6 steps to your dream property

For homebuyers, it makes sense to approach the purchase of a house, apartment, or plot of land in a well-structured manner. This includes securing financing and clearly defining in advance what needs and desires the new home must fulfill.

To make the buying process easier for owners, we have put together a plan on how best to proceed.

Step one: Sort out the finances

To avoid getting bogged down in financing and increase your chances of approval, you need to determine how much property you can afford. Sufficient equity makes it more likely you'll secure a loan or mortgage. It's also crucial to have a clear understanding of your income and expenses and keep track of them. Furthermore, improving your credit rating can be beneficial, for example, by achieving the highest possible SCHUFA score. Upon request, you can find out if and which negative SCHUFA entries can be removed.

Step two: Finding your dream property

Financing is secured, and the dream of owning a home is becoming more realistic. Now it's important to clarify what you truly need and want. Compromises may have to be made for financial reasons. A local real estate agent can advise prospective homeowners if they have any uncertainties.

Step three: Inspect the property

The first potential properties have been identified; now it's time to get a better understanding of your desired property. To demonstrate your genuine interest and make a good impression on the seller, you can prepare an application folder with relevant financing documents and a brief cover letter before the viewing appointment. During the viewing, you should pay close attention to any defects and the layout of the rooms. It's possible that the house would require extensive and costly modifications to suit your needs if you were to purchase it. Prospective buyers should also visit the property at different times of day to get a feel for the location.

Step four: Price negotiations

When considering the purchase price, prospective buyers should first determine the maximum amount they can afford and how much they are willing to pay. Any necessary construction work should also be factored into the budget and included in the potential purchase price.

Step five: Notary and purchase agreement

The price has been negotiated. Now the prospective buyer must choose a notary to draw up the purchase agreement. Since local real estate agents often work with notaries, the owner can assist in the search. At the appointment, the contract will be read aloud. Any desired changes or comments can and should be raised at this point.

Step six: The handover of the property

When owners receive the property documents and keys from the seller, it is important to check whether the property is being handed over in the agreed condition. With the handover, all obligations as property owners also transfer to the buyers (energy costs, property taxes, etc.)

Are you looking to buy a property and have questions? Then contact us. We'd be happy to help.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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