Demand is high in the real estate market. Anyone selling a house quickly finds themselves with a crowd of prospective buyers and is faced with a difficult choice. Which of these buyers are truly serious and can afford your property? Ultimately, you want to entrust your home, where you've spent so many years, to the best possible hands. We'll show you how to make your selection.
Step 1: Prevent sightseeing tourism
Not every prospective buyer who responds to your listing is genuinely interested in purchasing the property. To avoid unnecessary viewings and only invite people who are seriously considering buying after reviewing the property details, it's crucial to establish pre-selection criteria. Complete contact information should therefore be mandatory. It's also advisable to have potential buyers fill out a questionnaire, providing initial information about the occupants, their price expectations, and financing options. Those who provide only vague information and prefer to remain anonymous are unlikely to be serious buyers. Online tools like 360-degree virtual tours, where interested parties provide their contact details, can also be used to pre-select potential buyers.
Step 2: Weed out candidates using a credit check
If, after viewings, several prospective buyers remain who you have a good feeling about, it's crucial to know whether they can actually afford the property. Naturally, the most important criterion when selecting a buyer is their ability to pay. You have several options for checking their creditworthiness. First, credit bureaus like Schufa Holding AG provide information about a person's ability to pay and their debts. However, as a private seller, it's difficult to obtain this information. Therefore, prospective buyers must provide you with a self-disclosure statement. Other examples of credit bureaus include Bürgel and Creditreform. These also provide information about existing real estate holdings and a general assessment of the buyer's financial situation. In addition to the data you obtain this way, it's also advisable to request information about your prospective buyers' assets. This includes bank and investment account statements, as well as business documents. Ultimately, however, the most important criterion is the bank's financing commitment. Make absolutely sure that the loan has been specifically approved for the purchase of your property. This way you can be sure that the prospective buyer doesn't end up paying off another property with it.
Step 3: Criteria for the final selection
In the end, you may still have two or even more financially sound prospective buyers ahead of you. How do you make your decision? The simplest option is probably the "first-come, first-served" principle: whoever approaches you first with a secure purchase offer gets the property. However, you are not obligated to sell to the fastest bidder; you are completely free in your selection. A personal preference bonus cannot be held against you, nor can a decision made by drawing lots. Furthermore, you can base your choice on how well the new residents will fit into the neighborhood. After all, the new owner will be taking your place. So, for the sake of your neighbors, get a thorough picture of the prospective buyers for your property. When selling an apartment in a multi-family building, it is often even customary for the owners' association to approve the buyer beforehand. However, you should be careful with additional payments. While it is legitimate to sell to the highest bidder, you may not accept any additional payments that are not specified in the purchase agreement. Otherwise, you'll quickly run into problems with the tax office.
Those who heed all these tips can leave their beloved home to a new generation with a good feeling, who will hopefully accumulate just as many beautiful memories in their new home as you have.
Do you need help choosing a suitable buyer for your property? We would be happy to assist you and handle the credit check for you.
Photo: © Deagreez