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.
