In the current housing market, where supply and demand are often not in balance, outbidding sometimes seems to be the only way to acquire a home. What should you pay attention to?
Offer more than the asking price
Offer more, sometimes much more, for a home than the asking price. In 2024 it seems more the rule than the exception. The housing market is overheated and home seekers notice this. “Where in the past bidding was often just under the asking price, overbidding has now become an unstoppable trend,” explains Andries Mulderij of Midden Nederland Makelaars. “That has everything to do with the housing shortage. Scarcity drives up prices. Of course there is a maximum. The question ‘how far can you go with outbidding?’ just doesn’t have a simple answer and depends on several factors. Of course, your budget is the first and most important consideration. You cannot continue to overbid if it exceeds your financial limits. Make sure you have a clear idea of your maximum mortgage and that you don’t offer more than what you can afford. It is wise to inquire in advance your mortgage advisor to find out what your maximum borrowing capacity is.”
Mortgage advice Central Netherlands Mortgages
Ronald van der Mark knows about that Central Netherlands Mortgagesall of it. “You cannot borrow more than 100% of the market value of the house. An appraiser determines this and this is decisive for obtaining a mortgage. For an appraiser, bids are of course a good reference point for the market value, but logically a house weighing 4,000 euros is never worth 6,000 euros. But 425,000 would be fine. However, the question is whether you can borrow that. Mortgage lenders also look carefully at what you can afford based on your income.”
Sales price
If there are many interested parties, the final sales price can quickly increase, as Andries knows from experience as a real estate agent. “Take this into account in your purchasing strategy. Don’t think about how much should be added to the asking price, but what is this house worth to me? If you offer above the actual value of a home, you run the risk that your home will become less valuable once the housing market cools down. This can be problematic if you want to sell over time. So think carefully about the longer term and don’t just be guided by the enthusiasm of the moment.”
Useful: purchasing help from MNM
The purchasing agents from MNM will not only help you determine a suitable offer, but also estimate the value of the home and guide the bidding process. The brokers and mortgage advisors advise you about the risks of overbidding and help you make a well-considered decision.
