Worth Knowing: the 5 Biggest Mistakes when Buying a Property

Far too often, primary importance is placed on the “outward appearance” of the property, the proximity to the workplace, or the beautiful garden. Of course, the decision to buy a property for your own use is always emotionally supported. Certainly, topics such as infrastructure, public transport, or even the nice neighborhood are important. Also, it always applies: If your gut feeling is not right, you should not rush into anything. Nevertheless, these sometimes million-dollar decisions are often made without a “cool head.” A real estate professional at your side can only be helpful in pointing out the essential aspects of the purchase.

In general, it is recommended to have a conversation with a financial advisor before looking for a property. This is the only way to avoid the unpleasant situation of finally finding the right property, only to realize that financing is not possible.

Furthermore, when planning, it is very often forgotten to get an overview of the available financial resources. The financial resilience is overestimated. There is no solid income and expenditure calculation, vague income that can also be lost is taken into account, and it is not taken into account that the standard of living may have to be somewhat restricted.

It is important to either have an absolute and trustworthy expert look at financing, or to study and examine various forms of financing yourself. In particular, the total costs of the financing offers must be requested and compared. The consequences of financing that is too expensive can quickly amount to many thousands of euros.

Buying a used property generally brings many opportunities.

However, it also entails risks. As a layman, one very often underestimates the actual effort involved in a renovation. We can advise you very well with regard to craftsman costs and also recommend craftsmen with the best references – please contact us about this. Also, the own contribution – often the painting work, laying the floor, etc. – is overestimated, as there is a lack of know-how and, above all, time. Almost always, a construction site takes longer than initially planned. With the right advice from an expert or empirical values from friends, nasty surprises can be avoided.

Buying a property involves some incidental purchase costs. Whether it’s a broker’s fee (usually 3.57% of the purchase price incl. VAT), notary fees (approx. 1% of the purchase price) or real estate transfer tax (in Baden-Württemberg since the end of 2011 5% of the purchase price). These costs are often overlooked or only partially taken into account.

For the construction financing itself, the actual loan costs are often not determined.

Here too, the following applies: Do not save in the wrong place and consult an expert.

In our fast-moving times, your own life situation can sometimes change surprisingly quickly. Whether due to a job change, family growth, or health changes, often people think too short-term and changes are not taken into account. For example, a young couple should look for a child-friendly apartment and the right environment, while an older person should focus on accessibility and nearby shopping facilities.