8 Steps to Buying a Property in Georgia

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1. Property Selection - The type of transaction we want to execute should target the searches for the most suitable property and area. Searching for an online property will limit your success as the Georgian properties sites are not always easy and most importantly, would not show the most attractive properties as most of the population doesn't tend to advertise their properties online. The way to be exposed to the best properties is to get a good local realtor who is familiar with the local market and the area relevant to your potential investment (keep in mind that only the seller is the one who pays the realtor and not you).

2. Negotiation - Suppose you have found 2 potential assets and you have to choose one of them, the negotiation stage may be the one that will determine who the "winning" asset is. Note that if the locals identify you as a potential foreign investor (especially those who do not speak the language) they may change the price or trick difficulties during the negotiation but at the same time, because you are a foreigner, there is plenty of room for negotiation (you should come with someone who will control the negotiation in their language). Beyond the price, this is the moment to decide on the method of payment and when it will be made. It is very important to decide on this in advance because purchases had already canceled due to a lack of decision on the timing of payments (do you first pay and then transfer the apartment in your name or vice versa? Do you transfer the entire amount before transferring registration or only part?). This should be done right especially if you don't buy a new apartment in a new project. Don't forget to make sure the seller is paying all utility bills up to the purchase date so you won't get any surprises after the purchase.

3. Bank account set up in Georgia - Once you have decided that you are going to complete a purchase and chose a particular property, you must open a bank account to make the payment for the property as well as to pay future bills, property management fees, and more. We have prepared a guide for you to open a bank account in the next article. We advise you to take of it in advance as it takes some time to set up a new operational account in Georgia (about 4-7 days).

4. Real estate purchase contract - the purchase contract will be created for you by a realtor (not recommended) or an attorney (highly recommended). The purchase contract is usually very simple and may even be written on one page. Usually, for foreign investors, the contract will be written in 2 languages. A local language and a language that the investor understands like English or Russian.

5. Going to government offices to change the name of the owner - after the purchase, you must visit the governmental offices and change all utility bills in your name (or the name of your local contact). The transfer must be handled with the water company, the gas company, the electricity company, the cable company, and the Internet company. After you will finish the process you can pay the new utility bills using the app of the bank but the notifications of the new utility bills can only reach a Georgian number for all we know (management company or local contact will take care of it). All payments can be made using the bank website on the Internet (in English), even without the help of a local contact.

6. Renovation and furniture - If you bought an apartment in a new project, there is a high probability that you purchased it in a white frame condition, which requires a mostly renovation in order to bring the apartment to a ready-for-sale/rent condition (Read about different property types in Georgia here). Even if you decide to buy a house in the city center, you will probably need to do a small renovation to make it more attractive and different from the competition of most apartments in the market. It is important to find a professional and reliable team to carry out the work and control the entire process.

7. Find the right tenant/buyer - The apartment is finally ready for rent and you want to find the right tenant/buyer to complete the process. Whether you are planning to rent the apartment for a short term, long term, or sell it in a Flip deal, you will need to contact a Georgian real estate agent to take care of it. Realtors tend to take 3% -5% of the purchase price in the case of sale or 1-month rent in case of rent. Please notice that there is currently no need for a realtor to get a diploma or a professional document to serve as a real estate agent.

8. Property management - In some of the new and larger projects, the company that builds and sell the apartments will offer you maintenance and management services for the property (after you will complete the purchase) but in most cases, you will need to contact a local management company or at least find a local person to take care of any future problems in the apartment. The cost of this service ranges from 10%-20% of the monthly rent.

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