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Old 31.10.2012, 11:01
Züricher Züricher is offline
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Re: Bidding on a house. What is the trend?

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You are prepared to pay CHF300k over what the bank is valueing the house at? That's 8 years of rent at CHF3200 or so!

Bid what you think the property is worth, and if you haven't got CHF300k to spare then bid what the bank is willing to lend you or lower!

I don't know the second round rules, but I think it would be smart to bid less in the second round than in the first round! Cos people are more likely to bid their fair value on the second round.

These multiple round sealed-bid auctions are stupid and are just used to extract more money from fools than anything else!
As we talked above, I guess this is the banks' behaviour that they value the house less then the advertised price because they calculate everything accordingly when they give mortgage. If one wants to sell the house after a while, he will advertise the house with at least the same price as the first one (or even more, of course if the area is not decreasing the value in general or something else bad happens).

What I understand is the whole thing is like playing poker, you have to take risks, and close your eyes at some point and go for it.. Which is something new and strange to me as the house buying process is completely different in my country..
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