BackSteinGotik
2022-01-25 19:36:42
- #1
I had thought about that too. I could imagine that for some buyers this already leads to a kind of closing-time panic.
So far not much has happened on the interest rate market, but the trend is becoming visible.
If I have been thinking about buying a house for a while and see "oh, it's slowly getting more expensive," I will probably try to close the deal before it gets really expensive.
The closing-time panic was already there in the last 1-2 years. Now comes the interest rate shock – because "not much has happened" already means 0.4 percentage points more on the 20-year fixed interest rate. That is suddenly €25,000 more in interest costs for your example with a "6 in front." And interest rates are still rising, the FED’s steps are coming, uncertainty continues to grow. At the same time, prices are currently diving – those who have their equity there are losing connection too.
The consequence: more and more households drop out of the circle of those who can still buy or build.
It is often a mistake to think that there is a price difference between a house (identical size) built in 2000 or 2015. They are offered on the market at pretty much the same maximum price. In other words – especially the older properties, for which a renovation won’t be approved by the bank, are disproportionately expensive compared to new builds.
Wait for the appraiser’s value, contact a second provider, have it calculated from your financial advisor’s system, and then see what emerges. From then on, use the benchmark – try it out. With your ideal price. I would start with a code in the local newspaper & see what kind of responses come in. Maybe you’re already well on track there. If not, or if the bids are significantly below your expectations, you can always start adjusted online.