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Buyers beware: overbidding is back, mainly for cheaper homes

August 13, 2024
Photo: DutchNews.nl

The shortage of houses to buy in the Netherlands is so acute that overbidding is becoming more extreme and only homes costing upwards of €1 million are sometimes sold for less than the asking price, according to an analysis by housing website Huispedia.

In the second quarter of this year, buyers bid an average of 4.1% above the asking price for a property, compared with 2.6% in the first quarter, Huispedia said. A year earlier, overbidding was marginal.

Some two-thirds of properties sold in the second quarter of the year went for more than the asking price, compared with just under 58% in the first quarter. Just 7.6% went for the exact asking price and the rest for less – 26.4%. Most of these were being sold for at least €1 million, Huispedia said.

Energy-efficient homes with high energy labels were also more popular and overbidding was more likely.

Overbidding was also most likely in Utrecht province, where buyers offered an average of 6.9% more than the asking price. Utrecht city topped the list with 11.2%, followed by Amsterdam, where buyers offer an average of 9.3% more than sellers are asking. The Hague and Rotterdam are below the national average.

Interest rates have fallen slightly in recent months allowing buyers to borrow more and so increase their offers, Huispedia said.

Meanwhile, the NRC reports that buyers who want to maximise their quality of life while buying a home would be best to look to Pekela, Staphorst, Waadhoeke and Het Hogeland in the three northern provinces.

In these four towns buyers can enjoy a pleasant living environment, with good air quality and work/life balance with the cheapest homes. In Amsterdam, Laren and Bloemendaal buyers pay by far the most for a high-quality living environment, the paper said.   

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