Things to Check Before Buying a House

Things to Check Before Buying a House

As a foreigner it might be scary to buy an apartment worth hundreds of thousands of euros or dollars and especially when you do not speak the language. In this article we will go through the general vocabulary you need and the things you need to check while buying an apartment.

Often people have questions like; “What things to know before buying a house?” or “What things to check in a house before buying it?” Well don’t worry, this article will give you a complete overview which will help you in making a buy decision.

So, this article will answer following questions you might have

• “What you need to look in the area you are buying the property in?”,
• “What to check in the property building from outside as well as inside?” ,
• “What to check in the house itself?”
• “How much it costs to renovate something in the apartment and will also give you information around reliable resources that you can use to get an estimate.”
• On top of it, “what are the deal breakers?”
• And finally “what things you can ignore while buying your first house?”

Well, if this sounds interesting then you must read this article till the end. You can also watch this video, if you are feeling lazy to read. ;) So, lets begin the journey to master your first apartment journey to become a better investor and see things you need to check before buying a residential property.

If you have already visited few apartments you must be knowing that Real-estate market in Germany is currently very hot. You won’t get much time between deciding and giving an offer to the seller. Therefore you need to make a decision quickly. To do that you need to know exactly what you are looking for.

So, lets start with things you need to look in an apartment. Please Note; I am referring here an apartment and not an independent house. 90% of the things we will discuss here applies to a house also, however you need to check even more stuff before you buy a house, which I am not convering in this article.

Local Area

First check the area where you are planning to buy the apartment. As your parents or friends would have told you,

• look for bus or trains stations
• grocery shops
• hospitals
• schools
• parking,etc.

Well important is that you do not give equal preference to all of them. Depending on the goal of your investment and who will live in that apartment, the weight on each will vary. For example, if goal is to rent the apartment to a young professional or student then I don’t care whehter there is a school near by or not. For me then having a public transport and grocery shop nearby would be of utmost importance.

And only looking for the amenities nearby is not enough, you should also look for these 3 things

• People from which cultural group lives there
• which age group’s density is higher
• people of which income group lives in that region

You could know these by simple observations. For example, Go to the local market and explore it. Pay attention to the people who are in the market. They are the ones who are living in that region. Look for, Which type of shops are more in the area? Are there more bars or more stationary/gift shops or there are more family restaurants? More bars will mean, higher younger people are living in the region where as more stationary/gift shops together with family restaurants means, so its a family friendly part of the city.

Also, check what type of restaurants are more in the neighborhood, is it German, Italian, Greek, etc. It will give you an idea of cultural groups living in that region. You can do it in 5 mins by using google maps and searching restaurants closeby. All this research together will give you an idea
about people of which cultural group are living in the region. It also tells you, people of which age group are higher in that area. Overall it will give you a feel of that regions and whether you are comfortable with it or not.

To know about which income group people are living in the area, look at the cars parked in the neighborhood. It directly relates to how much the property might grow in future and how much rent I can get. If new and mid to high end cars are parked in the neighborhood, means people living in the area falls in higher income group and can afford to pay higher rents. I have noticed the infrastructure like parks, surrounding buildings in such areas are better maintained as compared to areas with parked old cars. Well, this is my personal observation, I would love to know what was your experience. Have you also noticed the same or was it different?

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Finally, its important for me that the neighboring buildings are also well maintained. As if they look ugly, it will bring the value of my property down. The building walls should look clean without any black or brown patches. the garden if any should be maintained.

Well, this wraps up what one should look for in an area.

Outside of the building apartment

Now lets check outside of the apartment building. So from outside of the building, inspect the following:

• Roof- Check if the roof of your apartment building is recently changed. How old it is & how it looks? Visually, usually its pretty clear which roof is newer. However if you are in doubt, just compare the roof of your building with the neighboring buildings or simply ask the seller. Changing the roof is expensive and if you think the building’s roof is old and will be changed in the coming years, adjust your purchase price accordingly.
• Building walls- Are they recently painted?, Are there any cracks? Does the building looks maintained or old? Best way is to compare it with buildings in the neighborhood, if the building is not maintained you need to find out why? Does other owners do not care? Is it planned for this or coming years? Is there enough money in the building’s cash reserve to finance the expenses? Accordingly adjust the asked price or reject the apartment all together. You don’t want to buy an apartment in a building, where other owners does not look after the building’s upkeep
• Building entrance- Look, how the post boxes looks and check the names on the post box to know who are living in the building, From names you can also tell people of which nationality or culture lives there, (For many people its important to know who lives next door). Depending on the number of names on a single post box, you can tell whether a family lives in that apartment or its a shared residence or WG.
  If there is only one name, probability that a family is living there is higher, however, if there are many names on single post box, its definitely is a WG. If you want to convert your apartment in a WG, you should prefer,
  that there are no or less families living in the building, in order to avoid future complains from neighbors. Similarly if you prefer peace, look for a building where families live.
• Notice board- Look over if there is anything unsual posted on the notice board
• Garden- Check whether it is maintained or not and who maintains it. Is it maintained by Haus union or by the owners? This information you can get from hausverwaltnug protokol (house unioin minutes of meeting) or you can ask the seller about the same. So that you are assured that someone maitains the garden, otherwise transformation from a beautiful to ugly garden does not takes much time.
• Building’s Parking space- check if the parking is outside, whether the spot is maintained or not. To do that look at the Floor, it should have no cracks or unwanted plants growing, then check the paint used to mark the parking, it should not be eroded and should look good. However, if you have an inside parking, just look that there are no signs of dampness and the lighting is proper. If the parking is multilevel using steel platforms. Check the platform and make sure its not rusting. If it is rusted, then you may have to change it, which may cost you couple of thousands, so add it to your buying cost.

Well these are some things I look from outside of the building, Lets check inside of the building. Please note, Stay away from buildings or apartments which have any sign of dampness. Fixing Dampness or leakage is very expensive. Usually its covered in the insurance, however you cannot know by looking from outside how bad is the situation. So stay away!!

Inside of the building apartment

Next is what to check inside the building? Having said that, here is the list:

• Basement (Keller)- As mentioned before make sure it has no signs of leakage or dampness. Basement should also be well ventilated, there should no funny smell and fungus (or schimmel), if these points doesn’t check right, look for another apartment.
• Roof of your apartment building from inside (if possible)- Some apartments have a storage room or space to dry clothes at the top floor, directly under the roof, make sure to visit it and check how the roof of the building looks from the inside, again you need to check the same thing, no dampness or leakage, if roof is old and need to be changed as explained earlier, its expensive and buy price needs to be adjusted accordingly.
• Stairs- Use building stairs to make sure they are clean and maintained and check who cleans it regularly. Do you have to clean it or
  house union has given a contract to a cleaning company to do the task. You can ask the seller or broker for the same. Its important because some people, don’t want to clean the common areas of the building once every month or two. So make the buying decision accordingly.
• Lift/Elevator (Aufzug), if the building have one- Ask the seller, how old it is, use the elevator to check for any weird noises or vibrations. Old elevators might look and feel scary, however nothing to be concerned about. Just keep in mind if it needs to be changed, then a portion of that money will come out of your pocket. But they are not changed every other year.
• Heating: If the building have central heating, then check the boiler room. You can’t see much there, but it will give you an idea, whether it is well maintained or not. Trust me you will know when you will look at it. In Germany, house union have legal obligation to maintain it and change it if required, so you do not have to worry about it. Ask the seller or check expose to find out whether it is a gas boiler or oil boiler. Modern houses have gas, however there are still many houses with oil boilers. If its an oil boiler and is old, probability that it will be changed soon is higher which means add that cost in your purchase price.
• Balcony- who dont like to hangout on a balcony during summers? So if your apartment have one, check it from inside as well as outside, Does it looks in a good condition or requires renovation. If it needs renovation, can you renovate it or not, usually balconies are part of the house union and you only have the right to use them. So maintainence of balcony is the responsibility of house union. I personally like it, as this makes sure that whole building looks alike and also one less thing to worry about. You can also ask the seller whether Hausverwaltung (House Union) is planning to renovate the balconies in the near futrure or not, this information you can also find in the house union meeting minutes (Hausverwaltung Protokol). If renovation is planned, add the cost in your buying process
• Neighbors- At last, check your to be neighbors. Check how they have decorated the front of their apartment. Does it look like neighbors love their house and maintain it and try to make it beautiful and welcoming. If they do, it means they will actively participate in building’s renovations and upkeep. If possible, try to talk to them. They can tell you a lot about the neighborhood.
  As a foreigner and an introvert like me, chances of talking to a neighbor are zero. However, if you get lucky and someone talks to you then you can clarify your concerns.
  Here are some questions that you can ask:
  - How is it living in this neighborhood
  - Is it their own apartment or they are living on rent
  - Is it a quite neighborhood
  - Are there any complains
  - Do people fight on something during house union meeting

Well this ends what to check inside the building.

Apartment Inspection

Now, lets inspect the apartment itself. Once you enter the apartment, check the following:

• Door: do they look alright or you think they need to be changed. Well, doors are not so expensive, you can find a decent door within 100 bucks so don’t worry that much about it much. the thing is..
• Floor, Walls and Ceiling: Check the floor, walls and ceiling of the apartment. Again make sure that they are dry and have no signs of dampness. If the floor is carpeted, ask the seller when it was last washed.
  If its not washed recently or looks dirty, just get it washed before you move in or rent it out.
  Renovation Cost: Washing the carpet of the whole apartment will cost you from couple of 100 to a thousand or 2 based on how big your apartment is. Changing a floor and painting the apartment is not expensive either and will cost you around 2000euros for a 50sqm apartment. Offcourse, the price varies based on the material you used and how big your apartment is. Its just to give you an idea.
  There are many websites like obi, hammer-zuhause, etc. where you can see, how much a material will cost. Always add 10% — 20% in your orginial estimate as most of the times renovation costs more than what you have estimated
• Heating system: Some buildings are not centerally heated, however each apartment has its own heater or boiler. If thats the case, then check the boiler of your apartment and see how old it is. You can ask the seller about it and even ask for the purchase reciepts if its not so old.
  Having a common boiler for the whole biulding or one boiler per apartment doesnt really matters to me. I would say, if you have your own boiler, then you have the freedom to upgrade it and get more energy efficient boiler, which you cannot do if its a common boiler for the whole building.
  There are also apartments which have separate boilers for heating the apartment and to get warm water. In that case, simply check both boilers.
• Windows: Look at the frame of the window. Is it plastic frame or wooden.
  Plastic frame has less maintainence than wooden, but it really doesnt matter. Check whether the window is double insulated glass or not. Double insulated glass windows are more energy efficient. You can ask the seller, when the windows were changed or you can tell by looking at them.
  Check whether you can change the windows of your apartment yourself
  or you need permission from house union. Usually you can, you only have to make sure that the ouside of the building looks same. So, if the whole building have wooden window frame, you cannot change your window frame to be plastic or some other material.
  Renovation Cost: Single 1 by 1 meter window costs approximately 100 bucks and add another 80 bucks for labor to install it. So, if it comes to replacing the windows of the apartment, add it to your buying cost.
  myhammer.de is a very good website where you can find the renovation estimates. So if you are in doubt of how much a particular renovation will cost me, just check this website and you will have an idea.
• Apartment radiators or heizkörper: Check how old they are. Make sure there are no signs of leakage next to the pipes bringing hot water and taking cold water. See if the thermostat is working.
  Renovation Cost: Cost to get a new radiator with theromostat is around 70 to 80 bucks. You can also check it online on obi or hornbach
• Electricals of the apartment: Look at the switches in the apartment. Are they burnt; usually not. However if they are, ask the seller what happened. How many sockets are their in the apartment. This is very important and most of us ignore it. In todays world where you have so many devices to plug in, it is important that you have atleast 4 to 5 sockets in one room. If you do not have enough sockets, people will use power strips and put a lot of load on a single socket and wire, which may lead to heating of the wire and ultimately fire. If the apartment does not have enough sockets, add the cost of the electrician to add more.
  Similarly check whether there is a separate switch for high voltage appliances like boiler, stove, dishwasher, refrigirator, oven, washing machine and dryer. Usually every apartment have separate dedicated heavy duty wiring for each of these aplliances. However sometimes its possible that you do not have for all of them. It is not a deal breaker but something you should know before you buy. You can easily check it by looking at the main switch board panel of the apartment. If you do not see a spearate main switch for any of the appliance, then add the cost to get it installed.
  Lastly ask the seller How old is the wiring of the apartmetn and the building. Life of a pvc wire is in between 50 to 70 years. So if its older than that, then rewiring needs to be taken into consideration. You can only change the electricals inside of your apartment. Maintainence of electricals of the building is under house union. So keep this in mind.
  Renovation Cost: Getting new electrical wiring is expensive and can cost around 10k for a small apartment of 55 sqm in Stuttgart region.
• Bathroom: Make sure there are no signs of dampness or leakage.
  I know, i may sound like a broken record, but dampness is the only
  red alert. Everything else you can manage. Changing the floor, painting walls, replacing windows; they are all fine. But dampness leads to fungus and it can go really deep in to places, that you cannot see by naked eyes
  and to fix it may take several days to months and may cost you a lot. We are here to buy a dream house not a haunted house. So just stay away from it.
  If you do not like the toilet or bathroom or WC, go to myhammer.de and get an estimate of how much it will cost to renovate it. Make sure to check the taps for cold and hot water in the toilet and kitchen. In case no one is living in the apartment, ask the seller to switch on the heaters to make sure they work.
  It happened to me, when i visited an apartment to rent it. The boiler was broken and I didnt check it. So when I moved in during winter. No heating was there and it took a week to get it fixed. So don’t make that mistake.

Cheat Sheet

Here is a cheat sheet of what to check in the apartment

• Windows
  — Is there aluminum or wooden frame?
  — Is there double insulated glass or not (for energy efficiency)?
  — Can you change the windows yourself or you need permission from “hausVerwaltung” or “House Maintainence company”?
• Floor
  — Is it laminated? If so, is it real wood (paket) or normal venyl floor?
  — Is it carpeted?
• Walls and roof of your apartment
  — Are the walls clean?
  — Is there any dampness?
  — Is wall paper coming off?
• Heater/Boiler (Heizung)
  — Is it centrally heated?
  — How old is the boiler?
  — How old are the heat radiators?
  — Check the pipes coming next to the heat radiators for any sign of leakage.
  — When the radiators have been changed?
  — Is the boiler for heating the apartment and heating water are same or different?
• Electrical’s
  — How old is electric meter?
  — Switches in the apartment:
  ~ Are they burnt (usually not)
  ~ How many sockets are there in the apartment (important in todays world where you have so many devices to charge)
  — Main switch box:
  ~ How does it look?
  ~ Is there a separate switch for boiler, stove, dishwasher, refrigirator, oven, washing machine and dryer. Usually, every apartment have separate dedicated heavy duty wiring for each of these aplliances. Sometimes its possible that you do not have for all of them. It is not a deal breaker but something you should know before you buy and rent the apartment or use it for your own.
  — How old is the wiring?
• Bathroom
  — Is there any dampness or leakage
  — Do you like it or you would like it to get renovated?
  — How old the WC and bath tub looks?

Conclusion

At the end of the day, you have to add all these projected costs and see whether the total price you are paying to buy the apartment is a good deal or not. If you think it is, then go ahead and buy it, however if you think its more than the average market price, then look for another apartment. Its that simple and do not over think it.

People will tell you dont buy a very old apartment, you do not know what might need renovation or don’t go with a project that is under construction, you do not know whether they will finish it on time or not. Of course you do not know everything. When you invest in something you are taking a risk and you just try to minimise it by taking an informed descision.

However still something can go wrong, but its ok, you are a human being and its fine to make mistakes. So do not let anyone stop you from buying an apartment, because they never owned one themselves. Do your own research, go out in the market, visit several apartments and then decide for yourself. Its not so complicated. It just need your time and effort. If you have any kind of doubt, you can always reach me out or comment in any of my article or videos. I will try to reply as soon as i can. But go out and explore.

Well these are the things I check in an apartment before buying. What things you check when you visit an apartment? What were your experiences? Do share them in the comments, it will definitely help me and others when we visit our next apartment.

One last thing thats left now is the apartment’s documents. I will cover that in my next article, so stay tuned to master investment where we seek to be better investor than before.