How does bidding on a house actually work? It is a question that many first-time buyers often have. You've just had a viewing and you know for sure that this is your dream house! This article covers all the tips you need to make a winning bid!
Ask about the sales method
In principle, an estate agent always indicates in advance in the sales text, for example, or during viewings, which sales method is being used. In most cases nowadays, the sale is through aclosed tender or an Open Auction. This means that you can make your bid known to the real estate agent before a certain deadline.
If no deadline is used, then we can speak of regular bidding. In this method, candidates can make an offer without a time limit and it is immediately shared with the seller and broker.
Examining the pieces
As part of your duty to research, you should always carefully study the property's documentation prior to bidding. The real estate agent releases this via the website or in an online Dataroom. Pay close attention to items such as possible ground leases, points that surface from the seller's questionnaires, and what items remain behind in the home.
Viewing the property
Perhaps you have already had a good look at the photos and gone through all the documents, but during a viewing you may still see things that could influence your offer. If certain points in and around the house are in poor condition, it is wise to reserve an amount for this and include a technical inspection as a condition.
Determining your bid
Then it is good to know what you want to offer. The amount of the purchase price depends on many different points. If you have your own house, it is a good idea to ask for an appraisal as a starting point for your offer. If you do not yet have a house, then it starts with the amount of a mortgage, or possibly an NHG mortgage.
Submit your bid
With the introduction of the Bid Log, you are now required to submit your bid digitally. This can be done, for example, through the online bid form at Eerlijk Bieden.
What should be in your bid?
You have done your homework beforehand and want to bid on a property. It is important that you mention all the points that may be important for a seller to consider your bid. Below is an example of the points you can include in your bid.
The data of the buyer(s)
Always provide your contact information and possibly that of your partner. Think of the names, phone numbers and email address. This way the broker can contact you in case of questions.
The purchase price
The purchase price is really nothing more than the amount you are willing to pay for the property. Pay attention to whether "buyer's costs" or "freehold" is used.
Conditions precedent
Resolutive conditions are there to protect you as a prospective buyer. If you want to use resolutive conditions, you have to mention them in advance when you make your offer. The most common conditions are a 'financial condition', 'technical inspection' and the 'no-risk clause'.
It is wise to specify the conditions well. If you include a financial reserve, for example, state the amount and the duration of the reserve. This will ultimately help the seller to compare all candidates.
If you do not (properly) state the resolutive conditions and they are not included in the purchase agreement, you may risk a 10% penalty on the purchase price if the sale has to be cancelled. Therefore, always be well informed in advance by a purchase agent or a financial advisor.
Delivery preference
For the seller, it is important to know when you would like to move into the property. In most cases, the seller's wishes have already been communicated by the estate agent. It is good to indicate your preferences as well and to have them correspond as much as possible. You can imagine that sellers might not want to wait a year for the transfer, which would mean double costs when buying another property.
Motivation
Finally, the right of award is becoming increasingly important to sellers. Therefore, it can work to your advantage to leave a message to sellers.
Waiting for the result
Regardless of the sales method, the estate agent always meets with the seller to discuss the bids. It may therefore take a while before the results of the sale are received.
Bid via Eerlijk Bieden
In order to reduce the differences between offers, Eerlijk Bieden has developed a clear online bid form that allows everyone to leave the same information. So you never have to worry again about whether you have overlooked certain points.
If you still have questions while making an offer, you can always ask us for help in the same area! Curious about the possibilities of the quality mark of Eerlijk Bieden ? Click here or ask your broker!
