
How to find an affordable property – a personal account
Claudia P. and her family had already been looking for a property before the interest rate shock. However, before 2023, they could hardly find anything affordable. Supply was low and demand was high. Then inflation and interest rates rose, demand fell, and prices dropped. Claudia had hoped that it would be easier to find a property under the new conditions.
Financing fell through
She then thought she had found an affordable property. The seller approached the matter somewhat naively and promised with a handshake—without a financing commitment from Claudia's bank—that he would sell her his house. She then went to her bank to arrange financing. However, the bank refused to grant her a loan. Claudia was desperate. The seller had already turned down the other interested party and now had to put the house back on the market because Claudia was unable to buy it.
The first step toward a solution: the search request
While searching online for a solution, Claudia finally came across our website and created a search request. She entered the key criteria that her dream property had to meet, as well as her desirable and non-negotiable criteria. In the meantime, she had obtained a financing assessment from her bank to determine the maximum price she was willing to pay for a property.
Property found before it was on the market
Coincidentally, shortly before she submitted her search request, we received a listing for a property that largely matched Claudia's criteria. As the seller had only recently listed the property, we had not yet started marketing it, which meant that other interested parties had not yet had the opportunity to make an offer. There were still some issues regarding the purchase price, with both sides somewhat apart.
Help with financing
Nevertheless, we offered Claudia the property. We also recommended an independent financing expert to her. He was able to help her secure financing with more favorable terms.
Negotiations with the seller
At the same time, we calculated for the seller how much property seekers could afford under the current interest rates. We made it clear to him that the property would be on the market for a long time at his asking price. This could ultimately even result in a sale below market value. However, if he were to make some concessions, he would still receive more than he had originally paid.
Bringing both sides together
In the end, we were able to reach an agreement. Claudia and her family have finally fulfilled their dream of owning their own home. And the seller was also satisfied with the sale price in the end. These moments, when we fulfill our actual role as real estate agents, namely mediating between prospective buyers and sellers, make us particularly happy.
Are you looking for assistance in finding or purchasing a property? Contact us! We will be happy to advise you.
Note
For reasons of better readability, the generic masculine form is used in this text. Female and other gender identities are expressly included insofar as this is necessary for the statement.
Legal notice: This article does not constitute tax or legal advice in individual cases. Please consult a lawyer and/or tax advisor to clarify the facts of your specific case.
Photo: © ArturVerkhovetskiy/Depositphotos.com