Therefore UBS not willing to go higher and understanbly the seller being advised by the agent not willing to drop their price. House has been on the market 9 months so it seems it’s over priced.
Just very strange how Switzerland two major banks can vary in valuation so differently
What you could ask for is the seller to provide an appraisal from the HEV or someone is a member of SVIT. These are not bank appraisals. Banks just run their property through the system. They generally do not visit the property.
Valuation is largely subjective. One bank may see attribute X as worth more than the other, one may see negative Y as problematic where the other does not. And of course, the seller and agent may have vastly different views than the banks.
In the end, it's a question of what the market will bear.
Unlike other places, it is rare that a seller here is under pressure to sell the house quickly. Few need the money within a short time frame, indeed more often than not sellers are willing to let a property sit on the market for years until someone comes up with their price. Hence the fantasy prices.
Coming from the US midwest, I initially put more importance on fundamental value as I looked at properties - but I have since learned to let that go. There simply isn't that same idea here.
All that matters here is: Do you, personally, feel that the price is right for you ? If so, make an offer. If not, walk away.
The Swiss property market is a different beast than markets many of us know. Key is to never get emotionally invested until you have the keys in your hand.
Good luck!
In this case it seems the owner and his bank have misjudged the market.
Tom
Has anyone any experience with independent valuation providers?
As a buyer we had a property valued which came in at about 70% of the asking price. We offered that much but it was unsurprisingly rejected. The key point the valuer kept coming back to was that it was a "Liebhaberobjekt", i.e. it would be worth more to the right buyer, but it would have to be a very special buyer. They were right too, https://www.google.com/maps/@46.7610...7i13312!8i6656
As a seller we had our apartment in Engelberg valued and used it to set the price, at the top of the suggested range. Sold it to a friend already in the same block, who paid what we asked with no quibbles, so clearly it was worth that much to them.
Simple as that.
If you really want the house, you will need to offer the seller's price. (Or more if there is competition.) If the bank does not believe the house is worth that much and will only mortgage at a lower price, you will then have to stump up the difference.
Or you walk away.
Trying to convince a seller to reduce the price based on bank (or anyone else's) valuation is often a hiding to nowhere. Unless the seller is desperate to sell, most will simply tell you to get lost and go on to the next buyer.
Simply make your best offer and see what happens.
If a seller can afford to hold on, they will often leave a property on the market for ages, expecting someday someone will see the value they see in their property. It is only when a catalyst such as the need for cash or to move on comes along will they start to consider adjusting their expectations to reality.
find out as much as you can about the seller, do a company check on their name to see what assets they have, or debt,age,and general position in society
i recently bought some land off a developer in the uk, did all of the above and discovered he was in it to the neck with the banks and the tax man,i "found out",how much debt he was in,and offered him immediate cash a little bit over that,and ended up getting the land for about 30% less than he paid for it 10 years earlier ,
however in zurich, i just paid the asking price, in general over here ,trying to knock down is a risky business
The first one we had done was a lot more than that, but was for a quite thorough survey on an individual house, with, for some reason, official notarised copies of the report, which ran to 50 pages or so. Second was for an apartment we'd owned for ten years and was done by the estate agent who sold it to us, so was very much cheaper, but still more than the figure you quote.
The bank will often use a company such as Wuest Partner for a valuation. When we buy or sell we also use them so the bank has less wriggle room when negotiating how much they will lend.
It's also a way for the bank to make more money. They will lend 80% of their valuation at a very good rate, and give a second mortgage for the difference between their valuation and the 80% of market price, at a higher rate. Currently 2.5% with Raiffeisen I believe. The good thing is if property values increase they will usually convert the second mortgage into a more favorable one.
It cost around 15 grand to get the certification, and that's after having successfully completed an appropriate apprenticeship and/or obtained a uni degree.
In some Cantons, the Gemeinde (Baukommission) can do valuations or recommend somebody. In smaller towns, architects can also carry out valuations, although they won't necessarily have that professional qualifications. Nevertheless, I've found them to be very thorough and the valuation included a survey.
You can have more than one Schuldbrief just like you can have multiple mortgages. You can use multiple Schuldbriefe to secure a single mortgages. Using a single Schuldbrief to secure multiple mortgages is only possible if the mortgages are all from the same provider. Having multiple Schuldbriefe over a smaller amounts can give you flexibility.
If you have multiple mortgages with different banks the rates will always be much higher as they are 1st, 2nd, 3rd & 4th charges on the property the first one gets first pick from the sale proceeds with a forced sale.