Quick responses and decisions are once again the norm in the housing market

Competition among homebuyers has significantly increased in the first quarter of this year, according to the Funda Index. More and more buyers are finding that they need to bid over the asking price to secure a property. In this busy market, the advice of a real estate agent is essential for many buyers.

The increase in overbidding is a direct result of the rising competition: in the first quarter of this year, real estate agents received an average of 30% more leads per property. This is evident from the latest figures of the Funda Index.

Changing expectations of buyers

Homebuyers are noticing this shift as well. Six months ago, 19% of respondents in the Funda survey expected to bid 5 to 10% above the asking price. The latest figures show that now as many as 28% of buyers have this expectation. Moreover, 17% of home seekers believe they need to bid 10-20% above the asking price, compared to only 6% six months ago.

Regional differences

The percentage of overbidding varies significantly by region, depending on the location, condition, and popularity of the house, as well as its energy label. In Haarlem, 49% of sales involve overbidding. Haarlem is following the trend of Amsterdam.

The prices in the city are being driven up so much that buyers are moving to surrounding municipalities, which also creates more pressure there. Additionally, buyers are more willing to bid higher due to increased consumer confidence and the expectation of future price increases.

The declining number of homes for sale contributes to the increased turnover rate. Quick responses and decision-making are therefore once again becoming the norm.

Need for advice on (over)bidding

First-time buyers, in particular, now more than ever need clarity and advice. They are wondering how much they should overbid and whether the house is still worth the price. Additionally, they are considering whether to bid without a building inspection contingency to increase their chances.

It is therefore important for buyers to seek information from a real estate agent to understand what is happening in the local housing market. It is crucial to know how much overbidding is typical and for which type of house this applies. We are happy to provide you with tips on how to increase your chances of purchasing a home and can support you throughout the buying process.