Process of buying a home

What can you expect from the process of buying a property? What is the order and what can you expect from the broker? We are happy to give you a clear overview of the entire process and the expectations.

Step 1: Financial inventory

Before you can start looking for a home, it is wise to know what your financial options are. How much can you borrow and what are the monthly costs? You can easily calculate this online, but you can also make an appointment with a mortgage adviser.

With current regulations it is possible to finance up to 100% of the value of your new home. You must finance all other additional costs yourself. Therefore, calculate how much of your own money you need. 

Examples of additional costs/buyer costs:  

·       Draw up a valuation report

·       Construction report

·       21% transfer tax

·       Notary / optional translation costs

·       Mortgage costs & consultancy costs

·       Bank guarantee

·       Deposit National Mortgage Guarantee

·       Brokerage commission

Currently the market is very high. For example, there are often outbids. It is important to know what your financial situation looks like, because banks only finance 100% of the value of the property. This value will be based on the final valuation report drawn up by an appraiser after purchase.

Step 2: Searching

As soon as you know how much you can spend on a home and you have listed your housing requirements, the search can begin. There are several ways to find your home for sale. Based on our expertise, we will look for homes that suit your needs.

We do this of course by searching for affiliated websites with offerings from the region. But we also keep in contact with our own connections and other brokerage firms in case they have an offer that is not yet on the market.

Step 3: Viewing a home

Have you found a home that appeals to you? Then it is time for the viewing. This way you find out whether the home really meets your needs. The purchase broker can take a lot of work - and tension - off your hands.

Because the brokers are experts in their work, they can take a critical look at, for example, defects or extra negative or positive points regard to the property.

Checklist for the viewing

When viewing a property, there are many things you should pay attention to. Of course, it is important that the house feels good, but it is especially important that you do not have any surprises later on. Therefore, we would like to point out the following points:

1. The location and the neighborhood

The location and neighborhood are important aspects of the property. It largely determines the value of the house, but to a certain extent also whether you feel at home in that place. Do you feel safe around? Is there enough parking space? Does the neighborhood have the desired facilities such as public transport or schools? And what are the neighbors like? Feel free to walk through the neighborhood to explore the neighborhood.

2. Exterior of the house

Many people invest in the interior of their property but do less with the exterior of their home. That is why it is extra important to consider this. Consider, for example, the following aspects: Is the roof still in good condition? What material are the frames made of? Is the paint job due for replacement? What is the sun position? Don't forget to bring the garden or terrace with you.

The above examples of point nr. 2 could also be a good reason to hire someone to make a construction report.

3. Inside of the house

Take a critical look at the inside of the home: What is the layout of the home? Is the kitchen still in good condition? Is the bathroom properly? In what condition are the ceilings and walls? Do the doors and windows open and close easily? Look with an open mind, but don't be distracted by the current furniture or the color on the wall.

4. Installations

The installations are also a point of attention. What installations and equipment are present in the home? Are there enough sockets and groups in the meter cupboard? How is the home heated and what are the last stones of the current occupant? If necessary, ask all questions you want at the selling broker.

5. Durability

Sustainability is increasingly important. Therefore, let us also focus on the sustainability aspects of the home. Are the walls and roof insulated? Is the double-glazing still profitable? Does the house already generate green energy, for example via solar panels or does it have a heat pump?

Do not forget to ask for the energy rating of the home. All homes in the Netherlands have an energy label. This energy label provides information about the energy performance of a home. The labels run from A to G.

At the time of sale, the seller is obliged to provide the official energy label

  Ask for help

As you can see, there are many points that you should pay attention to during a viewing. Things you may not know about yourself. The purchase broker takes a look at the maintenance of the home and knows how to ask the right questions. They can recommend an additional building survey is required.

Step 4: extra research

1.     Obligation to investigate

As a buyer you have a duty to investigate. This means that you as a buyer are expected to investigate the condition of the home. Visible defects that you could have discovered during the viewing cannot later be designated as hidden defects. These are for your own account. Because ‘you bought the property in the current state’.

The purchase broker provides support in fulfilling the obligation to investigate. She/he looks at the house with a neutral look and asks critical questions. She/he knows the potential risks of a home and knows what to look out for.

2.     The seller has a duty of disclosure

The seller has a duty of disclosure, also known as the duty, to provide information. This notification obligation obliges the seller to provide all information that may be important to you as a buyer. For example, he is obliged to let you know whether the property has defects and what they are. Keep in mind that a seller is not always aware of hidden defects.

3.     Architectural inspection

In some cases, it is wise to have a building inspection carried out. A building inspection is an independent inspection by a building inspector. The structural inspection makes it clear which defects a home has and how much maintenance is required in the short and long term. The construction inspector records these defects in an architectural report, along with the costs required to restore the house.

Think, for example, of a bad foundation, facades that need a thorough overhaul, leakage in the roof or vermin in the house. In all cases, (costly) repair or maintenance is required. An architectural report gives you as a buyer more certainty about the structural condition of the house. This can come in handy when negotiating the price of the home. In addition, you can have the result of the construction report included in the purchase agreement as a resolutive condition. The purchase broker will advise you whether a structural inspection is required.

4.     Buying an apartment: Owners Association (VvE)

When you buy an apartment, you will have to deal with an Owners' Association (VvE). A solution for all apartment owners and is responsible for the maintenance of the building. With the purchase of an apartment you automatically become a member of the VvE and therefore jointly responsible. It is therefore important to know how the VvE is doing.

Step 5: Negotiating

1.     The negotiation strategy

Negotiation depends entirely on the situation. Not only the market, but also the seller's situation. For example, has the seller already bought a new home himself? Then there is probably more room for negotiations.

The purchase broker helps determine the best negotiation strategy and advises on a realistic price. As an appraiser, he has experience in determining the right price and has access to the database in which he can see the market value of comparable homes.

When you buy a home and you negotiate with the seller, you don't just do that about the price. You also negotiate the delivery date, the movable property and the resolutive conditions.

2.     Inventory 

The seller draws up a list of items. It states which items the seller will take with him, leave behind and which can be taken over. You can still negotiate about this and express your preference. Eventually if the list of things is as you have agreed, it can be signed.

3.     Dissolving conditions

When you make a bid, you may not yet know whether you can arrange the financing, or you have insufficient insight into the technical condition of the house. With resolutive conditions you avoid being stuck with the purchase of the home. These are the most common resolutive conditions:

·       Moving in date

·       Finance

·       Construction report

4.     Make an offer

After determining the strategy, the offer and the (resolutive) conditions, you place an offer with the selling party. This can be done in various ways. You can submit the proposal in writing, by email, by telephone or in some cases via the website of the selling broker. Is negotiating not your strength? Then it is wise to outsource this process. The purchase broker knows the rules of the game and confidently starts the negotiations on your behalf.

We have to wait and see after the opening offer has been made. You are only officially negotiating if the seller makes a counteroffer, or if the seller explicitly states that you are negotiating. Keep in mind that multiple negotiations can be ongoing. So even if you are already negotiating, someone else can make an offer. The selling broker will notify you if several negotiations are ongoing.

The seller is not obliged to sell his home to you if you have bid the asking price. The seller may decide to increase or decrease the asking price. Sometimes there are so many interested parties who offer or approach the asking price that it is difficult to determine who is the best buyer. At that moment, the seller - in consultation with his broker - can decide to change the bidding procedure to, for example, a registration. When registering, all bidders have an equal chance to make a bid. Obviously, the seller must first fulfill any promises or agreements previously made before changing the procedure.

Step 6: Signing the purchase agreement

If the buyer and seller agree on the price, delivery date, resolutive conditions and any agreements on movable property, there is agreement. The law stipulates that the purchase of an immovable property must be recorded in writing. As soon as the parties have reached an oral agreement about the sale, the parties are not yet bound, the verbal agreement is not binding. This written requirement does not apply to the sale of all real estate. It only applies to the sale of residential properties to private buyers. The selling broker records the agreements made in the purchase agreement.

You go through the purchase agreement, together with your purchase broker to see whether all data is correct and to provide explanations where necessary. As a buyer, you know exactly what you are signing for with the help of your purchase broker.

1.     Reflection period of 3 days by law.

The purchase is concluded when both parties have signed the purchase agreement. You have a statutory reflection period of three days, which you can still cancel the purchase without giving any reason. The reflection period of three days starts as soon as a copy of the signed purchase agreement has been handed over to the buyer. After this time, the purchase is final, unless resolutive conditions apply.

Step 7: Financing

1.     Take out a mortgage

If the offer has been accepted, it is time to arrange the financing. Expect it to take about 4 to 8 weeks to process a mortgage application.

2.     Appraise

The mortgage lender wants to know what the home is worth, because they are only allowed to finance the 100%. That is why, in most cases, a valuation report from a certified appraiser is required to finance a property. Your buying and selling broker should not prepare this report because they are involved in the negotiation process. They can of course help you find a certified appraiser.

3.     National Mortgage Guarantee

Many people take out a mortgage with a National Mortgage Guarantee (NHG). An NHG limits the financial risks of an owner-occupied home, for the owner and the bank. Because the lender runs less risk due to an NHG, the interest is often slightly lower than with a loan without a NHG, but you do pay a one-off amount to use it (between €1K and €2K). The purchase price of the house must then be below the NHG limit. Which is currently (in 2020) €300K.

Step 7: The transfer

 Only when the mortgage has been arranged, the reflection period has expired and any additional resolutive conditions do not apply, the purchase is final. Now the transfer can take place.

A few days before the agreed delivery date, you will receive a draft deed of delivery and a bill of settlement from the notary. Please check carefully that all information is correct. The purchase broker will help you with this as well.

Just before the transfer, you inspect the house, together with purchase broker, to see whether it is still in the agreed condition and to teak the meter readings. After that, you go to sign the final contract at the notary and receive the keys. The house is now in your name and is registered by the notary at the Land Registry!