Why the highest bidder is not always the right buyer

Many owners believe that the buyer who makes the highest offer is “the right one” in the end. In practice, however, it has been shown time and again that the highest amount alone is no guarantee for a successful, stress-free and secure sale when selling a property in Nuremberg.

Often a slightly lower, but reliable, affordable and timely offer is much better.

In this article, I will show you how to recognize which buyer really suits your property - and why the mere figure on a piece of paper is often only a small part of the truth.

Why the highest price often means the highest risk

A high price sounds attractive at first. But there may be problems behind it that only become apparent later:

• Financing is shaky or falls through completely
• Buyers have not considered ancillary purchase costs
• Bank rates the property lower
• Unrealistic expectations regarding condition or modernization
• Unstable living situation
• Intention to buy only “on suspicion”

The higher the bid in relation to the market value, the higher the risk that it is not viable.

The bank is involved in the decision - and it decides objectively

The bank does not check what a buyer would like to pay, but rather

• What is the market value of the property?
• Does the price match the guideline land value, location and substance?
• What values do the property value method or income value method yield?
• Is there sufficient equity capital for ancillary purchase costs (land transfer tax, notary, land register)?

If the bank says: “Too expensive”, even the highest bid is worthless.

I regularly see buyers who want to take over - but cannot. The owner often only realizes this weeks later, when valuable time has been lost.

Why reliability is often worth more than a 10,000 euro difference

A stable buyer is characterized by the following points:

• Financing is confirmed or very likely
• Sufficient equity capital is available
• Incidental purchase costs have been realistically calculated
• Time frame matches the seller
• Understanding of condition, modernization and energy aspects
• Realistic expectations and no hidden conditions

Such a buyer brings one thing above all: security.

And security means:

• no long delays
• no missed notary appointments
• no unpleasant renegotiations
• no stress because suddenly “everything is different”

Why schedules can be crucial

Selling is rarely just about money. Other factors often play an important role too:

• Does the owner need to sell quickly, e.g. due to inheritance or relocation?
• Should the transfer date be flexible?
• Are there certain deadlines (e.g. due to speculation tax, clarify tax advisor)?
• Does the buyer’s idea match the seller’s schedule?

The highest price is of little help if the buyer wants six months to think about it.

Buyer behavior is often a better indicator than the bid

I observe very closely how a prospective buyer reacts:

• Does he ask specific, factual questions?
• Do they show a real understanding of the market analysis, market value and price structure?
• Do they respond in a binding and transparent manner?
• Do they already know their bank requirements?

Buyers who communicate clearly are also more reliable later on.

Buyers who remain vague often demand discounts later on.

Why an unrealistic highest bid leads to problems with the notary

Even if an exaggerated offer makes it to the notary appointment, difficulties often arise there:

• Bank corrects valuation at short notice
• Buyer suddenly demands a price reduction
• Documents are checked more intensively
• Modernization costs are underestimated
• Withdrawal shortly before signing

The damage for the seller is then considerable: loss of time, nerves, unsettled potential buyers, worse starting position for a new start.

The right buyer is the one who wants the property

really

can buy - not just wants to buy

is the right buyer:

• financially stable
• compatible in terms of time
• seriously interested
• realistic in terms of condition and market
• confident in his decisions
• comprehensible for the bank

These buyers do not always bring the highest bid - but they bring the sale to the end.

Why a second-highest bid is often the best choice

Many of my most successful sales in Nuremberg have been completed with the second or third highest bid.

The reason:

• Financing was in place immediately
• Buyers had sufficient equity
• Incidental purchase costs were clear
• No exaggerated expectations
• Clear, calm communication
• high probability of actually signing the contract

Sometimes 5,000 to 10,000 euros less is the price for the sale being really safe.

Checklist: How to recognize a really good buyer

• Is there a written financing confirmation?
• Is the equity sufficient - also for incidental purchase costs?
• Is the price offered compatible with the market value?
• Does the buyer understand the condition, modernization and energy issues?
• Does the schedule fit?
• Does the buyer communicate clearly and bindingly?
• Are there no hidden conditions or special requests?

The more points that are fulfilled, the better.

Conclusion: The best buyer is not the most expensive - but the most stable

When it comes to selling real estate in Nuremberg, it becomes clear time and again:

• The highest bid is only good if it is viable.
• The best decision is a mixture of price, stability and process.
• In the end, a secure buyer brings better overall success.

That’s why I support owners not only with pricing, but also with buyer selection - so that the result not only sounds good, but also really comes about.

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