Interpretation of Seller Behavior

Good evening dear people!

We are very interested in a single-family house that we found on the relevant platforms before Christmas. We had always wanted to build, but the house really caught our attention.

So back then we contacted the seller to ask if it was still available, watched a detailed online tour video, and had all the documents (building documents, floor plans, etc.) sent to me. At the same time, we also immediately commissioned an appraiser and then arranged an inspection appointment for early January.
The house is a post-and-beam house from 1985 with 165sqm from a then renowned company. Fully basemented and completely modernized on the ground floor. The upper floor and roof are still original from 1985. The price was listed at €450,000, which seemed high for the location and size.

For the inspection appointment, a financing pre-approval from the bank was required, as apparently several financings with potential buyers had failed before. According to the seller.

Then at the beginning of January, 2 days before the inspection, he marked the online ads with a note that on the weekend after our agreed inspection a "viewing marathon by appointment" was to take place. We interpreted this to mean that the seller wants to sell quickly, as he actually already lives in the south.

So we inspected with the really good appraiser. He measured wall moisture and temperatures and was well prepared. At the end, he valued the house at €330,000. If one also wants to use the upper floor for living or bedrooms (which we do), a new roof insulation (above the rafters) is inevitable. The bathroom upstairs would also need to be renovated. The gables upstairs also need to be insulated. External facilities also need to be completely renewed sometime. Nevertheless, you can move in immediately on the ground floor as everything needed is there for a certain period. Online valuations based on location, condition, etc. confirmed this value by the way (€280,000-€340,000).

Since we were/are still enthusiastic about the house, we submitted an offer a day later. €340,000. €10,000 above the appraisal.
Less than 2 hours later, the price on the online platforms was reduced by around €20,000 from €450,000. Then radio silence.

Yesterday after my inquiry, the feedback was that he actually didn’t want to get back in touch because of our "outrageous" offer. He found it cheeky to offer so far below the advertised price and said he never would have dared. Besides, he said he had several offers beyond €400,000. Whether I believe that based on the observations (short-term viewing marathon, price reduction), I don’t know. I then replied politely and made an improved offer of €360,000. Since then, again radio silence.

How can this behavior be interpreted? Did we really disqualify ourselves with the offer? Or is he currently realizing that the house was listed way too high and that he cannot get his desired price? The seller seems like a nice person in general, which is why his feedback on our first offer really knocked me off my feet.

Regards!

Hard to say, but it seems to me he is bluffing. If he has such great offers, what is stopping him from selling the house? Ultimately, the question is whether you can stay cool. Possible financings might have failed because the bank realistically values the house and not according to the seller's asking price. Therefore, I wouldn't significantly increase the bid either, but at some point write politely that you will stick to your offer until [Datum XX] and will withdraw it afterwards.

You have bid what you believe it is worth, or according to the expert's opinion. You say the house has captivated you, but the necessary renovations are immense and should not be underestimated. No one can really help you with that now; anything is possible. I can understand that he stopped responding if you stayed significantly below his price, but I can equally understand that you did not bid much more than what the expert thought. If he has several secure buyers for 400k, he will sell it; if not, he might come back to you in a few months.

Expert price is one thing, market price something else. The Butze will probably be sold for over 400k. If not to you, then to someone else. If it is your dream house in a dream location —> go for it. You certainly won’t build cheaper including land either.

Building cheaper, no, but the renovation costs still have to be added.

Let's assume the desired price is not completely exaggerated.

Then I don't understand the seller either. If I were in his place, I wouldn't have even bothered to call you. See

Otherwise, it should be said that the appraiser wants to be worth his money. Imagine if he had said, you can calmly pay the 450k€.