First time selling a villa?

If you’re facing selling a villa for the very first time, you’re probably asking yourself the typical questions that come up in any house sale and a few more. Especially if you are looking to sell an inherited house or villa and accordingly have no prior experience in real estate, here’s a little insight into the process and the costs you will face as a seller.

When selling a property, there are also costs that both the buyer and the seller have to bear.

Tip. We get the optimum out for you as a seller

Here you can find our contact persons: Contact.

You as a seller know that renowned real estate agents, like ours, take over the entire sale and process from valuation to exposé to notary and purchase contract. The most asked questions refer therefore, at the beginning, almost always to the cost factor with the mansion sales. Let us therefore start with this question:

Who pays which ancillary purchase costs?

Explained in Quick:

1. Real estate agent – Under the new estate agent law, estate agent costs are split 50:50 (buying from private); previously only buyers
2. Notary and land registry pays buyer
3. Property transfer tax pays buyer

Checklist sale: cost factors

These include, first and foremost:

• Value appraisal
• Energy certificate
• Realtor’s commission
• Property transfer tax
• Speculative tax
• Notary and land register

The energy certificate, land transfer tax, speculation tax and notary fees are mandatory. The value appraisal and the realtor’s commission are optional if these services are commissioned. Most of the other items depend on the price of the property and vary individually. A speculation tax is incurred if the property is resold within a certain period of time after purchase. The tax authorities then access the profit made.

Notary fees and land register

The notary fees in Germany amount to 1.5% to 2% of the notarized sales price. In most cases, only the buyer of the property bears the notary costs.

The notary fees and land registry are usually paid by the buyer.

Property transfer tax when buying a villa

The land transfer tax is divided between buyer and seller and amounts to between 3.5% and 6.5% of the notarized services for land and building, depending on the state.

The notary fees and land register is usually paid by the buyer.

Energy certificate for all properties

The energy certificate is prescribed with $ 300 for a simple certificate and with $ 500 for a detailed certificate.

The cost of the current energy certificate is usually borne by the seller.

Realtor costs

The realtor commission varies depending on the state and is between 2 % and 7 % of the agreed sales price. The bearer of these costs is either the buyer or the seller, depending on the constellation. In some cases, these costs are also divided proportionally. Tip. The commission amount is negotiable.

As a rule, the buyer bears the realtor costs.

Properties with multiple owners

The situation becomes somewhat more difficult when a property has multiple owners.

Especially in the case of villas, this can be the case. If the property is sold, it must always be unanimous among the owners. If this is not the case, the owner who wants to sell the property must bring a partition action.

Action for partition is time-consuming and costly

Heirs: community of heirs and fractional community

Villas are often real estate that has been inherited. Therefore, it may happen that several heirs are registered in the land register. If this is the case, the owners are listed in accordance with Section 47 of the Land Register Code. Their shares are levied ideally. If several owners are registered, this is a community of heirs in accordance with §§ 741 ff of the German Civil Code.

In the case of a community of heirs, the situation is somewhat different. If an heir brings a partition action, the property is put up for auction and the respective heir receives only his share of the sale proceeds. In the purchase agreement, all shareholders on the seller’s side must be mentioned by name. The respective share ratios are also listed in the purchase agreement. This is particularly important for the sellers, because the proceeds of the sale will be divided among them on a pro rata basis after the sale.

For the buyer of the property, on the other hand, this circumstance plays no role. However, problems could arise during the notarization process. Especially if one co-owner is represented by another at the notary appointment. In this case, a written power of attorney is required in any case.

Inherited a villa? Read more on the subject here

• Property and inheritance

Divorce: sale after separation

If married couples are indicated in the land register, it is to be assumed that they can sell the property only jointly. This occurs primarily in the case of divorce. The legislator assumes that both spouses have tacitly concluded a joint ownership agreement when purchasing the property. This is regulated in Section 749 (II) of the German Civil Code.

If one spouse is registered as the sole owner, he or she can also sell the property alone. The non-registered spouse only has to agree if the property is the entire property of the marital community. (§ 1365 BGB).

Selling a villa after divorce? Read more about the specifics in the topic here:

• Property and divorce

Vendor Tips: Owner-occupier/landlord

Want to learn even more about selling real estate? Read more about houses and apartment buildings here, depending on what type your villa is, there are specifics to consider here as well.

1. Selling a house: Villa for one household
2. Multi-family house: villa for several parties

House for sale: Villa for one household

Single-family houses are characterized by the fact that they are inhabited only by one family, a couple or a person living alone. They have a garden, which is also owned by the owner. Not all single-family houses are inhabited by their owners. There is also a possibility to rent a family house with a garden. In almost all federal states, single-family houses enjoy great popularity as a form of housing. Accordingly, there is a great demand in the real estate market.

• Sell your house

Multi-family house: villa for several parties

If you should decide to sell your house privately, it means a lot of time investment. From the appraisal to the creation of the exposé, to customer approach and sales phase, months pass without market knowledge. In all areas, above all, the location counts, not only in the sale of apartment buildings.

• Sell your aparment house

Der Beitrag Selling a villa: Procedure, costs, solvent buyers and speculation tax erschien zuerst auf ℄ Real Estates.

This city article is part of our full size guide: Buying a House

New York Real Estate – How to Buy a House in NYC

Perhaps the most famous city in the world, New York has everything going for it. An incessant economy, endless museums and creative opportunities, neighbourhoods for every taste, and an undoubtable atmosphere. Buying real estate in New York is, for that reason, so popular and lucrative. The real estate market, as we will see below, is an opportune chance to invest safely with high profits. So, with relatively low interest rates, the lowest property tax rates in New York State, and seemingly impossibly low prices, now is the time to invest in New York real estate!

• Rather buy an apartment in New York?

Largest House in USA – New York Mega-Mansion

One of the most expensive houses in the whole of the USA, 281 Daniels Lane is a bigger house than you could imagine. Built by multi-billionaire Ira Rennert, this massive compound has multiple houses and sits on 63 acres of waterfront property. If you want to get an impression of how luxxurious and opulent this self-made entrepreneur lives, you should know that his neighbours commonly complain about the noise of the oversize helicopter which lands on the designated helicopter pad on the property.

The massive mansion boasts multiple dining rooms, a gym, two tennis courts, three swimming pools, a bowling alley, a movie theater, a private museum showcasing the billionaire’s massive art collection, and a basketball court.

• Location: 281 Daniel’s Lane, 11962 New York

What is New York’s Biggest Economy?

New York is perhaps best known for its legendary finance sector. Countless mammoth banks have their headquarters here, and ‘wall street’ is known worldwide for its trading business. Yet New York is also home to a billion dollar port, being the source of thousands of jobs. It is also a major hub for manufacturing of textile and clothing industry. More importantly though, New York is a young tech-hub. With many software and new-tech startups and companies being housed in the metropolis. Lastly, with the city being one of the biggest in the U.S., and most popular worldwide, New York also has a massive gastronomy and hotelier sector, with tourism pushing a large proportion of it.

• Tech
• Finance
• Tourism

Is New York’s Economy Growing?

New York’s economy is growing. Between 2001 and 2019, the city’s GDP rose from $1,20 tril. to $1,57 tril., a 24% increase! There are some 70.000 businesses in New York City, and this number is growing annually. New York’s real estate market also makes up a huge share of its massive economic growth.

• GDP: $960,25 bil. (8% of total U.S. GDP)
• Past 20 years, 24% increase.

Is it a Good Time to Buy a House in New York? – Real Estate Market

Right now is a very good time to buy a house in New York. Low prices are almost certain, thanks to many vacancies by lettors who are no longer interested in renting out the very low rent prices. That means prices will be low, but thanks to New York’s legendary status, and cramped market, the prices are certain to pick up again. In a few years, the current prices will have multiplied, meaning an investment now will reap profits. Prices of homes are expected to increase by 9.1% over the next year.

• Home Prices Currently Low
• Expected 9.1% increase in price

Home Price Trends New York City – New York Real Estate Crash?

It seems every year there is an impending real estate crash. Yet this has not happened until now. Some experts have warned again of a crisis, yet looking at the house price index for New York, there is no evidence. The opposite in fact, the rising house price index indicates not only a healthy economy, but also a strong real estate market.

• Strong real estate market
• Rising Price Index

Most Valuable New Constructions

This graph is perhaps indicative of New York’s real estate market. Only surpassed by Dallas-Fort Worth, and the Houston-Sugarlands areas, the New York metropolitan area is among the places with the highest value of new residential construction permits. That means that new constructions are valued very highly in New York, thanks to high real estate prices, which are, thanks to these expensive new constructions also expected to remain high.

• 3rd best in the Country!

New York Real Estate Prices

New York City’s average house has a value of $660.000. Last year the median sales price on single-family residentials hit $718.000. Additionally, the amount fo sales being completed increased by over 21% compared to last year. Per square foot, you can expect to pay $341, a number 2.4% higher than last year. Manhattan is the most expensive borough, with the hotspot’s averae sale price being ata $995.000.

• Average home: $660.000
• Average sqft: $341

New York Real Estate Market Explained

NYC is certainly a buyer’s market at the moment. There are more properties for sale currently, than there are buyers. Properties were being sold, on average, almost 3% below asking price, and were typically sold after a long 151 days on the market. This is likely also due to the high supply of properties making buyers be more specific in their wishes. Also, while it may seem like rental-heaven, New York is over 50% owner-occupied, meaning that you are not alone in owning instead of renting.

• New York’s Real Estate market in-depth: New York Real Estate Investment

Is it Hard to Buy a House in New York? – Problems

As mentioned, the New York market has many homes for sale, meaning that, apart from few issues, it’s not very difficult to buy a house in New York. Different from buying an apartment in New York, buying a house will likely leave you with a more specific and satisfactory property.

Where Can You Buy a House in New York? – Detached Single-Family Residences

You may think of New York as a place where you can only buy apartments or condos. This is not the case though, although detached single-family houses are quite rare in e.g. Manhattan. You will not have much difficulty finding a house in e.g. the southern parts of Brooklyn (Bensonhurst, Sheepshead Bay, etc.) as well as Queens (e.g. Forest Hills, Woodhaven, etc.). Of course the legendary Hamptons are also prime real estate.

What is the Minimum Downpayment on a House in New York?

Mortgage is always a major topic when buying a house in New York. Even here you will need to pay at least 20% on your downpayment. The FHA loans, which would allow you to pay as little as 3.5% without significant interest rates will be hard to find in New York, as there are so few houses compliant with the regulations. If you decide on a downpayment lower than 20%, you can expect high mortgage interest rates, and of course principal mortgage insurance. With a home price of e.g. $700.000, the classic 20% downpayment is a hefty $140.000!

Tax Tip: NY state will allow you to deduct much of your mortgage interest from your taxable income!

Taxes! Where to Pay and How

Taxes on buying a house in New York: this is the fun part. Taxes in New York are structured so that you are advantaged when you buy a home instead of rent. That means you can deduct many things like mortgage interest and your New York property taxes from your taxable income! More on optimizing your taxes in our article:

• Saving Real Estate Taxes

How Much Money do you Need to Buy a House in New York?

There are of course a million ways to save money everywhere on your home. From saving on your taxes when buying a home to government programs, you need to make sure to take a look at the possible programs for you in your income-, cultural-, and geographical region.

How to Pay Less when Buying a House in New York

For people who are not able to pay a full downpayment, there are many support programs. Real estate purchases are generally encouraged with incentives and support programs. The best are for first-time homebuyers, meaning that if it is the first time that you buy a full residence, you will pay less taxes, and have other monetary incentives. More on that in our main article on buying a house.

• Less taxes for first-time homeowners

We have a full-size guide on all the additional costs you have to pay when buying a home:

Additional Real Estate Costs

Saving with Home Improvements

The planet is dying, and everyone has to do their part. That’s why many houses in New York nowadays are sold with eco-friendly upgrades already done. These include renewable energy sources such as solar power, or other variants such as more insulated roofing or smart thermostats. Having these can cut down on your recurring costs.

• Eco-friendly = Wallet-friendly

What you Need to Know About Buying a House in NYC

These are the top tips for buying a house in New York. You can be certain that if you adhere to these tips, you will have a good time, and end up satisfied homeowner of New York real estate.

People you Need to Hire to Buy a House

The most important step of the house buying step is the people who you will have fighting on your side. You want a group who are capable and empathetic. Additionally, you may need more people than you think. The list includes real estate brokers, agents, loan officers, mortgage brokers, and a real estate attorney. This is the step of the process where you will need to spend more time than you think. A good team surrounding your purchase will be a deciding factor in the quality of your home, as well as how much stress the home pruhcase will be to you.

• Real estate broker
• Agent
• Loan officers
• Mortgage broker
• Real estate attorney

It’s the Season – Spring

If you want to buy a house in Los Angeles, the time to do it is in the late winter to early spring. From January to March, the prices of homes are lower than the rest of the year, which means you can pay less for the same house that you would normally.

• Buy in Spring!

Location Location Location – New York Neighborhoods

Which neighbourhoods in New York to buy in? The old realtors adage, location location location. New York is home to five boroughs, all with a unique character and different qualities. Within these boroughs though, there is also large variation. For example, Brooklyn is home to some of the most high-end real estate areas in the whole city, while its neighborhood of Brownsville is considered the most dangerous. Therefore, which neighborhood you buy in can be decisive

Checklist – Where to Buy a House

What to look for in a location for buying your house? The location of a home, and the amenities nearby can decide your resale value, and can mean over- or under-paying on your house. This is our checklist of things you absolutely have to check out when looking at buying a house in a certain location:

• What are other homes or buildings on the block like? If
  neighboring homes or buildings are in poor condition, it could affect resale
  values.
• Schools: Are there good schools nearby? Do they have a good reputation?
• How close is the home to shopping areas such as malls? If you don’t have a car, public
  transportation? If driving, parking garages?
• What community amenities are nearby? E.g. museums, parks, restaurants, etc.

Don’t Forget Additional Costs

New York has an extra mansion tax, as well as a few other unique facets which make the additional costs here more difficult and sneaky. Be certain that you and your real estate broker have thoroughly discussed the details of all potential additional costs which you could face when buying a house.

• Real Estate – Additional Costs

How long a House has been on the Market – Beware of this

A major problem can often be unseen by you. Whether it’s shoddy renovation work which your inspector misses, a future construction project which could heavily affect resale value, or any number of things. Therefore it’s smart to always check how long a house that you are looking for has been on the market. Remember, in NYC, the average home is on the market a little under 5 months. Anything significantly longer than that can mean danger! It could also mean that a seller is just a particularly hard negotiator, and if you have the money to buy, it can still b the right purchase. So just make sure to take an extra close look.

• Hidden Problems!

Process Explained – How to Buy a House in New York

The process in New York is the same as for buying a house in the whole of USA. In short you save up, find the people that will help you through the journey, find your future home, and close on the deal. More specifically:

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

How Long does it take to Buy a House in New York

From start to end, the process is going to take a few weeks at least. The time can range anywhere from three weeks to three years, but on average you can expect about 6 months from start to finish. Remember! Even after closing it typically takes about 90 days before being able to move into the new property. Some people search for years and fail to find anything. In the end, how long you spend finding a new house depends on how well-prepared you are. On average though, in New York, people buying a house look for 50-70 days between starting the search and closing.

• 3 Weeks to 6 Years

Best Real Estate Agents in New York for Buying a House – Ranked

New York has more real estate agents than home buyers it seems. In this sea of real estate agents, all claiming to be the best, our ranking for the top 8 real estate agents in New York is below. These are NYC’s best realtors:

1. Richard Leasure (Howard Hanna Rochester)
2. John Farrell (EXIT Realty Homeward Bound)
3. Alexa Lambert (Compass)
4. Michael Kenduck (21st Century)
5. Bryan Karp (RE/Max)
6. John Lajara (RE/Max In the City)
7. Geraldine Andolina (21st Century)
8. Daniel Axtmann (Berkshire Hathaway)

New York City Explained

Counting the neighbourhoods, and finding out where one ends and another begins is a hard task in New York. The city is massive and spread out over 784 km² (303 mi²), being home to 8,4 mil. people.

• Pop. 8,4 mil.
• Area 784 km² (303 mi²)

New York’s Counties – Are NY’s Boroughs Counties?

New York City incorporates five counties, these are: New York County (Manhattan), Kings County (Brooklyn), Bronx County (The Bronx), Richmond County (Staten Island), and Queens County (Queens). In other words, each borough makes up one county.

• New York County
• Kings County
• Bronx County
• Richmond County
• Queens County

All New York Neighborhoods Mapped – Williamsburg, Midtown, etc.

With so many neighborhoods, it’s nice to see what neighborhood ends where. Where is the famous Williamsburg? See it all in the map below.

Property Taxes – New York’s Property Taxes by County

Buying a house in NYC means looking at how much you’re going to have to pay in taxes. With some districts paying more than others, this is an important part of your investment. New York property taxes are slightly more complicated than elsewhere, but broadly, the most you will be paying is in the Bronx, and least in Manhattan.

• Kings (Manhattan) – 0.65%
• Queens – 0.87%
• New York – 0.90%
• Richmond (Staten Island) – 0.91%
• Bronx – 0.97%

Neighborhoods in New York City – Where to Buy Real Estate

What neighborhood should you move to? Where are prices low, and likely to rise? These are the questions we answer here. Importantly, you will want to decide beforehand what type of neighborhood you’re looking for. There are young, trendy, and soon-to-be-gentrified areas like BedStuy, the super-rich luxury pads in Manhattan, or a little more suburban in Carroll Park or Park Slope.

New York Real Estate – Manhattan

Manhattan… Need I say more? A timeless and undisputed king in New York real estate. Neighborhoods to keep on your radar: TriBeCa, the perhaps most opulent part of New York City, or Upper East Side, which is the hottest tip in New York at the moment.

Bedford-Stuyvesant – Future Williamsburg

Williamsburg is perhaps the most famous example of gentrification worldwide. Not yet prey to gentrification is Bedforsd-Stuyvesant, where low prices, boundless amenities and a young atmosphere allow inhabitants to enjoy the big city, without its incessant tumult.

Park Slope – Where to Raise a Family in New York

Park Slope is already more famous than it was only two or three years ago. This is thanks to its near-perfect combination of proximity to the city, neighborhood safety, as well as a nice park and more. If you want to raise a family in New York City, this is where you should do it.

T

Der Beitrag Buying a House in NYC – Guide, How-to for New York Real Estate erschien zuerst auf ℄ Real Estates.

How to Buy a House in USA – A Full Guide

Buying a house is often the first step to financial independence. Whether as a real estate investment for passive income, or as a primary residence. It’s vital to understand the ins and outs, and all the nitty gritty details of purchasing a home. Even if you’ve bought a house before, you should get informed. The more you are in the know about the process of buying a house, the less work your broker, attorney or agent will take, and the m ore you can contribute. Meaning a higher chance that you will find your perfect house, and pay as little as possible for it.

Not looking to buy a house? What about…

How to Buy an Apartment

Types of Real Estate Investment – What should I do with my House?

Of course, before you buy a house you have to know what to do with it. Or maybe you’re thinking about ways to invest saved money, and are considering buying a house. What could you do with it? Well generally, buying a house means you do one of three things with it. Either you use it as a primary-residence, meaning that you live in the house yourself. You may also rent out the property. Meaning that someone else lives in the property and pays you rent. This is more popular for buying apartments, but can also be done with houses. The last option is to flip it. That means buy it, renovate it at low cost, and sell it for profit.

• Primary Residence
• Rental
• Flip

Decide on your Residence – Type of Home

Of course there are many different types of homes that you can buy. These include Single-Family Homes (i.e. a normal house as you know it), a duplex or triplex, a townhouse, a co-op, etc. These all have their unique advantages and disadvantages, and depending on your needs one will fit better than another.

A full rundown of all your options, from type of residence to what you want to do with your real estate, in our guide

Types of Real Estate

Checklist – 8 Steps to Buying a House

In short, the 5 steps in the process of buying a home are as follows. The first steps are all related to your mortgage, and planning your payments. The final is related to your closing, where many additional costs will come up which you should plan for.

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

When Should I buy a House? Preparation

How do you prepare for buying a house? The following are the steps you should take before even starting the process of buying a house. It is important that it is the right time. The following are timing issues you should take into consideration which may decide whether to wait or buy now.

Salary, Savings, and Career – Your Financial Status

Preparing for buying a house means considerable financial investment! It’s most important to know, before you buy a house, that you won’t be stuck with heavy loans, high interest rates, and drowning in additional payments. You should buy a home when you are financially secure. That means that you have large savings, which may be necessary for unexpected renovations or repairs. You may need to install new heating, or reinsulate your home. These savings will of course be mostly used for your downpayment, which will be a large sum. Additionally, it’s easier to get a better mortgage, and get mortgage pre-approval, when you have a constant salary. Job security is therefore key.

• Savings
• Job Security

Check Your Credit! How to Check your Credit Score

It’s not difficult to check your credit scores. These are important as they are decisive in how your mortgage will be, and the difficulty of taking out a loan. First you get a credit report. This is free and is done by Equifax, Experian, and TransUnion. Then check over this report. There are sometimes errors, or other ways to improave this report. Then you can check your credit score. Either pay a credit reporting agency (e.g. Equifax), or check for free on your credit card statement or in your online banking

1. Get credit report
2. Check for errors
3. Get credit score (either from bank for free or from a credit reporting agency)

The Housing Market

If you had bought a house in 2007, you’d have heavily regretted your decision. You want your house to gain value, not lose value. That means taking the general scope of the real estate economy into view, but also more local. If you’re buying New York real estate, right now is a good time. Other places may not be the same, so be sure to inform yourself online, as well as find informed experts in your area (who do not have an incentive to make you buy now, like a real estate agent).

• Local Market
• Broad Market

First-Time Homebuyers have Advantages

If you’re buying a house, it’s an advantage if it is the first time you are doing so. That’s because the department of Housing and Urban Development (HUD) wants to encourage first-time homebuyers. That means you get incentives. Think tax breaks and lower downpayments.

How to Know if you are a First-Time Homebuyer

If you meet the following criteria you are eligible for these discounts and advantages. You are eligible if…

• You have not bought and lived in a home for three years
• You bought your previous residence with your spouse
• You have only owned a residence not permanently affixed to a foundation
• You have only owned a residence not in compliance with building codes

How to Plan your Mortgage – First Step in Home-Buying

Having decided all these, things and with your credit report in order, you can start planning the first steps. What is decisive in buying a home is how much you can afford. Of course you won’t be paying the full price of the house up-front. Rather you pay a percentage of the main price in your downpayment, and the rest is loaned to you by a bank or mortgage broker. There’s a lot going into these calculations, so be sure to research yourself before taking any further steps. This is all related to mortgages, a massive topic. If you want to learn more, read our guide

Mortgage – How to, Easily Explained

Plan your Downpayment

Whatever you buy, you want as much savings as possible. Buying a home is obviously a large purchase. Up front you will pay a downpayment as well as a number of additional costs. What’s important here is that the amount you pay on your downpayment (as well as on potential discount points) decides how much you will pay later on. Your downpayment should be at least 20%. If you’ve saved a large sum, you will be able to pay more, and therefore reduce the amount you will need to spend later on regularly.

• More Savings = Better Downpayment

Finance Details: The Decisive Factor for a Mortgage

Before doing anything else, you should look through all your finances. Credit cards, missed bills, loans you’ve taken out, etc. are all deciding factors in how good your mortgage will be. Therefore, before even approaching a mortgage broker who can give you preapproval, you will want to check your credit report yourself, and pay off as many loans as possible.

Even if your home purchase is a while in the future, you should always make sure to pay your bills as soon as possible and avoid loans when available. Lenders will also take into account your debt-to-income ratio, so make sure to reduce debts as much as possible before deciding to buy a house

• Reduce Debts
• Credit Report!

What to look for in a Mortgage – Avoid Paying too Much

In your mortgage plan, you will want to plan beforehand to make sure you avoid paying more than you have to. A bad mortgage can mean you are stuck with high interest rates and potentially even mortgage insurance as extra monthly costs. To get a good mortgage, you want to pay as much as possible at the point of purchase. That means a large downpayment of at least 20%, and as much as possible on top of that as discount points for your mortgage.

• Large Downpayment
• Discount Points
• No Mortgage Insurance

Get Pre-Approval

Next, you want to get official proof that you can pay your mortgage. That shows sellers and mortgage lenders that you are a serious buyer, and that you are good for the money you owe. Not only that, but it makes the search much easier because you have, on paper, exactly how much you can spend. It also ensures that you do not become victim to a predatory lender who may charge more than others would. You get mortgage preapproval from a mortgage broker. A mortgage broker is the first person you want to have in your team for buying a house. When finding a mortgage broker, shop around and see what brokers are best suited for your case.

• Get a mortgage broker!
• Shop around

Ready to Buy a Home – Next Steps

So you have everything in order, now you want to get to the point: Finding your house. That would be quite nice, and it’s coming up, but before that make sure to take all precautionary measures, and prepare enough.

How to find your Real Estate Agent

The right real estate agent can change your whole experience. Therefore, make sure that you look around, and find the best agent for your needs. The job of a real estate agent is more than just sending you links to online listings. Real estate agents will often show off with their amount of experience. That’s of course important, but a young agent can be much more knowledgeable, and a person who has worked in the field can also be incompetent. Next, also make sure that you personally get along well with your agent. That means meet yor agent, and see what you think and what kind of an impression they make.

Tips for finding the Perfect Real Estate Agent

These are our top tips for finding the best real estate agent for your needs. The 3 p’s are

1. Personal attributes of the agent – Trustworthy, passionate, friendly, hardworking, etc.
2. Payment structure – Are they out to make you happy or to sell as many homes as possible?
3. Past track record – Have they sold homes in the past, do other people recommend them?

Before you Buy – What type of House Ownership?

This may seem a surprise, but there are different ways to own a home. The type that you probably know, is what is called sole ownership. Legally though, you can hold the title to a property by three other methods as well. These are Joint Tenancy with Right of Survivorship (2+ people own a home equally), Tenancy by the Entirety (same as joint tenancy but with married couples), and Tenancy in Common (2+ people own a certain poportion of a home).

• Joint Tenancy with Right of Survivorship
• Tenancy by the Entirety
• Tenancy in Common
• Sole Ownership

The Perfect House – Find the Best Real Estate

So, you’ve found the right real estate agent, have all your finances in order. What now? Well now is the exciting part, the search for your dream home. Some people even peruse real estate listings in their free time, and you will have to as well. The important part here is perseverance.

Beginning the Search – First Steps

Of course your real estate agent will be looking at listings constantly for you. They often send weekly reports of possible properties, of which you can then decide which you like. Additionally though, it’s also good if you take a look yourself at listings on different websites. Some real estate listings are also not online. That means it can be a good idea to drive around neighborhoods which you’d like and look for open houses or for sale signs. Your real estate agent can then get in touch with these homeowners and pave the way for the process. Another good option: Ask around with family and friends. It’s much better to deal with people you are friendly with than strangers.

• Look at Listings Yourself
• Drive through the Neighbourhood
• Ask Friends and Family

What to Look for in a House – Tips!

The main things you have to look out for in your house are likely first and foremost financial in nature. Is it in your price range? Does it need many repairs? Etc. There’s other things you may personally find important like, proximity to city, public transportation access, a swimming pool, and more. Your realtor can tailor your needs and desires so that you receive listings which align with your wishes. Another important thing, if your financial situation is not as liquid, you can look out for homes which are in need of renovation. These are often sold undervalue, meaning that you can buy and renovate them for a lower price than a similar house in perfect condition.

Things you may need to look for are the following:

• Price
• Size
• State of House (e.g. possible renovations)
• Schools and Leisure Opportunities in the area
• Number of baths and Befrooms
• Local market (rising or decreasing value)
• Access to Public Transportation
• Distance to Shopping and Supermarkets
• Amenities like Swimming Pool or Balconies

Open Houses – How to Visit an Open House

You may think this is easy enough, you’re just walking around and taking a look after all… right? Well of course you can go look at open houses, but it’s much better to take your real estate agent with you. Sellers’ agents can be predatory, and you don’t want to be taken advantage of.

• No open houses without your agent!

How to Make an Offer for a Home – Negotiation

Making an offer on a home can be a complicated process. It’s certainly more complicated than just telling the seller a number. Once again, if you have a good real estate agent, they will guide you through this step of the process.

Take the First Step of your Home Purchase

Your agent will let you know how high the first offer you make should be. Your agent will also be the one presenting the offer to the seller, taking over from you. Remember that you may not be the only one trying to buy a certain house. That means that you may end up in a bidding war with other buyers, especially for desirable, and affordable homes. Things that make you a stronger candidate are better finances, mortgage pre-approval, as well as being lenient in the closing date.

• Agent makes the First Step

How to Prepare a Purchase Agreement – Important!

What’s a purchase agreement? It’s basically you saying what you imagine under your purchase. the seller will then agree to these (hopefully), and the rest of the deal will depend on this. For this reason there are many details in this agreement. This includes personal information of you, the buyer, as well as the owner, i.e. the seller. The location of the home, the price which you want to purchase it for, who is lending the mortgage, and the amount of the downpayment. Decorations, or other features which will be left in the house, and the circumstances on which your purchase decides. This is very important. A purchase agreement must ensure that your purchase depends on the home inspection, the mortgage approval, and the appraisal. Lastly, it will also include the closing date

• Price of House
• Mortgage Lender
• Personal Infos
• Anything Left in House
• Contingencies of Purchase
• Official Closing Date

Before you Pay your House! Remember the Inspection

Before you pay anything, as stated in your purchase agreement, you will get a home inspection. That means that you have an expert (or multiple experts) walk through the house and look at everything from plumbing, state of appliances, insulation, heating, etc. It is important that this is an independent inspector, and that they are experts. You want to avoid that there are any unseen issues in the house that you will end up paying for in the long run in the form of repairs and renovations. Important here as well, this can reduce the amount you end up paying. Large issues mean that you can renegotiate, and again lower the price which you must pay.

• Finds issues, like potential repairs

Your Offer is Rejected, now What?

If your offer is rejected, you have two options. Of course it hopefully won’t come to this, if the seller accepts your first offer. If your offer is rejected, remember that this isn’t necessarily a bad thing. If your offer is accepted at first try, that means you may be overpaying. If you can pay more, you can prepare a counter-offer. If not, move on to the next house. The worst thing you can do is get stuck mounring over a possible house, or worst of all, pay more than you can. In the best case, you will have made an offer which is slightly lower than what the seller had hoped for, and they will prepare a counter-offer. When you receive this you can usually go up a bit still, send that counter-offer and you will have completed your home purchase.

• Don’t mourn after the House
• Don’t take up unnecessary costs!

What to do After your Offer is Accepted – Inspection, Appraisal + Co

After your offer is accepted, you may think that your purchase is in the bag, but there’s still a lot to do from here. Don’t get tired, these last yards are just as important as the first! After your offer is accepted, you will need to take the next, very important, steps. There are three important things you now need to due:

1. Home Inspection
2. Home Appraisal
3. Mortgage Approval

These steps are vital, it may feel as if you’re finally finished and just want to get it behind you, but not doing your due dilligenceon these parts can mean lots of pain in the long run. Any issues you have after you have closed on the house means costs are coming out of your pocket.

Home Inspection – How to Avoid Unseen Issues in your House

Not only should you do this, but it is also your legal right to get a home inspection. It is more of a precaution than a convenience. This can prevent you from unseen future payments that can haunt you for years. A professional home inspector will go through the house, taking a look at everything from electrical systems to heating. This professional inspector gives you a summary of the house. It includes all possible issues. There are always some issues, and the may not be very significant, but can be, and even if they are not, can be used as leverage in your negotiations.

• Not necessary, but good

Home Appraisal – Know the Value of Your House

Appraisal may at first look sound like the same thing as an inspection. It’s not. Whereas a home inspector looks at possible issues such as issues with plumbing, the appraiser is an expert in estimating the price of a house. You, the seller, and your agent may have estimated a house at $1 mil., but an appraiser, who takes into account a variety of factors which you cannot even think of, will find a different price.

• Contest the appraisal if necessary!

Why is a Home Appraisal Important?

An appraisal is important first and foremost because it is often a mandatory part of your mortgage. That means your lender requires the official appraisal of an expert in order to lend you money. These lenders want to avoid giving you a loan for a house that is worth less than you buy it for, because it is less likely that you will be able to pay back the loan. Therefore you likely want your appraisal to be the same as your purchase price. If the appraisal is lower than the price, you may not get approval, if it is higher, count yourself lucky, but this may become a factor in renegotiations.

• Avoid a lower Appraisal Price

Final Mortgage Approval

With these things sorted you can get your mortgage approval. This is just the lending organisation telling you that they are willing to loan you the money required to buy the house. This is dependent on the appraisal. They can also take into account the inspection, but generally, the appraisal is enough. Remember, that there is no way around the fact that buying real estate up front is always better than with a mortgage. At this point it’s important that nothing has changed in your finances between the point of pre-approval and the final approval, as an extra loan or any debt that you have built up may discourage the lenders.

• Avoid Extra Debts between pre-approval and final approval

Almost There – Preparing to Close on a Home

Now that you have all this sorted, you can go about closing. This is the part that you’ve looked forward to for ages. It’s not necessarily the most fun, but you will be happy once it’s over becasue this is the last step in your voyage to buying a house.

Renegotiation: Pay even Less on your House!

This is an important step. An appraisal or home inspection can often uncover issues or question marks which you had previously missed. You can either ask to pay less on the purchase price or ask the seller to take over some of the closing costs. Otherwise you can also ask the seller to give you extra credit to cover these costs, or ask them to repair the issues before you move in. The seller may reject this renegotiation and you can then decide whether you neglect these issues or continue renegotiating and risk losing the house.

• Based on inspection and appraisal

Title-Search, Homeowners Insurance, etc.

Next you will have to find a title company which does title search. A company which insures your home, etc. Many of these things will be taken over by your real estate agent, or their company. Remember that these all incur costs. There are many additional costs, as well as, depending on your state there are 3 taxes when buying a house, including pro-rata property taxes. These costs can add up to 5% of the total purchase price. To learn more, look at our guide

Real Estate Purchase – Additional Costs

Don’t Forget the Walk-Through

Just like when you buy an apartment, you should never neglect the final walk-through. There are many issues which can come up with your home before you move in. Whether it’s issues that you weren’t aware of when you visited the home, or problems that occured when the previous owner moved out. Also, the seller may have left unwanted belongings, which you may then have to deal with, either by paying to have it thrown out or similar things. Many people who don’t do the walk-through end up regretting it.

• Do not neglect!

Closing – Singing a New House

You are now ready to sign. Closing will be a certain day on which you sign all paperwork, and money is transferred to the seller.

Closing Disclosure – Paperwork of your Closure

Three days before closing, you will receive a closing disclosure from the seller. This disclosure includes everything that you will need to pay at closing, as well as detailing the loan which you will take up. You will want to take a close look at this, and make sure that it does not deviate from you loan estimate.

Closing Meeting – Signing the Paperwork

This is where the magic happens. At the closing meeting you will sign all the paperwork. Make sure to bring your ID to this meeting, as well as a proof of your assets which shows that you have enough funds to buy the property, and lastly, a copy of your closing disclosure.

Settlement Statement – Proof of Purchase

The settlement statement is a little bit like the receipt of a grocery shopping trip. It includes all the costs of the purchase, including the downpayment, and closing costs. Lastly, you will also signa mortgage note, which insures that you will pay back the amount which you are loaned.

Special – Buy House New York

New York is the biggest economic powerhouse in the country, and buying real estate here is an art unto itself. If you want to buy a house in New York, there’s a few things you’ll want to take a closer look at. From the infamous mansion tax, to the people you need to hire, and the costs which you can expect.

We take care of all questions you could have in our full guide on buying a house in New York

Buy House New York

Special – Buy House Los Angeles

Los Angeles, the place with seemingly endless beaches, celebrities, trendy cafes, and rockstars. But Los Angeles is also famous for a massive housing market, for houses, as well as for apartments. In general, home prices are increasing throughout the city. That means buying a house will translate to a higher selling price, and therefore profit. You’re going to want to get in on the many real estate opportunities presenting themselves in the city.

We take care of all questions you could have in our full guide on buying a house in Los Angeles

Buy House Los Angeles

Buying a House – Checklist

When you’re buying a house, there’s a few things you’re going to want to avoid forgetting, and a few things which you need to know when buying a house. These are our steps to buying a house:

1. Save up for the Downpayment
2. Find a Mortgage Broker
3. Get Mortgage Preapproval
4. Get your Team Together: Attorney, Real Estate Agent, etc.
5. Start looking at Listings
6. Go to Viewings
7. Submit an Offer
8. Close

Der Beitrag Buying a House – Easy Explanation + Step-by-step Guide, Real Estate How-to erschien zuerst auf ℄ Real Estates.

Costs for the realtor: New regulation in the BGB

As just described, the realtor commission in Germany is not clearly regulated. In recent decades, it has become common practice that the buyer bears the commission of the realtor when buying real estate. This meant that 100% of the costs were passed on to the buyer.

The new law, effective December 23, 2020, now decides that the seller must bear at least half of the realtor’s commission.

Private purchase, non-commercial real estate trade

However, the new rule only applies to private purchases. So if you commercially buy a property, you are not subject to this innovation in the BGB. Sections 656c and 656d only apply if the buyer is a consumer. Read more here, including BGB innovations, on the realtor commission: new law (external [German]).

For private real estate buyers, this changes quite a bit; after all, the realtor fee makes up a large part of the buying incidentals. When buying a house but also when buying an apartment and buying land, up to 7.14% will thus be due for the buyer.

Broker’s commission usually at 7.14%

Example calculation: 3,570 euros saved

Already with a property with purchase price of 3,570 euros, you have effectively lowered your incidental costs when buying real estate, with this new law.

• Purchase price: 100,000 euros
• Provision of the realtor: 7.14 %
• Cost of realtor: 7,140 euros

For a condominium at the purchase price of 100,000 euros, you pay so far a whole 7,140 euros realtor commission, out of your pocket.

With the new law, the seller must now pay at least half of these costs, when buying a property privately.

With this, your ancillary purchase costs are reduced directly by a whole 3570 euros.

Der Beitrag Realtor commission for private purchase: New law (Germany) – seller pays 50%+ of the fee erschien zuerst auf ℄ Real Estates.

Taxes when you Buy a Home

Your city, county or state may levy a Transfer Tax, which is a transaction fee for the sale of each property. It is one of the many additional costs accompanying the purchase of real estate. Depending on the location, either the seller or the buyer may be responsible for making this payment. The rate varies depending on the location. In the U.S., this variation takes place across states, across types of real estate, and across county and municipal borders.

“A real estate transfer tax is imposed upon the privilege of transferring title to, or beneficial interest in, real property.” – Civic Federation

Transfer taxes are are controversial, with many supporting it for being an effective method to increase state income with rare and comparatively small amounts. They are criticised for being regressive (i.e. disproportionately affection lower-income households), because they are unpredictable and difficult to understand, among other reasons. The National Association of Realtors has taken an official position against this tax.

Mortgage taxes are one of three taxes when buying real estate. The other two can be found here:

• All Taxes When Buying Real Estate

What is a Transfer Tax?

A transfer tax is a tax which is paid for transferring the title of a property from the seller to the buyer. This falls into the category of ad valorem taxes. Transfer taxes are usually based on the cost of the property when being sold. In other words they are a tax on the sale of the home. Some states describe it as a fee for the work which is necessary to perform the documentation of the new ownership.

Different names for transfer taxes (or very similar taxes) are real estate transfer tax, deed transfer tax, documentary stamp tax (in Florida and Pensylvania), real property conveyance fee (Ohio), real estate conveyance tax (Rhode Island), deed recording fee, and real estate excise tax (Washington State).

Who Pays the Transfer Tax?

In most cases, it is conventional for the seller to pay the transfer tax. Nonetheless, this number often becomes part of the negotiation process. Additionally, because there is no law stating that the seller must pay the tax, this is variable. If the seller is exempt from paying a transfer tax, the buyer is then forced to do this. Sometimes, such as in Washington DC, the tax is split 50/50 between seller and buyer.

What are the Different Tax Structures?

Taxes differ not only in their amount, but also in their structure. One popular tax structure is a straight percentage of the sale price, for example 4,5% in Pensylvania, or 4% in Delaware. These percentages give the amount which the seller or buyer must pay the state. 4,5 % in Another structure is Arizona’s flat fee of $2. Or in New York State, a tax rate of $2 per $500 of a home’s sale price. On top of this though, the so-called mansion tax, of 1% on the selling price when the price is larger than $1 mil. In practice, for example in New York City, the transfer taxes you have to pay can reach 2,6% of the selling price.

While most use a percentage of the selling price, this is not always the case.

How much is the Transfer Tax?

Thankfully, unlike your mortgage interest, you won’t have to pay transfer taxes more than once. Transfer taxes are incredibly difficult to calculate, being influenced by state, county, and city laws, as well as additional structuring. Most homebuyers will leave this for their realtor or another agency to calculate. The lowest transfer tax in the U.S. is in Colorado at 0,01%. Meaning that if you buy a house for $1 mil., either the seller or the buyer would pay $100 to the State of Colorado. Another example is the 4% in Pittsburgh, where a purchase of a 1 million dollar home translates to $40.000.

If you choose to buy a property in Los Angeles, you can examine the California tax rate. This is 0.01%, meaning a $1 mil. house requires $100. Yet this does not take into account municipal and county taxes. Municipal transfer taxes in L.A. are 0.45%, and county transfer tax rates in Los Angeles 0.11%. Effectively, buying a 1 mil. house in Los Angeles means $540 of transfer tax.

In California, a $1 mil house = $100 transfer tax

In Los Angeles, a $1 mil house = $540 transfer tax

When do you not have to pay a Transfer Tax?

You do not have to pay a transfer tax when…

• Transfers to children and grandchildren
• Tansfers based on a lawful divorce
• Transfers to co-tenants after the death of one of the parties
• Transfers of cemetery plots

Are Transfer Taxes High in the U.S.? Country Comparison

Generally, the U.S. does not have a very high transfer tax compared to other countries. One comparison found that, on average in the U.S., the property transfer tax is 0,6% on high-value properties. This is almost nothing compared to Belgium (11,3%) or Germany (5,3%)

• Belgium – 11,3%
• Germany – 5,3%
• United Kingdom – 3,5%
• Canada – 1,8%
• U.S.A. – 0,6%
• New Zealand – 0,0%

What States do not have a Transfer Tax?

Additionally, not all states have transfer taxes. In these states, no forms of transfer taxes exist. Some states though, such as Colorado or Kentucky, do not have state transfer taxes, but local transfer taxes. Finally, other taxes may also exist though, such as a mandatory local transfer tax with local rate options. Below the states that do not have transfer taxes at all.

• Montana
• Utah
• Indiana
• North Dakota
• Alaska
• Missouri
• Mississippi
• Louisiana
• Oregon
• New Mexico
• Wyoming
• Idaho
• Kansas
• Texas

Transfer Taxes

These hidden fees can often come as a shock to homebuyers. Yet they are important to keep in mind. There are many more of such taxes and fees which often go under the radar. Not so secret, and a hassle for many, the ever so complicated property taxes. Check out our article for a breakdown of property taxes, where it is most expensive to own property, and what exactly is taxed in property tax.

These are just some of the ins and outs to know for real estate taxes. To learn how to save more, read

• Real Estate Tax Deductions – Everything to Know

Der Beitrag Real Estate Transfer Tax – Hidden Additional Cost Explained erschien zuerst auf ℄ Real Estates.