How to find an affordable property - a field report

Like many people at the moment, Claudia P. didn't find it easy to find a property. First the properties were too expensive, then there were difficulties with the bank because of the financing. Claudia almost wanted to give up her dream of owning her own four walls. As a last resort, she turned to us.

Claudia P. and her family had already been looking for a property before the interest rate shock. However, they were unlikely to find an affordable property before 2023. Supply was low and demand was high. Then inflation and interest rates rose, demand fell and prices dropped. Claudia had hoped to find a property more easily under the new conditions.

Failed due to financing

She also thought she had found an affordable property. The seller took a somewhat naïve approach and promised with a handshake - without a financing commitment from Claudia's bank - that he would sell his house to her. She then went to her bank to clarify the financing. However, the bank refused to grant her any financing. Claudia was desperate. The seller had already turned down the other interested parties at that point and now, as Claudia was unable to buy his house, he had to put it on the market again.

The first step towards a solution: the search request

In her digital search for a solution, Claudia finally came across our website and created a search request. She entered the key points that her dream property absolutely had to fulfill, which were desirable and which were exclusion criteria. In the meantime, she had asked her bank to provide her with a financing expertise so that she could say up to what price she was prepared to finance a property.

Property found before it was on the market

Coincidentally, we had been commissioned to sell a property that largely matched Claudia's criteria shortly before her search assignment. As the seller had only recently placed the order, we were not yet marketing the property, which meant that other interested parties were not yet able to enquire about it. There were still problems with the purchase price. The two sides were slightly apart here.

Help with financing

Nevertheless, we offered Claudia the property. We recommended an independent financing expert to her. He was able to help her obtain financing with more favorable conditions.

Negotiation with the seller

At the same time, we showed the seller how much people looking for a property could afford at the current interest rates. We made it clear to him that the property would be for sale for a long time at his asking price. This could even lead to a sale below value in the end. However, he would still receive more than he had originally paid if he made concessions.

Both sides brought together

In the end, we were able to reach an agreement. Claudia and her family have finally fulfilled their dream of owning their own four walls. And in the end, the seller was also satisfied with the proceeds from the sale. These moments, when we fulfill our actual brokerage activity, namely mediating between prospective buyers and property sellers, make us particularly happy.

Are you looking for support with your real estate search and purchase? Please contact us! We will be happy to advise you.

Note

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where 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 individual case.

Photo: © ArturVerkhovetskiy/Depositphotos.com