Buying property in Crete

Step 1: Find your trusted real estate agent

Finding and buying a property in Crete can sometimes not be that easy. Besides the bureaucracy in Greece, whose wheels sometimes grind very slowly and which is often quite complicated and laws are changed quite frequently, you should also be careful not to fall into the trap of scammers. Therefore, you should take your time when looking for a real estate agent. A good real estate agent should be easy to reach and able to answer all your questions. Legal and tax information can only be given by brokers with special training, so it is important to ensure that either the broker has this training or that he works with professionals such as a lawyer who is available for Greek legal and tax issues . Never make any payment without first having the paperwork on the property checked by a lawyer. You should only make a down payment if your lawyer gives his approval and he or the real estate agent's lawyer has drawn up a preliminary contract. Of course it is an advantage if the broker speaks your language. At Home@Crete, for example, we offer our service in German, Dutch and English. Take a close look to see if the agent is not just an intermediary or a search engine that just wants to make money by putting your name out there. And of course you should always listen to your gut feeling. Buying a house is often not just a pure investment decision but rather an emotional one. Interpersonal sympathy and the feeling of being in good hands and being able to trust is therefore also a strong criterion when choosing the right real estate agent.

A real estate agent should always be approachable and give you good advice. He should make a suitable pre-selection for you and sound out your ideas, wishes and budget accordingly in detail. In this way, the real estate agent and you ensure that you are not flooded with suggestions, but only get suggested properties that could really suit you. A good real estate agent should accompany you throughout the entire buying process and organize all appointments such as viewings and appointments with a lawyer for you. Even after the purchase contract, a real estate agent should still be available to you.

Make your own pre-selection before you start writing to real estate agents. Avoid writing to as many agencies and brokers as indiscriminately as possible, as it may later happen that several real estate agents claim and are entitled to a commission. Some real estate portals sell only your name to brokers and agencies on site, there is often very little or no advice before, during and after the purchase process and you are often on your own with the organization of all appointments.

Do not be surprised that the same property is often listed by different real estate portals and agencies and/or brokers. In our experience, the sellers on Crete love the motto "The more the merrier...". Therefore, different brokers are often commissioned, and brokers rarely have exclusivity on a property. Unfortunately, one often finds the properties at different prices or as still available even though they have already been reserved or sold, as it is often forgotten to inform the various brokers about a price change or about the sale.

Step 2: The search and purchase process

If you decide to hire us as your real estate consultant, please do not hesitate to contact us by email. Even if there is currently no property on our website that suits you, you are welcome to write us your wishes and ideas and we will then start looking for the right property. Maybe we already have one that hasn't made it onto our website yet.

We will get back to your email as soon as possible and inquire about your ideas and we will also ask you when you are planning a visit to Crete so that we can possibly plan viewing appointments. Then we will propose you the first properties. You can ask questions at any time and then decide on your dream property, or several, and we will then plan and organize the viewing appointments. We will visit the selected properties with you. We usually meet in advance at a place near the property, usually a tavern or a café, to get to know each other personally and talk before we set off together. If you are not mobile, we will be happy to pick you up.

Step 3: Commissioning of a lawyer

If you decide to buy a property after viewing it, we would be happy to recommend a local lawyer with whom you can sign a Power of Attorney (POA) so that the lawyer can take all further steps even when your not in Crete. You are of course also very welcome to hire your own lawyer if you already have one or if friends/relatives who have already bought a property in Crete have recommended one to you. Theoretically, you can also grant a notarial power of attorney from your country to a lawyer with Greek approval, but this involves more effort and costs.

If you reserve your dream property, a deposit of 10% of the purchase price is usually due. For this purpose, a preliminary contract is drawn up, which you and the owner sign. Please note that the deposit will only be returned if the owner of the house wants to opt out of the sale or if there is a written agreement between you and the owner. If only you want to withdraw from the purchase, a refund of the deposit is not possible.

Although a lawyer is no longer legally required in Greece, it is nevertheless mandatory. Because only a lawyer can check the ownership and legal circumstances. He also obtains all necessary official permits. Never make a down payment or even a full payment of the purchase price without a lawyer. It is often still the case that the ownership situation has not been fully clarified or that there are still debts on the property that make a purchase impossible. Should such problems arise during the process, the lawyer will take care of it. A sale can only take place when everything has been clarified.

Step 4: The buying process

Unfortunately, it is very difficult to predict how long the buying process may take. From personal experience, some brokers tend to say it won't take more than two to three months, but unfortunately that's often not the case. With an existing property, you have to reckon with an average of six months, but sometimes it can take twelve months or longer.

Unfortunately, buying a property in Crete fails because of the financing. Please clarify for yourself in advance how you can finance a property. We are currently working with another real estate agency in Crete that can arrange financing through a Greek bank, but certain requirements are mandatory.

Please also note that you need a Greek tax number to purchase a property. We will be happy to help you with the uncomplicated application.

Overview of costs:

The following additional purchase costs are added to the purchase price:

Fee for the power of attorney, which is paid directly to the notary. The fee charged by the notary varies. We had everything from 60 to 150 euros with us. Calculate with an average fee of between 100 and 150 euros. It is also important to know that the notary only wants the money in cash for this fee!
Real estate transfer tax of approx. 3%
Legal fees. These are on average between 1-2% of the purchase price, depending on the lawyer. But there are also said to have been lawyers who take up to 3.5%. Check with your lawyer before engaging.
Notary and certification costs of approx. 1.5 to 2.5%
Entry in the land register of approx. 0.71%
Cadastral entry of about 0.26%
Commission of 3% (at least 5000 euros) if you choose us. If you hire another broker, find out about the amount of the commission. Attention: There should be brokers who also charge you a brokerage fee if you have asked them to search for a property, even if, for whatever reason, no purchase is made. With us you pay the commission only after the conclusion of a purchase contract. Inform yourself about any brokerage fees before commissioning.
Fees for registering electricity, water, telephone, internet and, if applicable, gas
Application for tax number
If you need translations, they will cost extra.

So always calculate with about 9-10% of the purchase price.

A little tip: the monthly municipal or city fees, such as garbage disposal and sewage, are billed via the electricity bill.

The annual property tax varies from municipality to municipality and is represented by a complicated calculation. In most cases, however, you can count on 3-4 euros per square meter of living space. A flat rate is charged for the property, which depends on factors such as the proximity to the sea and the pool. Example: for a property without a pool and not in the immediate vicinity of the sea, you can expect around 30 euros.

Incidentally, price negotiations are possible in most cases, but should only take place after the viewing. In principle, we do not pass on a price request to the seller before the viewing. You should also be fair to the seller when negotiating. Prices on Crete have been rising steadily for years and properties with sea views and/or very close to the sea in particular are no longer available for a small price. Of course, there are also sellers who have their own ideals about the price they want to achieve, which are not necessarily realistic. However, we discuss this with the respective owners before we include a property in our portfolio. You can therefore assume that our properties correspond to the realistic property prices in the respective region.

We hope that we have already been able to answer some of your questions about buying a house on Crete and that you will choose us as your trusted real estate consultants. Contact us and tell us your ideas and wishes and we will find your dream house on Crete.