by dazhomes 
Buying your first home is an exciting milestone, especially in a dynamic and historic city like Tbilisi. However, the process comes with its own set of challenges and risks, especially for first-time buyers unfamiliar with the local market. This guide highlights common mistakes buyers make and provides expert advice to help you make a confident and informed decision.
1. Skipping Proper Financial Planning
The Mistake: Many buyers underestimate the total cost of purchasing a home, focusing only on the property price while overlooking additional expenses like taxes, legal fees, notary charges, and renovation costs.
The Solution: Start with a detailed financial plan. Consult a financial advisor or mortgage specialist to create a budget that includes all potential costs. Ensure you have extra savings for unexpected expenses.
2. Not Checking the Property Extract for Liens or Obligations
The Mistake: Some buyers skip checking the property extract (official ownership document) to ensure the property is free of legal obligations, such as liens, debts, or existing mortgages. This oversight can result in financial and legal complications.
The Solution: Always request a current extract of the property from the National Agency of Public Registry. This document will confirm ownership details, identify any liens or obligations, and reveal if the property is mortgaged. Work with a lawyer or real estate agent to review the extract before making any commitments.
3. Failing to Understand Permits for Cultural Protection Zones
The Mistake: Properties in Tbilisi’s cultural heritage zones (e.g., Sololaki, Mtatsminda) require strict adherence to preservation laws. Buyers may not realize that renovations, expansions, or even basic changes need approval from City Hall.
The Solution: Before purchasing, consult with an architect or city planning expert to understand what is allowed under heritage regulations. Get clarity on the process for obtaining permits and ensure your planned renovations comply with local laws.
4. Ignoring Attic Permit Regulations
The Mistake: Buyers often see attic spaces as an opportunity for additional living space without verifying whether converting or renovating them is legally permitted.
The Solution: Check the zoning and construction regulations for the property with City Hall or the relevant municipal department. Ensure the attic has proper permits for your intended use. If no permits exist, factor in the cost and time required to obtain them.
5. Not Verifying Exploitation Permits for New Buildings
The Mistake: Buyers purchasing apartments in newly built complexes sometimes fail to confirm whether the building has an exploitation permit (Certificate of Occupancy). Without this permit, the property may not be legally habitable, and utilities like gas, water, and electricity may not be connected.
The Solution: Ask the developer for proof of the exploitation permit before signing any agreements. For ongoing projects, ensure a clear timeline for when the permit will be issued. Engage a real estate agent who can verify these details on your behalf.
6. Overlooking the Developer’s Track Record in Ongoing Projects
The Mistake: When buying into an ongoing project, some buyers fail to research the developer’s track record. This can lead to delayed delivery, substandard quality, or incomplete projects.
The Solution: Research the developer’s previous projects and their reputation in the market. Visit completed properties and speak to past buyers if possible. Work with a real estate professional who has knowledge of reputable developers in Tbilisi.
7. Failing to Research Mortgage Options
The Mistake: Buyers often rush into a mortgage agreement without comparing rates and terms from multiple banks, potentially locking themselves into unfavorable conditions.
The Solution: Compare interest rates, repayment terms, and hidden fees across different lenders. If you’re unfamiliar with the Georgian mortgage system, consult a mortgage broker or financial expert to understand your options fully.
8. Overlooking Tax Obligations
The Mistake: Some buyers neglect to factor in property taxes or misunderstand their tax obligations, which can lead to penalties or unexpected costs later.
The Solution: Hire a tax consultant familiar with Georgian property taxes. They can guide you on purchase taxes, annual property taxes, and any tax benefits you might be eligible for. This is particularly important for foreigners or buyers planning to rent out their property.
9. Underestimating Renovation Costs
The Mistake: In Tbilisi, many properties are sold in “black frame” or “white frame” conditions, requiring substantial finishing work. Buyers often underestimate the time, effort, and cost involved in renovations.
The Solution: Get detailed renovation quotes from multiple contractors before purchasing. If possible, choose a property that aligns with your budget and renovation capabilities.
10. Ignoring Future Resale Value
The Mistake: Some buyers focus only on their current needs, neglecting the long-term investment potential of the property.
The Solution: Think like an investor. Consider factors like location, building quality, and market trends that will affect the property’s resale value. High-demand areas like Vake, Saburtalo, and Rustaveli Avenue typically offer better long-term returns.
Key Considerations for First-Time Buyers in Tbilisi
- Verify All Documents: Check the property extract for liens, mortgages, or other obligations. Ensure the seller has a clean title.
- Understand Local Regulations: If buying in cultural protection zones or properties with attics, verify renovation and expansion permits with City Hall.
- Prioritize Exploitation Permits: When buying a newly built apartment, ensure the building has an exploitation permit or a clear timeline for obtaining one.
- Research Developers: For ongoing projects, work only with developers who have a proven track record.
- Consult Professionals: Hire a lawyer, tax consultant, and real estate agent to guide you through the process.
Conclusion
Buying your first home in Tbilisi is a significant milestone, but navigating the local real estate market requires careful planning and due diligence. By avoiding these common mistakes and seeking professional guidance, you can make your home-buying experience smooth and stress-free. Whether you’re drawn to the charm of Old Tbilisi or the modern conveniences of Saburtalo, understanding the details will help you make the best decision.
At DazHomes, we specialize in assisting first-time buyers in Tbilisi. From verifying documents to navigating permits, our team provides expert guidance every step of the way. Contact us today for a personalized consultation!