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Helpful tips for buying houses
A big or small house? Cash or credit? When looking for a house there are always doubts, so it is convenient to have a small guide of recommendations andtips for buying houses and not get lost, both in understanding the procedures and the steps that we must follow.
Buy a house It is the dream of many and can represent the investment of the savings obtained based on a lot of work, so before signing the contract and making the deposit, various factors must be taken into account to avoid unnecessary expenses in the future, it is not the It is the same to buy some houses for sale in Barcelona, than to buy some in Madrid or in a small town. So let's see the recommendations for buying a home.
What are the steps to buy a house
In a generalized way, we should follow a series of steps or procedures to be able to buy a home consistently.
In the following infographic we list step by step what should be the procedures to acquire a home or the evolution until the property is in our hands. They are common points in the sale of properties before buying a house:
The image represents a reminder and various tips for buying a houseAlthough some points can be combined, together all situations must be considered.
They are milestones and Questions to ask before buying an apartment. Now let's go step by step to see how to buy a home:
How much can I pay to buy a home
The first thing we should know is how much money we can spend to buy a house. Although apparently this may be an obvious issue looking at our economic situation, there are two rules that we must follow to be calm throughout future years, be proactive and make calculations based on different possibilities:
- The debt capacity: It is the fee that we can pay every month, which will be calculated based on the monthly net income (It is the base salary, excluding allowances, commissions or supplements). Banks and real estate companies, who know a lot about the subject, recommend not to exceed 35% of the base salary.
The debt capacity must not exceed 35% of the base salary
- The loan amount: Banks usually grant between 70 and 80% of the appraised value of the home. In some cases, this fee may be higher if, for example, we have guarantors, we contribute a large sum of money at the beginning of the sale or we have a fixed contract. This is an aspect that should be discussed personally with the bank in the case of requesting a mortgage loan.
These two factors combined are the ones that will determine - to a greater extent - the amount of money we can afford to buy our property.
What are the expenses to buy a house
The following graph we can test a general scheme of the expenses in the sale of a flat. To have an exact certainty - expenses can vary according to autonomous communities (Spain) - we must always ask the bank, the real estate agency or the Notary's Office and they provide us with a small list where they are reflected:
Three will be the key points where the money will go:
- Mortgage Expenses: Commission opening, appraisal, notary, insurance … etc.
- Purchase and sale expenses: For new or used housing (Second hand) where we will see the Tax of documented legal acts or patrimonial transfers, VAT… .etc.
- Common expenses: Notary, registry, agency … etc.
Actually, it is searching the Internet for example «home purchase expenses simulator»Or» calculate home purchase expenses»So that we can find a calculator of the fees that we will have to pay. Remember that you must differentiate between new and second-hand housing, types of housing (Chalet, Flat … etc), first or second residence, and by Autonomous Communities.
Payment methods when buying a flat
The payment method is one of the first questions to consider, as it will be the first selection filter. The two most used forms of payment are:
- Payment or deposit in a single exhibition. Perhaps the most preferred form of payment, but the question of … Can you pay for a house in cash? Of course! The benefits it presents is the immediacy with which the property is obtained in its entirety, avoiding making payments for long periods of time and generating interest for the delay in said payments.
- Bank credit. It is one of the most common ways to buy a home. The benefits of this purchasing system is that a certain number of payments is established for a certain time, adequate insurance can be negotiated at the time of purchase and the exact payment amount is established.
How to calculate the price of a house
Although on the Internet we have access to a lot of simulators that tell us How to calculate the price of an apartment, chalet, town house, premises … etc. We are going to be a little more serious about it. real-estate market, the value of a house is officially determined by a document called Appraisal, but we are going to extract two values to get an idea.
So let's see the real estate value of a property, that is, the price of a house Through an appraisal in a quick and easy-to-obtain format:
1.- By average sale value of the apartment m2 by Provinces
The official appraisals They are carried out by entities accredited by the Bank of Spain, these entities issue quarterly reports of the value per square meter of a property by zones.
We will go to see the statistics to see how much the property that we want to acquire really costs and have one estimation of the value of the price of a house for which the property should be sold:
The previous graph (They can be consulted from HERE, and they are quarterly with the name of "Tinsa IMIE Local Markets") indicates the average price per M2 built by Provinces. So to determine what is the sale price of a home, the estimate would be:
The sale price of a home by Province = (Average price per M2 built x Surface built with common areas of our home)
The document also delves into important cities and their price evolution What Madrid, Barcelona, Valencia, Seville… etc.
It is important to know the home prices by neighborhoods in large citiesAs we can see in the previous image, it is not the same to buy in Nou Barris as it is to buy flats for sale in Sarriá, large cities such as Barcelona or Madrid, there is a significant disparity between the relationship of areas - sales prices.
From the report we can also extract an interesting piece of information, how long does it take to sell a house by provinces. This can help us in the negotiation of the purchase of the house if we see that it is exposed for a long time for sale:
Of interest, see article on how to sell a house faster with Home Staging. There are 33 very good techniques!
2.- By average sale value apartment m2 neighborhood
We can't explain the home appraisal process from the technical perspective, but if we can apply what is called the «comparison method»What is part of the report itself. So we will know how much is a flat worth in the neighborhood where we want to acquire the property.
It consists roughly of collect 6 properties for sale in the neighborhood where we want to buy the house with similar characteristics. And from them we extract the average value per m2 built (Euros / m2 built), that is:
Obviously, the calculations of an appraisal are influenced by other factors (State of the house, height, age of the building, etc.), but for the approximate calculation of the sale of an apartment With the previous graph we will have a fairly approximate value.
What are the keys to buying a home
Once the visit is carried out together with the real estate agent and a series of data has been collected (State of the home, needs renovations, check facilities, carpentry … etc), you can have a slight idea of what it would mean to acquire the home in question.
However, in this guide to buying a house It should not be forgotten that not all the data obtained from the visit are objective and valid for making a decision. So let's go over the highlights of how to buy a house without wasting time:
The environmental investigation process
The neighborhood investigation comes firstIn it, factors such as the type of life lived in the area, possible negative effects that were not seen with the naked eye during the visit, such as annoying noise, construction work, pollution, crime or other problems are known.
This information is easy to obtain, just by asking the residents of the area a little you can know what is happening in the neighborhood.
For example; if we have hospitals nearby, shops and supermarkets, schools, metro stops … etc. Important, have good services nearby! … this can determine what house to buy or not.
Community research is the one that has to be carried out in the same neighborhood community, from this information is obtained about whether it has problems with the builders, the City Council, or simply if a significant spill has been made to correct any reform of the building, since once the house is acquired, this debt is contracted by the buyer.
Remember, that the neighbors, students, students or the apartments of tourist rentals, sometimes, because they bring a lot of noise.
What are the necessary documents to buy a home
There are a number of necessary documents at the time of sign a house sale. Actually, these documents will provide us with legal security and detailed information about the property; from the Deed, the Cadastral certificate, the energy efficiency certificate, habitability certificate, simple registry note … etc.
Although both the notary, the real estate agency or the bank will inform us of the necessary documentation, the following image is a reminder of the relevant documents:
Review all the details of the farm
The documentary information, perhaps the most important, details such as the charges that the farm has registered, debts that weigh or tax it and are registered in the property registration, community debts, urban contribution or possible urban procedures of expropriation or reparcelling that could affect the farm.
Basic information on cadastre and simple note
The information obtained from planning is buildability, occupation, land use, official and private alignments as well as buildable funds and building density. In short, useful data that any home within the area or unit of execution must necessarily comply with.
Remember that if we proceed to build a house, seeing the urban planning is very important to remove future headaches.
The simple note It is perhaps the most important document of the house, it is the "DNI" of the farm, it details the owners and their participation coefficient in it and the title of real right they have over the farm, understood as bare ownership, community property, life usufruct , loads, etc.
In addition, you can obtain information as valuable as the use and qualification of the land, meters of construction and charges that tax the property, such as mortgages, liens and others..
The simple note must be paid and it is requested in the property registry of the municipality to which the dwelling in question belongs and usually takes from one to six days as a general rule.
How can I know if the house does not have a charge?
There are a series of documents that we need to guarantee that the home is purchased without financial burdens, and they are:
- Community certificate
- Urban contribution receipt
- Simple note updated
The community certificate It is the one that guarantees that the property is up to date with the payments and it will not be sold with that charge. This is requested from the community administrator and, failing that, the president.
The last urban contribution receipt must be satisfied by the seller before transferring the home, and a copy can be obtained from the municipal treasury.
Finally, it is It is also important to get a simple copy of the deed of the houseThis way we will know which was the last deed value and the meters of the house in deed to compare them with the simple note.
What is the procedure when signing the property deed?
This will be the day in which we definitively formalize the sale of the property before a notary. Apart from providing all the documents that we have previously reviewed, we would like to provide an outline of the agents present at the signing of a sale and what are its functions:
Housing is an important investment, therefore, care must be taken so that this investment is well made and constitutes a contribution to the family patrimony and not an unsuccessful expense, which can only be achieved by analyzing every detail of the purchase of conscious way.
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