As someone looking for a home, you have probably heard of overbidding. In the current overheated housing market, homes are being sold well above the asking price. This has everything to do with the shortage of homes.
How much of my own money do I need?
It seems logical, but people sometimes underestimate this. Buying your own home costs money. We don't mean the loan you take out to finance your home, but the costs associated with buying a home. Since 2018, you can no longer finance the costs you incur when buying a home with the bank. These include transfer tax (21% of the purchase price), notary fees, valuation costs and a structural survey. You will therefore have to pay for these out of your own pocket.
Outbid
As we mentioned, there is a shortage of housing. This makes people inclined to pay much more money for a home. They offer more than the asking price (overbidding) so that they can walk away with the house and not the other 20 potential buyers. You shouldn't be surprised if a property is overbid by €10,000, €20,000 or even €50,000. This depends, of course, on the region, city and type of property.
But now comes the most important part. Anything you, as the buyer, offer above the appraised value must be paid out of your own pocket. When a property is listed for sale at €200,000, you can assume that the appraised value will also be around that price. The bank will not lend you anything above that amount. The bank will only lend you the valuation of the property. So if you offer €250,000, you will have to cough up the €50,000 above the valuation (asking price) yourself and have it in your savings account.
Apply for a mortgage
We are happy to assist you when you are considering making an offer on a property. When you are considering consultation Once you have completed the assessment with us, you will have a good indication of your maximum borrowing capacity. Would you like to make an offer on a property? Please let us know, and we will recalculate your borrowing capacity for you. It is a small effort on our part, but it will provide you with clarity and enable you to make an informed decision on your offer.