First-Time Homebuyer’s Guide: Step By Step

First-Time Homebuyer’s Guide: Steps for Beginners

Buying a home for the first time is one of life’s most exciting—and most daunting—milestones. At MorgenStreet, we believe every first-time buyer deserves more than just guidance. You deserve a partner who understands the magnitude of your decision and ensures every step feels effortless.

This guide walks you through the essentials—from budgeting to receiving your keys—so you can step into your first home with confidence.

Step 1: Define Your Budget & Get Pre-Approved

Before you browse listings, understand what you can afford. Meet with a mortgage advisor or your bank to get pre-approved. A financial advisor will help you set a comfortable monthly payment, not your absolute maximum. When planning include extra costs such as notary, taxes, agent fees, renovations. This will clarify your price range and show sellers you’re a serious buyer.

1. Here is the breakdown of additional closing costs when buying property:

• Real estate transfer tax: In Hesse it is 6% of the purchase price.

• Notary fees and land registry fees: Around 1.5% to 2% of the purchase price.

• Brokerage commission (if a broker is involved): For the buyer 3% of the purchase price plus VAT.

• Possible financing costs: • Bank processing fees. • Commitment interest in the event of delays.

2. Here is a breakdown of additional costs when buying property:

• Moving costs: Depend on the distance and amount of belongings being moved.

• Renovation or adjustments to the new property. Rennovation costs are best included in the financingpackage.

• Double housing costs if both properties are held at the same time for a short time.

3. If you need to sell before you buy or buy and sell at the same time, here is the breakdown of additional costs:

• Brokerage commission: In Hesse, the brokerage commission is typically 6% of the sales price plus 19% VAT, which is split between the buyer and seller (3% each + 19% VAT).

• Notary fees: Approximately 1.5% of the sales price. In most cases only the costs for deleting third-party rights from the land register, for example a registered mortgage, are carried by the seller.

• Mortgage cancellation fees (if there is still a mortgage on the property): Approximately 0.2% to 0.5% of the remaining mortgage amount.

• Capital gains tax (if applicable): This is payable if the property was not occupied by the owner and was held for less than 10 years. (Learn more about capital gains tax on real estate here.)

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Step 2: Clarify Your Must-Haves vs. Nice-to-Haves

Make a list. How many bedrooms and bathrooms? Do you need parking? Outdoor space? Proximity to transit? Prioritize the non-negotiables—then dream a little.

Step 3: Start Your Search

Work with a real estate agent you trust—ideally one who listens closely and understands your lifestyle, not just your criteria. Explore neighborhoods, attend viewings, and ask questions. Don’t rush. The right home is worth the wait.

Step 4: Make an Offer & Negotiate

Once you find “the one,” your agent will help you submit a competitive offer. Negotiation may include price, contingencies, move-in dates, or included items like furniture or appliances.

Step 5: Sign the Sales Agreement (and Celebrate!)

In Germany and many EU countries, the notary process formalizes the agreement. You’ll review all documents, sign the contract, and transfer funds per the legal timeline. In other markets, this may involve escrow.

Step 6: Final Walkthrough & Handover

Before receiving the keys, inspect the property one last time to ensure everything is in agreed condition. Your agent and notary will guide you through the handover protocol.

Step 7: Move In and Make It Yours

Now the fun part begins. Whether it’s a full renovation or just selecting paint colors, MorgenStreet can support your transformation journey with trusted partners in interior design, architecture, and trades.

Final Thoughts

You only buy your first home once—make it a joyful, informed, and empowering experience. At MorgenStreet, we’re not just selling property. We’re helping you build the foundation of your future.

Thinking of buying your first home?

Contact us for a personal consultation. We’ll guide you every step of the way.

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