Bidding strategy when buying a home

Before viewing a property you know: up to what amount will I go? Not your mortgage ceiling — that's what the bank allows, not what's wise — but the amount you can still sleep peacefully at night with. Calculate in monthly costs: can you bear €100, €200, €500 more per month if the purchase turns out a bit more expensive?

Write your maximum down before you bid. Otherwise you'll cross your line in the heat of battle.

In a tight market the asking price is often a floor — sellers expect bids above. In a looser market or for a property that has been listed for a while, you can actually bid below asking.

How do you know which situation you're in? Ask your buying agent (or do it yourself): how many comparable properties in this street/area recently sold above or below asking? How long has this property been online?

Besides the amount you bid on conditions. For sellers these are often as important as the price:

• Financing reservation: can you withdraw if the mortgage doesn't come through? In a tight market sellers often ask for bids without this reservation — risky for you, but it wins a bidding war.
• Structural survey reservation: can you withdraw on discovery of defects? For older homes sensible to retain.
• Handover date: sellers value flexible timing. Sometimes a fast handover is decisive.
• Contents: can you offer the seller something by taking over certain furniture?

In sought-after properties sellers often ask for bids \'without financing reservation\'. That means: if your mortgage doesn't come through, you're bound to a penalty of 10% of the purchase price. On €400,000 that's €40,000 lost.

When is this doable? Only if you already have a definitive mortgage offer with a financing check, not just a \'maximum loan amount\' calculation. Don't bid without reservation without real certainty, however tempting the bid.

1. The round number: €425,000 instead of €423,500. Simple and clear, increases the chance the seller chooses you.
2. The odd number: exactly €423,500 shows substantiation. Sellers take you more seriously when you name a specific amount.
3. Short decision time: bid valid until 8 PM tonight. Only works if you're really willing to walk.
4. The personal letter: in top-tier segments buyers sometimes write a personal letter: who they are, why they want this specific home. Works particularly with emotional sellers (long-time residents).
5. The "broom-clean" offer: you accept the seller doesn't need to clean the property. Small detail, sometimes decisive.
6. The silent tactic: after your bid, no pressure. Gives the seller time to calmly consider. Don't dump all conditions in one conversation.