Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 06.01.2018, 11:36
DantesDame's Avatar
Forum Veteran
 
Join Date: Jul 2012
Location: Basel
Posts: 1,346
Groaned at 8 Times in 8 Posts
Thanked 1,488 Times in 643 Posts
DantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond repute
Purchasing a property - how to succeed?

We are looking into buying a holiday property and based on the realtor's comment, there is "a lot of interest" in this particular property.

As I understand it, there is not the custom of bidding on a house (like is too common in the US), so how does one go about being the Chosen Buyer?

I am currently getting the financing in order so that is at least taken care of.

Does anyone have any suggestions on what I can do in order to be the most appealing buyer in a situation like this?





Secondary question: what would I look up in order to determine who owns neighboring properties? I do not know the name for this in English, let alone German
__________________
"You don't know unless you ask"

Like motorcycles? Like photos? Check out my website: www.dantesdame.com
Reply With Quote
  #2  
Old 06.01.2018, 11:39
Guest
 
Posts: n/a
Re: Purchasing a property - how to succeed?

A holiday property in Switzerland, you mean? In a resort or an 'ordinary' village/town- there is no one tactic fits all. Do you know the history of that property, how many times it has been sold and for how much, etc?
Reply With Quote
  #3  
Old 06.01.2018, 11:41
roegner's Avatar
Moderately Dutch
 
Join Date: May 2011
Location: Zurich
Posts: 11,046
Groaned at 363 Times in 304 Posts
Thanked 13,869 Times in 6,475 Posts
roegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond reputeroegner has a reputation beyond repute
Re: Purchasing a property - how to succeed?

And: there is a lot of interest in that property, is something all realtors say
Reply With Quote
The following 11 users would like to thank roegner for this useful post:
  #4  
Old 06.01.2018, 11:52
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 31,567
Groaned at 2,347 Times in 1,708 Posts
Thanked 38,357 Times in 18,103 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Quote:
View Post
As I understand it, there is not the custom of bidding on a house
Of course there is.

We sold MIL's house to the highest bidder, for 300k more than the initial bid.

Tom
Reply With Quote
  #5  
Old 06.01.2018, 12:00
Forum Legend
 
Join Date: Sep 2006
Location: na
Posts: 10,895
Groaned at 34 Times in 30 Posts
Thanked 25,550 Times in 7,950 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Just to check, are you also a Swiss/EU citizen? (Or your husband?)

I ask because one reason we have been unsuccessful in buying a holiday property is that, as non-EU hoi-poloi who own a primary house, we are required to get a permit (generally from the Gemeinde) in order to purchase a holiday home. Even with C permits we are restricted. That permit process takes a long time - by which the property will have already been sold to other, unrestricted buyers. In some Gemeinden a the non-EU holiday home permit is likely a non-starter, by the way.

So make sure that the sellers understand that they are dealing with somone without the shackles of the non-EU second home restriction.
Reply With Quote
  #6  
Old 06.01.2018, 12:15
DantesDame's Avatar
Forum Veteran
 
Join Date: Jul 2012
Location: Basel
Posts: 1,346
Groaned at 8 Times in 8 Posts
Thanked 1,488 Times in 643 Posts
DantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Quote:
View Post
Of course there is.

We sold MIL's house to the highest bidder, for 300k more than the initial bid.

Tom
Good to know


Quote:
View Post
Just to check, are you also a Swiss/EU citizen? (Or your husband?)
Thanks for the tip!

My husband is Swiss and I have my C Permit. We are also investigating whether the property would be in his name alone, versus dragging my US citizenship into this
Reply With Quote
  #7  
Old 06.01.2018, 12:25
st2lemans's Avatar
Forum Legend
 
Join Date: Dec 2010
Location: Lugano
Posts: 31,567
Groaned at 2,347 Times in 1,708 Posts
Thanked 38,357 Times in 18,103 Posts
st2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond reputest2lemans has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Quote:
View Post
My husband is Swiss and I have my C Permit. We are also investigating whether the property would be in his name alone, versus dragging my US citizenship into this
No problem having it only in his name, my wife bought a vacation home last year and it's only in her name.

(however, she bought it outright and there is no mortgage, so if you have a mortgage it might be different)

Tom
Reply With Quote
  #8  
Old 06.01.2018, 12:35
Forum Legend
 
Join Date: Jun 2008
Location: Zurich
Posts: 8,274
Groaned at 294 Times in 223 Posts
Thanked 18,941 Times in 6,604 Posts
k_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond reputek_and_e has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Quote:
View Post
We are looking into buying a holiday property and based on the realtor's comment, there is "a lot of interest" in this particular property.

As I understand it, there is not the custom of bidding on a house (like is too common in the US), so how does one go about being the Chosen Buyer?

I am currently getting the financing in order so that is at least taken care of.

Does anyone have any suggestions on what I can do in order to be the most appealing buyer in a situation like this?

Secondary question: what would I look up in order to determine who owns neighboring properties? I do not know the name for this in English, let alone German
when we bought our holiday place, the selling real estate agent offered an appointment with the Grundbuchamt. they explained the situation regarding ownership and was very helpful.

as for interest, the key question of course how long it is on the market.
Reply With Quote
The following 2 users would like to thank k_and_e for this useful post:
  #9  
Old 06.01.2018, 17:47
Forum Legend
 
Join Date: Sep 2006
Location: na
Posts: 10,895
Groaned at 34 Times in 30 Posts
Thanked 25,550 Times in 7,950 Posts
meloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond reputemeloncollie has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Re: Bidding

There are several ways the seller might want to conduct the sale; a good estate agent will be clear as to the process, albeit not necessarily the intent.

From personal experience, the majority of properties I have been interested in (which may or may not reflect the market - who knows) tend to go with rounds of bidding. That is, you and all other interested buyers make an initial, usually written, offer. After that round, either all or the top X number of offers are then invited to submit another offer. This might end with round two, or might go on for many more rounds. All depends on what drives the seller. Make sure you are clear as to the process for this particular property.

If there are many people interested, there will likely be some variation on rounds of bidding. But not always, some sellers say make your best offer, punkt fertig.

When we bought this house we were the only people who made an offer. (Should have been a clue...) so we made a verbal offer to the agent, he got back to us with a counteroffer, we counter-countered, etc. Very similar to how I have bought in the US. But I imagine if other interested buyers had been there the process might have been different.

Note: Always put an expiration on any offer. I once had an agent contact me several years later on a offer I had been told was rejected, congratulating me that the seller had now accepted my offer. Whisky Tango Foxtrot? I told him to get you-know-what'd. Fortunately by that time I had learned a thing or two about the games played here, so had put a clear expiry date on that offer.

If you are not well versed in Swiss property law or without a big ol' spoonful of healthy distrust of your fellow man, a consultation with a lawyer on the general ins and outs of property purchasing here may be the best investment you can make.

Unlike with US property purchase where you each have an agent specifically working for you who is at least theoretically bound to ethical and legal standards, and each have your own lawyer, also acting with fiduciary duty to watch your interests, here there are few consumer protections. Never forget - no one works for your interest in a Swiss property purchase unless you have specifically paid that person to do so. And even then, count your fingers after shaking hands.

Processes are not always transparent. Sometimes the seller decides to change the bidding rules midway. Sometimes one buyer will have an inside track, either Vitamin B or some other non-monetary asset that the agent or seller values. Sometimes the agent won't put forth all offers, one can speculate why on one's own. Sometimes your offer is only being used to get someone else to pony up a bit more. Sometimes the property isn't even seriously for sale, the seller is simply doing a dry run to gauge market value. And if the sellers are an Erbgemeinschaft, make sure that the person you are speaking to is really, truly, authorized to act for the group.

So ask pointed questions of the agent (and the owner if you are lucky enough to meet him or her) and read between the lines to determine what the seller is looking for.

99.99% if the time it's likely to be the most money possible. Occasionally you will get someone who puts nostalgia or some other factor first.

For instance, a seller might want only a local to buy the property. Or only a Swiss. Or someone with (or without) children. Or someone with (or without) pets. Or the seller might want it to go to someone whose life seems similar to his or hers. Could be any number of factors that would motivate such a seller. Typically these sellers have a property that has been in the family for generations, rather than a new build. But not always.

Some sellers ask for a statement from your bank as to your financial viability. This is more than a confirmation of mortgage qualification. (And often this is asked before you would be allowed to view the property.) If so, be very clear with your account manager as to what information he or she may disclose. It should only be a general statement such as 'Frau X can afford this property', without any mention of numbers. You don't want assumptions about your financial state to allow the seller to think he or she can squeeze more money out of you.

Some sellers ask for your personal biography and/or a 'motivation statement' to go along with your offer. That's a sign to me to walk away, as that type of seller will never choose someone like me, no sense in losing my heart to that property. YMMV.

Bottom line: Any info you can glean as to the seller's motivation will help you make a more sensible offer. But - never, ever allow yourself to get caught up in the emotion of a bidding war. Set your upper limit in stone now, and always be prepared to walk away.


Good luck!
Reply With Quote
The following 9 users would like to thank meloncollie for this useful post:
  #10  
Old 06.01.2018, 21:39
DantesDame's Avatar
Forum Veteran
 
Join Date: Jul 2012
Location: Basel
Posts: 1,346
Groaned at 8 Times in 8 Posts
Thanked 1,488 Times in 643 Posts
DantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond reputeDantesDame has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Wow Melloncollie - that is quite the answer. Thank you for taking the time to write it all out for me (and anyone else who might come along later).

I will take this into consideration. We have already purchased property here and it went quite well for us, but I understand that every transaction is different.

My underlying feeling right now is that I will fall in love with the property but not be willing (able?) to bid high enough, if it comes to that. It really is in (what I consider) a perfect location, and it just what I have been wanting

We'll see!!
__________________
"You don't know unless you ask"

Like motorcycles? Like photos? Check out my website: www.dantesdame.com
Reply With Quote
This user would like to thank DantesDame for this useful post:
  #11  
Old 07.01.2018, 00:25
Guest
 
Posts: n/a
Re: Purchasing a property - how to succeed?

In my limited experience, which consists of buying one apartment ten years ago, and one multi-dwelling chalet just last week (and of course looking into other properties both times) making an offer below the asking price is considered normal.

I find it hard to imagine someone pricing their property at below what the market will consider our worth - rather the opposite, with a significant proportion being set at purely speculative asking prices in the hope that a sucker falls for it and is prepared to pay over the real value.

In one case we'd seen a property we really liked but the price seemed 'a bit on the high side', so we commissioned a proper valuation (cost us 1500chfs) which came up with a figure of less than 70% of the asking price. One of the points made in the valuation report was that this really was a 'liebhaberobject', meaning that the chances of being able to resell for the sane amount would be slim to none. Our offer of that amount was unsurprisingly turned down, but in the end we were happy to walk away from it.

Now it may be that our requirements are somewhat outside of the mainstream, but these experiences, and those of other people I've talked to in the past, tend to suggest that bidding as you describe it is not the norm.
Reply With Quote
The following 6 users would like to thank for this useful post:
  #12  
Old 07.01.2018, 10:07
Forum Legend
 
Join Date: May 2007
Location: Tessin
Posts: 6,351
Groaned at 124 Times in 91 Posts
Thanked 7,583 Times in 3,555 Posts
Mrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond reputeMrs. Doolittle has a reputation beyond repute
Re: Purchasing a property - how to succeed?

Quote:

In one case we'd seen a property we really liked but the price seemed 'a bit on the high side', so we commissioned a proper valuation (cost us 1500chfs) which came up with a figure of less than 70% of the asking price. One of the points made in the valuation report was that this really was a 'liebhaberobject', meaning that the chances of being able to resell for the sane amount would be slim to none. Our offer of that amount was unsurprisingly turned down, but in the end we were happy to walk away from it.
I have often wondered why people selling properly do not have a proper valuation. The buyer shouldn't have to do this. Today you can go online to several websites and by putting in the variables produce a property valuation. This is not serious.

If there is no valuation your bank will do one for you if you need financing. Even with an appraisal from a SVIT member the bank may do their own check.
Reply With Quote
This user would like to thank Mrs. Doolittle for this useful post:
Reply




Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Purchasing of property (deposit) in advance of building kiwi0041 Housing in general 13 11.03.2015 08:08
How to find property for purchasing? daffy99 Housing in general 8 04.01.2015 11:04
Purchasing a property nicnac Housing in general 25 06.10.2014 14:20
Purchasing property as a "vacation home" mkkangas Housing in general 0 13.01.2011 14:40
purchasing property - paying a deposit to the real estate agent cremebrulee Housing in general 9 21.09.2007 16:11


All times are GMT +2. The time now is 15:30.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2021, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0