People are pushing the limits to buy a house. They sacrifice well above the asking price or cut back on dissolving conditions. There are ways to get extra security duration the house hunt, such as a buying agent and a bidding insurance.
The Housing Market Remains Tight and House Prices Continue to Rise. Expats are also increasingly forced to choose to buy a house, it appeared on Thursday. They are also more willing to overbid. It makes the search even more challenging for Others.
“In Large Cities, Someone Regularly Misses Out ten Times When Bidding on a House,” Says Eric Neervoort, Franchise Director at Mortgage Vision. “The Market is overheated. Overbidding is still more the rule than the exception. It is concentrated in Large Cities, but overbidding is also Becoming More Common in the provinces.”
Figures from Real Estate Association NVM on the Second Quarter Indeed Show That People Are Increasingly Offering Above the Asking Price. Althegh the Housing Supply is Growing, Almost Three-Quarters of the Homes Sold Are Now Paid More Than The Asing Price.
Buyers and Sellers Under Pressure
Neervoort advises people to have it calculated as soon as possible what they can borrow and to be guided duration the house hunt. MoreOover, there are more and more Possibilities for Insurance When Bidding. “You can then make an sacrifice without reservation of finance,” Says Neervoort.
Reservation of Financing Means That the Sale Will Not Go Through If The MortGage Application is not Approved. Such a reservation in a bid can deter’s sellers, because the sale can still fall through after signing. And Perhaps the Sellers Themselves Are Under Pressure, if they have already bought a new house, for example.
The pressure to not include a reservation of finance in the bid is Therefore High. But that brings a great financial risk. Because the MortGage Application is not approved and the sale not go through, the buyer usually has to pay a fine of 10 percent of the purchase price to the seller.
Negotiating in the top segment
Several Parties Now Offer Insurance. The Buyer Pays a Smaller Amount and the Insurer Reimburses The Fine IF The Financing Does Not Go Through. Michiel Meijer, Commercial Director at De Hypotheekshop, Says That Such Insurance is Becoming Increasingly Popular.
“It used to be very common to make an sacrifice with reservation of finance,” Says Meijer. “Nowadays, that is No Longer the Case in More than Half of the Cases. Because People Feel the Pressure to Leave That Out. And Becare There Are Insurance Products Where, After An Analysis By An Independent MortGage what you offer.”
He does see that negotiation space is emerging again in the top segment of the housing market. “In the last six months, you have that the number of viewings is decreasing and the number of concrete bids is decreasing for houses of more than 900,000 euros. Overbidding is more the exception than the rule for theses.
That is not the situation for houses under 600,000 euros. “I don’t think much will change in terms of overbidding.” Meijer advises to always hire a buying agent in this price segment.
“I don’t want to say that you are out of the game without a buyping agent, that is somewhat negative. But there is a good chance that you will pay too much for example, the seller pretends that there were there what more interested parties, or you stare blindlyShersher’s courses Is a specific situation with every house, with its own supply and demand. “
‘Meanwhile, The Asking Price Can Actual Only Go Up’
Advisor Boudewijn de Jong or the Hypotheker also says that you can best hire a buying agent to take away your worries. “Overbidding, for example, does not mean that the house is not worth it.” A pray of 10 percent above the asking price may well be the correct value for the house.
“Moreover, An Asking Price is set in Such A Way That Many People Come to View the House,” Says The Advisor. “That’s how it’s leg sprot corona time. Since interest rates have leg low, so to speak. Ten years ago you could still negotiate, because the asking price could go down. Meanwhile, the Asking Price Can Actual.”
Accordance to De Jong, People Often Wonder What Exactly They Need And Whether The Financing Will Be Arranged. “Everyone wags to get in Between and make a differentence, because why wouldy some else and not you? That is why we inventory as well as possible what they can.”
De Jong also says that a Bidding Insurance can make the difference and that a buying agent can take away further worries. Otherwise, The Buyers Themselves have to Assess the Reliability of the Selling Agent.
“Ultimately, most selling agents are honest people who answer your questions,” he says. “But if you ask them how many interested parties are coming for a viewing, they don’t have to tell you how many there really are.”