After the 1st part of “How to owning a home?” you have determined exactly what type of house you are looking for, you know your budget, you have taken all the information on your local real estate market, you have done effective research and visited the houses that matched your wishes and your budget. In this second part, you will see how to negotiate the price of goods visited, how to make a safe purchase proposal, how to find the best financing and how to settle in peace. Find the rest of this guide on the process of owning a home.
Negotiate the price wisely
During steps 3, 4 and 5, you gathered a lot of information. These will be of great help in deciding what price is right for the selected owning a home. Most sellers add a trading margin when they set their selling price. In addition, many of them overestimate, voluntarily or not, their price and hope to sell well above market prices. The differences between the initial price announced by the seller and the final price that is actually paid can be considerable. For more information, see our article “How much can we negotiate the price of a property? “. The price at which you will buy your home will have a considerable impact on the total cost of your project. In fact, apart from the cost of buying the house, all the other costs of a real estate purchase are related to the price of the house: Notary fees are proportional to the price, Agency fees are generally proportional to the price, The cost of financing increases exponentially in relation to the amount borrowed (interest on loans, insurance, etc.) Thus, a 10% decrease in the price can reduce the total cost of your purchase by more than 20%. Agency fees can be avoided by buying between individuals, but beware of the traps of a purchase from individual to individual.
Make an offer to purchase by taking your precautions
In the case of a purchase at the price of the mandate, you can directly sign a sales agreement. But it does not cost you anything to make a proposal at a price lower than the one requested by the seller. At worst, the seller will refuse. You will then always have the possibility to issue another offer. However, an offer to purchase can engage you. Be sure to include suspense clauses and especially a deadline for validating your proposal. Find all the essential information and a model of house purchase offer. Once an agreement is reached with the owner, you will have to go to a notary to formalize the purchase. This is a mandatory step to register the change of ownership and be subject to payment of different taxes. These are an integral part of the notary fees.
Find the best financing possible
You now know the final price you will have to pay to owning a home. You have a few weeks to get your funding. Use this time advantageously by playing the competition between banks and different lending institutions. The gaps between two loan offers can be very significant. You will be able to choose the best deal based on market conditions by comparing offers from more than 100 banks. Getting a good rate is not everything. There are many other parameters that can drive up the bill (duration of the loan, variable rate, compulsory or optional insurance, warranty costs, etc.). This is what we demonstrate in this article on calculating the cost of a home loan. To insure your loan, you have the right to request a delegation of insurance. This means that you have the option of taking out your borrowing insurance at a different institution than the one that gives you the credit. So compare more than 40 insurance and choose the least expensive identical protection.
Get the keys to your new house and get settled!
That’s it, it’s D-day! You are going to get the definitive deed of sale and especially the keys of your future home. Know that there is a period of about 3 months between the signing of a sales agreement at the notary and the final obtaining of the property. You will be able to arrange it to your taste and move into your new home. Allow extra time to do any work. It is much easier and faster to do it in an empty house than once installed. In addition, it is unfortunately not uncommon to have bad surprises when installing in housing. Take the time to inspect everything and react quickly if hidden defects are discovered. You only have a few months to ask the seller for compensation.