You have finally decided to buy a house. Or rather, it is not that you have decided it now, out of the blue: it has always been a dream of yours. But the necessary conditions were not yet there: you did not have a stable job, and you did not have a nest egg to use as an advance to be able to apply for a mortgage.
Now it seems that everything is in the right place. Congratulations! The time has finally come for you to buy a house. Here is a simple guide that helps you to understand, in a very simple way, what are the general steps in a real estate sale: the procedure for buying a house from a private person, with an agency, with a mortgage, and finally through an auction. Also, Read – How Many Jobs Are Available in Finance?
Search on real estate sites
The path begins with the search for the property.
There are many real estate ad sites where you can go to find the house of your dreams: Immobiliare.it, idealista, casa.it, wikicasa.it, casadaprivato.it and more. There are really a lot of them.
They are also quite simple to use: just enter the place where you would like to buy and check other details (desired square meters, floor, conditions of the house, rooms, etc.) and the system offers you a list of properties with those characteristics. Also, Read – How to Start a Business Online: Practical Tips and Creative Examples
If you find any house that interests you, you can call the advertiser and ask for a site visit.
Visit the property of your interest
Once you have found the property you are interested in, you can call and make an appointment to go and see it. On that occasion, you can ask all the questions you want.
For example, you can ask for information on the neighborhood, the area, condominium expenses, on the possibility of reducing the price and saving something. The visit is just for taking a look, so you don’t need to overdo it by making proposals or showing your interest. Take it as an opportunity to get an idea.
If you find a house that you like a lot, before making an economic proposal, you can also ask for a second visit.
There are four ways to buy a house:
- A private person is a person who did not want to rely on a real estate agency;
- From real estate agency ;
- From a construction company ;
- At auction.
We begin to see the differences.
As a private individual
If you are buying privately, in jargon it means that you are buying from a person who has not relied on a real estate agency. So you will have to bargain directly with this person.
The advantage is that, since there is no intermediary, you will save: the costs of an agency fluctuate between 2 and 6% of the cost of the property. Also, Read – The Best Home And Real Estate Insurance 2022
If you buy through a real estate agency, it means that the homeowner has decided to sell the house through this broker.
You will have to talk and “bargain” with the agent, who deals with the advertising and marketing of the property. The owner takes over only if there is a real interest on your part, that is, you make a purchase proposal.
The purchase proposal
If you are interested in the house you like, then you can move on to the next step: the purchase proposal. It is a binding proposal: that is, you propose to buy the house at a certain price.
Typically, a lower price is proposed than the one published in the ad. About 15%. For example, if a house costs 100,000 euros, you can try to offer 85,000. Clearly, this percentage of “savings” depends on various factors, such as the location of the property, conditions, etc. Let’s say that generally 15% less can be proposed (but even more, if the conditions of the house allow it).
The purchase proposal is made in writing. If there is a real estate agency, it helps you in this: you will make an appointment at the agency and together you will draw up the proposal with the price you intend to offer. Not only the price but also any conditions.
For example, you can ask that your proposal be bound to obtain a mortgage. In other words, in simple terms, you tell the buyer that you are committed to buying the house, but only if a bank grants you the loan. If you don’t get the mortgage, you are free from constraints. Also, Read – What is a Content Marketing Agency?
Generally, during the purchase proposal phase, they will also ask you for a deposit, equal to about 15% of the property price. If the deal fails for reasons beyond your control (for example you do not get the mortgage, as mentioned above), the deposit is returned to you.
You don’t have enough money to buy the house, so you’ve decided to take out a mortgage. You can go to a bank. Online, there are many comparators that allow you to have a (non-binding) quote. For example, you can go to Mutuionline.it or Facile.it.
On these comparators, you just have to enter some information, such as the cost of the house, the loan amount you want, and the duration (ten-year, twenty-year, etc.), and in a few moments, it shows you the options available for you. Also through the site, you can book an appointment with the bank you are interested in. The appointment is not binding, you can simply go and ask for information, to make yourself aware of the situation.
Once you’ve found a bank you like, you can start applying for a mortgage.
Generally, the loan is requested during the purchase proposal phase (see previous steps). When you make the purchase proposal to the buyer, insert a very important clause: that the purchase is bound to the granting of the loan by the bank. In simple words you say to the seller: if the bank grants me the loan, I buy; if the bank does not grant it to me, I do not buy and I am not bound. The seller will have to return the deposit to you.
After signing the purchase proposal and receiving acceptance from the seller, you can go to the chosen bank to formalize the loan application. The bank asks you for a series of documents that certify your reliability: pay slips, Single Certification, and an employment contract. Also, Read – How to choose life insurance: Types of life insurance
Buying a house at auction is a method that potentially allows you to save a lot of money. Typically these are properties sold at a much lower price than the market, for a number of reasons: for example, the owner went bankrupt and the bank expropriated his house.
Before buying a house at auction, however, to avoid running into unpleasant situations, you need to know a few things. Here you will find a complete guide on real estate auctions: how they work and how to participate.