Proven advice for buying an apartment: How to proceed and avoid the most common mistakes

24 February 2025

Buying an apartment will be one of the biggest financial decisions you make in your life - whether you want to buy an apartment to live in or as an investment. But did you know that there is a difference between these two purposes? That is the first of the 15 mistakes that people make when buying an apartment. This detailed guide will show you what to watch out for when buying an apartment, what to ask about and what not to leave out. A single moment of inattention or a hasty decision can cost you tens to hundreds of thousands of crowns.

Part one: What to consider before searching for an apartment

1. Define the purpose of the purchase

Before you start searching for an apartment, be clear about whether you are looking for an apartment as an investment, or whether you primarily long to set up your own home. There are fundamental differences in how you approach each of these options.

With an investment apartment, you don't examine so much how much you like the apartment. Facts such as which side the sun shines into the apartment from, or what colour the tiles in the bathroom are, are secondary for you at this moment. You are more interested in the numbers and the data.

With an apartment to live in, it is logically the other way around.

How to proceed when buying an apartment that will be your investment property? Read our detailed article on this topic: Investment apartments: Advantages, risks and practical advice.

All in all:

Buying an apartment to live in: What matters is the location, local amenities and the quality of living.
Buying an apartment as an investment: The main role is played by the return on investment (ROI), the appeal of the location for tenants and the potential for growth in the value of the property.

Tip: To calculate ROI, use our investment calculator.

2. Set a budget and arrange financing

Then it is time to think about your budget. What are your savings? Will you need - and can you afford - a mortgage? Reckon not only with the purchase price, but also with other costs:

Legal and administrative fees.
The costs of any renovation and/or furnishing.
Operating costs (property management, taxes, insurance).
When buying a property abroad, a property acquisition tax may apply (abolished in the Czech Republic).

Forgetting about these costs is a common mistake that can give you a few grey hairs.

If you have to apply for a mortgage, bear in mind that it is necessary to provide at least 10-20% of the value of the property from your own resources. For applicants under 36, the bank will provide 90% of the total price of the property being bought; if you are older than 36, it is "only" 80%.

3. Choose a suitable location

Again we need to return in part to the first point - think about a suitable location differently depending on whether it is an investment apartment or an apartment to live in.

For living in: Take into account the availability of schools, shops and public transport.
For investment: Take an interest in the future development of the area, the availability of job opportunities and the demand for rentals.

Then don't forget to compare the prices of similar properties in the given area.

Reading tip: The basics of investing in real estate.

Part two: Where and how to look for the right apartment?

You will probably most often look for your dream apartment on real estate portals or through real estate agents. Regularly go through the new listings of real estate agencies and websites. Where possible, set up an alert based on your required parameters, or subscribe to the newsletter.

Another option is auctions, where you can acquire a property at a more advantageous price.

Our final tip is to look around you outside. Although this is no longer such a common practice these days, you never know whether you might see a "for sale" sign somewhere.

Part three: What to watch out for (and what to ask about) when viewing an apartment?

Thoroughly check the technical condition of the property

During the viewing, pay attention not only to the appearance of the apartment, but also to its technical condition.

What to ask about when buying an apartment:

How old are the water, electricity and gas systems?
What type of heating is there?
What are the monthly operating costs, including the repair fund and energy? It can be worth asking to see the Energy Performance Certificate of the Building (PENB).
What do the common areas of the building look like and what do you have available (cellar, pram room, etc.)?
What is the overall condition of the building? Does it have a new facade, lift and roof?
What renovations are planned in the building?
What is the condition of the windows and floors?

With new builds, then check the developer, the building documentation and the quality of the materials

We recommend bringing an expert (a structural engineer) to the viewing, who will uncover hidden defects.

Verify the legal and factual status of the property

Before you sign any contract, find out:

Who the actual owner is - verify the data in the land registry.
Whether there are foreclosures or liens on the property.
Whether the size of the apartment matches the data in the land registry.
For cooperative apartments: Can the apartment be transferred into personal ownership?
Careful: One of the things to watch out for when buying a cooperative apartment is that you become a member of the cooperative, and therefore the owner of a share, not of the apartment.
Where applicable: Check the financial situation of the owners' association (SVJ). How does it manage its finances? What debts does it have?

Don't sign the apartment reservation agreement straight away at the viewing

Before you sign a reservation agreement, read it properly. Often the deal may in the end not even go through (for various reasons), but because of the signed reservation agreement you will be forced to pay tens of thousands of crowns. So study carefully, among other things, the conditions for refunding the reservation fee in the event that you withdraw from the purchase.

Before signing, it is advisable to make sure that you have financing arranged and at the same time that you have checked all the points mentioned above.

Don't let the seller or the real estate agent push you into a hasty decision.

Part four: The procedure for buying an apartment, or The purchase contract and the transfer of ownership

The purchase contract must contain all the key information - who is selling what, what the payment terms and the transfer dates are, and any penalties for breaching the contract. Always have the contract checked by a lawyer.

The money is usually placed in notarial or attorney escrow to ensure that the seller receives it only after the transfer of ownership.

After signing the contract and paying the purchase price:

Submit an application for registration in the land registry.
Wait for the registration to be approved (usually 30 days).
With the transfer in the land registry, you become the official owner.

Part five: Taking over the apartment

After the transfer of ownership, it is important to take over the apartment properly and check its condition. Transfer the energy and services into your name in order to avoid problems with the previous owners. Also consider insurance, taking care whether you are insuring only the property, or the household contents as well.

Then comes either a renovation plan, or furnishing the apartment. If you are buying an apartment to rent out, you additionally need to arrange management, marketing and the ideal lease agreement.

All in all: An overview of the 15 most common mistakes

Insufficient market research - They don't find out the prices in the given location, don't compare offers and don't analyze market developments.
Underestimating the costs - Many buyers forget about additional expenses, such as taxes, fees for legal services, notarial deeds or the costs of renovation. After buying, they have no financial cushion for repairs, renovation or a loss of income.
Not checking the technical condition of the apartment - They don't bring in an expert to review the installations, the structure and any hidden defects, which can lead to high repair costs.
Ignoring the legal status of the property - They don't check the title deed, easements, foreclosures or other legal defects that can significantly complicate the purchase.
A poorly chosen method of financing - They don't reckon with the real possibilities of a mortgage, overestimate their ability to repay or fail to negotiate better terms with the bank.
An unsuitable location - They don't examine the surroundings, transport availability, local amenities, safety or the future development of the area.
Not verifying neighbourly relations - They don't find out who the neighbours are, how the owners' association (SVJ) works and what the monthly contributions for managing the building are.
Quick decision-making under pressure - They let themselves be manipulated by the real estate agent or the seller and sign the contract without thorough consideration. Signing a reservation agreement without thoroughly considering and checking all the conditions can lead to financial losses if problems with the property or financing later come to light.
Ambiguities in the contract - They don't review the contractual terms, don't verify the penalties and don't check for discrepancies in the contract, which can lead to problems during the transfer of the apartment.
Insufficient vetting of the seller - Buyers often neglect to thoroughly vet the seller, which can lead to problems if the seller is in foreclosure or has other legal difficulties.
Incorrect statement of co-ownership shares - Mistakes in the purchase contract concerning the co-ownership shares in the common parts of the building can lead to legal complications and disputes.
Mistakes in the application for registration in the land registry - Even minor mistakes in the application for registration, such as an incorrect address or an inaccurate identification of the property, can cause the registration to be rejected and prolong the whole transfer process.
Excessive trust in the real estate agency - Relying solely on information from the real estate agency without your own verification can lead to overlooking important details or risks associated with the property.
Insufficient verification of the size and layout of the apartment - Some buyers are satisfied with the information from the listing and don't verify the actual size and layout of the apartment, which can lead to unpleasant surprises after buying.
Approaching the purchase of an investment apartment as the purchase of an apartment for your own living

How to buy an apartment without problems?

Emotions should not play such a big part in buying an apartment. Focus on the facts and prepare thoroughly. Before you sign the contract, make sure that you know everything about the technical, legal and financial status of the property. And if you are not sure, enlist the help of experts - a lawyer, a property inspector or a financial advisor.

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