Buying a property is a long-term commitment that is not taken easily. Buying a property is part of a life project that needs to be carried out properly to ensure its longevity. You will find some tips that will help you complete your project, from finding a property through to the final signing of the sale agreement which will help you to pass this moment in total confidence.
Buying a property: preparing your financing plan
It is a prerequisite for any purchasing decision and will determine all your further steps. Firstly, it is necessary to consider the amount of personal funding: it is the amount immediatly available in the purchase of your property. This amount is to cover various costs: notary, documents, guarantees … According to the banks, the personal funding must be between 10% and 20% minimum of
the amount of the transaction. You should know that with a high amount of personal funding, the better the bank rates will be. You will then need to consider debt capacity and your financial position. As a guide, the monthly payments, credits included, should generally not exceed one third of your revenues.
Contact your banker for the various loan packages: fixed rate loan or adjustable rate loan. In the first case, the rate is set at the signing of the contract, in the second case, the rate may vary up or down throughout the repayment period, depending mainly on the evolution of the rates of the European Central Bank. There is also a rate formula mixed with a fixed rate period and a second variable rate. Be careful! Do not rely solely on credit rate. It is to consider all the other components of the offer: flexibility, cost of insurance and guarantee fees …
Seek advice from an expert real estate agent, partner and guide
If you want to buy a property, the real estate agent can establish a true diagnosis of your wishes, from your budget, your selection criteria, your motivations to facilitate your research and present to you the properties that will most likely suit you. Moreover, he/she can advise you on the complete course of a real estate transaction and assist you in all your endeavors.
Define choices before buying a property
This is an essential step in the process of acquiring a property. The more your needs and desires are refined, the more your search will be effective. The list of criteria can be long, but they include: the geographical area (urban or rural), environment, location, facilities (shops, schools …), transportation, the area of the property, number of bedrooms, lot size, the ability to engage in work (heavy work or construction work) …
All the answers to these questions that the real estate agent will ask you, will save time in the selection of the property and this will also prevent unnecessary visits!
Evaluate the costs and constraints attached to the property being visited
- Check the electricity and heating bills, housing tax, property taxes, condominium fees if applicable…
- Evaluate potential work: the real estate agent will inform you in the first place, for important reconstruction work, consulting an architect may have to be considered.
- If the land is badly defined, refer to ‘cadastral’ map.
- Check the area in which the property is located for urban architectural constraints and obtain the order of registration or classification as historical monuments, if it is appropriate, in order to understand the possible constraints due to work and taxation.
- Ensure that there are no encumbrances on the land (right of way, easement of view).
- The energy performance of the property: presented in the advertisement of sale of the property, it helps to be informed on the thermal characteristics of the property and its consumptions.
Confirm your intentions in writing
If you think you have found the property you want, it’s time to make an offer to purchase. It is usually written, it engages you as soon as the seller accepts the terms of this offer. It is therefore necessary to take some precautions such as mentioning a delay (in the order of a week to ten days) or specify the conditions of acceptance or waiver offer, as well as the use or non-credit. In all cases, no money should be paid at the time of the offer. If the offer is accepted, the estate agent and the notary will then guide you through the signings and deed that will make the perfect sale.
Plan your move
• Subscriptions: take the meter readings and interrupt the telephone line.
• Comprehensive Home insurance : do not forget to contact your insurer to be assured from the date of the signing of the deed.
• Moving: make an estimate by a licensed professional.
• Mail: think about its deing forwarded.
• Taxes: inform your tax office for the settlement of your taxes.
• Education: ask the director of the facility in which your children are in school a ‘certificate of radiation’ and then submit it to the future schools.
• Town Hall: think of changing your address on your identity documents.
• Bank: contact your agency to transfer your accounts or report to your new address.
