Problems with buying an apartment in Germany
I am currently considering buying an apartment, especially in the light of the inexcusable and utterly absurd behavior of my current landlord*. This has turned out to be extremely frustrating, even when discounting the predictable complication of attractive locations having high prices and low prices having unattractive locations (or some other problem). Consider:
*The one for my official residence in Düsseldorf. Not the one for my temporary apartment in Köln. I am very likely to write a long post on this at some point—but I am not certain that anyone will actually believe it! (Sometimes reality makes fiction look unimaginative…)
- In the flawed German system, I cannot hire* a realtor to search for me, because they only provide services towards the seller—for which the buyer has to pay.** Ask them to search for the buyer and they may or may not give a listing of the entries they currently have available***, but that is the last ever to be heard from them. If they do any work for the buyer, well, then they have additional work and no additional money…
*In any sense that matters. As a matter of form, a “hiring” is implied at the latest when an agreement to buy is reached with the seller, but for all practical purposes this just means that the buyer acquiesces to pay for the realtor’s services towards the seller. The real hiring is done by the seller—the buyer just pays.
**This used to be the case for rentals too. Fortunately, this idiocy has since been stopped—but only for rentals.
***More likely than not, they will either not respond at all or just tell the prospective buyer to have a look at their website—which is usually border-line unusable and highly uninformative.
- Realtors are highly problematic in other regards to, including that many of them only provide listings through meta-service providers like “Immobilienscout24” (effectively, Craig’s List for real estate), where they upload information provided by the seller, make the disclaimer that they make no guarantees whatsoever (just repeating in good faith), and wait for the prospective buyers to search. (Remember that the buyers are the ones who pay for this farce.)
- The lists of potential objects provided by most realtors and the large meta services often make no clear separation between apartments for buy-for-own-use and apartments for buy-and-rent-to-someone-else. These two use-cases are so different from each other*, however, that at least the buy-for-own-use-er will find half of the entries worthless— and often only finds this out somewhere towards the end of the page… The buy-and-rent-to-someone-else-er, OTOH, will be less than enthusiastic about the other half, because if he does not find a tenant, he is just leaking money.
*In theory, the buyer can get rid of an existing tenant through invoking “Eigenbedarf” (“own need”); however, this brings a considerable risk that the tenant will be uncooperative and possibly requires a costly and time-consuming detour over the courts. To boot, I have considerable problems with the ethics of this, its legality notwithstanding. “Pacta sunt servanda” is otherwise the theoretical cornerstone of German law, as well as of ethical business practices in general.
- Similarly, a very considerable proportion of the objects turn out to be “Zwangsversteigerungen” (court auctions; literally, “forced auctions”) that imply a considerable additional risk and a lot of bureaucracy that many are not willing to take. (However, it can have advantages for those who are willing to take the risk.) Of course, the price listed is then not the actual price but some vague estimate or minimum that could turn out to have nothing to do with the actual price paid by the winner of the auction…
*There appear to hundreds of realtors (be they individuals or companies) who each have just a dozen objects, of which just one or two are relevant to any individual buyer. It would be far better to have a dozen realtors with a few hundreds objects each. This too is likely a result of the flawed German model: The only reason that realtors do not have money effortlessly pouring in, is that the potential profits have lured too many people into this business…
- Due to utterly idiotic and over-killing money-laundering laws, the prospective buyer needs to give up a lot of information, typically including a copy of an ID document, even when just approaching a realtor with the wish for information on an object*. Not when he buys it, not even when he inspects the object in person, but when he makes a simple inquiry!
*Or so a number of realtors claim. I have not checked whether they are telling the truth, but am somewhat skeptical, because not all do require this.
- If everything seems to pan out, the object being really interesting, then the “Hausgeld”* turns out to be 400-something Euro instead of the the 100-something typical for the size of apartment I am looking for—might as well be renting.
*Frankly, I have no idea what this is in the English speaking world, but it amounts to a monthly fee to the apartment owners’ association to cover various costs, including for parts of the house not belonging to the individual apartments.