We visited a house near Zurich. We have been searching for months and we really like this one so we plan to make an offer for the first time. But the real estate agent says they expect there will be competition, and if we want it we will likely need to bid an offer higher than the announced sell price.
How would we know what is a reasonable amount to offer?
Based on assessment from a banker, we have some reasonable margin but we also don’t want to go crazy. Anyone has experience with this?
When we bid for our house we bid the price they asked for. As it was sold directly by the owners they were happy to sell because they got what they wanted and knew their house was in safe hands. It helps if you bid at a log level but establish a connection with the owners first and then write a letter explaining why the house is your dream home and why you have a strong connection to the neighborhood. With some owners it really helps if you have children so if you have some you absolutely should take them along for visiting the house. The letter helped two friends get their house although they could not pay full price.
I never bought in a bubble, so I did always offer very low. And I did put in offers for various objects. The trick is using a phrase like “pending partner approval”. And of course a time limit.
Now, if you want to buy in a bubble (like right now) you probably have to offer more and probably an offer with a limiting phrase will not be accepted. It is a sellers market, but an agency will always say that to a buyer.
If your first offer is accepted, chicken out. Say something about a calculation error and that you cannot afford it, then ask for a reduced price.
But anyhow, you should not fall in love with a piece of real estate before you own it.
Probably prices will come down faster as we think, thanks to Trump. Big Pharma is leaving Switzerland and with them a shitload of highly paid people.