A prospective buyer comes across as likeable, shows genuine interest and perhaps even offers a good price - but is he also 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 realise this when weeks have already passed.
In this article, I show you how you can recognise early on whether a prospective buyer is actually ready to buy - and how I protect owners from nasty surprises.
Why affordability is more important than the highest offer
A high price is useless if it cannot be financed.
The bank does not make decisions 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 asset value method or capitalised earnings value method
If the purchase price exceeds this basis, the bank will refuse 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:
- Have you already had a discussion with the bank?
- Has a realistic financing framework been specified?
- Have ancillary purchase costs been factored in?
Anyone who evades or remains unclear here is 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 ticket.
It is important to check:
- it refers to this specific property or only on a budget?
- does it take into account the realistic purchase price?
- Are ancillary purchase costs included (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 modernisation
Buyers who have budgeted every euro quickly come under pressure - and are more likely to cancel the purchase.
Incidental purchase costs are often underestimated
Many interested parties only calculate the purchase price.
Additional costs are incurred:
- Real estate transfer tax
- Notary fees
- Land registry costs
These costs usually have to be paid from equity.
If they are missing, the financing fails - often late in the process.
Buyer behaviour reveals more than any number
I pay very close attention to the behaviour of interested parties:
- How specific are your questions about financing?
- Do you know your monthly limit?
- Can you explain how the purchase price is made up?
- Do they respond calmly to indications of 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:
- Condition of the property
- Energy parameters
- Need for modernisation
- 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 on the bank
- Frequent changes in the source of financing
- Long decision-making periods
- Strong dependence on the sale of another property
- Desire for unusually long reservations
- Above-average offer without justification
The more points that apply, the greater the risk.
How I specifically check the financial viability
I proceed systematically:
- Discussions with the interested party regarding budget, equity and schedule
- Request for a reliable confirmation of financing
- Comparison of the purchase price with market value and market analysis
- Assessment of bank requirements using the asset value method or capitalised earnings value method
- Review of the ancillary purchase cost planning
I remain objective - it's not about weeding someone out, but about recognising risks at an early stage.
Why transparency accelerates sales
Buyers who know right from the start:
- How the price is calculated
- How banks rate
- which documents are required
- what ancillary purchase costs are incurred
decide faster and safer.
Transparency significantly reduces jumps.
What owners can do in concrete terms
As a salesperson you should:
- Don't just look at the price
- Request proof of financing
- Do not allow yourself to be put under time pressure
- Ensure 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 available?
- Does the purchase price match the market value?
- Does the prospective customer appear calm and prepared?
- Are there no 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: Financability determines success or disappointment
When it comes to selling property in Nuremberg, we see this time and again:
It is not the most attractive buyer who is the best - but the one who can be financed.
A clean inspection protects you from:
- Loss of time
- cancelled 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 capitalisation method) and transparent communication, interest becomes a reliable sale.
