Demand is high on the real estate market. If you are selling a house, you quickly have a bunch of prospective buyers standing in front of your door and are spoilt for choice. Which prospective buyers are really serious and can afford your property? Last but not least, you only want to leave your house, in which you have spent so many years, in good hands. We show you how to go about the selection process.
Step 1: Prevent sightseeing tourism
Not every interested party who responds to your offer is really interested in buying. In order to avoid so-called viewing tourism and only invite people into the house who are seriously considering a purchase after viewing the exposé, it is important to already have criteria for a pre-selection here. Complete contact details should therefore be a must. It is also a good idea to have the prospective buyers fill out a questionnaire in which you answer initial questions about the people who will move in, their price expectations and financing options. Anyone who only provides vague information and would prefer to remain anonymous is most likely not a serious prospective buyer. Online tools such as 360-degree viewings, where prospective buyers have to provide their contact details, can also be used to make a preliminary selection.
Step 2: Screening with the credit check
If, after the viewings, several prospective buyers remain with whom you have a good gut feeling, it is crucial to know whether they can actually afford the property. Because of course the most important criterion when selecting a buyer is that he or she is solvent. To check creditworthiness, you have several options. First of all, credit agencies such as Schufa Holding AG provide information about a person's solvency and indebtedness. As a private seller, however, it is difficult to obtain this information. Prospective buyers must therefore provide you with a self-disclosure. Other examples of credit agencies are Bürgel and Creditreform. They also provide information on existing property ownership and a general assessment of the financial situation. In addition to the data you receive in this way, it is also a good idea to request information about the assets of your prospects. This includes account and deposit statements, but also business documents. Ultimately, however, the most important criterion is the bank's financing commitment. Make sure that the loan has been approved specifically for the purchase of your property. This way you can be sure that the prospective buyer will not end up paying off another property.
Step 3: Criteria for the final selection
In the end, there may still be two or even more solvent prospective buyers standing in front of you. How do you make your decision here? The simplest variant is probably the "first-come-first-served" principle: Whoever approaches you first with a secured purchase offer gets the property. However, you are not bound to sell to the fastest bidder, but are completely free in your choice. Accordingly, a sympathy bonus cannot be held against you any more than a decision by lot. In addition, you can make your choice dependent on how well the new residents fit into the neighbourhood. After all, the new owner is supposed to take your place. So for the sake of your neighbours, too, get a thorough picture of the people interested in your property. When selling a flat in a block of flats, it is often even customary for the owners' association to approve the buyer beforehand. However, you should be cautious about additional payments. While it is legitimate to sell to the highest bidder, you must not accept any additional payments that are not listed in the purchase contract. Otherwise there will quickly be problems with the tax office.
If you take all these tips to heart, you can leave your beloved home to a new generation with a good feeling, who will hopefully accumulate as many wonderful memories in the new home as you did.
Do you need help choosing a suitable buyer for your property? We will be happy to support you and carry out the credit check for you.
Photo: © Deagreez
