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Old 17.12.2013, 13:26
meloncollie meloncollie is offline
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Re: Buying a house with less than 20% of price as own funds: possible?

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I hope you guys don't mind if I ask another question here, which I think related and might be useful for the OP.
We're also in the process of getting a mortgage. My question is; how do we know the market value of the house except for the fact that some banks can send an expert to inspect and appraise the value? I was told that we should use our guts feel but I wonder if there's a more objective mechanism in place. The thing for us is; the house is very unique. It is an erdhaus with special design and we wonder if that design factor would increase or decrease the market value( which we know based on size, number of rooms, year built.)
Thank you in advance!
It is a very subjective market - and if the house is unique all the more so. Will uniqueness increase or decrease the value? Hmmmm... Roll the dice.

First thing - is resale a consideration for you? For many buyers it is not, as most Swiss only expect to leave a house feet first - but for those of us whose lives are less stable resale is something that has to be considered.

I've walked away from several 'unique' houses because I knew that although I liked the house there would be few other people to whom the house would appeal, especially at that price, and thus resale too big a risk.

The old adage "location, location, location" still trumps everything else in Switzerland - 30 min commute to a large metro employment center with good commuting infrastructure is valued across most housing types. Farther away from a metro center, or in a less desireable neighborhood, a 'unique' house might lose value.

Single family homes will hold value regardless of how unique, IMO, simply because so few are available and so few are being built.

At present, if the house is under 2 mio in a good location then the land value is really all that counts. At that price, most buyers will be willing to tear down a house that doesn't suit one's taste. If the price is higher than 2 mio, then the uniqueness of the house comes into play.

But are there more objective criteria? Not really - here I would be guided by your bank's assessment and your gut feeling.

Good luck!
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