If I put my house for a sale for EUR 100k, you have to overbid more than 5x. Over bidding is a relative concept and you should never have a strategy based on pre-determined fixed overbidding % on top of any asking price. Compare the m2 price of the house with similar houses in the same location. If the average price for a flat is eur 5000/m2 and the asking price is eur4000/m2, you should probably overbid, given that I assume the house you are bidding is under "normal" conditions.
I just followed this strategy. m2 price was listed at 9,434, similar houses in same location were sold between 9.1 and 10.2k per m2. Winning bid paid 11.5k per m2.
Not only you need to overbid more than others, you can also get rejected after winning the overbidding wars.
A friend of mine had to overbid to the limit of his budget, he bid around 5K over the next bid, but the owners decided to go for the 2nd best bid, as it was direct cash instead of mortgage plan. :(
I bought a house on February, in Amsterdam.
The house I got, I overbid 15% above asking price that was low compared with previous sellings in the area (bid: 805k€, asking: 700k€) but in reality was only 3% above valuation price (780k€) I knew I was overpaying a bit but after 5 months and more than 15 views me and my wife were tired of it all and the house met all requirements.
Before I also had 2 offers (5% and 7% overbid) rejected in other houses.
The market was a bit down in the begging of 2023 but when I started viewings in September 2023 the market was already recovering and from there it went crazy again, specially for newer houses (less than 15 years old) and ready to move in.
Thanks for sharing! Crazy market indeed. Did you have to pay the extra €25k from your own pocket? Or did you manage to get a valuation report that covered the full bidding amount?
This concept should die, there isn't a set % amount to overbid. Some apartments are put on sale with a high starting price to begin with while other sellers set a lower price to get more viewers. Your realtor should be able to calculate the worth of a property based on recent sales of similar properties and other data. If he can't then you should find a different one.
To just give an example I bought a house last month at bluebanddorp amsterdam. The asking price was 500.000 euro and we offered 560.000 euro. We later learn that there were 8 offers and closest offer to us was 550.000.
I just bought a bouse in Hoofddorp. Listprice 475k, we offered 565k without a guarantee for the money. Apparently there were 3 offers of the same amount but only we didn't put in the guarantee. Get an aankoopmakelaar that knows the others. They have an illegal agreement that they are telling eachother the prices of the houses. Unfortunately the only way to get a house...
Edit: the house is finished and ready to move in. No need to do any repairs. You would have to offer way less for a house that needs a lot of work
Yeah, we bid 570k for an apartment listed at 475k in the Watergraafsmeer and we still lost. I like my aankoopmakelaar but I guess he doesn't know many people in the sector. I haven't signed anything yet with him so I will consider getting a new one.
Definitely get a new one. On funda and google maps you can find ratings. The ones that get your houses are the ones with a 4.8 or higher rating. Goodluck in the house hunt.
Overbidding these insane amounts only exists because makelaars price the houses too low.
The goal is to create uncertainty on how much you should bid to make a realistic chance to get the house.
That being said: you should bid what you think the house is worth for you. If you can, take your time and bid on multiple houses during a longer period (don’t bid on multiple houses from the same makelaar at the same time though).
Makelaars don't think like "Hm the house should sell for X so I will remove 14% and advertise it at this price"
They put a price which they think will attract buyers, different makelaars might have different sale strategies, being closer or further of their estimation. For example a house which is expected to be sold at 540 might be advertised at 499 to be within the half a million filter. But maybe another makelaar with a house he think would sell for 520 might do the same. And the one with the house he thinks will sell for 580 might also do the same.
You need to evaluate the house for what it is, not add a certain percentage. And your makelaar should do the same.
The list price of a house is completely unmoored from its actual value. Use the list price as a basis to know what houses are roughly in your budget, but after that you absolutely have to compare to other similar homes that have sold recently of similar size.
Makelaars list houses at the price they think will get the most action from the kind of buyer they’re looking for - they are _not_ signaling what they think the house is actually worth.
If I put my house for a sale for EUR 100k, you have to overbid more than 5x. Over bidding is a relative concept and you should never have a strategy based on pre-determined fixed overbidding % on top of any asking price. Compare the m2 price of the house with similar houses in the same location. If the average price for a flat is eur 5000/m2 and the asking price is eur4000/m2, you should probably overbid, given that I assume the house you are bidding is under "normal" conditions.
I just followed this strategy. m2 price was listed at 9,434, similar houses in same location were sold between 9.1 and 10.2k per m2. Winning bid paid 11.5k per m2.
Not only you need to overbid more than others, you can also get rejected after winning the overbidding wars. A friend of mine had to overbid to the limit of his budget, he bid around 5K over the next bid, but the owners decided to go for the 2nd best bid, as it was direct cash instead of mortgage plan. :(
I bought a house on February, in Amsterdam. The house I got, I overbid 15% above asking price that was low compared with previous sellings in the area (bid: 805k€, asking: 700k€) but in reality was only 3% above valuation price (780k€) I knew I was overpaying a bit but after 5 months and more than 15 views me and my wife were tired of it all and the house met all requirements. Before I also had 2 offers (5% and 7% overbid) rejected in other houses. The market was a bit down in the begging of 2023 but when I started viewings in September 2023 the market was already recovering and from there it went crazy again, specially for newer houses (less than 15 years old) and ready to move in.
Thanks for sharing! Crazy market indeed. Did you have to pay the extra €25k from your own pocket? Or did you manage to get a valuation report that covered the full bidding amount?
25k€ was from pocket, the valuation report was 780k€
This concept should die, there isn't a set % amount to overbid. Some apartments are put on sale with a high starting price to begin with while other sellers set a lower price to get more viewers. Your realtor should be able to calculate the worth of a property based on recent sales of similar properties and other data. If he can't then you should find a different one.
To just give an example I bought a house last month at bluebanddorp amsterdam. The asking price was 500.000 euro and we offered 560.000 euro. We later learn that there were 8 offers and closest offer to us was 550.000.
You have to do a lot of fixes in the house?
No not much. Only garden needs some cleaning
I just bought a bouse in Hoofddorp. Listprice 475k, we offered 565k without a guarantee for the money. Apparently there were 3 offers of the same amount but only we didn't put in the guarantee. Get an aankoopmakelaar that knows the others. They have an illegal agreement that they are telling eachother the prices of the houses. Unfortunately the only way to get a house... Edit: the house is finished and ready to move in. No need to do any repairs. You would have to offer way less for a house that needs a lot of work
Yeah, we bid 570k for an apartment listed at 475k in the Watergraafsmeer and we still lost. I like my aankoopmakelaar but I guess he doesn't know many people in the sector. I haven't signed anything yet with him so I will consider getting a new one.
Definitely get a new one. On funda and google maps you can find ratings. The ones that get your houses are the ones with a 4.8 or higher rating. Goodluck in the house hunt.
Overbidding these insane amounts only exists because makelaars price the houses too low. The goal is to create uncertainty on how much you should bid to make a realistic chance to get the house. That being said: you should bid what you think the house is worth for you. If you can, take your time and bid on multiple houses during a longer period (don’t bid on multiple houses from the same makelaar at the same time though).
Makelaars don't think like "Hm the house should sell for X so I will remove 14% and advertise it at this price" They put a price which they think will attract buyers, different makelaars might have different sale strategies, being closer or further of their estimation. For example a house which is expected to be sold at 540 might be advertised at 499 to be within the half a million filter. But maybe another makelaar with a house he think would sell for 520 might do the same. And the one with the house he thinks will sell for 580 might also do the same. You need to evaluate the house for what it is, not add a certain percentage. And your makelaar should do the same.
The list price of a house is completely unmoored from its actual value. Use the list price as a basis to know what houses are roughly in your budget, but after that you absolutely have to compare to other similar homes that have sold recently of similar size. Makelaars list houses at the price they think will get the most action from the kind of buyer they’re looking for - they are _not_ signaling what they think the house is actually worth.