How to Make a Winning Offer on a Popular House

How to Make a Winning Offer on a Popular House

There are more rivals in the field with a popular house, and more potential buyers can weaken your negotiating position. Fortunately, you can prepare yourself to determine the right opening bid. Fell in love with a popular house? No worries. This is what you can expect when you place a bid on a property involving several other interested parties.

Seller's market vs. buyer's market

The housing market is often expressed in terms of a buyer's market or a seller's market. This means that sometimes it is favorable to sell a house, and at other times it is better to buy.

Sellers Market

The name says it all: advantage for the seller. Supply is limited, and house prices are high. This means the seller has many interested buyers, can ask for a higher price, and often gets this price.

Buyer's market

In a buyer's market, supply is high, and house prices are low. Therefore, the buyer has a lot of options, and the seller has a lot of competition. This causes prices to drop, which is beneficial for buyers.

At the moment, we are still in a seller's market. House prices are still high, and houses sell quickly. Unfortunately, that means the buyer has limited choice and often pays more for a house than it's actually worth.

As a home buyer, you experience a lot of competition; the demand for houses is greater than the supply, and houses sell quickly.

Higher prices, smaller houses

But how can house prices level off or drop while square meter prices continue to rise? The answer is simple: people buy smaller homes for a higher price per square meter.

The statement of Het Parool that house prices in the Amsterdam region are falling and the market is cooling down is therefore not valid. Instead, we see an accelerated increase in cost per square meter and a shift in house sales. The most frequently sold houses in Amsterdam are smaller than 80m². On top of that, as a home buyer, you experience a lot of competition; the demand for houses is greater than the supply, and houses sell quickly.

A real estate agent may not tell you the highest bid but may ask you to make a final offer.

Bidding and negotiating on a house with several interested parties

Although it may seem unfair, bidding on a house with multiple interested parties is a well-known phenomenon in the current housing market. The seller's agent can negotiate with different parties even if you offer the asking price or higher. The broker must let you know how many parties are in the negotiating process.

A broker is not allowed to set different parties up against each other. The broker must keep the parties informed at all times if there are multiple bids. It is not permitted to disclose the highest bid, but the broker may ask you to make a final offer.

Strengthen your negotiating position

Suppose it's the house of your dreams, then it is very stressful to find out several parties are interested. That is why your negotiating position must be the strongest. Wonder how to handle this? Here are some tips.

Whether or not to hire a buyer's agent

If you don't have a lot of time for house hunting, if you need to know what to check during a viewing, or if you need help negotiating, you can hire a buyer's agent. They know the value of a house and how much you have to offer to have a chance of winning the place. They will help you with all the steps of buying a home.

We have news for you: you can do all this by yourself. Since the arrival of it has been easy to get a good insight into the market, and most house hunts start here. In addition, you can find the actual value of your home on Walter Living, so you will be well prepared. At Walter, you get essential information only experts have.

If you offer too little, the house will pass you by, but if you bid too high, you probably pay too much.

A correct opening bid

It's exciting to determine an opening bid. If your offer is too low, the house will pass you by, and you will pay too much if your bid is too high. Therefore, you want to make a reasonable offer so you stand a chance during the negotiation.

Do you want more help to increase your chance of winning the bid? Then go for Walter. Walter is an algorithm developed by Walter Living that systematically predicts a winning bid. This way, you can estimate what other possible buyers are doing, and you will never pay too much for a house.

At Walter, you receive a personal bidding strategy from your Walter Expert per house. You pay a one-off € 3,950 for Walter. The Walter expert guides you - just like a buyer's agent - during the whole process, but it costs a fraction of its price. And time.

Outbid on a house

The chance of outbidding a popular house is high. In this crowded housing market, it happens often. Make sure you don't overbid more than you can afford. Determine your maximum price before placing an offer based on your budget and what you think the house is worth. The conditions you include in the purchase deed can ensure your offer is accepted.

Resolutive conditions

The highest bid can be something other than the winning bid. The conditions included in the purchase deed are usually just as important. Your specific conditions can make the offer more attractive to the seller and ensure your offer is accepted.

Remember that if you break the deed of sale, unlike the basis of resolutive conditions, you owe 10% of the purchase price. In "Buying a house part 4," you will learn more about resolutive conditions such as: being subject to financing, building inspection, selling your own house, or a national mortgage guarantee (NHG).

Make an offer!

With this knowledge, you can start with a well-prepared opening bid. Do you still want some extra help with bidding or negotiating? Then, check out what Walter can do for you. Together we will increase your chance of winning that bid. Good luck!

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