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  #21  
Old 22.05.2019, 09:49
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Re: Bank says home worth 90k less than asking price

We may be looking at the same property.

Just over 1m asking price, 3 floors + cellar? 5km south of Baden?

UBS told me it was 100k over value. Spoke to an adviser from a comparison company, they've now secured a loan for half the interest rate of UBS's offer for the value that we have offered the seller (which is closer to what UBS was valuing the house at)...

Seller has accepted our offer, but we are waiting for the countersigned reservation - so really hoping it's not the same house!
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Old 22.05.2019, 10:12
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Re: Bank says home worth 90k less than asking price

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Thanks! Didnt realize this about the SNB but great to know, do you know since when they SNB has been giving this directive? The financing we have, for me its more so about protecting the money we are investing into the property.
The regulating body is the FINMA. Their position is that self-regulation by the banks is the preferred way and has the Swiss Banks Association set the actual guidelines. The current version has been in force since 2014 but FINMA recently demanded a tightening, IIRC with the amended guidelines to be published within 2019, so expect them to come into force this or next year. The changes/tightenings mentioned most often so far include increased downpayment and quicker payback of the 2nd mortgage (like, mortgage down to 2/3 or less of the property's value within 15 years after the purchase).
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  #23  
Old 22.05.2019, 11:13
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Re: Bank says home worth 90k less than asking price

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We may be looking at the same property.

Just over 1m asking price, 3 floors + cellar? 5km south of Baden?

UBS told me it was 100k over value. Spoke to an adviser from a comparison company, they've now secured a loan for half the interest rate of UBS's offer for the value that we have offered the seller (which is closer to what UBS was valuing the house at)...

Seller has accepted our offer, but we are waiting for the countersigned reservation - so really hoping it's not the same house!
which company did you go with?
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Old 22.05.2019, 11:21
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Re: Bank says home worth 90k less than asking price

I can recomend shopping around the differnenk banks. We asked Credit Suisse, UBS and Raiffeisen for mortgages and the valuations were all different. We were told the house was valued at less and we had to bring more money. An independent valuation gave the same opinion, but agreed that he wasn't factoring in the location of the house just general numbers for the whole region.

We just paid more deposit and the bank made a 3rd mortgage payable in 6 months for the shortfall. They also said we could bring less than the 20% deposit as the house was in a good location and close to the center but quiet. CS was the best deal and would allow both mortgages to be variable.
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Old 22.05.2019, 11:22
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Re: Bank says home worth 90k less than asking price

If the bank thinks its worth less then the asking price what they are really saying is you need to up your contribution, they are covering their arses, if they have to reposes it tomorrow its going to cost them, they don't want to lose money and in order to get their money back ASAP they *may* need to sell it for less then you paid, all pretty simple and basic.

this is switzerland, the swiss don't want an old house, they want an old house thats not had a new bathroom or kitchen in 25 years even less!! go get a quote off a swiss company for a new kitchen!! lol then you'll realise why the bank are saying is 100k over priced.
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Old 22.05.2019, 11:48
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Re: Bank says home worth 90k less than asking price

Just to let you know, in some areas the market sets the price and thus home-owner response. This value can be over that of what the bank is willing to pay for. Therefore you come up with the rest. You can try to offer.


In Wettingen for example, home owners set their price and actually the market is so competitive, they're getting above what the ask. They actually ask for a bid! And in many cases, the home-owner can then decide who gets the house (just because you offer doesn't mean you get it).


My neighbor just sold his house, and got a price that was well above the market price of just 5 years ago. Meaning that the new owner probably had to pay more than what was needed to be covered.


When we were looking - we found a hosue that was about 100 K over what the bank was willing to pay and we used that as a negotiating tool. We offered about 70K less meaning we would have paid 30K more on top of that 20 percent but we were rejected. Somebody bought not to long after us. We ultimately were OK we found somthing alot better and withing the coverage of the banks.


Baden area at the moment is a high demand area. As Wettingen and where I am..Wurenlos. New builds are snapped up immediately at like 1.2 to 1.5 million CHF price tags. No negotiation. aye aye aye. We paid 830 K for ours...at current market value we are convinced we can sell for 1 million, 5 years later......at better return than keeping cash in the bank, but we would be penalized for selling now (you need to hold for quite a few years to avoid tax penalties for selling too early).


Good luck and yes, banks determan what they're willing to cover.
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  #27  
Old 22.05.2019, 13:02
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Re: Bank says home worth 90k less than asking price

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right now I am shelling out 25k a year for a small flat 45 min outside of town
Wow where are the prices that high, especially for outside of town?
Or we have a different perception of "small".
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  #28  
Old 22.05.2019, 13:21
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Re: Bank says home worth 90k less than asking price

When we sold late MIL's house, we figured it at 1.3-1.4 M, but it sold for 1.8 , despite needing another 1M of renovation work (new roof, new walls, new windows, new heating system, new kitchen, baths, etc.)

Tom
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  #29  
Old 22.05.2019, 13:52
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Re: Bank says home worth 90k less than asking price

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Our place was actually worth more, as they gave us an interest only mortgage with only 30% down.
Similar for us. Our higher rate mortgage was about 60K IIRC. When we came to remortgage five years later, the whole lot went into the lower rate. And we no longer needed additional life insurance, nor to pledge my 2nd pillar. Who knows though how much it'll sell for in 15-20 years when we might sell it.

I wonder if the bank valuation is over a wider area - i.e. they don't look so much at the demand at the specific location?
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Old 22.05.2019, 14:20
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Re: Bank says home worth 90k less than asking price

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Similar for us. Our higher rate mortgage was about 60K IIRC. When we came to remortgage five years later, the whole lot went into the lower rate. And we no longer needed additional life insurance, nor to pledge my 2nd pillar. Who knows though how much it'll sell for in 15-20 years when we might sell it.

I wonder if the bank valuation is over a wider area - i.e. they don't look so much at the demand at the specific location?
I think a local Bank has a very good idea of the real market price, they may even be financing a distressed seller in arrears who is trying to sell for a higher price to come out with some equity.
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  #31  
Old 22.05.2019, 14:58
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Re: Bank says home worth 90k less than asking price

Or, Spinal is the actually the seller of the house and is now waiting by the phone for JamiSteven's frantic call offering much more.



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We may be looking at the same property.

Just over 1m asking price, 3 floors + cellar? 5km south of Baden?

UBS told me it was 100k over value. Spoke to an adviser from a comparison company, they've now secured a loan for half the interest rate of UBS's offer for the value that we have offered the seller (which is closer to what UBS was valuing the house at)...

Seller has accepted our offer, but we are waiting for the countersigned reservation - so really hoping it's not the same house!

Last edited by krlock3; 22.05.2019 at 15:32.
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  #32  
Old 22.05.2019, 16:05
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Re: Bank says home worth 90k less than asking price

I would offer -90K of asking price + 50K cash under the table. Pretty sure you'll get it
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Old 22.05.2019, 16:35
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Re: Bank says home worth 90k less than asking price

This is a terrible time to buy, the current market is a seller market. A run down house with a minimal plot of land costs millions.

With the interest rates close to zero, a lot of people are able to get huge credits. If you work for certain financial institutes you even get a credit with no interest. Should the unemployment increase or the rate go up or both, many people will be forced to sell and lose a lot of money... and this point in time might come rather sooner than later.
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Old 22.05.2019, 16:58
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Re: Bank says home worth 90k less than asking price

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I would offer -90K of asking price + 50K cash under the table. Pretty sure you'll get it



Offering Chf 50k under the table is a well accepted practice here


However the problem comes when you sell as the property value is that as per paid via the notary (- Chf 50k in this case) and you are taxed on the difference between purchase and sale price.


As a salaried individual, "black money" is somewhat interesting, as a company owner or self employed, after about Chf 250k it is difficult to know what to do with it.

Last edited by Today only; 22.05.2019 at 17:21.
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Old 22.05.2019, 18:09
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Re: Bank says home worth 90k less than asking price

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Offering Chf 50k under the table is a well accepted practice here
Albeit a highly illegal one.

Tom
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  #36  
Old 22.05.2019, 18:32
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Re: Bank says home worth 90k less than asking price

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We may be looking at the same property.

Just over 1m asking price, 3 floors + cellar? 5km south of Baden?

UBS told me it was 100k over value. Spoke to an adviser from a comparison company, they've now secured a loan for half the interest rate of UBS's offer for the value that we have offered the seller (which is closer to what UBS was valuing the house at)...

Seller has accepted our offer, but we are waiting for the countersigned reservation - so really hoping it's not the same house!
Boys, I have just offered 1.5m for this house and the deal has been sealed.

Sold!

Mods, please close the thread!

Just kidding good luck with your purchase!
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  #37  
Old 22.05.2019, 18:36
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Re: Bank says home worth 90k less than asking price

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Albeit a highly illegal one.

Tom
Difficult to prove.

You sign a "proof of debt" in front of the notary. Debt has "nothing to do" with the house purchase

Common practise, at least in VD, I am sure in GE as well
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Old 22.05.2019, 18:41
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Re: Bank says home worth 90k less than asking price

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Offering Chf 50k under the table is a well accepted practice here


However the problem comes when you sell as the property value is that as per paid via the notary (- Chf 50k in this case) and you are taxed on the difference between purchase and sale price.


As a salaried individual, "black money" is somewhat interesting, as a company owner or self employed, after about Chf 250k it is difficult to know what to do with it.
You can still ask X amount of money under the table when you sell the house as well

I agree to an extent. It's pretty funny to know that most people who bend the rules here aren't the foreigners
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Old 22.05.2019, 18:46
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Re: Bank says home worth 90k less than asking price

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This is a terrible time to buy, the current market is a seller market. A run down house with a minimal plot of land costs millions.

With the interest rates close to zero, a lot of people are able to get huge credits. If you work for certain financial institutes you even get a credit with no interest. Should the unemployment increase or the rate go up or both, many people will be forced to sell and lose a lot of money... and this point in time might come rather sooner than later.
This must be a copy/paste comment I've been reading for the last 8 years
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  #40  
Old 22.05.2019, 18:54
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Re: Bank says home worth 90k less than asking price

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Difficult to prove.

You sign a "proof of debt" in front of the notary. Debt has "nothing to do" with the house purchase

Common practise, at least in VD, I am sure in GE as well
Not here, here it states the purchase price.

Tom
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