Buying real estate is one of the most important decisions and biggest investments in life. So that you can plan the process well, we have created a checklist for you and also listed the 10 most important steps from the property search to moving in.
Step 1: Set a budget for the real estate purchase
First of all, you should know your own budget limits. Analyze your financial situation and ask yourself the following questions:
- How much equity do I have?
- What income and expenses do I have?
- How much money is left over at the end of the month?
We have also presented some rules of thumb in this article so that you can calculate your budget quite well. You can also get support from your bank. This will compile all the important documents for you and provide information on the maximum loan you could receive for a future house or apartment purchase. A pre-financing commitment from the bank is not only helpful in providing an overview, but also gives you an important advantage in the competition for properties.
It is important that you allow for a sufficient buffer. You should not only consider the house price itself, but also ancillary costs such as notary fees, land transfer tax, entry in the land register, estate agent fees and any repairs that may be required. We therefore recommend that you target properties priced slightly below your maximum budget (around 10% is recommended).
Step 2: Search for a property
Once you know your budget, you can start looking for properties. This phase is particularly exciting. We recommend that you browse through various real estate advertisements. Get to know your preferences in order to decide how big the house or apartment should be, which location you prefer, which fittings are important to you and what other key data you would like.
You should conduct your real estate search both online and offline. This is because interesting advertisements are still being shared in newspapers and on bulletin boards. You can filter your search online using the easy-to-use portals and be notified by e-mail when properties matching your search query come onto the market. You can also take advantage of offers such as virtual reality tours and drone images to get a good impression of the properties. You are welcome to create a completely free search request with us.
Tip: An estate agent will help you find your dream property. At properti, we have a local network and our agents value transparency, flexibility and reliability.
Step 3: Viewing the potential properties
If you have a list of several properties that you particularly like, it’s time for the viewings. These days, they can even take place virtually, saving you a lot of time. You should still visit your favorite in person and pay attention to the time of day. Daylight is ideal, but you should also get an impression of the property at night.
You should ask any important questions during the viewing. This also includes details such as energy consumption, possible contaminated sites and information on the surrounding area. Let us show you all the rooms, including the basement and attic, and take your time. Ideally, you should take notes. Listen to your gut feeling to see whether you feel comfortable in the house.
Tip: Carry out the first viewing virtually, ask important questions in advance and, if you are really interested, you can carry out a second viewing (motto: time is the most valuable commodity).
Step 4: Obtain detailed information about the property
Your dream property should give you a good feeling and fulfill all or almost all of your wishes. Inspect the property a second time and it is best to be accompanied by an expert or surveyor. This makes it possible to assess the current value and avoid risks such as mold or floor damage. You should also pay particular attention to any necessary renovation measures.
Before you accept, you should obtain detailed information. This also includes a look at the land register. Here you can find out whether mortgages, rights of way, heritable building rights or building charges still exist. The furnishings and the house facilities are other important points.
Step 5: Negotiate price
Once you have decided on the house, there is not much standing in the way of you buying it. Once all uncertainties have been resolved, you can accept the sales price directly or make your own offer. The support of an estate agent is also very helpful here, as they can – thanks to their experience – negotiate a particularly good price for you.
When negotiating, you need good arguments to lower the price. Use meaningful arguments that are best supported by figures. A valuation report is particularly helpful. At the same time, be careful not to annoy the seller by suggesting a price that is too low.
Step 6: Clarify the financing of the real estate purchase
Most buyers do not have enough equity to buy their new home outright at 100% (which we do not recommend), but will need a mortgage. As soon as you have agreed on a price with the seller, you should make an appointment with the bank and secure the financing there. The pre-financing confirmation is used for this. Alternatively, you should convince the bank advisor with complete documentation and a good financing plan.
During the appointment, you will draw up a detailed financing concept in which the terms, interest and repayment installments are set out. You also make a note of your equity. At the end of this process, the bank will give you a financing commitment, which you can use to take the next step in the purchase process.
Step 7: Draw up the purchase contract with the notary
As soon as you have clarified the purchase price and the financing, you can draw up the notarized contract together with the seller. This is a must when buying real estate. The notary draws up a draft that includes the purchase price, among other things. Both you and the seller then normally have around two weeks to check the purchase contract.
We recommend that you take advantage of this time and instruct a lawyer to examine the matter. This way you can be sure that the purchase is in your best interest. The notary is considered a neutral authority and is available to advise both parties. You should clarify any questions, comments and requests for changes before the appointment for the final signature.
Step 8: Notary appointment and signing of the purchase contract
The most important date for buying a house or apartment is the notary appointment. Both you and the seller should appear in person and identify yourselves with a passport or ID. Please contact us directly with any questions or change requests. The notary will then read out the contract line by line and you can have the last minor changes incorporated.
As soon as everything has been clarified, both parties sign the purchase contract. The notary certifies this with his seal and the real estate purchase is complete. With your signature, you undertake to pay the purchase price. The seller undertakes to hand over the property after payment of the purchase price. After signing, the notary will take care of a priority notice of conveyance in the land register so that the transfer of ownership is also legally secured.
By the way: You do not need to bring the bank’s financing commitment with you to the notary appointment. However, we recommend that you already have a financing commitment when you sign, as it is very difficult to withdraw from a real estate purchase contract.
Step 9: Payment of the purchase price and entry in the land register
After the notary appointment, you as the buyer will receive a written request for payment of the purchase price from the notary. This allows you to arrange for the bank to pay out your mortgage and then transfer the price to the notary’s escrow account or directly to the seller. The bank is then entered in the land register of the new property as a creditor.
Remember that the additional purchase costs for the notary and the land register are also due at this time. You must also pay the land transfer tax.
As soon as the seller confirms receipt of payment, the notary will arrange for the transfer to the land register so that you are not only the owner, but also the owner of your new property. This completes the purchase process.
Step 10: Handover and moving in when buying a property
You should make an appointment with the seller to hand over the property. This also includes handing over the keys. We recommend that you take sufficient time for the handover and check carefully whether there are any defects. Keep a detailed handover log and document any defects with photos and videos.
Now you are ready for the adventure of home ownership! Congratulations!
All data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be accepted for the accuracy of the information provided.