One of the questions I am often asked by new clients is do I think that they need an estate agent? My answer is invariably yes.
Estate agents may sometimes get some bad press, but they are a necessary part of the house-buying process. The other day, a newspaper article caught my eye which was a further illustration of just how important they can be.
The news report showed that 77% of the Netherlands’ international population bid more than the asking price when trying to buy a property – compared with 70% of native Dutch buyers.
However, expats actually overbid by a lower amount than their Dutch counterparts, challenging the image often repeated by politicians and newspapers that the international community is driving up house prices beyond the reach of the native population.
According to the research, expats overbid by an average of 7.6%, while native Dutch buyers overbid by an average of 9.3%. So much for the idea of wealthy foreign nationals consistently outbidding locals!
So what explains the difference? The survey found that six in ten expats employed an agent, compared with 47% of native Dutch buyers. And that, I would suggest is the reason for the difference. Internationals are more likely than locals to employ an estate agent to help them through the process and this is why they are getting better prices.
Speak to an agent
Employing a buying agent is something I always advise my clients to consider. There are many reasons for doing so – particularly if you are a relatively recent arrival in the Netherlands and your Dutch is not yet as strong as you would like it to be.
Agents understand the ins and outs of buying a home, know what to look out for, and have a wide network they can draw upon
This survey also shows that while employing an estate agent may involve an upfront cost, it can also save you money overall. Agents understand the local market, giving them better insight into property values and allowing them to advise more accurately on how much to overbid.
Staying longer in the Netherlands
The survey also helped debunk another common myth – that all expats come to the Netherlands for a few years, benefit from the 30% tax ruling, and then leave again.
In fact, around 70% of the expats surveyed said they expect to live in the Netherlands for at least 10 years, while 50% said they plan to stay for more than 20 years. This is certainly reflected in what I see among my own clients. Buying a home represents a significant commitment, and that goes hand in hand with a long-term commitment to the country as well.
Of course, the shortage of rental housing is another reason why many internationals choose to buy shortly after arriving in the Netherlands. There is very little rental property available, particularly for those on a more limited budget.
So if you are planning to stay for a while and put down roots, buying a home is the most sensible option. And bringing in an estate agent to support you through the process is a sensible way to help keep costs under control at the same time.
