Buying real estate is a big step in life. To realize this project, several steps are taking place. It is better to be well prepared and follow our advice to achieve your real estate purchase objective with peace of mind.
First step: defining the budget
Calculating your real estate purchase budget is the first step in buying real estate. Several simulations make it possible to define a purchase budget, notary fees included.
Think about notary fees
The purchase budget must indeed include the purchase price of the accommodation and the amount of the acquisition costs. This is the purchase budget including notary fees. A sum which represents approximately 8% for a purchase in the old and 3% in the new. The fees of the real estate agency are included in the price of the ad. They are either the responsibility of the seller or the responsibility of the purchaser.
Plan a work budget
It is also better to plan a budget for the work. To know your overall purchase budget, you will need to take into account your income, your contribution, ancillary costs, works and bank financing conditions (real estate rates and insurance rates). This work can be included in the housing loan envelope, financed with the personal contribution or with a work loan. As a general rule, an old property with work is less expensive than a renovated or new property. So you might be able to get a good deal. Provided you check that the work to be done does not lead you into a financial abyss. Better to come accompanied by a building specialist or an architect.
Preparing for your real estate purchase, step by step
Concentrate on the more important points. Each can be a source of substantial savings. You can win and lose on all counts: price, financing, costs, and work. A real estate purchase materializes gradually. It takes time, and it’s best to be ready when you make your decision.
Projecting into the future
Buying is good. Your means allow it, but are you sure you can go the distance? Your real estate purchase will put you in debt for 15, 20 or 25 years. Many events can occur over such a long period of time. Is your professional situation solid? Do you expect a steady increase in your income? Do you intend to have children? Is the property you covet likely to be able to accommodate them or will you have to change it after a few years?
Be advised by real estate professionals
To buy well, get a clear idea of the market. For this, you can consult the studies published by the specialized federations, the networks, the notaries… However, nothing beats a field survey. This is why it is a good idea to get advice from professionals who will provide you with information on property prices, properties for sale in the town or district in which you wish to settle.
Have a little method for your real estate purchase
In terms of real estate research, first make a list of your imperatives:
- Number of pieces;
- Transports; Etc.
Be sure to express your wish clearly, in order to avoid wasting time. Visit as many accommodations as possible. You will therefore need to devote time to it.
Second step: finding accommodation
The second step is to find the property corresponding to the budget and the criteria. This is the step that can take the longest. Even if the quantity of visits does not necessarily determine the quality, this can make it possible to refine its criteria: a high floor rather than a ground floor, new rather than old, an open kitchen or a closed kitchen, etc. Some criteria may change after a real estate visit.
Preparing for home visits
Real estate visits are prepared in order to avoid unpleasant surprises. It is better to draw up a list of questions to ask yourself for the visit:
- What are the amounts of energy expenses, property taxes, condominium charges, etc. ?
- What type of heating?
- What are the last works carried out by the owner?
- Do real estate diagnostics indicate anomalies?
So many questions to ask in order to weigh the pros and cons for each visit.
Visit without rushing
Have an eye. Arrive a little early to the meeting and immerse yourself in the neighborhood. Assess its amenities versus transportation. Is a metro, tram or train station really nearby? Are schools, facilities, shops present? As many elements as you can check by talking to local merchants, a neighbor… In the apartment or the house, don’t be fooled by appearances, inspect everything from floor to ceiling, including outbuildings (parking, cellar… ). Make sure that the equipment is working properly (boiler, electrical installation, plumbing, sanitary facilities, etc.). Ask to see the real estate diagnostics that the seller must provide, which will inform you about a certain number of elements.
Third step: the purchase offer and the signing of the compromise
The third stage of a real estate purchase is the purchase offer. This sometimes requires close negotiation with the seller.
Negotiate the price with the seller
If the displayed selling price seems a little above the market price, a price negotiation is always possible. Based on objective elements, it is possible to negotiate a price reduction with the seller. Formalizing an offer to purchase in writing is recommended. Specifying the validity period of the offer is also recommended: for example one or two weeks. If the seller accepts the offer, the signing of a promise or a compromise occurs in the days or weeks that follow.
Sign the sales agreement
The signing of the sales agreement or the promise marks the beginning of a new stage in the act of real estate purchase. But there is still a long way to go before the keys are handed over.
The terms and conditions of the compromise
The sales agreement, which the seller and buyer sign in an agency or at the notary’s, includes many clauses and conditions for the completion of the sale. The compromise recalls the sale price, the purchased lots, the areas, the diagnoses and all the elements related to the purchased accommodation. Finally, it specifies the terms of purchase: long sale, conditions precedent, etc.
The buyer’s withdrawal period
A cooling-off period of 10 days is provided for by law. This period allows the buyer to think before committing to this project. Withdrawal is always possible after this period but entails the payment of penalties: payment of agency fees in particular.
Fourth step: the search for a mortgage
Obtaining a mortgage is then the next step. Buyers have an average of 45 days to obtain a loan offer. This key step in finalizing the sale can be stressful. It is better to arm yourself with patience and a concrete file to obtain a loan. Taking care of your borrower profile, with well-managed accounts, savings and professional stability are decisive points.
Take care of your financing plan
Few buyers can buy without credit. You will probably have no choice and will have to spend time looking for financing solutions adapted to your profile and your budget. First take a tour of the assisted loans that you can obtain ( PTZ in new and old, housing savings, etc.). Then, do not just go to see your banker, go around the banks. You can also contact a financing broker who will find the best mortgage for you at the best rate and best conditions.
Comparison of banks and loan terms
Buyers are also looking for the best rate for their credit. This generally goes through the comparison of banks. It is possible to be accompanied by an online broker or agency that negotiates with its partners the best conditions when possible. The real estate rate is also not the only indicator to consider since insurance, early repayment penalties, modularity and the domiciliation of income are also key points.
Fifth step: the signing of the authentic deed and the move
Choose your notary
In the absence of a family notary, we generally allow ourselves to be guided by the seller’s notary. But know that you can perfectly ask a notary to take care of the purchase. In this case, two notaries will be present. One who will take care of the interests of the seller, the other who will take care of yours. Whatever the case, know that it will not cost you more, the two notaries sharing the fees.
Stay confident for your real estate purchase
Real estate may be a complex field, but if you know how to surround yourself with experienced professionals, you should carry out your project perfectly. Last step to finalize the sale. The signing of the authentic deed at the notary or remotely. This is the symbolic moment of handing over the keys and signing the new title deed. Sellers and buyers sign the documents in front of the notary and the funds are paid by the bank. The sale is concluded and the new owners can move in.