Go Back   English Forum Switzerland > Help & tips > Housing in general  
Reply
 
Thread Tools Display Modes
  #1  
Old 21.10.2020, 15:50
Newbie 1st class
 
Join Date: Aug 2018
Location: Baden
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
crgarcia has no particular reputation at present
House pricing

I am about to buy a house. The seller called two independent companies to set a price for the house, and they have provided a similar pricing for it.

the problem is that now I went to several banks and insurances to get a mortgage, and all of them told me that the house is "slightly" overpriced.

Is this a common thing in Switzerland? Did it ever happen to anybody else?


Thanks!
Reply With Quote
  #2  
Old 21.10.2020, 15:57
ipoddle's Avatar
Forum Veteran
 
Join Date: Jan 2008
Location: basel
Posts: 1,029
Groaned at 21 Times in 14 Posts
Thanked 1,009 Times in 415 Posts
ipoddle has an excellent reputationipoddle has an excellent reputationipoddle has an excellent reputationipoddle has an excellent reputation
Re: House pricing

That's a common thing everywhere

There's the price the seller/agent would like
There's the value 'independent' evaluators make
There's the value a mortgage lender will assign and lend against
... and there's the price you're willing to pay
Reply With Quote
The following 10 users would like to thank ipoddle for this useful post:
  #3  
Old 21.10.2020, 15:59
newtoswitz's Avatar
Forum Legend
 
Join Date: Jan 2010
Location: Rapperswil
Posts: 3,055
Groaned at 50 Times in 47 Posts
Thanked 3,609 Times in 1,646 Posts
newtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond repute
Re: House pricing

Quote:
View Post
That's a common thing everywhere

There's the price the seller/agent would like
There's the value 'independent' evaluators make
There's the value a mortgage lender will assign and lend against
... and there's the price you're willing to pay
Add in "the price you can afford" as point four
Reply With Quote
The following 5 users would like to thank newtoswitz for this useful post:
  #4  
Old 21.10.2020, 16:08
fatmanfilms's Avatar
Forum Legend
 
Join Date: Apr 2010
Location: Verbier
Posts: 19,406
Groaned at 413 Times in 307 Posts
Thanked 19,337 Times in 10,393 Posts
fatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond reputefatmanfilms has a reputation beyond repute
Re: House pricing

Quote:
View Post
I am about to buy a house. The seller called two independent companies to set a price for the house, and they have provided a similar pricing for it.

the problem is that now I went to several banks and insurances to get a mortgage, and all of them told me that the house is "slightly" overpriced.

Is this a common thing in Switzerland? Did it ever happen to anybody else?


Thanks!
A valuation is an opinion & nothing more, 2 slightly higher & 1 lower quite normal. The price at which the property changed hands will be it's market value as a fact.
The Bank will only lend X can you afford 20% of x plus 100% of the extra, if not the price will have to drop unless another buyer will pay more.
Reply With Quote
  #5  
Old 21.10.2020, 16:09
Forum Legend
 
Join Date: Oct 2014
Location: Nyon
Posts: 3,828
Groaned at 180 Times in 135 Posts
Thanked 5,070 Times in 2,405 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: House pricing

But it's a great opportunity to go back to the seller and say, the banks have told me its real value is X, are you prepared to come down to that?
Reply With Quote
The following 5 users would like to thank bowlie for this useful post:
  #6  
Old 21.10.2020, 16:10
Forum Veteran
 
Join Date: Jul 2020
Location: Up there over the fog
Posts: 1,078
Groaned at 137 Times in 109 Posts
Thanked 1,323 Times in 633 Posts
JackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond repute
Re: House pricing

add 'the lowest price the seller is prepared to sell, for quick sale' as point 5
Reply With Quote
The following 4 users would like to thank JackieH for this useful post:
  #7  
Old 21.10.2020, 20:01
newtoswitz's Avatar
Forum Legend
 
Join Date: Jan 2010
Location: Rapperswil
Posts: 3,055
Groaned at 50 Times in 47 Posts
Thanked 3,609 Times in 1,646 Posts
newtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond repute
Re: House pricing

Quote:
View Post
add 'the lowest price the seller is prepared to sell, for quick sale' as point 5
Pretty rare in Switzerland.

One of the features of the Swiss market is just how bloody-minded they can be about getting the price they asked, regardless of ongoing costs or market reality.
Reply With Quote
The following 4 users would like to thank newtoswitz for this useful post:
  #8  
Old 21.10.2020, 20:23
Forum Legend
 
Join Date: May 2007
Location: Tessin
Posts: 6,197
Groaned at 124 Times in 91 Posts
Thanked 7,331 Times in 3,455 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: House pricing

Quote:
View Post
But it's a great opportunity to go back to the seller and say, the banks have told me its real value is X, are you prepared to come down to that?
To which the seller will reply, the bank has not visited the property and a meaningful valuation usually involves seeing the property personally.

You could try asking another bank as well. If the answer is the same as the first bank then you really have your work cut out for you. Once a seller has a price in mind, it is not easy to convince them to take less.
Reply With Quote
The following 2 users would like to thank Mrs. Doolittle for this useful post:
  #9  
Old 21.10.2020, 20:23
Forum Veteran
 
Join Date: Nov 2007
Location: Vaud
Posts: 1,425
Groaned at 113 Times in 73 Posts
Thanked 1,527 Times in 876 Posts
yacek has a reputation beyond reputeyacek has a reputation beyond reputeyacek has a reputation beyond reputeyacek has a reputation beyond repute
Re: House pricing

Quote:
View Post
Pretty rare in Switzerland.

One of the features of the Swiss market is just how bloody-minded they can be about getting the price they asked, regardless of ongoing costs or market reality.
A small part of sales is done within days or single weeks. These are not very visible because these ads stay much shorter time online.
In many of these cases the advertised price is often a "market price", i.e. similar to the properties waiting for a sale for months, but when one contacts the seller, they may say that they look for a quick sale and will accept a 5-10% lower offer.
Unfortunately, a lot of ground work has to be done to know the prices and typical state of properties in the affordable price range and area, and to be able to talk to the seller/gent directly as they're rarely open about possible negotiation or willingness to sell quickly over the phone.
Reply With Quote
  #10  
Old 21.10.2020, 21:22
Forum Veteran
 
Join Date: Jul 2020
Location: Up there over the fog
Posts: 1,078
Groaned at 137 Times in 109 Posts
Thanked 1,323 Times in 633 Posts
JackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond reputeJackieH has a reputation beyond repute
Re: House pricing

Quote:
View Post
Pretty rare in Switzerland.

One of the features of the Swiss market is just how bloody-minded they can be about getting the price they asked, regardless of ongoing costs or market reality.

Interesting and you have a point. Historically because until not very long ago, most families lived in flats for many years and then built an individual architect designed house, a bit too late, when kids ready to leave- unless very wealthy. So the attachment is much stronger than in the UK, for instance, were people buy a small place and sell on, and again- improving on size and quality all the time - then downsize.


But it depends if they want or have to sell - or not.
Reply With Quote
  #11  
Old 22.10.2020, 09:41
newtoswitz's Avatar
Forum Legend
 
Join Date: Jan 2010
Location: Rapperswil
Posts: 3,055
Groaned at 50 Times in 47 Posts
Thanked 3,609 Times in 1,646 Posts
newtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond reputenewtoswitz has a reputation beyond repute
Re: House pricing

Quote:
View Post
Interesting and you have a point. Historically because until not very long ago, most families lived in flats for many years and then built an individual architect designed house, a bit too late, when kids ready to leave- unless very wealthy. So the attachment is much stronger than in the UK, for instance, were people buy a small place and sell on, and again- improving on size and quality all the time - then downsize.


But it depends if they want or have to sell - or not.
I think that's part of it.

I think also that the Swiss are just bloody stubborn about these things
Reply With Quote
  #12  
Old 30.10.2020, 01:26
Banned
 
Join Date: Oct 2020
Location: Basel
Posts: 130
Groaned at 50 Times in 24 Posts
Thanked 147 Times in 87 Posts
BoredToDeath has become a little unpopularBoredToDeath has become a little unpopular
Re: House pricing

Large banks like UBS use calculators from 20 years ago and often come 20% under true market value. Do not let them confuse you and loose the house as a result. If you know the area and the going prices and you see the value in the property, then ignore bank's recommendations (provided you have extra cash). Local small bank might give you more realistic estimate because they know the market. UBS, Credit Swiss are the most hopeless banks I have ever dealt with.
Reply With Quote
  #13  
Old 30.10.2020, 01:58
Phil_MCR's Avatar
Forum Legend
 
Join Date: Oct 2009
Location: Basel
Posts: 14,103
Groaned at 275 Times in 181 Posts
Thanked 17,358 Times in 7,344 Posts
Phil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond reputePhil_MCR has a reputation beyond repute
Re: House pricing

Quote:
View Post
But it's a great opportunity to go back to the seller and say, the banks have told me its real value is X, are you prepared to come down to that?
And the seller will say "you're obviously a noob. gtfo and stop wasting my time".

the bank valuation is just the value they are prepared to lend against and isn't a certificate of the current market value.
Reply With Quote
The following 3 users would like to thank Phil_MCR for this useful post:
  #14  
Old 30.10.2020, 02:12
magyir's Avatar
Forum Veteran
 
Join Date: Oct 2006
Location: Wallisellen
Posts: 1,627
Groaned at 7 Times in 7 Posts
Thanked 501 Times in 346 Posts
magyir has a reputation beyond reputemagyir has a reputation beyond reputemagyir has a reputation beyond reputemagyir has a reputation beyond repute
Re: House pricing

In the same way you got multiple valuations, get multiple offers from the mortgage market.

Have you considered using a mortgage broker like moneypark.ch or a bidding service like valuu.ch or comapris.ch?

I have no affiliation, but I've usually found the Cantonal Banks and local banks to be more aware of valuations nearby.

Additionally if the property is currently mortgaged, that financier may be more sympathetic as it's an easier transfer over to you of the existing Pfandbrief (security) in the same transaction.
Reply With Quote
This user would like to thank magyir for this useful post:
  #15  
Old 30.10.2020, 09:01
Forum Veteran
 
Join Date: Apr 2007
Location: Zurich
Posts: 1,393
Groaned at 3 Times in 3 Posts
Thanked 767 Times in 471 Posts
axman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond reputeaxman has a reputation beyond repute
Re: House pricing

Quote:
View Post
Pretty rare in Switzerland.

One of the features of the Swiss market is just how bloody-minded they can be about getting the price they asked, regardless of ongoing costs or market reality.
I've sold 2 properties. Both times, the estate agent told me the target price is X, and the minimum price is slightly less, and they almost never fail to get the target price. Both times, I really questioned the target price because it seems too high to me and I was afraid of not being able to sell.

They would start advertising it, and then 2 weeks later we would go on vacation during which they would arrange viewings. People would already call up before the viewing and say things like "oh our bank does not think it is worth that much!". I would start to panic, but the agents would advise me to just go on vacation and let them do their job. Lo and behold, we got offers for at least the target price by the time we got back.

I've been lucky, but then again, I think I've bought wisely too.
Reply With Quote
The following 7 users would like to thank axman for this useful post:
  #16  
Old 30.10.2020, 13:12
Capetownian's Avatar
Member
 
Join Date: Sep 2011
Location: Zentralschweiz
Posts: 102
Groaned at 3 Times in 3 Posts
Thanked 245 Times in 68 Posts
Capetownian has earned the respect of manyCapetownian has earned the respect of manyCapetownian has earned the respect of many
Re: House pricing

We recently bought an apartment in Luzern and were also really worried about paying more than the place was worth. Lots of discussions at home, it‘s really difficult - at the end of the day, a place is worth what someone is willing to pay for it. We liked it and didn’t want to lose it. We did have a good idea from having looked at places on Comparis over the last 2 years that it wasn’t a completely unreasonable place.
Anyway the seller did have an official valuation that seemed professionally done. We ended up offering 4% less and they immediately accepted the offer which surprised us and ironically made us worry more. We then went to 2 banks (Post, Raiffeisen) and the one gave a valuation far higher than what we paid, while the other was pretty spot on.
So now we sleep at night and are moving next week to our new place. Of course, only time will really tell.
Reply With Quote
The following 4 users would like to thank Capetownian for this useful post:
  #17  
Old 30.10.2020, 13:24
NotAllThere's Avatar
Forum Legend
 
Join Date: Oct 2008
Location: Baselland
Posts: 12,714
Groaned at 202 Times in 179 Posts
Thanked 18,352 Times in 7,490 Posts
NotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond reputeNotAllThere has a reputation beyond repute
Re: House pricing

Quote:
View Post
Pretty rare in Switzerland.

One of the features of the Swiss market is just how bloody-minded they can be about getting the price they asked, regardless of ongoing costs or market reality.
I saw one house that had a lovely garden, but was to me a bit overpriced. A year later, they'd replaced the garden with a simple lawn... and upped the price! Prices generally went up a little after that, so maybe they got their price in the end.
Reply With Quote
  #18  
Old 30.10.2020, 23:32
Junior Member
 
Join Date: Jul 2013
Location: Olten
Posts: 66
Groaned at 7 Times in 3 Posts
Thanked 33 Times in 24 Posts
hoover1 has no particular reputation at present
Re: House pricing

I can tell you that it is not a real estate valuation what most banks do , but a plausibility check (hedonic value), Google that and you quickly learn what happens there. Real valuation is only happening when you have certified by the bank expect to do it for you.

back in time Credit Suisse offered that as a service and would be free should you choose CS mortgage to go with.

my house was almost 2x the price that bank thought of - after above process - price set by the owner was just 20% too high and we made the deal.
Reply With Quote
This user would like to thank hoover1 for this useful post:
  #19  
Old 31.10.2020, 01:01
Forum Legend
 
Join Date: Mar 2008
Location: ZH
Posts: 7,359
Groaned at 73 Times in 59 Posts
Thanked 10,859 Times in 4,405 Posts
doropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond reputedoropfiz has a reputation beyond repute
Re: House pricing

Quote:
View Post
And the seller will say "you're obviously a noob. gtfo and stop wasting my time".
There are, however, also sellers who are noobs.
Reply With Quote
  #20  
Old 02.11.2020, 23:09
Newbie 1st class
 
Join Date: Aug 2018
Location: Baden
Posts: 10
Groaned at 0 Times in 0 Posts
Thanked 1 Time in 1 Post
crgarcia has no particular reputation at present
Re: House pricing

The house was valuated by Markstein AG and Hauseigentümerverband, and they both gave us a complete report on it.
They both gave a super close price, while banks are giving me prices that a bit lowe, or much lower

thanks all for your replies! I am much more comfortable now
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
Bizarre pricing with Swiss PaddyG Transportation/driving 38 15.01.2014 10:32
UPC Pricing structure Frank2k TV/internet/telephone 2 28.09.2011 17:58
Poll - Swiss house pricing outlook Caviarchips Housing in general 4 14.09.2011 20:08
FTSE Pricing Confloozed Business & entrepreneur 9 09.04.2011 23:57
New Pricing for HD on CableCom Talkietoaster TV/internet/telephone 0 30.12.2008 15:41


All times are GMT +2. The time now is 22:05.


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