Buying property in 2023? 4 golden tips for buyers!

Belgian homes increased in value about 7% in 2020, another 8% in 2021 and another 7.6% in the first three quarters of 2022. The average price of a house today is €317,426.

These steep price increases combined with the still high demand for real estate put sellers in a position of luxury. Here are four tips for anyone looking to buy a house.

 

Research the price of comparable properties

 

Knowing the market value of comparable properties can help you avoid paying too much. So be sure to do your research.

First, determine what your dream home looks like. Make a wish list. What are the must-haves? In what areas would you want to make concessions? Do you really need a garage or that one extra bedroom or can you do without? On top, prices vary greatly depending on the area you are looking in. It's all about supply and demand. Around Brussels, demand usually exceeds supply. However, there are also many other regions where the population is decreasing, which reduces demand and therefore puts less pressure on supply.
 

 

Take a thorough look at your financial situation

 

Those who do their homework on time can move faster afterwards by knowing their financial options perfectly in advance. That way, there is no need to include a condition precedent, which makes your offer more attractive to a seller.

If you do not yet know how much you can borrow, such a condition precedent can always be added. But know that a clean offer without such a clause is always stronger.  Sellers prefer certainty and therefore usually prefer such offers when they can choose from several bids.

Therefore, make an appointment with your bank or financial adviser in good time. As a trusted advisor, he or she can assist you and advise with financial expertise on what the options are. Remember that if you want to avail of a loan, you often have to count on around 20% equity.

 

Note: Bids are binding. If the seller agrees, the bid cannot simply be withdrawn without consequences. If you make an offer without specific conditions and later find that you cannot get financing, you will have to rescind the purchase agreement, resulting in damages of 10% of the agreed price in most cases.

 

 

Don't be afraid to underbid

 

How much should you bid once you have found a house? Gone are the days of high bids. Start with an offer below the asking price and keep negotiating. This is the most common method. The seller sets the asking price and anyone can bid. The seller decides at his discretion which offers to accept or not. It does not always have to be the highest bid. It is perfectly possible that a seller will still accept a lower bid without conditions precedent, as opposed to a higher bid with specific conditions.

In past years, sellers liked to work with a setting price. This price was usually lower than a standard asking price. The idea was to let people bid against each other this way. However, as the pressure on the property market decreases, these procedures are becoming rarer.

It also used to happen that the seller agreed to grant an option to the buyer. Thus, the property was 'reserved' for the buyer. In today's circumstances where demand is so high and therefore the power is with the seller, this is almost no longer done.

 

Always make a written offer

 

Even a verbal agreement counts as an official offer, although this is difficult to prove afterwards. So make sure that the existence of your offer is indisputable and therefore always in writing. Even one simple sentence suffices, as long as it can be proven afterwards. Always explicitly ask for an acknowledgement of receipt.

However, it is advisable to use a legal document from a notary or a lawyer. Such texts define what happens if the offer is accepted. They also contain many details about the terms, so the buyer is better protected and there is no room for discussion. For example, they often clearly state that the offer is conditional, i.e. subject to certain things. Such matters include, for example, the existence of land contamination, building violations or mortgage debts, with the bid automatically lapsing in case such a situation is found.