Bidding smartly on a home: how to approach it
Making an offer feels like a gamble to many buyers. Bid too low, and you're out. Bid too high, and you'll overpay for years. With good preparation, bidding becomes a well-founded choice rather than a leap into the unknown.
Asking price is not market value
The asking price is the amount with which the seller enters the market. Sometimes it's deliberately set a little lower to generate interest, sometimes higher to leave room for negotiation. More important is the market value: what have comparable homes in the same neighbourhood recently sold for? Compare on size, year of construction, state of maintenance, energy label and location. A buying agent has access to current sales figures and makes this comparison for you.
Know your own limit
Before you bid, decide the maximum amount you're willing to go to, and factor in the buyer's costs and any renovations. Also keep in mind that your mortgage usually cannot exceed the appraised value. If you bid significantly above market value, you often have to pay the difference yourself. So have your options calculated in advance via mortgage advice.
More than just the price
An offer consists of several components. Think of:
The completion date: a seller who already has a new home sometimes values a quick transfer, while another may need more time.
Dissolving conditions: a financing contingency or structural survey protects you, but can make your offer less attractive. Discuss carefully what's sensible in your situation.
Movable items: curtains, flooring or a kitchen that stay behind can be part of the negotiation.
Bidding procedures
With a lot of interest, a seller sometimes opts for a bidding procedure. Every interested party then submits one offer before a certain date. In such a situation, your best proposal in one go counts most. A carefully substantiated offer, with clear conditions and a realistic completion date, often stands out more than just a high amount.
Bidding based on research
Don't let yourself be guided by emotion alone. Look at the documents the seller makes available, such as the questionnaire, list of fixtures and fittings, any owners' association documents and the energy label. Have doubts about the structural condition? Plan a survey. Our colleagues at renovation can estimate roughly what a renovation would cost, so you can factor this into your offer.
Negotiating in rounds
In a normal negotiation, the seller responds to your offer with a counteroffer. Stay calm and respond with arguments, not just amounts. A buying agent knows how the selling agent works and how much room there usually is. That saves stress and often money too.
When is there a sale?
As soon as buyer and seller verbally agree on the main points, the written purchase agreement follows. Only after signing is the purchase final, after which you as a consumer have three days' cooling-off period. Read more about this process in our step-by-step plan for your first home.
Bidding stronger together
Want to make an offer with solid substantiation? Our buying agents prepare it with you, negotiate on your behalf and keep an eye on the deadlines. Plan an introduction or first browse the current listings.
Common mistakes when bidding
A common mistake is bidding based on feeling rather than facts. Another is forgetting the total costs: besides the purchase price you pay buyer's costs and sometimes a renovation. Agreeing too quickly without contingencies can also create risks. And finally, buyers sometimes wait too long after a viewing, letting another party be faster. Good preparation prevents these mistakes.
The importance of a realistic rationale
An offer with a clear rationale impresses the selling agent. By referring to comparable sales, the state of maintenance or the energy label, you show that your offer is well thought out. That opens the door to a constructive conversation, rather than a lottery. It also keeps you calm during the process and helps you make decisions you'll still be happy with afterwards.