Hidden Defects When Buying Real Estate – How to Avoid Costly Surprises?

According to Ott Kosk, the head of Kosk Real Estate Agency and a professional real estate agent, buying real estate is one of the biggest financial decisions in a person's life, yet it is often made too quickly and based on emotions. Even in an apartment or house that appears to be in good condition at first glance, hidden defects can later emerge, the elimination of which can cost thousands of euros.

According to Ott Kosk, when viewing real estate, buyers often focus on interior design, room layouts, and the overall first impression. "Freshly painted walls, new kitchen furniture, and a beautiful bathroom can leave a great impression, but the real problems may actually be hidden behind the walls, under the floors, or in the roof structures. Therefore, I recommend viewing the real estate at least twice before purchasing, and if necessary, involving a construction specialist," explains Kosk.

"One of the most important recommendations is to check the real estate documentation. Special attention should be paid to older private houses, where extensions or renovations have been made over the years. For example, a veranda may have been converted into a living space or a bedroom built in the attic, but these changes may not be reflected in the building register. Such defects can later cause problems with bank loans, insurance, and reselling the property," says Ott Kosk.

According to the head of Kosk Real Estate Agency, when buying an apartment, attention should also be paid to the condition of the entire apartment building and the activities of the apartment association. "The buyer is not only acquiring four walls and beautiful interior finishing, but also becomes a co-owner of the entire building's common areas. You should definitely find out whether the apartment association has loans, what renovation work is planned, and what the actual utility costs are. An apartment that seems cheap can turn out to be quite expensive if major renovation work is awaiting in the coming years," adds Kosk.

Ott Kosk emphasizes that it is also important to check access to the property and to get to know the surroundings at different times of day. "The fact that there is a road leading to the property does not always mean that there is a legal basis for using it. Also, an area that is quiet during the day can become noisy in the evening. The buyer should also think about the daily logistical side – schools, kindergartens, public transport, and shops affect the value of the home and quality of life much more than initially thought," he explains.

Regarding hidden defects, it is also important to understand the seller's liability. In the opinion of Kosk Real Estate Agency, it is in the interest of both parties to have the most thorough information exchange possible before the notarial transaction. "The seller should disclose all significant defects known to him, whether it is a previous water damage, a leaking roof, or an inadequate electrical system. The seller's liability can also arise in cases where he was not aware of the defect himself. At the same time, the buyer cannot expect a 50-year-old house to meet new construction standards. Therefore, the condition of the real estate and the parties' agreements should be fixed in the contract as precisely as possible,".

"If after the purchase a hidden defect is still discovered, the problem should first be documented, if necessary, get a specialist's assessment and inform the seller in writing within a reasonable time. One should not immediately start extensive repairs or legal disputes. Often it is possible to find a solution that suits both parties through negotiations," adds Kosk.

According to Ott Kosk, the head of Kosk Real Estate Agency, it is not possible to completely eliminate all risks associated with buying real estate, but through thorough preparation, they can be significantly reduced. "A good real estate transaction does not only mean a suitable purchase price, but also peace of mind that you know what you are buying. A professional agent helps verify documentation, spot potential hazards, and ask the right questions. My advice is simple – do not rush, check and ask. Sometimes one question asked at the right time can save tens of thousands of euros," Kosk concludes.

If you are buying or selling real estate and want to do it consciously and safely, you can always contact Kosk Real Estate Agency. We are here to help. www.kosk.ee.