Seven basic steps before buying a used home
Buying a home is one of the biggest financial expenses of life. However, in some cases, people who acquired an apartment later learned that the mortgage was too heavy for them to pay now or that it was owned not by the seller, but by a relative. It is also possible that the previous owner did not pay the neighborhood fees, or that the structure of the building is not as good as it seems. Although most transactions of this type take place without any problems, there is always a small percentage of individuals who try to take advantage of the situation. It is advisable to exercise caution and perform appropriate checks before making an advance payment to the seller. After the contract may be late.
1. Check the house
Most likely, whoever decides to buy a house has visited dozens of apartments before finding the most suitable one. For this reason, you will be in the habit of checking the condition of certain aspects of the property, such as its structure, whether the electricity and gas installation is in good condition and whether the taps are working properly. It is also advisable to measure rooms, corridors and terraces to see if the floor size matches what the owner said.
It is also advisable to make several visits at different times of the day. This way, you can see if the house is bright or dark, if it is noisy at certain times or if the neighbors are noisy.
Other relevant information provided by the owner is the type and date of repairs carried out. If the bathroom or pipes have been changed, if cold-blocking windows are installed or the kitchen is being renovated, the house will have more value. Although it can be a bit awkward, it doesn't hurt to ask the landlord to show bills justifying these repairs.
When the buyer sees it as profitable to acquire the house, he must make an offer to the seller. Most apartments are still overvalued today, and if it used to be that the price would go up if the process wasn't carried out, today the opposite is true. Both real estate agencies and individuals are used to hearing and dealing with low offers. Today's slogan is "everything is negotiable". According to expert information, asking for a 10% discount is not excessive.
2. Ask the neighbors
Details that neighbors can provide are also important, so on a visit you can ask if there is a problem with the stairs or with the house you want to buy.
Sometimes the apartment is very cheap for a reason: there are annoying people in the property, quarreling with a resident ... It is important to find out before it is too late.
3. Go to property registry
When a buyer chooses a home, even before making a decision, he must go to the Land Registry to find out a series of vital data about ownership and fees that may affect the apartment. This step is necessary. Even when it comes to people you know or if the sale takes place in a small town where relationships of trust prevail, a simple note can contain many surprises. At an average price of 3 euros, any citizen can obtain this document showing the location and area of the house, its owner and whether there are loads on the house.
First of all, it is necessary to check that the street, number and square meters match what the owner wants to sell. Hence, it is convenient to check that the number of holders is the number declared by the seller. If the couple is married, both will have to sign the sale, as happens if the house is owned by multiple siblings. It's the utmost that great care must be taken, because if one of the co-owners doesn't agree, the buyer will find a home that isn't their entire home.
On other occasions, a court order has transferred the family home to one spouse after separation or divorce, and the other tries to sell it. Thus, ownership is a very important aspect that should be fully clarified.
By simple observation, you can also tell if a mortgage is weighing on the house. In some cases, the landlord claims the home has no fees and then the buyer must face significant debt.
In the same way, it is convenient to check that it is not a tenant, because it is almost certain that the new owner will have to respect the rights of the tenants, and if they are of the old tenancy, the situation will become even more unfavorable for them. Purchaser.
4. Consult the owners community
Another check to do before the money is paid is that the homeowner is up to date with the payments to the neighborhood community. To do this, you must speak with the manager or the owners board. Otherwise, the debt may fall on the buyer of the apartment.
In the same act, you can ask whether the building's facilities are working well--elevator, heating, drainpipe--and whether the structure--walls, beams, roof--in perfect condition. In addition, it is necessary to ensure that the large sums that the new owner will have to pay are not foreseen.
Another data that must be evaluated is the fees that are paid to the owners' community. On some farms there is a janitor, an attendant, a gardener, and a cleaner, as well as a pool and recreation areas that make the monthly payment very high.
You should also check whether the property will undergo mandatory rehabilitation or repair. As of this year, regulations mandate the review of buildings of specified ages and carry out repairs that confirm their safety. In addition, buildings with more than four floors may have to install an elevator. Many people leave their homes to avoid having to face these additional expenses, so this should be taken into account before making the down payment.
5. Go to town hall
Each year, homeowners are required to pay IBI property tax. Whoever wants to buy a used apartment must verify the payment for it. You can do this at town hall or ask the seller for another receipt.
6. Making checks in the bank
Before making the down payment for the house, you need to make sure that the bank has granted the mortgage. If the interested party makes a deposit at the end of the process and can't get credit to pay the house, the owner has the right to keep the money.
In addition, you should refer to the steps to follow if the home for sale has loads. One possibility is to remove the mortgage at the time of sale and another, to replace the owner's mortgage. In this case, you should find out the terms of the entity and check whether you can get better conditions in other banks.
7. Discover in a self-governing community
When buying a used home, you must pay a series of taxes, such as transfer of title and notarized deeds. In total, the purchase costs can be up to 10% of the value of the apartment. Given this high amount, it is very important to check with the corresponding independent community if the buyer can get any tax benefits. Some regions reduce the transfer tax by about half if the buyers are young, part of a large family or meet certain requirements, which are different in each region.
It is possible that, for a few months, the buyer fulfills the requirements in his area to obtain more advantageous terms, in other cases, the purchase may be delayed to meet the requirements, since the savings amount to thousands of euros. Prior knowledge of the tax benefits to the community is the key to good buying.
Signing the deposit contract
In a deposit contract, the buyer offers the seller, as a reserve, a percentage of the price of the house agreed between them in advance. The amount may vary as agreed in each case, but more often it is set at 10%.
It is a private contract in which a notary does not have to intervene, but it has legal value and binds both parties. It must include clauses that the seller and buyer agree and do not take for granted, and everything must be in writing.
The buyer loses the sign if he does not fulfill his obligations
One of the concepts that should be reflected is the amount provided by the interested party. He should know that in case of any default on his part, he will lose money. In the same way, if it is the seller who does not proceed with the sale, then the Civil Code stipulates that he must pay the other party twice the amount which he gave him.
The term in which the sale will be carried out must be specified. It is important that the times that can be easily met are established to move forward with the contract. If this is not done, one of the parties may be harmed, either because he does not have time to complete the sale papers, or because he does not have the time to obtain the mortgage.
Another concept that needs to be clarified is whether the home will be delivered free of charge or if the credit will affect it at the time the contract is signed.