Bidding on a Home: What Strategy Increases Your Chances of Success?

Making an offer begins long before you step foot in the home for the first time. If you have your financing in order, you’ll know exactly how much you can offer and won’t have to leave any room for negotiation at the last minute. It’s precisely that certainty that makes an offer attractive to the seller. So be sure to schedule a mortgage consultation in advance and have your maximum budget confirmed.

It’s also worth getting to know the home and the neighborhood. How long has the house been on the market? What properties have sold on the same street, and at what price? At Oosterhof Makelaars, we routinely review the past twelve months of transactions in the immediate area. Those figures often tell you more than the asking price.

The asking price is an invitation, not a final price. In a tight market, the final purchase price is often higher; in a slower market, it’s often lower. The difference depends on the number of interested buyers and the condition of the property. A well-reasoned offer takes into account any overdue maintenance, the energy efficiency rating, and any ground lease.

Together with our clients, we work through three scenarios: a defensible opening bid, a realistic final bid, and an absolute limit. You set that limit in advance and stick to it. That may sound strict, but it prevents you from getting caught up in the heat of a bidding war and paying tens of thousands of euros too much for a house that you’ll have to sell again later.

Price is rarely the only factor. Sellers also consider certainty and convenience. A flexible closing date can be a deciding factor if the seller is still looking for a home. A shorter timeframe for the financing contingency also makes a good impression—provided you actually meet that deadline.

Be careful about waiving all conditions. Without a financing condition, you run the risk of a penalty equal to 10 percent of the purchase price if, unexpectedly, the mortgage falls through. A structural inspection as a condition precedent can actually save you a lot of money. We always recommend adjusting deadlines rather than waiving protections.

The most common mistake is starting too low in the hope of creating room to negotiate. In a market with multiple bidders, you won’t get that room: there simply won’t be a counteroffer. Just as often, we see the opposite, where buyers, fearing they’ll miss out, bid significantly higher without knowing whether the appraisal supports that amount.

A third pitfall is waiting too long. For a popular home in The Hague, the deadline for bids is sometimes as early as five days after the first showing. Make sure you schedule that first showing quickly and that your buyer’s agent is there right away. If you’re well-prepared, you won’t have to rush and can take your time to make the right decision.