How to buy an apartment safely in 2024? Step-by-step instructions from an expert

When buying an apartment, you need to prepare carefully for any situation and pay attention to all details. This financial investment can significantly affect the future. In the process of buying an apartment, you need to choose the right developer, conduct a legal check and assess the infrastructure of the neighborhood.

Managing Director of Metrium

“Attention and caution are never superfluous. Especially when it comes to your future. I tell you how to buy an apartment as safely and efficiently as possible, avoiding pitfalls”.

Where to start?

The first point when buying an apartment is to adequately assess your financial situation. Here you need a comprehensive analysis of your income, expenses, savings, and current debt obligations. Having assessed your financial situation and compared it with current market prices, you can understand whether you can count on a lump sum payment. If not, it is necessary to apply for a mortgage.

Beforehand, you should contact the BCI and check your credit history. It is important to do this, as any errors or uncorrected errors will prevent you from getting a loan. Often it is the credit history is the key factor on which the bank decides to issue a mortgage.

In addition, you need to analyze your official income level. Banks adhere to certain requirements for the solvency of borrowers. Your earnings should not only cover the obligations, but also maintain the usual standard of living without a significant reduction in quality. As a rule, the monthly mortgage payment should not exceed 60% of your total income. If the analysis shows that the current level does not meet the requirements of the bank, it is worth considering more budget housing options.

What does the price depend on?

Prices for real estate objects vary significantly depending on a variety of factors. They can be divided into several main categories: location, characteristics of the apartment itself, the state of the real estate market. Let’s analyze each in detail.

1. Location

In areas with developed infrastructure, easy access to the city center or important transport routes usually higher prices for housing. The cost is also affected by the presence of nearby schools, kindergartens, hospitals, stores, shopping and entertainment centers. Location in an ecologically clean neighborhood, away from industrial zones, also increases the price of the apartment.

2. Characteristics of the apartment

Large area, separate rooms, spacious kitchen, loggia or balcony usually increase the price. Housing with a good view is more expensive. First and last floors may be priced lower due to certain inconveniences.

Apartments on the secondary market with modern repairs, quality finishes and additional amenities are more expensive. In new buildings, the price depends on the stage of construction. The closer the property is to completion, the higher its price. The presence of quality finishing also increases the price of the apartment.

3. The state of the real estate market

High demand and limited supply in a certain area or for a particular type of housing can increase the price. Inflation, changes in the key rate of the Central Bank, and currency fluctuations also affect the price of real estate. Another factor is low mortgage interest rates. They increase demand and, consequently, the cost of housing.

How to choose an apartment?

The first thing to do is to pay attention to the neighborhood in which you are looking for an apartment. Evaluate its infrastructure: the presence of stores, schools, kindergartens, parking and public transportation. Convenient access to educational institutions, recreation and sports areas significantly increases the attractiveness of housing. It is also important to pay attention to the improvement of the neighborhood. It is desirable that the yard had playgrounds, good roads and sidewalks.

The condition of the house and entrance directly affect the quality of life and cost. The presence of a concierge, closed courtyard, cleanliness, quality elevators – all this increases the level of comfort.

When choosing an apartment, special attention should be paid to its layout. Especially when it comes to buying secondary housing. Make sure that there were no illegal alterations. They may entail legal difficulties in its sale or use. Also check the integrity of the walls, the presence or absence of moisture, the condition of windows and doors.

It is very rare for a home to be perfect in every way. So you need to prioritize, decide what parameters are unconditionally important, and what you can sacrifice. You can start looking for an apartment through special online platforms. This will give you an idea of prices, offers and help you to make a list of potential options.

You can also turn to professionals – real estate agencies or realtor. They help at all stages of the purchase of housing, starting from the selection of options and ending with the conclusion of the contract of sale.

Without the appropriate knowledge and experience to conduct a full legal due diligence on your own is extremely difficult. Agencies and realtors have the necessary resources and knowledge to check the object for encumbrances, ownership rights, legality of redevelopment and other potential legal problems. This allows you to minimize the risks of buying and ensure the safety of the real estate transaction. It is also worth considering that agencies work more efficiently than private realtors.

How to check an apartment?

When buying an apartment, whether it is a secondary market or real estate in a new building, it is extremely important to carefully check the condition of the house. The optimal time for inspection is during daylight hours. Then natural light will allow you to examine all the nuances in detail.

In the secondary market, the key step is to request a technical passport from the seller and compare the actual layout with the specified in the documents. Coincidence guarantees the absence of unauthorized changes. In the case of alterations, make sure that they are legal. Illegal changes are not only additional costs, but also the mandatory restoration of the original state of the room, as well as possible fines.

Carefully inspect walls, floors and ceilings for cracks, moisture and mold. Check windows and doors for leaks. Make sure heating, water and electrical wiring are in good working order. Pay attention to the yard area, the condition of the hallway and the operation of the elevator. If everything is in order, move on to the legal inspection. It is important to find out if there are no encumbrances, third party rights and the history of the property. Professionals can also help here: lawyers, realtors or agencies.

In a new house, the inspection should start with checking the quality of construction. Take a level with you to assess the floor screed and the evenness of the walls. It will also be helpful to use a voltmeter to check the voltage in outlets. Pay attention to the windows. Very often they are the ones that come as a surprise.

Make sure that the sashes open and close easily and freely. Often builders can install windows with defective locks that do not work properly. The handles should fit well and switch easily between open and closed positions. The sealant should be on both the sash and the frame, ensuring an airtight seal.

Also, carefully inspect the inside of the frame and jambs for chips and scratches. Even in daylight, the use of a flashlight is recommended to better identify minor damage. Any damage on the glass should be marked with a marker to record the defects and discuss their repair with the builder.

How to buy an apartment

There are several forms of apartment ownership. Each of them has its own peculiarities and requirements for registration. Let’s understand.

1. Contract of participation in shared construction (CDU)

A CDA is a contract between the buyer and the developer. The first contributes money to the construction of the house, and the second undertakes to transfer the apartment to the buyer with the specified characteristics (area, number of rooms, floor plan, layout). After delivery of the new building, the apartment is registered as property. The CDA requires mandatory state registration, which guarantees the protection of the rights of shareholders at the federal level. In addition, the contract can be canceled if the deadline for delivery of housing is delayed.

2. Re-assignment

For example, a person for some reason decides to sell an apartment in a building under construction. Here the assignment will help. This is a transaction in which the rights and obligations under the already concluded contract of sale of real estate are transferred from one buyer to another person.

The essence of the assignment is that all the original agreements and conditions are preserved. Only the person who enters into these rights and obligations changes. An additional agreement between the assignor and the acquirer is usually required to formalize.

This is a good way for one to get out of a real estate transaction without losing money, and for the other to buy an apartment, perhaps even faster or more profitable.

3. Contract of sale

This is a contract where the seller transfers ownership of the apartment to the buyer. Such an agreement, as a rule, does not require notarization. Exceptions are mortgage, shared ownership, as well as transactions involving minors or persons with limited legal capacity. Although a sale and purchase agreement does not require registration, it must be submitted to the Rosreestr for official registration of ownership.

4. Housing and construction cooperative

A housing and construction cooperative (HCC) is an association of people who collect money together to buy a home. Each member contributes a certain amount of money, called a share contribution, to eventually get their own apartment. The cooperative agrees with the builders to erect the house. After the process is completed, the apartments are distributed among the participants depending on their contribution.

Previously, such cooperatives could work with any houses. But now they are created to deliver housing, if the builder went bankrupt and could not complete the project. HCC helps in such cases to bring the case to the end and provide people with apartments.

How to complete the purchase process?

Successful completion of the transaction is the result of not only a successful choice of real estate, but also the correct legal registration of all stages of the purchase. Each sequence of steps requires special attention.

After you have chosen a suitable apartment and agreed the terms with the seller or developer, it is time to sign a preliminary contract of sale.

This document sets out the basic terms of the future transaction, including terms, price and settlement procedure. The deposit is a confirmation of your intention to purchase the apartment and is usually a certain percentage of the value of the property. For the seller it serves as a guarantee that the person will not refuse to buy without good reasons.

The final signing of the sales contract is the key moment of the real estate transaction. It is important to carefully check all the terms and conditions. Especially the full purchase price specified in it.

Try to give preference to cashless payments. This approach will provide additional security and the ability to track all payments. Also make sure that all the papers are prepared correctly. If necessary, it is better to consult a lawyer.

After signing the purchase and sale agreement, the process of registering the ownership right in the Rosreestr. This officially confirms you as the new owner. After registration and full payment, you will receive the keys to the apartment.

It is also recommended to conduct a thorough inspection for hidden defects. In case of their detection, according to the Civil Code of the Russian Federation, you have the right to demand the elimination of defects, compensation for losses or even the termination of the contract of sale.

Each of these steps requires attention and responsible approach. Do not hesitate to ask questions and involve professionals in the process. They will help you avoid potential risks and make the process of buying an apartment as transparent and safe as possible.