This allows you to check whether a prospective buyer is actually financially viable

A prospective buyer appears likeable, shows genuine interest and perhaps even offers a good price - but is it really affordable?

When selling property in Nuremberg, I see time and again that sales don’t fail because of the price, but because of the financing. And often you only realize this when weeks have already passed.

In this article, I show you how to recognize early on whether a prospective buyer can actually buy - and how I protect owners from unpleasant surprises.

Why affordability is more important than the highest offer

A high price is useless if it cannot be financed.

The bank doesn’t decide based on emotions, but on figures:

• Market value of the property
• Standard land value and location
• Condition and energy quality
• Market analysis and reference properties
• Result from the asset value method or income capitalization method

If the purchase price exceeds this basis, the bank will reject it or demand improvements.

The first warning signal: “We still need to talk to the bank”

This sentence is not automatically an exclusion criterion - but it is a signal.

I then ask specifically:

• Has there already been a discussion with the bank?
• Has a realistic financing framework been given?
• Have ancillary purchase costs been factored in?

If you are evasive here or remain unclear, you are usually not yet ready to make a decision.

Financing confirmation - what it can and cannot do

A financing confirmation is a good sign, but not a free pass.

It is important to check:

• does it refer to this specific property or only to a budget?
• Does it take into account the realistic purchase price?
• Does it include ancillary purchase costs (land transfer tax, notary, land register)?
• Is it current or several months old?

I regularly see confirmations that only cover a rough framework - without certainty for the actual purchase.

Equity: The decisive stability factor

The higher the equity ratio, the more stable the financing.

Checking:

• how much equity is actually available
• whether it is sufficient for ancillary purchase costs
• whether there are additional reserves for modernization

Buyers who have budgeted every euro quickly come under pressure - and are more likely to abandon the purchase.

Incidental purchase costs are often underestimated

Many prospective buyers only calculate the purchase price.

But there are additional costs:

• Land transfer tax
• Notary fees
• Land registry costs

As a rule, these costs must be paid from equity.

If they are missing, the financing fails - often late in the process.

Buyer behavior reveals more than any number

I pay very close attention to the behavior of prospective buyers:

• How specific are their questions about financing?
• Do they know what their monthly payment limit is?
• Can they explain how the purchase price is made up?
• Do they respond calmly to information about the valuation and market value?

Buyers who know their figures are usually more reliable.

The bank checks the property - not just the buyer

Even if the buyer is in a good financial position, the bank will check:

• the condition of the property
• energy parameters
• need for modernization
• Plausibility of the purchase price

A price that does not match the market value, standard land value or market analysis is viewed critically - regardless of the buyer’s willingness to pay.

Typical signs of unstable financing

These points immediately set alarm bells ringing for me:

• No clear statement about the bank
• Frequent changes of financing source
• long decision periods
• strong dependence on the sale of another property
• desire for unusually long reservations
• Above-average offer without justification

The more points apply, the greater the risk.

How I specifically check the financial viability

I proceed systematically:

• Discussions with the interested party about budget, equity and schedule
• Requesting a reliable financing confirmation
• Comparison of the purchase price with the market value and market analysis
• Assessment of bank requirements based on the asset value method or income value method
• Checking the ancillary purchase cost planning

I remain objective - it’s not about eliminating someone, but about recognizing risks at an early stage.

Why transparency accelerates the sale

Buyers who know right from the start:

• how the price is arrived at
• how banks value
• which documents are required
• what additional purchase costs are incurred

decide faster and more securely.

Transparency significantly reduces the number of jumps.

What owners can do in concrete terms

As a seller, you should:

• not just look at the price
• Ask for proof of financing
• do not allow yourself to be put under time pressure
• Pay attention to clear communication
• Make use of professional support

A good estate agent protects you from unstable buyers - not from serious potential buyers.

Checklist: Is a prospective buyer really financially viable?

• Is there a current financing confirmation?
• Have ancillary purchase costs been factored in?
• Is sufficient equity capital available?
• Does the purchase price match the market value?
• Does the prospective buyer appear calm and prepared?
• Are there any unusual reservations?
• Is the timetable realistic?

The more points are fulfilled, the higher the probability that the sale will actually go through to the notary.

Conclusion: Financial viability determines success or disappointment

When selling a property in Nuremberg, it becomes clear time and again:

It is not the most attractive buyer who is the best - but the one who can be financed.

A proper inspection protects you from:

• loss of time
• missed notary appointments
• unnecessary stress
• price renegotiations

With a clear structure, professional valuation (market value, standard land value, market analysis, reference properties, asset value method, income value method) and transparent communication, interest becomes a reliable sale.

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Read more: Why the right buyer is not always the one with the highest bid (warum) | Selling property in Nuremberg (immobilie) – so-laesst-