ᐅ Existing Property – Surveyor, Financing, Negotiation...
Created on: 28 Jun 2016 09:29
H
Henrik0817123
Hello everyone,
we have found an interesting house that seems to fit based on the pictures and an initial viewing from outside (which is already a big step for us 🙂 – what are the general next steps in this process?
Our next step is to schedule a viewing appointment. If we like it, I see the following open points:
- Building inspector / surveyor (I’m not sure how this works or how agents usually feel about it)
- Sorting out financing
- Buying / negotiating
I find it difficult to hand everything over to the bank right after a viewing, because that part usually takes the longest. Should I already arrange for a building inspection while the financing is still in progress, or only after the bank’s approval? And ideally, you want to negotiate as well, since the asking price is usually higher than the final selling price.
If you are unlucky and do all the inspections, someone else might buy the house first…
What is the best way to proceed in this situation?
Regards,
Henrik
we have found an interesting house that seems to fit based on the pictures and an initial viewing from outside (which is already a big step for us 🙂 – what are the general next steps in this process?
Our next step is to schedule a viewing appointment. If we like it, I see the following open points:
- Building inspector / surveyor (I’m not sure how this works or how agents usually feel about it)
- Sorting out financing
- Buying / negotiating
I find it difficult to hand everything over to the bank right after a viewing, because that part usually takes the longest. Should I already arrange for a building inspection while the financing is still in progress, or only after the bank’s approval? And ideally, you want to negotiate as well, since the asking price is usually higher than the final selling price.
If you are unlucky and do all the inspections, someone else might buy the house first…
What is the best way to proceed in this situation?
Regards,
Henrik
Abzahler schrieb:
That's my fault. I initially wrote something, then changed my mind and deleted it. SorryOh...okay...
Is it really necessary to criticize the entire forum just because of one response? Well... let’s just leave it at that!
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nordanney28 Jun 2016 10:43Henrik0817123 schrieb:
I don’t know anyone who has bought their house for the listed price. I also always buy products on eBay Classifieds below the asking price, that’s completely normal. Then you must be buying in the right area, where demand is still low or the houses are not that great.
Reasonable houses in good locations often aren’t even listed anymore because they sell so quickly. Price negotiations usually don’t happen either – we sold our house at the listed price (and had multiple interested buyers – we didn’t negotiate with any of them).
An on-site inspection with a building surveyor as part of a purchase consultation is an absolute must for every prospective buyer. Generally, neither the buyer, the owner, nor the real estate agent can accurately assess the condition of the property or provide meaningful input regarding renovation and remodeling costs. For "renovated" properties, the durability of the value and the structural/constructional and building physics coherence of the performed measures must also be evaluated. Many properties have been poorly modified or superficially improved to enhance their market appeal. It is important not to be misled by an attractive surface appearance.
In addition, a number of documents must be obtained and reviewed, which can demonstrate various encumbrances on the property. Naturally, the buyer should only acquire a property free of any liens or claims. The property must also be checked at all stages of completion for compliance with building regulations and relevant permits (building permit / planning permission). There has been and continues to be a significant amount of unauthorized construction. If it can be approved, legalization is possible; however, some private additions are not permitable and therefore cannot be included in the saleable area. Sometimes, during the purchase consultation process, the property size is notably reduced when it becomes clear that a converted shed/barn/stable/extension was never applied for.
Finally, the surveyor can also provide a rough calculation in relation to the requested purchase price, although current demand is naturally driving prices up.
Conclusion: after the initial walkthrough, if the property is fundamentally of interest, arrange a second appointment with the surveyor. The owner or agent must agree to this. If they do not, there is likely an issue with the property and it should no longer be considered. A detailed inspection takes about 2 hours on-site and must be accounted for by the agent. Buyers should not be rushed and must examine everything very carefully.
In addition, a number of documents must be obtained and reviewed, which can demonstrate various encumbrances on the property. Naturally, the buyer should only acquire a property free of any liens or claims. The property must also be checked at all stages of completion for compliance with building regulations and relevant permits (building permit / planning permission). There has been and continues to be a significant amount of unauthorized construction. If it can be approved, legalization is possible; however, some private additions are not permitable and therefore cannot be included in the saleable area. Sometimes, during the purchase consultation process, the property size is notably reduced when it becomes clear that a converted shed/barn/stable/extension was never applied for.
Finally, the surveyor can also provide a rough calculation in relation to the requested purchase price, although current demand is naturally driving prices up.
Conclusion: after the initial walkthrough, if the property is fundamentally of interest, arrange a second appointment with the surveyor. The owner or agent must agree to this. If they do not, there is likely an issue with the property and it should no longer be considered. A detailed inspection takes about 2 hours on-site and must be accounted for by the agent. Buyers should not be rushed and must examine everything very carefully.
A building inspector is a must.
Here is a brief recent experience report: Friends of ours were brave enough recently to buy a house without an inspector. The handover of the keys took place this week. It turned out that the basement had flooded due to rain just two months ago. Whether this happens regularly is unknown. Of course, there were also other small issues that were not noticed during the walkthrough but add up significantly. Not a great start in their new home. Well, every friend and acquaintance had advised getting an inspector. But the penny-pinching and trusting the so seemingly nice previous owners seemed like a better option...
Here is a brief recent experience report: Friends of ours were brave enough recently to buy a house without an inspector. The handover of the keys took place this week. It turned out that the basement had flooded due to rain just two months ago. Whether this happens regularly is unknown. Of course, there were also other small issues that were not noticed during the walkthrough but add up significantly. Not a great start in their new home. Well, every friend and acquaintance had advised getting an inspector. But the penny-pinching and trusting the so seemingly nice previous owners seemed like a better option...
Well, a basement that flooded two months ago definitely counts as a deliberately concealed "defect" (if it was indeed a defect that caused the flooding). Legally, there might already be solutions for this. The question about a dry basement always comes up, and leaving out a recently flooded basement is not very wise.
Instead of a surveyor, other qualified people can of course be consulted (relatives, friends, etc.). Legally, however, even a surveyor cannot be held responsible for things they have overlooked. You just have to be sure that the people involved really know what they’re talking about. A carpenter with 30 years of experience can certainly be considered an expert for the roof. Surveyors usually have advanced tools that can easily measure moisture in walls (basement, corners, etc.), which most acquaintances cannot do.
Buying a used house without a professional inspection is pure gambling, just with a very high stake.
Instead of a surveyor, other qualified people can of course be consulted (relatives, friends, etc.). Legally, however, even a surveyor cannot be held responsible for things they have overlooked. You just have to be sure that the people involved really know what they’re talking about. A carpenter with 30 years of experience can certainly be considered an expert for the roof. Surveyors usually have advanced tools that can easily measure moisture in walls (basement, corners, etc.), which most acquaintances cannot do.
Buying a used house without a professional inspection is pure gambling, just with a very high stake.
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nightdancer30 Jun 2016 19:37Normally, you should know your budget. Financing can only be arranged once the purchase price has been negotiated.
I took an architect along to the second and third meetings. During the third meeting, the sewage system and main electrical connection were checked. Additionally, you need to inspect the basement (a classic), roof structure, heating system, electrical installations, and windows. All of these are common major cost traps.
Ultimately, there is always a residual risk factor remaining, sometimes larger, sometimes smaller, even with expert supervision.
I took an architect along to the second and third meetings. During the third meeting, the sewage system and main electrical connection were checked. Additionally, you need to inspect the basement (a classic), roof structure, heating system, electrical installations, and windows. All of these are common major cost traps.
Ultimately, there is always a residual risk factor remaining, sometimes larger, sometimes smaller, even with expert supervision.
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