According to DutchNews, citing a new survey of housing transactions, 77% of foreign buyers make offers above the asking price. This compares to 70% of local buyers. The difference is reflected in the amount of overpayment: expats end up overpaying by an average of 7.6%, while locals pay 9.3%.
The study also reveals differences in the behavior of the parties. Some 61% of foreign buyers use the services of an agent. Among locals, only 47% use them.
In addition, foreigners participate in negotiations on three properties before buying, while locals – only on 2 properties.
Why locals lose out on price
Experts attribute this not to income, but to the behavior of buyers.
Firstly, foreigners are more likely to use specialists. More than half of expats work with agents, while a minority of locals do so. Professional support helps to soberly assess the market and not overestimate the rates.
Secondly, newcomers act less impulsively. They are more likely to negotiate on several objects before closing the deal. Locals make fewer such attempts, which means that they are more likely to agree to unfavorable terms.
Expats do not accelerate the market
In the end, the picture turns out to be the opposite of popular opinion: foreigners not only do not “accelerate” the market more than locals, but often behave more rationally.
This is an important signal for the market. Overpayment for housing is not so much related to the origin of the buyer as to his strategy – his willingness to analyze, compare and involve experts.
