Buying real estate
When you think about buying a property, it is obvious that you already have a clear idea about it. It all depends on why you want to acquire it, but also when you want to do it. As it is a project that requires good thought, you must take into account several parameters if you want to get your hands on the property that perfectly meets your needs.
From looking for the property to buy to handing over the keys, including looking for financing, it is sometimes necessary to get help from an expert. In any case, you can prepare in advance as there are steps to follow to ensure the success of your project.
Determine your purchasing power
It is obvious that you first think about how you are going to finance your real estate purchase project. Regardless of the type of property you want to acquire and its location, determining your budget in advance will help you to control it well. This will save you from the problems associated with poor resource management. But how do you go about it? Simply based on your income and savings.
Attach a ceiling
Depending on your income, you must set yourself a ceiling that cannot be exceeded. If you have already planned to take out a mortgage, know that the study of your banking file is based on your debt ratio in relation to your income and expenses. Since you are not allowed to borrow more than 33% of your income, you must first pay off outstanding debts before applying for real estate financing.
When setting a budget to finance the purchase of your house or apartment, don't forget to include other expenses, in addition to the selling price of the property. This will prevent you from exceeding the ceiling you set in advance. To make things easier, you can also use an online simulator.
3 criteria for estimating your purchasing power
It is often necessary to take out a mortgage to buy real estate. So there are 3 main elements that can help you calculate the total amount of your purchase budget. The first is your income, which is an indicator of your bank borrowing capacity. The second concerns your real estate contribution, which is added to the amount to be borrowed. The last concerns banking conditions including the term of the loan.
For real estate in particular, the bank generally requires 10 to 20% of a personal contribution to grant you a mortgage. The more important it is, the higher your chances of getting a better real estate rate. You can therefore increase it by setting up automatic savings or by placing your money on products that bring in more income.
Your loved ones can also lend you a hand if you need it. There are also grants you can benefit from: zero interest loan, home savings loan, housing action loan, etc. Obtaining them just requires compliance with a few conditions.
Determine the type of property to buy
You can use your budget to choose a property to buy. Between new and old housing, the choice depends on your preferences, but also on your purchasing power.
The old property to pay less
If your budget is quite limited, you can turn to an old property, i.e. a home that has already been occupied. It is not necessarily an old house or an old apartment that requires a lot of renovation work. Most owners do this before selling their property in order to increase its value. Some owners sell a house or apartment that was built just 5 or 10 years ago.
Older real estate is generally easier to find. You can find happiness in any neighborhood, especially if you want to live in big cities. You do not risk unpleasant surprises since you know his condition in advance. In terms of price, old housing is much cheaper. For the same type of property, you can save up to 20 to 30% if you turn to the old one.
Buying a new property to have a good quality property
A new home is a very good choice for anyone who wants to buy real estate and enjoy a good quality property. First of all, you should know that new houses and apartments are subject to RT 2012 thermal regulations if the building permit was filed after 1 January 2013. Construction materials, insulation as well as heating, ventilation and domestic hot water must then comply with current standards.
Buying a new property also gives you the right to guarantees. This concerns in particular the guarantee of perfect completion, the biennial guarantee and the ten-year guarantee. But even more, buying a new home can also be more economical. Already that you no longer have to do any work, you can also save energy thanks to insulation standards. Buying a new property also entitles you to a reduction in notary fees and VAT. You can also benefit from an exemption from property tax for the first two years.
Find real estate
This is, without a doubt, the step that requires the most time. Even if you have already set the budget and know exactly what type of property you want to buy, you still need to know where to find it. To find a property to buy, you can take care of it yourself or entrust the mission to a professional.
Advertising sites to find your own property
Digital tools will simplify your task. In fact, you can access professional real estate portals where real estate agencies post real estate ads. All you have to do is sign up for alerts so you don't miss out on a great opportunity. If you have already targeted a particular real estate agency, you can go directly to their website to consult the ads posted there.
Otherwise, advertising platforms from individuals to individuals can also lead you to the property of your dreams. Finally, there are also local newspapers which always devote a section to real estate purchase ads. Word of mouth is always the case if you know people who can recommend real estate that might be of interest to you.
Get help from a professional to save time
Finding or buying real estate is always easier when a professional takes care of it. This may be a real estate hunter, an independent agent or working in a real estate agency or other real estate professional. Whether it is a primary or secondary residence, he knows the market well and can help you get your hands on the property that perfectly meets your needs. You just have to pay him a commission varying between 3 and 10% of the total price of the property.
The principle is quite simple since you only have to present your conditions and your budget to him. Once he has grouped all the properties, you can organize the visit of those that are closest to your description: type of housing, its geographical location, convenience, etc. The good thing about the support of a professional is that he is in a position to assess the price of the property. He will provide you with complete information about him and can take care of the administrative formalities.
The visit of the property
That's it, you have sorted out the real estate that seems to meet your expectations and you are now going to visit them. During each visit, there are a few key things to check, starting with the price. It depends on the characteristics of the housing, its condition and location. It is obvious that the price of a property in perfect condition is not the same as that which still requires a lot of renovation work. To make no mistake, take the time to check the sales of the last 5 years that the government publishes based on property value demand.
You should also find out about the neighborhood where your future home is located. The means of transport, its proximity to the infrastructures essential to daily life, the urban projects planned for the coming years and all the other conditions contributing to a better living condition must be taken into account. Regarding the documents relating to the condition of the property, take your time to read them. This will prevent you from missing out on important information. Do not hesitate to ask your real estate agent and notary as many questions as you want. This will help you avoid mistakes that can cost you more after you move in.
The purchase offer and the sales agreement
Once you have finally found the home that suits you, you can make an offer to buy from the seller. It is possible to do it orally, but it is more appropriate to formalize it to protect yourself in case of problems in the future. In this document, you must mention the name of the seller or agency, your name, the date and description of the property as well as the exact address and the proposed price.
If necessary, you can attach a cover letter and a financing certificate provided by your bank to your offer. You have the right to negotiate the selling price of the property. It should be noted that this negotiation is based on several factors: the length of time the property was put on sale, the average price in the city, the amount of work, etc. After the seller accepts your offer, you can sign the sales agreement.
The sales agreement is a pre-sale contract. It's a bit like a reservation, because you're making a commitment to buy the house or apartment that the seller is committed to selling to you. From the day following the signing of this promise of sale, you have 10 days to change your mind and retract. Cancelling the purchase becomes more complicated after this delay.
As far as the promise to sell is concerned, it is binding on the seller. The latter receives a deposit of 10% of the sale price as a reservation. If you buy the property, this amount will automatically be deducted from the remaining price. Otherwise, it will serve as compensation to the seller for having kept the property that you are not going to acquire for a specific reason.
Find a loan to finance the purchase of your property
You have 45 to 60 days to find a home loan. You must then prepare the documents required for the application. These are mainly proof of identity and income. You can contact a broker directly to speed up the process and benefit from the best conditions. He will study your file closely and make sure that it holds up. It will help you get the best rate and build the case to put all the odds in your favor. If you still have outstanding debts, it is best to repay them so that they do not hinder your ability to borrow.
It should be noted that obtaining a loan with the best rate is based on the quality of your file and the number of establishments you have contacted. Indeed, you have every right to let the competition play in order to obtain a more attractive loan. Some people create a financing plan in advance. This is another way to prove to the bank that you have thought about your project well and that you deserve to get financing to bring it to life. This financing plan will also help you to have a more precise idea of the ancillary costs and the amount to borrow.
Final stretch before moving in
After an initial study of your file, the bank will give you its agreement in principle. This includes all the characteristics of credit. Once the bank has studied your file more closely and decides to offer you a loan, it will send you the loan offer by registered letter, by post. There you will find the general credit conditions and the clauses that you should never overlook. You then have ten days to think carefully before signing anything.
4 months after signing the loan offer, you will sign the authentic act. This will only be done in your presence and that of the seller and a notary. You will then receive your keys and you can move in. In case there is still work to be done, you can organize everything after receiving the keys.
