Strategy for selling a house - what is the best way to proceed?

Why should there be delays with a 50k gap? The banks are aware of the market situation and if the buyer does not intend to finance 110%, it is usually not a problem if the BLW is lower. As a seller, you have to be able to afford to leave money on the table.

Because prices are already higher due to the market situation than the actual value.

That banks go along with all financing may be true in big metropolitan areas, but not everywhere!

My sister wanted to buy a house about 8 months ago. It was already expensive and my sister earns very well! The house was appraised at a staggering 100k less than the purchase price, so the bank wanted to see significantly more equity, which, as we know, cannot just be conjured up.

Maybe it's because I don't see it so casually and relaxed.

My sister wanted to buy a house about 8 months ago. The price was already not insignificant and my sister earns very well! The house was appraised at a staggering 100k! less than the purchase price, accordingly the bank wanted to see significantly more equity, but as is well known, you can’t just conjure that up.

Yes, and today someone comes around with the neighboring house from the same builder and wants 10+% more than the 2021 price. It also becomes very clear to the bank that this extra amount is just hot air – and so absurdly, what was 200,000€ - 300,000€ equity when buying a single-family home ultimately ends up being 100% financing.. ;)

Why should there be delays with a 50k gap? The banks know about the market situation and if the buyer does not intend a 110% financing it is usually not a problem if the LTV is lower. As a seller, you have to be able to afford leaving money on the table.

Because those 50,000€ are no longer available but would have to come from the (usually no longer additionally available) buyer’s equity? The 50,000€ that could be easily gotten more have unfortunately already been spent multiple times in the hot air of previous years. Fountain, jug, the rest is known..

The excessive loan-to-value ratio indeed has an impact – additionally through sharp interest rate jumps, since at the high prices you possibly cross “magical” thresholds. And you have to be able to afford that, as well as the monthly extra payment for the 50,000€ gamble money.

The real estate market is known to be a seller's market, which puts sellers in a really comfortable position. A bidding process would also be legitimate and not reprehensible. However, when reading this, I always have to remember that we got our old house ([Speckgürtel Berlin/BB]) 6 years ago (when the market was already red hot), EVEN THOUGH some sellers still offered several tens of thousands more at the time. The reason: The sole seller wanted a family and children in the house who would be happy about it. That still touches me deeply today – and I am sure it will still be on my mind when we have to leave here due to age. There is no lesson for this thread. I just wanted to show that it does not necessarily have to end in an obvious (or hidden) bidding process and that all parties involved can still be happy in the end. :)

I believe in this discussion that the truth lies somewhere in the middle.

This comparison of intrinsic value vs. sales value is somehow strange. The real estate agent also started with that. But if I make the comparison - what is the intrinsic value of a Super Nintendo? The console is outdated, the technological components themselves are hardly worth anything. Still, the market has been paying about 50€ for it for decades. If you still have the original cardboard around it, even 200. And what is the intrinsic value of a cardboard box? Value is always somehow what is paid for something.

I believe in this discussion that the truth lies somewhere in the middle. [..] But if I make the comparison - what is the intrinsic value of a Super Nintendo?

Yes, but that is exactly the point that applies here too - collector's prices. It's just like with old stamp albums and model train collections - the SNES & HeMan figures of past generations. Back then a big topic, incredible value, active collector scene - today - shelf warmers & junk lots. ;)

Yes, but that is exactly the point that applies here - enthusiast prices. It's just like old stamp albums and model train collections - the SNES & HeMan figures of past generations. Back then a big deal, crazy value, active collector scene - today - slow sellers & junk bundles. ;)

Well, not quite. Enthusiast prices arise through attribution. A stamp then simply costs as much as a mid-range car. Here the price is decoupled from the material value by a multiple. Or a watercolor: it's not the scarce supply but the attribution that determines whether it costs 150,000 or 3.50€. This attribution, in turn, makes it a coveted item. The art market is decoupled from classic capitalist price formation models. In the case of houses, the value consists of material + intangible value (warmth, a roof over your head). Plus the markup determined by the scope of supply. Surely there are buyers willing to pay enough money to live in a house where maybe Salvador Dali once sat on the throne. But only in a negligibly small number.