Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 24.05.2020, 19:48
Newbie 1st class
 
Join Date: Feb 2015
Location: Zurich
Posts: 28
Groaned at 0 Times in 0 Posts
Thanked 20 Times in 12 Posts
Istcantabria has made some interesting contributions
Buying an apartment. Bidding process

Hi, I have found a nice and quite cheap apartment I would like to buy.
I am not used to the Swiss system and was surprised when the agency told me that the owner will sell it at the best price.

The price is in my view surprisingly low (370k when the price suggested by comparis is 400k and the postfinance app suggests a range of 400 and up to 500k) even after mentioning the apt has not been renovated since its construction in 1970.
(If you mention renovated in 2020 the postfinance app suggest 460-560k).

The apartment is in not too bad conditions but I expect an investment of approx. 60-70k for renovation works.

I know it is a very open question but any idea of how to proceed and what could be normal to offer in such a bidding process? I am thinking on a first offer of 380k and a Max of 400k in a second round... but not sure what to expect...

Sorry if it is a weird question but if you have any idea or tip it would be much appreciated. Thanks!
Reply With Quote
  #2  
Old 24.05.2020, 19:52
swisspea's Avatar
Forum Legend
 
Join Date: May 2008
Location: From one side of lake Zurich to the other...
Posts: 6,022
Groaned at 35 Times in 25 Posts
Thanked 5,829 Times in 2,738 Posts
swisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond reputeswisspea has a reputation beyond repute
Re: Buying an apartment. Bidding process

Very likely it was advertised cheap to get a lot of interest - then you have a bidding war... and you end up with a higher sale price... higher price equals better commission for the agent...



Impossible to know what the owner is prepared to 'settle' for - I had a friend who found out later because their seller actually lived next door, that the agent did not even pass on the lower price - and the neighbour would have accepted a lower price if they had known - 50K less! - as they were happy to sell fast to a 'nice family'...



I would be very cautious about any unknowns...but it's really impossible to know...
Reply With Quote
The following 4 users would like to thank swisspea for this useful post:
  #3  
Old 24.05.2020, 22:00
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 3,225
Groaned at 151 Times in 111 Posts
Thanked 3,979 Times in 1,958 Posts
bowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond reputebowlie has a reputation beyond repute
Re: Buying an apartment. Bidding process

Quote:
View Post
I would be very cautious about any unknowns...but it's really impossible to know...
And beware of agents, they are lower than a snakes belly!
Reply With Quote
This user would like to thank bowlie for this useful post:
  #4  
Old 24.05.2020, 22:30
Relagu's Avatar
Junior Member
 
Join Date: Nov 2019
Location: London
Posts: 30
Groaned at 0 Times in 0 Posts
Thanked 9 Times in 5 Posts
Relagu has no particular reputation at present
Re: Buying an apartment. Bidding process

Anyone experienced with bidding on eBay would understand this system really..
Reply With Quote
  #5  
Old 24.05.2020, 23:09
Newbie 1st class
 
Join Date: May 2020
Location: Geneva
Posts: 20
Groaned at 4 Times in 1 Post
Thanked 10 Times in 6 Posts
Disjoint has no particular reputation at present
Re: Buying an apartment. Bidding process

It's not just Swiss. One of the big house builder in the UK has a lot of rent controlled stock. When owner dies and they put it on the market they engage all the agencies in the neighborhood and put a price 20% below market.

This garners unbelievable amount of interest.
They select the best and more solid bids and run them for round two and potentially three.

Having worked also in commercial real estate that's how the process work. It involves a lot more work on behalf of the broker which is why you don't see it often. Broker essentially has to "run a process" which is more complex than sitting on your ass and waiting for bids to fall in and passing them to the seller until they are happy.

In this case - fix yourself a max price at which you would be willing to buy it, and stick to this price under all circumstances. Open the bidding maybe 5-10% below your max price and depending on what type of feedback you get from broker for round two - readjust never moving over your max bid.
Reply With Quote
The following 2 users would like to thank Disjoint for this useful post:
  #6  
Old 24.05.2020, 23:19
Newbie 1st class
 
Join Date: Feb 2015
Location: Zurich
Posts: 28
Groaned at 0 Times in 0 Posts
Thanked 20 Times in 12 Posts
Istcantabria has made some interesting contributions
Re: Buying an apartment. Bidding process

Thank you, yes, a weird system I dont know and probably they could also opt for a Swiss rather than a C permit foreigner... well, letís see. I will make an offer but I am not very optimistic. Thank you!!
Reply With Quote
  #7  
Old 25.05.2020, 17:25
Verbier's Avatar
Forum Legend
 
Join Date: Jul 2008
Location: Lully VD
Posts: 4,228
Groaned at 16 Times in 16 Posts
Thanked 4,398 Times in 2,247 Posts
Verbier has a reputation beyond reputeVerbier has a reputation beyond reputeVerbier has a reputation beyond reputeVerbier has a reputation beyond reputeVerbier has a reputation beyond reputeVerbier has a reputation beyond repute
Re: Buying an apartment. Bidding process

A general interview on home buying from WRS that might be of interest.

https://worldradio.ch/article/swiss-riviera-homes/
Reply With Quote
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
Process for buying a secondhand leased car GenevaSculler Transportation/driving 9 15.09.2019 22:15
what is the Swiss etiquette/process for buying a house? zurich99 Housing in general 14 22.06.2018 17:30
Process of buying a bike from Germany Early Often Other/general 2 10.10.2017 21:12
Buying an apartment - prices, mortgages, bidding kafischnaps Housing in general 2 01.10.2012 22:42
What's the process with number plates when buying a car from another canton? JennyWaddell Transportation/driving 21 07.06.2011 13:45


All times are GMT +2. The time now is 15:23.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2020, Jelsoft Enterprises Ltd.
LinkBacks Enabled by vBSEO 3.1.0