How do you best bid on a property?
As soon as you have found your dream property you can go a step further. A very important step, namely to place a bid. Always make a well-considered decision because when you make an offer, it is always binding. We are happy to give you some tips for making your bid.
A bid is binding
When you, as a potential buyer, make an offer for a property, keep in mind that this offer is binding. The final decision lies with the seller. If the owner decides to respond to your bid, then the sale is basically made. You reach a sale when an agreement exists about the good, the price and the parties.
Always keep enough information
In Belgium, most people borrow when they buy a home or a building. It is therefore advisable to visit your bank before making an offer so that you are well informed about your financial possibilities. This way you will not be faced with surprises. Make sure that you have the minimum agreement of at least one bank. After closing the purchase, you still have enough time to consult other banks to negotiate better terms
Also take a look at the mandatory documents that are presented at the sale. Interesting documents are the EPC, the water test, the soil certificate, etc.
Always make your offer in writing
An offer that you make in writing has a bigger chance of acceptance by the seller than an offer you make aurally. And also, to avoid discussions when an agreement follows, you should put everything down on paper. When you make a bid on paper, also known as the purchase promise, you can include additional provisions. We therefore recommend to clearly formulate the following elements:
Note: A spoken offer is as binding as a written offer but it is more difficult to prove when a discussion would arise.
Consequences when you abandon the purchase
When the seller has accepted your offer, the purchase has been made and you can not simply abandon the purchase. The seller can also claim compensation. Such compensation is always mentioned in the purchase promise. If you did not stipulate any compensation as a seller in the purchase promise, you will have to prove your actual damage.
A bid is binding
When you, as a potential buyer, make an offer for a property, keep in mind that this offer is binding. The final decision lies with the seller. If the owner decides to respond to your bid, then the sale is basically made. You reach a sale when an agreement exists about the good, the price and the parties.
Always keep enough information
In Belgium, most people borrow when they buy a home or a building. It is therefore advisable to visit your bank before making an offer so that you are well informed about your financial possibilities. This way you will not be faced with surprises. Make sure that you have the minimum agreement of at least one bank. After closing the purchase, you still have enough time to consult other banks to negotiate better terms
Also take a look at the mandatory documents that are presented at the sale. Interesting documents are the EPC, the water test, the soil certificate, etc.
Always make your offer in writing
An offer that you make in writing has a bigger chance of acceptance by the seller than an offer you make aurally. And also, to avoid discussions when an agreement follows, you should put everything down on paper. When you make a bid on paper, also known as the purchase promise, you can include additional provisions. We therefore recommend to clearly formulate the following elements:
- the correct identity details of the person(s) who will buy
- the price you want to offer (in numbers and in letters)
- the object: the address and any description of the good
- extra conditions (condition precedent of obtaining a loan, for example)
Note: A spoken offer is as binding as a written offer but it is more difficult to prove when a discussion would arise.
Consequences when you abandon the purchase
When the seller has accepted your offer, the purchase has been made and you can not simply abandon the purchase. The seller can also claim compensation. Such compensation is always mentioned in the purchase promise. If you did not stipulate any compensation as a seller in the purchase promise, you will have to prove your actual damage.