10 Common Mistakes When Buying Propertyand How to Avoid Them

1. Searching for a property without a financing commitment

The problem: You find a property that fits perfectly – but the bank needs three weeks for the financing commitment. In the meantime, another buyer wins the deal.

The solution: Sort out your financing before you start your search. A financing confirmation from the bank gives you certainty in negotiations. → Financing

2. Judging the purchase price emotionally rather than rationally

The problem: The house reminds you of your own childhood, the garden is beautiful, the location perfect. The price becomes secondary.

The solution: Always compare with market data. BORIS Bayern for standard land values, property portals for asking prices. A professional valuation protects you from overpaying.

3. Underestimating renovation needs

The problem: The most common and most expensive oversight in Oberfranken, where many properties date from the 1960s–1970s. Roof, heating, windows and electrics together can cost €80,000–180,000.

The solution: Bring in a building surveyor (€400–800). Calculate renovation costs realistically before you negotiate the purchase price. → Properties in need of renovation

4. Not checking the land register fully

The problem: The land register (Grundbuch) contains encumbrances that reduce the value or restrict use: rights of way, usufruct, rights of residence, uncancelled land charges.

The solution: Request a current land register extract and read all three sections carefully. Have unclear entries clarified before the purchase.

5. Doing without the energy performance certificate

The problem: Without an energy performance certificate (Energieausweis), there is no basis for assessing ongoing energy costs and the need for energy-related renovation.

The solution: Ask for the energy performance certificate and check the energy efficiency class. Classes F–H indicate a considerable need for renovation.

6. Not budgeting for incidental purchase costs

The problem: 7–9% incidental costs on top of the purchase price – on €200,000, that is €14,000–18,000, which has to be financed from equity.

The solution: Factor in the incidental costs from the outset. → Land transfer tax in Bavaria

7. Applying for funding too late

The problem: KfW and BAFA funding must be applied for before the purchase is completed or before renovation begins. Retrospective applications are rejected.

The solution: Clarify funding options in parallel with the financing, not afterwards.

8. Ignoring the owners' association when buying a flat

The problem: You buy a lovely flat, but the owners' association (WEG) has no reserves, an expensive roof renovation is pending, and the management is chaotic.

The solution: Read the minutes of the last three owners' meetings. Check the level of reserves. Ask about planned renovations. → Flats

9. Not checking the micro-location

The problem: The house is reasonably priced – but the nearest school is 15 km away, public transport runs twice a day, and the supermarket is closing.

The solution: Visit the surroundings at different times of day. Check public transport, schools, doctors and shops. Talk to the neighbours.

10. Deciding without professional support

The problem: Expertise is dispensed with to save the estate agent's commission – and mistakes 1–9 happen more easily.

The solution: Professional support costs money, but usually prevents much more expensive mistakes. → The role of the estate agent

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Five more pitfalls

11. Believing verbal assurances

"The fitted kitchen stays", "the cellar is dry", "the garage is approved" – anything that is not in the purchase contract can hardly be enforced after notarisation. Solution: Include important assurances and items sold with the property in the contract. → Notary appointment

12. Not checking building permits

Converted attic, conservatory, carport – especially in older houses, some things were built without a permit. In the worst case, the building authority demands demolition or prohibits use as living space. Solution: Inspect the building file at the building authority and compare it with what is actually there.

13. Fixed-interest period too short, no reserve

Anyone who puts all their savings into the purchase and calculates the instalment tightly will run into difficulties with the first broken heating system or more expensive follow-up financing. Solution: A reserve of at least three to six months' net income and a fixed-interest period that suits your own plans. → Financing guide

14. Overlooking obligations under the Buildings Energy Act

New owners of one- and two-family houses must carry out certain retrofits within two years – such as insulating the top floor ceiling or replacing old boilers. Solution: Plan for these costs from the outset. → Heating law (GEG)

15. Buying a let flat to move into yourself

The tenant stays – "sale does not break a lease". Termination for personal use (Eigenbedarfskündigung) is subject to notice periods, justification and hardship rules, and often takes a long time. Solution: For your own use, only buy vacant flats or flats where the tenant's departure has been agreed. → Tenancy law

What mistakes cost: three examples from practice

The examples are typical cases that occur again and again in practice. In all three cases, a check before the purchase would have cost a few hundred euros.

And the most common mistakes when selling

Sellers also make typical mistakes that cost time and money:

1. Pricing by gut feeling instead of comparable sales – the property stays online for months. → Determining property value
2. Incomplete documents – the buyer's bank requires evidence, and the notary appointment is postponed. → Checklist for sellers
3. Concealing defects – the exclusion of liability does not protect against fraudulent intent.
4. Viewings without proof of financing – a lot of effort, little result.
5. Overlooking the speculation period – a few weeks' difference can mean tens of thousands of euros in tax. → Speculation tax

The entire selling process is described in Selling property: the process in 10 steps.

The psychology of buying property

Many mistakes do not arise from ignorance, but from typical thinking patterns:

A written list of must-have criteria and a price ceiling, set before the search, is helpful. Those who know their limits negotiate more calmly and make better decisions.

A case from practice

A young couple fell in love with a 1950s estate house (Siedlungshaus) with a large garden. The price was within budget, the viewing was short, and another prospective buyer was waiting. After the purchase it emerged that the cellar walls were damp, the electrics had to be completely renewed, and the oil heating had to be replaced by law. The couple had to finance the unplanned costs of around €70,000 with an expensive additional loan.

An inspection by a building surveyor would have cost a few hundred euros and revealed the defects before the purchase. The couple would either have negotiated a lower price or planned for the costs from the start. The example is typical, not exceptional – and it can be avoided with the checklists on this page.

How to protect yourself systematically

1. Beforehand: Set your budget, must-have criteria and price ceiling. → Financing guide
2. At the viewing: Use a checklist, take photos, note down questions. → Viewing checklist
3. Before making an offer: Check documents, commission a surveyor, calculate total costs. → Checklist for buyers
4. Before the notary: Read the draft contract, clarify open questions, put assurances into the contract. → Notary appointment
5. After the purchase: Take care of GEG obligations, insurance and funding applications.

Mistakes with investment properties

Those who buy as investors often make different mistakes from owner-occupiers: they calculate with overly optimistic rents, underestimate vacancy and maintenance, buy in shrinking locations purely because of the high yield, or forget that high service charges depress the yield. Test every investment against an unfavourable scenario and do not be dazzled by the gross yield. → Calculating rental yield

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