Bauexperte
2013-09-19 10:42:22
- #1
Hello,
I think that has less to do with Mecklenburg-Western Pomerania and more with your age. And with all due respect, thinking about buying a house at the age of 22 and 25 is – in my opinion – quite bold, if not risky. Your life is still ahead of you – do you really believe you can make a decision at this early stage that will affect the rest of your life?
You must never, I repeat NEVER rely "only" on the word of the sellers or the appointed agent. He is obliged to his client and not to inform you fully about the condition of the house and its refurbishment/renovation requirements. He will not lie to you 100%, as that would be illegal; but he also will not inform you completely about potential follow-up costs and their consequences.
This is comparable to the advertising of an agent who has optioned a property at the "middle of nowhere." He will not market it by saying: "far from any infrastructure, car required, etc." (which is indeed the case). Instead, he will highlight the “rural life and its advantages.” That is not a lie, but it is also not the whole truth!
I hope for you that this is indeed true. Because if the property is bound to a broker, and the commissioned “gentleman” performs tasks for the seller, at least the sellers become liable for a commission. Usually, sellers pass this on to buyers ... even if only through the agreed sale price.
Why I am actually responding: you are really quite young and – at least it appears to me, as I have been following this thread – solely focused on buying the property under conditions that seem favorable to you. THAT “can” be dangerous for a secure future for various reasons. The seller – the older couple – wants to sell their property, and you are “in love” with this property; you practically have “buy me” written on your forehead. I am not even accusing them of deceit, but what if there are damages to the building fabric that they are not aware of? You won’t see that and therefore cannot determine the refurbishment effort.
For your better understanding: I have been working in the construction industry for 17 years and know just about every pitfall—but even I could not confirm that a property for sale is free of hidden defects. There are people—experts for the evaluation of existing properties—who exclusively do this work; they constantly educate themselves.
One more thing: before the bank approves a loan, it will send one of its employees to inspect the property. If the employee is convinced by the purchase price, he will probably approve financing with a certain loan-to-value ratio. But – and this is the point – he will not tell you how he arrived at the price, that the purchase price is appropriate, nor will you receive a written document supporting his price finding. He is solely responsible to his client, the bank, and those decision-makers usually know what kind of effort a property of “x” age requires – or not.
What this means in plain language: if he approves the purchase price and consequently the bank does as well, you will likely get a loan. But this employee is usually not a qualified expert; what if you buy and then find that there is far more refurbishment effort than you accounted for in your financing? That important and costly elements/technical installations have to be replaced? Then you can try to hold the bank’s employee or even the bank liable and you will stand – in the worst case – before the ruins of an uncertain future.
Find an expert on existing properties via the Association of Independent Experts and inspect the desired property with him “before” you buy the house. The costs are manageable and can be included in the financing; they are even tax deductible. BUT – you are in any case on the safe side and know that you are not buying a “pig in a poke.” And if later it turns out – despite the expert report – that significant defects come to light, you can claim damages from the expert. So very well invested money!
Rhenish regards
So our idea of buying a house didn't just come up overnight. It goes back two years already. Unfortunately, we have no equity because we never managed to save anything due to not-so-good income. (which is clear in Mecklenburg) We are also only 22 and 25.
I think that has less to do with Mecklenburg-Western Pomerania and more with your age. And with all due respect, thinking about buying a house at the age of 22 and 25 is – in my opinion – quite bold, if not risky. Your life is still ahead of you – do you really believe you can make a decision at this early stage that will affect the rest of your life?
... I am first curious to see what the bank will say later; I am still missing the pictures, the house measurements, and the entry from the land register. But the sellers have a gentleman who does everything and will get in touch with me.
You must never, I repeat NEVER rely "only" on the word of the sellers or the appointed agent. He is obliged to his client and not to inform you fully about the condition of the house and its refurbishment/renovation requirements. He will not lie to you 100%, as that would be illegal; but he also will not inform you completely about potential follow-up costs and their consequences.
This is comparable to the advertising of an agent who has optioned a property at the "middle of nowhere." He will not market it by saying: "far from any infrastructure, car required, etc." (which is indeed the case). Instead, he will highlight the “rural life and its advantages.” That is not a lie, but it is also not the whole truth!
We had two viewings with the owners who are selling the property privately without an agent. The owners only commission the gentleman for the paperwork (notary, etc. whatever is required). We pay nothing for him, which you would normally do for an agent (broker’s fee).
I hope for you that this is indeed true. Because if the property is bound to a broker, and the commissioned “gentleman” performs tasks for the seller, at least the sellers become liable for a commission. Usually, sellers pass this on to buyers ... even if only through the agreed sale price.
Why I am actually responding: you are really quite young and – at least it appears to me, as I have been following this thread – solely focused on buying the property under conditions that seem favorable to you. THAT “can” be dangerous for a secure future for various reasons. The seller – the older couple – wants to sell their property, and you are “in love” with this property; you practically have “buy me” written on your forehead. I am not even accusing them of deceit, but what if there are damages to the building fabric that they are not aware of? You won’t see that and therefore cannot determine the refurbishment effort.
For your better understanding: I have been working in the construction industry for 17 years and know just about every pitfall—but even I could not confirm that a property for sale is free of hidden defects. There are people—experts for the evaluation of existing properties—who exclusively do this work; they constantly educate themselves.
One more thing: before the bank approves a loan, it will send one of its employees to inspect the property. If the employee is convinced by the purchase price, he will probably approve financing with a certain loan-to-value ratio. But – and this is the point – he will not tell you how he arrived at the price, that the purchase price is appropriate, nor will you receive a written document supporting his price finding. He is solely responsible to his client, the bank, and those decision-makers usually know what kind of effort a property of “x” age requires – or not.
What this means in plain language: if he approves the purchase price and consequently the bank does as well, you will likely get a loan. But this employee is usually not a qualified expert; what if you buy and then find that there is far more refurbishment effort than you accounted for in your financing? That important and costly elements/technical installations have to be replaced? Then you can try to hold the bank’s employee or even the bank liable and you will stand – in the worst case – before the ruins of an uncertain future.
Find an expert on existing properties via the Association of Independent Experts and inspect the desired property with him “before” you buy the house. The costs are manageable and can be included in the financing; they are even tax deductible. BUT – you are in any case on the safe side and know that you are not buying a “pig in a poke.” And if later it turns out – despite the expert report – that significant defects come to light, you can claim damages from the expert. So very well invested money!
Rhenish regards