What You Need to Buy a Home: A Complete Guide for Buyers

Q&A Guide on What You Need to Know to Buy a Home

What is the ideal time of year to buy a home?

This is generally a concept that doesn’t exist. A specific time of year is not necessarily something to consider when deciding to buy a home. The need to buy or sell a home is personal and doesn’t depend on fixed external factors.

Although each person knows when it’s the right time to buy a home, we can assume that there are times of the year when more homes are purchased. One of these times is at the start of the year, a period often marked by important decisions. Another typical period for making such decisions is early spring in March. This time is also associated with better weather conditions, allowing you to evaluate the property’s natural lighting, which can make the home more appealing.

1. What fixed costs are necessary when buying a home?

The first step in buying a home is signing a Promissory Purchase and Sale Agreement (CPVV). This is when you make a commitment with a payment of between 10% and 15% of the property’s value.

In most cases, this payment is made via a mortgage loan. Keep in mind that financial institutions typically finance a maximum of 85% of the property’s value. This means that the potential buyer should be able to finance at least 10% of the property’s cost to avoid financial risks down the line.

This is just the initial fixed cost. You also need to consider property taxes, home insurance, life insurance, maintenance costs, and regular expenses like condo fees. Also, check out our article on government benefits for home buyers under 35 years old.

2. Is choosing the right mortgage important in the process?

The mortgage is one of the most time-consuming steps when looking for a home to buy, and yes, special care should be taken to ensure you’re making the best decision for your age and financial condition.

You need to consider all the available banking products, determine how much down payment/financing you need, decide how you plan to repay the loan, and find a mortgage that best fits your situation. Also, look for a mortgage that offers the most favorable repayment terms.

3. What documents are required to buy a home?

To buy a home, and simultaneously apply for a mortgage, you’ll need a valid identification document, recent pay slips, a statement from your employer confirming your contract and how long you've been with the company, bank statements for the last few months, and your latest tax return. These are the basic documents required when buying a home. Additional documents may include medical certificates, insurance policies, taxes, and others.

4. What type of home should I buy?

Just like the timing of your purchase, choosing the right home is also a personal decision. However, it’s essential to consider your budget, whether it's an individual or a joint budget with a partner.

We advise looking for homes within your budget and avoiding homes that stretch your financial capabilities. Choosing a home that fits your financial situation will lead to greater success and less financial risk.

When buying a home, understand what you’re looking for within your budget. How many bedrooms? How many rooms? Do you prefer a balcony or terrace? Do you need a parking space? Do you need to be close to public transportation or the city center?

To help you find the best home that meets your needs and budget, consult Engel & Völkers advisors.

5. Does visiting multiple properties influence your buying decision?

In an increasingly digital world, we now have access to a wide range of information about each home through our computers and even our phones, with photos and increasingly realistic virtual tours. However, nothing compares to visiting the property in person.

You can use online resources to narrow down your options, and then schedule visits to the properties that interest you most and meet your requirements. Visiting several homes is essential when buying a home because you’re not the only interested party. It’s important to schedule visits quickly, express your interest, and start the process as soon as possible. Once again, we recommend working with an Engel & Völkers consultant, who will help you through the buying process by organizing all your options.

6. What should I check when the property is not new?

Visible issues such as humidity, peeling paint, or overuse of the rooms can be easily noticed during your first visit. However, these aren’t the only things you should be concerned about when buying a pre-owned home.

You need to consider potential hidden problems, like plumbing, electrical wiring, and other infrastructure that may require quick intervention before you move in.

Also, take into account how old the home is and whether its age justifies the asking price. Consider the cost of any immediate repairs as well as future renovations.

7. How do I know if I’m ready to buy a home?

Without certainty, do not take this step. Buying a home is likely the largest financial commitment you’ll make in your lifetime. Think carefully about whether you’re in a position to commit and if you have everything necessary to buy a home.

Consider whether you plan to stay in the city where you’re buying, whether you want to get married or have children if that’s not yet the case, and whether the home fits these future life plans.

But don’t let this evaluation paralyze you indefinitely. If you look for problems, you’ll always find them. Answer the questions in this guide, define what you’re looking for, and then consult with Engel & Völkers advisors, who will be your greatest allies in determining whether you’re ready and have everything necessary to buy a home.