Welcome to the exciting world of home buying! Buying your first property is a big step and an exciting venture, but it can also be full of challenges. ere are some important aspects to keep in mind to ensure a smooth and secure home buying process.

Setting a budget

Define your budget before you start your home search. Before you decide on your budget, decide on your budget. This includes not only property prices, but also additional costs such as notary fees, insurance, repairs and furnishing. Clearly defining your budget will help you focus on realistic choices. Most people buy a home through a bank, so to save yourself and the seller time, work out your maximum borrowing capacity (control here) and confirm this with your lender. This will also help you get a deal done faster if you find a good deal. Real estate agents also usually have partnerships with banks, which can help you save on response time and contract fees.

Location matters

Location plays an important role. The importance of the location matters. onsider transport options, proximity to schools and nurseries, security and nearby services and shopping centres. Think about how it fits in with your daily lifestyle. If you’re interested in a particular area, contact a local estate agent. This way you may be able to find some non-public offers. For example, I specialise in 2-3 bedroom apartments in Tallinn city centre and I share this information on my email list.

Financing options

Find out about different financing options, including types of loans and interest rates. Consult a financial adviser to find the best solution for you. Find out the different types of finance available to help you find the best deal. Think long term!

Property type

Consider what type of property would suit your needs. What type of property would suit your needs? Do you prefer a flat or a townhouse? How many bedrooms and bathrooms do you need? How big do you need a yard? These questions will help you narrow down the choice and find the right home.

Technical check

Make a technical inspection before you buy. Before you buy, check the condition of the house’s electrical system, plumbing, roof and heating system. This will help avoid unexpected repair costs and ensure that the new home meets the required standards. A good tip is to use specialist contractors who will do the work for you. 500 euros invested now can save tens of thousands in the future. One such company is the Ehituskaitse büroo (https://ehituskaitse.ee/). Sometimes even new buildings need some redoing.

Negotiations and groundwork

Don’t be afraid to negotiate. Research the sales offer carefully, ask questions and find out what your options are in terms of price. Find out the history of the property, ask for an inspection and consult a real estate professional if necessary. Be sure to also have a friend or relative look over the offer. Two heads are better than one.

Legal aspects

Notary fees, contract terms and other legal aspects are important. Be up to date with the law and make sure that all the documents are filled in correctly. This will ensure your security and reduce potential future problems. Fortunately, in Estonia, the transaction goes through a notary’s office and a good broker will help you there by doing all the groundwork.

Co-ownership

Co-ownership is property owned by two or more people at the same time as notional parts of a common thing. If there is more than one owner of a single thing, there is joint ownership. Such property is created by inheritance, by the restitution of property to several persons, or by the purchase of a single property by several persons. The restitution of property to several persons is the main reason why, even today, many properties are co-owned.

Buying or selling a shared property is more complicated than buying or selling a normal apartment. hen buying such a property, it is important to bear in mind that the bank may not be able to grant a loan without an occupancy order, which may mean that the prospective buyer has to finance the entire amount himself. If the use of co-ownership has been agreed in a notarised contract, the bank will be more willing to lend.

In the case of co-ownership, the other co-owners have a right of pre-emption for 2 months. They must also be informed immediately of the transaction, which is when the 2 months start to run. There are also frequent disputes where co-owners cannot agree on the allocation of expenses for the property. Co-ownership issues can only and exclusively be resolved by an agreement where all co-owners agree on the issue.

In addition, one of the problematic points is that, in order to maintain and preserve the property, one co-owner has the right to make an expenditure without asking the other co-owner if it is absolutely necessary (e.g. the roof is leaking). The other co-owner can then be asked to reimburse the expenditure in proportion to his share.

Future perspective

Think about the future. Do you plan to live in this home for a long time or is it a temporary solution? Take into account possible life changes and make sure that the home you choose will meet your needs in the future.

Buying your first home can be a challenge, but keeping these important aspects in mind will help you to make an informed and well-considered decision. Happy home hunting!