Overbidding on a house long the norm
Overbidding on a house was the norm on the housing market for several years. Amounts of more than a ton above the asking price no one was surprised about. Yet several sources indicate that the housing market is slowly cooling. Eerlijk Bieden investigates whether it is still necessary to overbid.
Housing market cooling down
Until a few months ago, it was total chaos in the housing market: too little supply, historically low interest rates and a huge demand for homes. Since the war in Ukraine and the rapid rise in interest rates, the tide seems to be slowly turning in the housing market. More and more homes are coming up for sale and the number of viewings is gradually decreasing. In theory, therefore, with more supply and less demand, house prices should quickly stagnate, or even decline.
Yet this picture does not yet emerge in practice. It is true that there are fewer candidates for one house and negotiating is possible again, but the real price drop has yet to materialize. Brokers do see more and more that especially the unique houses and half-timbered houses are not selling as fast as before. This is explained by the high cost of building materials and the shortage of personnel in the construction industry.
Another explanation for high house prices is the fact that many people still expect a certain price for their home. This is particularly prevalent among households who have purchased a newly built home that will not be ready for months or years. Because the new-build home has already been purchased by then, they do have to charge a high asking price in order not to be left with residual debt.
Do you still have to overbid on a house?
Also from the data of Eerlijk Bieden it can be noted that the number of bidders has decreased by about 35% in recent months. What is striking, however, is that the final sales price does not differ significantly from previous months. This is probably because - despite the increasing supply on the housing market - there are still many home seekers active. In addition, several mortgage brokers are already reporting that interest rates will start to fall in the coming weeks.
In short, there is unfortunately no uniform answer to the question of whether you should still overbid on a house. At the moment there are large regional differences and the type of home can also play a role. However, we have listed a number of useful tips for you for your next bid.
Tips bidding on a house
Use the tips below so you can bid and live with peace of mind.
1. Read all the documents of the property carefully
Before you make an offer, it is very important that you check all the documents properly. With the Dataroom from Eerlijk Bieden this has become a lot easier. If you have doubts about certain documents, or the lack of them, always ask the selling broker.
2. Engage a mortgage broker
The seekers of purchasing brokers always have an advantage because they are standard checked by a mortgage adviser. It is therefore advisable to meet with a mortgage consultant, especially if you intend to outbid yourself on a house.
By mentioning that your offer is substantiated by a mortgage broker you immediately remove all doubt from the seller and the broker. This is important because a seller is not waiting for the purchase agreement to be rescinded because the buyer is unable to make financial arrangements.
3. Work out all the details of your bid well
The seller and broker often receive several bids on a property. In addition to the purchase price, they also consider whether the offer is at all feasible. So take the time to explain your offer in more detail. For example, specifically mention when you want the transfer to take place at the notary.
4. Get advice from a buying agent
It may seem like a big investment beforehand to use a buying agent, but they can also save you a lot of money. By understanding special data, a buying agent can help you make a real offer, so you know you will never overbid on a house.