Barry Burgemeester is a seasoned purchase agent in the Amsterdam and Amstelveen market. With over 20 years of experience, he focuses on helping clients buy homes. He offers a complete A-Z service, working on a no cure no pay basis. Barry never takes on competing clients, ensuring he is dedicated to each buyer.

The Overheated Market

Today, the housing market is overheated. This situation arises from a simple fact: only about 30% of people in Amsterdam own their homes. This means that demand is very high while available homes are very low. Everyone is looking for the same properties.

Barry often says, “If you don’t work in real estate every day, it’s hard to see what’s really happening.” Recently, Maxim Bours, director of Huispedia, commented on the issue. He noted an increase in overbidding, stating that homes are often listed at too low a price. Bours claims, “A low asking price attracts more buyers and leads to bidding wars.”

However, Barry believes this view is too simplistic. The problem isn’t just low prices. It’s about fair pricing that leads to bidding wars due to desperation. The reality is that there is simply not enough supply. Blaming real estate agents for this situation is unfair. Many agents, feel overwhelmed by the demand.

Recent Tax Changes

New Box 3 tax rules have also impacted the market. Starting in 2023, people renting out properties will face higher taxes. A larger percentage of the WOZ value, known as the empty value ratio, is now used to assess wealth. If a rental property has a mortgage, the situation worsens because the mortgage cannot be deducted from the WOZ value. Additionally, the Tax Authority applies a higher hypothetical yield percentage of 6.17% to this wealth. This change has led some owners to sell their properties instead of renting them. But even with these new listings, the market still suffers from a shortage.

Who Is to Blame?

So, who is responsible for this situation? Is it the real estate agents? Barry thinks it’s not fair to blame agents alone. After all, many agents are also overwhelmed by the market’s demands. Furthermore, Barry highlights that some claims about the bidding process are misleading.

In reality, bidding on a house does not follow a perfect process. For instance, the so-called ‘low in the market’ strategy can lead to crowded viewings. However, Barry insists it’s not common practice for buyers to be asked to submit higher bids after their initial offers. Instead, there is a closed bidding system where buyers submit their best offers, and then the seller chooses which offer to accept. If, by chance, a better offer comes in after the closing date, the seller’s agent must present it to the seller.

Barry also remembers when negotiations were simpler. “In the early days, we had a fair negotiation process,” he says. During that time, buyers could adjust their offers and negotiate in real-time. While today’s system has its benefits, it often creates tension between agents who strictly follow closed bidding and those who prioritize their clients’ best interests.

The Role of the Press and Future Predictions

As long as the press continues to share non-objective articles, it is hard to understand the housing shortage fully. Barry believes that blaming bidding wars solely on agents is misguided. Politicians should listen to the community and work towards effective solutions, built more homes for instance. “There is a tunnel vision surrounding this issue that needs to be acknowledged,” Barry asserts. He predicts that the housing shortage will last for a long time and emphasizes that collaboration is essential for real change.

As Barry continues to navigate this complex market, his focus remains clear: to provide exceptional service and help clients achieve their homeownership goals in a challenging environment. “Our first meetings are all about expectatations and how to handle the dissapointment if it does not work out at first. We think there is a house for everyone, sometimes it just takes a long breath and some time”.

Top Tips for Homebuyers

  1. Get Your Numbers Straight: Understand your budget and mortgage options so you can act quickly when the right property appears.
  2. Follow Advice: Seek guidance from experienced professionals, including real estate agents and financial advisors. Their insights can be invaluable.
  3. Be Realistic: Set achievable goals based on the current market. Understand that the perfect home may require some compromises.
  4. Know When to Walk Away: Sometimes, it’s better to walk away from a deal that doesn’t meet your needs or feels rushed. Trust your instincts and don’t settle.

You can reach barry via info@burgemeestervastgoed.nl and plan a free initial meeting.

 

 

photocredits: freepic