Our conclusion: It’s better to plan well than to buy too quickly.
Anyone who has successfully completed a property purchase will hardly regret, looking back, having planned each step carefully and taking sufficient time, for example, to obtain additional financing offers, arrange a second viewing, have a property appraisal, or have the purchase agreement reviewed by a legal expert. Because all of these steps ultimately make it possible to secure the purchase and protect yourself from additional hassle or expense.
5 steps to your dream property and valuable tips for property buyers.
Step 1: Plan your financing.
Anyone wanting to buy a property should carefully define their financial framework. Very few homebuyers can pay 100 percent of the purchase price out of their own pocket and therefore opt for financing with a mortgage. A high percentage of equity is advantageous, as this often leads to more favorable terms. To ensure that the mortgage can be paid off on time, it’s worth developing a financing plan and planning the repayment period and repayment for the long term. Buyers should also expect additional costs when financing. Even the regular expenses for real estate agents, notaries, and the land registry, as well as real estate transfer tax, can add several percent to the purchase price.
Step 2: Search and find the right property.
Some people are planning to own their own home, others are planning to rent. But property seekers often face the same questions. Existing property or new construction? In a central location or on the outskirts of town? The characteristics of the property itself, as well as its surroundings, are crucial. Those looking to buy a used property should also take a closer look to see if renovations are necessary. It’s often helpful to consult an appraiser. It’s worthwhile to view and compare several properties. Prices often vary depending on the region. A property appraisal can be helpful to ensure that property buyers don’t overpay. We’re happy to help.
Search or let someone search for you: an individual decision
Go property hunting on your own or hire a real estate agent? For many, it’s a matter of weighing up the options. A real estate agent usually has a good overview of the market and saves the buyer a lot of work. Anyone who searches through ads themselves or places a search ad saves the broker’s commission, but in return has to forego the expertise of a specialist.
Step 3: Found the right property? Take a closer look!
If the buyer believes they’ve found their dream home, they shouldn’t act too quickly: First, they should review the necessary documents and, if necessary, have them inspected by an expert.
Read the energy performance certificate carefully during the viewing. Is the house an energy waster or a powerhouse?
Check the land register before purchasing. Is the seller the sole owner? Are there any encumbrances and restrictions? Is the house subject to a mortgage?
Examine the development plan. Are there any restrictions on building or expanding the house?
Is the building listed as a historical monument, or could it be listed as a historical monument in the future?
To ensure that the property is not contaminated with hazardous waste such as chemicals, property buyers should take a closer look if they are interested in purchasing.
Step 4: Now it’s time for the purchase agreement.
Once all details have been clarified and the buyer and seller have agreed, the notary can be commissioned to draft the purchase agreement. This notary is impartial and explains the details of the purchase agreement to both parties. When signing the purchase agreement, the seller often insists that the buyer provide a financing confirmation or proof of capital.
Once the notarial contract is signed, the notary enters a preliminary notice of conveyance, a type of binding reservation, in the land register. Only then does the buyer make payment and usually has to pay the transfer tax. The exception here is Bern, provided the purchase price does not exceed CHF 800,000. Registration of the transfer takes place after the notarization of the purchase agreement.
Step 5: Handover and, if necessary, relocation.
Once the property is handed over to the buyer, they should carefully inspect its condition and ensure that any existing defects have been remedied. It may be worthwhile to prepare a report and accurately record the property’s condition. Buyers who live in the property themselves still have to manage the move. This involves the usual hassle: packing boxes, dismantling cabinets, and lugging furniture, as well as moving and re-registering. To save themselves at least some of the hassle, some people prefer to hire a moving company.
Our conclusion: It’s better to plan well than to buy too quickly.
Anyone who has successfully completed a property purchase will hardly regret, looking back, having planned every single step and taking sufficient time, for example, to obtain additional financing offers, arrange a second viewing, have a property appraisal, or have the purchase agreement reviewed by a legal expert. Because all of these steps ultimately make it possible to secure the purchase and protect yourself from additional hassle or expense.
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