Buying a House on Credit: The Experiences of a Starter




There I stood, along with 15 other potential buyers at the same time in a small family house in a nice neighborhood in a big city. “Take a look around and make a bid for tomorrow 12.00” were the few words of the sales broker.

It was immediately clear that he did not have to make much effort to sell this house. The house was in one of the big cities of the country where the housing market is ‘overheated’ according to the newspapers.


The suffering that houses homes is hot


The suffering that houses homes is hot


I always thought that I would love to buy a house. I have seen myself in all kinds of houses for months, put everything together, think about a beautiful layout and make an informed decision. The reality is different. Quickly look and offer, otherwise you do not have a chance in the big cities at the moment.

This course of events raised many questions with me. Is it useful to go with this? Or is it wise to wait until the prices start to fall again? But are they going to fall? Or will I soon be completely behind the net if they continue to rise?


Offer without reservation


Offer without reservation


Some brokers even advise to make a bid without reservation of funding to increase the chances of a home. This means that you yourself fully guarantee the financing of the house. If it turns out that you can not pay the house, you will almost always pay a fine of around 10% of the purchase price. Be aware that this is a huge risk. You soon have tens of thousands of euros without you getting anything for it.


Irrational behavior and psychological tricks


Irrational behavior and psychological tricks


I realized that it is important not to be influenced by all kinds of contextual factors and psychological tricks, but to make a decision that fits within my own financial situation. My tips for people who are looking for a property:

Look at your personal situation

Focus on the expenses that come with buying a house and taking out a mortgage. Make a budget (for example with the Personal Budget Advice ) and see if these costs fit into this. Keep in mind changes in income and expenditure that you expect in the future.

Do not let yourself be influenced by predictions about what will happen in the housing market, because this is uncertain. Let go of what you would have paid for a comparable house three years ago. Again, what matters is what fits your situation right now and in the (near) future.

Consider in advance how much you want to offer and do not go over it

Because of various psychological tricks people are inclined to give a higher bid than they actually had in mind:

  • Brokers know the principle of scarcity only too well. By allowing many potential buyers to view at the same time, the house seems even more popular.
  • Buyers who have been outbid several times can get the feeling that they ‘lose’ every time. They are tired of losing at a certain moment and then make a (too) high bid.
  • That nice fireplace or those beautiful stained-glass windows can make you really fall in love with a home. If you are sensitive to this kind of detail, take someone who can see through this.
  • In addition, it is useful to put in advance the most important requirements that you really do not want to deviate from. For each bid that you plan to do, check whether the property meets these requirements.


Do not let them get to you


Do not let them get to you


So do not let yourself go crazy. If you have made a high offer that is accepted too quickly, then be aware of your rights. You may always have the purchase contract terminated within three days without giving any reason.

Whether it has been successful with my house? Eventually Yes! A nice house that meets all my requirements and fits well within my financial picture. Something has to be done about it. How do I deal with this? I’m going to make a lot of coffee with my two left hands and spread sandwiches for the dear friends and family who come to help.

An affordable mortgage: now and soon

When purchasing your first home you enter into a long-term financial obligation. Good preparation for what is affordable helps to make a good choice. To help starters with this, Nibud has compiled a handy booklet .

Order the e-book ‘Affordable mortgage’