Open House Day: tips for buyers
Twice a year, the NVM Open House Day (NVM Open Huizen Dag) occurs. On this day, sellers open their homes for potential buyers to view. The next one is October 5th 2024. It’s a great opportunity to visit multiple properties without any obligations. Planning to attend the Open House Day? Be well-prepared by calculating your maximum mortgage beforehand so you can act quickly if you see the house you like.
Get Ready Tips
The Open House Day is a casual and non-committal event. However, with so many properties available, mixing them up is easy. You might wonder which house had that amazing roof terrace or whether it was the first or second property with the convenient elevator. Proper preparation can help you distinguish between the different homes.
How It Works
On Open House Day, walk into any home listed as participating. Find the full list of open houses here on Funda. There’s no need to sign up in advance—just visit any of the properties between 11:00 AM and 3:00 PM.
Respect the Seller’s Space
It’s important to respect the seller's home during your visit. If they ask you to take off your shoes, kindly do so. Avoid opening cabinets and drawers without permission—if you wish to look into something specific, politely ask first.
Found What You're Looking For?
If you find a property you love on Open House Day, the next smart thing is to team up with a local and certified real estate agent who can guide you through the next steps. If you already have a real estate agent, mention the houses you will visit. You can always plan a second viewing together.
Make the most of this to explore and find your dream home!
How Energy Labels Can Increase Your Buying Power
New Mortgage Rules: Boost Your Borrowing Power with Energy Labels
Starting in 2024, the mortgage landscape in the Netherlands is shifting, offering homebuyers more flexibility based on their property’s energy efficiency. Traditionally, you could borrow up to 100% of your property’s value, depending on your income, home value, and mortgage interest rates. However, new government guidelines allow you to borrow even more if your home is energy-efficient. These changes, recommended by the National Institute for Family Finance Information (Nibud), are set to impact anyone looking to buy or refinance a home significantly.
How Energy Labels Impact Your Mortgage
Starting in 2024, your maximum mortgage amount will factor in your home's energy label, together with your income, property value, and interest rate. This update ensures that your mortgage matches your financial capacity by considering potential savings on energy bills from a more efficient home.
For example, with an energy label C or D, you might qualify for an additional €5,000 on your mortgage. However, if your home boasts an A++++ rating and has an energy performance guarantee for at least ten years, your borrowing capacity could increase by up to €50,000. This change incentivizes homeowners to invest in energy-saving upgrades, as it directly influences their mortgage potential.
The Importance of Energy Labels
Energy labels rank homes based on their energy efficiency, from A (most efficient) to G (least efficient). Homes with better energy labels are more attractive to buyers due to lower heating and cooling costs. With the new mortgage rules, a better energy label means you can get a larger mortgage.
In Amsterdam, energy label A is already widespread, with over 127,000 homes achieving this rating. However, many historic homes, such as those in the Canal Belt, often have lower ratings like label G due to their age and architectural limitations. As a result, buyer preferences may shift, making energy efficiency a key factor in determining a home’s value and appeal.
Mortgage Interest Rates and Borrowing Percentages
This year, many lenders have lowered their interest rates, making it easier for homebuyers. About one-third of these rate cuts apply to short-term and long-term fixed rates, usually dropping by 0.05% to 0.10%. When you combine these lower rates with the chance to borrow more if your home has a better energy label, now could be a great time to buy or refinance a home.
Buying a Home in Amsterdam? Consider Looking Outside the Ring
If you’re looking to buy a home in Amsterdam and need to maximize your mortgage capacity, we advise you to explore areas outside the A10 Ring Road. Homes within the ring are highly desirable but are often older and less energy-efficient, making it harder to achieve a high-energy label. By expanding your search to areas outside the ring, you may find newer or more energy-efficient properties, allowing you to qualify for a larger mortgage under the new rules. This strategy could be crucial in securing the home you want with the financial flexibility you need.
What This Means for You
If you’re planning to buy a home or refinance your mortgage, it’s essential to consider your property’s energy label. While energy-efficient upgrades might require an initial investment, they can significantly increase your borrowing capacity and reduce your long-term expenses.
Conclusion
The new mortgage rules in the Netherlands strongly emphasise energy efficiency, making it a key factor in home buying. Starting in 2024, homes with better energy labels will enable buyers to borrow more, increasing the appeal of energy-efficient properties. If you’re targeting the Amsterdam market, expanding your search beyond the A10 Ring Road could help you find a home that aligns with these new guidelines, maximizing your borrowing power and opening up more opportunities in your home search.
By understanding and taking advantage of these changes, you will make smart decisions that improve your quality of life and financial stability. If you need help finding a mortgage advisor, real estate agent, or energy label expert, email us at monique@howtobuya.house. We’ll connect you with a trusted professional to assist you.
What to Bid to Get My Home? Understanding the Amsterdam Housing Market
Market Trends
The trend in Amsterdam’s housing market is clear: properties often sell well above their initial listing prices. Homes listed at €6000 per square meter can end up selling for over €9000 per square meter. This significant increase is not an exception but a growing trend. Only about 30% of homes are owner-occupied, adding to the market's uniqueness and intensity.
In Amsterdam, the housing market is unique and competitive. Seller's agents often list homes at low prices per square meter. This strategy attracts many buyers, sometimes over 100 for a single property. Among these buyers, there is usually someone with deep pockets, leading to a high-stakes, closed-bid situation. Here’s how you can navigate this market successfully.
The Closed Bid Process
When a lot of interest is generated, sellers and agents choose a closed bid system. Buyers get one chance to submit their best offer. It's not just about the money; the conditions attached to the offer are crucial too.
Factors Sellers Consider
- Buyers with a substantial amount of cash or cash offers are preferred as they provide immediate liquidity and lower the risk of financing issues.
- Having an agent adds security and professionalism to your bid.
- Teaming up with a reputable mortgage provider is beneficial if you need a mortgage.
- Offers with fewer conditions, such as flexible closing dates, are more attractive.
The Importance of a Secure Bid
Even if you submit the highest bid, it might not be chosen if it's deemed insecure. Sellers prioritize stable and secure bids. A secure bid, even if slightly lower, can outweigh a higher but riskier offer.
Tips for Prospective Buyers
- Work with a local agent who has a diploma and knows the market. Your chances of success increase by 100%. Agents only get paid by one party, either the seller or the buyer. They prefer dealing with buyers who are accompanied by a well-known agent. The real estate profession isn't protected, so ensure your agent has basic knowledge and credentials.
- Use the Right Professional for Each Task. Handling a mortgage is different from buying a property. A mortgage advisor is the link between you and the bank. They find the best mortgage rates and conditions for you, handle document submission, and manage your mortgage application. The mortgage advisor also communicates with the bank for you. A real estate agent helps you find and buy a home, attends viewings, researches the market, negotiates prices and terms, offers advice on building foundations, VvE, prepares the written offer, and more. Use the right professional for each job.
By understanding these roles, you can ensure you use the right professional for each part of your home-buying journey. The key is to combine a strong financial offer with secure conditions, increasing your chances of securing your desired home.
Stay Realistic and Follow Advice
In Amsterdam’s competitive housing market, it's crucial to stay realistic and follow your agent's advice. Understand that properties often sell for much more than the listing price. Trust your agent's insights on pricing, market conditions, and bidding strategies. They know what it takes to make a winning offer and can guide you through the process effectively. Being flexible and open to their recommendations can significantly increase your chances of securing your desired home.
If you have questions, send an email to monique@howtobuya.house.