary costs that are not offset by material values, such as the broker's commission or surveyor's fees, are usually paid by the buyer out of his or her own capital.

Financing ancillary purchase costs: Is that possible?

Alternatively, you can ask your bank to finance the incidental purchase costs, which account for about 10-15% of the total price. Full financing without equity is called 110% financing. However, this requires a high credit rating and is only granted in rare cases. In addition, lenders pay dearly for the risk of this type of financing with high interest rates.

How high are the ancillary costs when buying a house?

Incidental purchase costs are made up of different types of costs and usually account for 10 to 15 % of the total cost of buying a house. While you have to pay the obligatory ancillary costs in any case, you may be able to save on the flexible ancillary costs.

How much are the notary and land registry costs?

The purchase of a house must be notarised. This means that the notary reads out the purchase contract to both parties before it is signed. He or she also prepares the entry in the land register. The costs for this work are charged according to a fixed scale of costs and amount to about 1 % of the purchase price. The costs for the land register entry amount to approximately 0.5 % of the purchase price.

How much is the land transfer tax?

Before you can be entered in the land register as the new owner, you must pay the land transfer tax. You will receive a notice from the tax office stating the amount of tax due. Depending on the federal state in which a property is located, the tax is between 3.5 and 6.5% of the purchase price.

The 2023 land transfer tax at a glance:

Bavaria - 3.5 %

Saxony - 3.5

Hamburg - 5.5%

Baten-Württenberg - 5.0 %

Bremen - 5.0 %

Lower Saxony - 5.0

Rhineland-Palatinate - 5.0

Saxony-Anhalt - 5.0

Berlin - 6.0

Hesse - 6.0

Mecklenburg-Western Pomerania - 6.0 %

Brandenburg - 6.0

North Rhine-Westphalia - 6.5 %

Saarland - 6.5

Schleswig-Holstein - 6.5 %

Thuringia - 6.5

Sample calculation: How do you calculate incidental purchase costs?

Let's assume you commission our real estate experts to find you a house in Berlin. You decide to buy a villa in need of renovation with 130 m2 of living space. The purchase price is € 650,000. To calculate the additional costs, you take into account:

• the broker's commission of 3.45 % = € 22,425

• the notary and land registry costs of 1,5 % = 9.750 €

• land transfer tax of 6.0 % = 39,000 €

• Costs for a building survey = 2,000 €

• Renovation costs (650 €/m2) = 84,500 €

= 157,675 € incidental purchase costs

In addition to the listed ancillary costs, also consider the ongoing ancillary costs as well as the financing costs in your cost planning.

How can ancillary costs be reduced when buying a house?

Homebuyers have a few options for saving incidental costs when buying a house. For example, you can do without expert knowledge and take your house purchase into your own hands. However, caution is advised here: It is true that you will initially save on ancillary costs. Without the support of experts, however, a wrong purchase or hidden costs during renovation can cost you dearly afterwards.

How to save on ancillary costs

If you are a skilled craftsman and do some of the renovation work yourself, you can save money. If experts are required, it is worth comparing prices to find the most favourable offer and keep costs low.

Save on ancillary costs through renovation

When planning the ancillary costs, do not neglect the running costs. If you invest in thermal insulation, new windows or a new heating system, for example, these costs can have a positive effect on the operating costs of your house in the long term.

Saving costs in the purchase contract

Although land transfer tax is compulsory and you cannot avoid paying it, you still have the opportunity to influence its amount: The tax is only charged on immovable properties. By listing the price of movable objects - for example, a fitted kitchen in an existing property - separately in the purchase contract, you reduce the property price and can save taxes.

Saving tip

1. For new construction, separate contracts for land and building work

2. For existing properties, exclude movable accessories

3. Landlords can add land transfer tax to the acquisition costs and write it off

4. No real estate transfer tax for relatives in a direct line