When you are discovering Luxembourg real estate market and you are from an area where the power of buyers and sellers is balanced, it is disturbing and you need time to adapt yourself when you are facing a seller market.
What is a seller’s market ?
A seller market is a market where demand is exceeding a lot the offer.
There is a important competition between buyers (purchasing price offered, time to take a decision, purchasing conditions) and sellers are adapting themselves by increasing/decreasing their price to come to an agreement. The agreement price is very often the higher price offered by a solvent buyer.
In this particular market, the asking price is reflecting the value that « desesperate » buyers are ready to pay to satisfy their human primary needs : shelter and security. From an helicopter view, coming from abroad, asking prices seems crazy compared to the property quality, surface, environment.
That’s why some people do not want to accept these conditions and are seeking a property which has got the characteristics they used to know in their country.
If you recognize yourself in this situation, I think it is essential that you ask yourself the question if you really want to buy or rent. If you think you will stay more than two years in your home, it is currently more interesting to buy considering the actual population growth rate and expectation for the years to come.
Probability that Luxembourg’s real estate prices remain at least stable or increase is high.
If you are willing to buy, it is your interest to understand the market mindset. The more you wait for an “opportunity” or an hypothetic price drop, the most probable you will see rising prices and loosing purchasing power.
I think, in my case between 2012 and 2016, I have lost 20m2 or 100,000m2, I mean I could have bought in 2012 the same property I have bought in 2016 but EUR 100,000 less, or a property 20m2 bigger.
Once the little voice in your head tells you « this property is better than the other one » or « this property has got all criterias », then you are ready to propose your first offer.
To discover how to change faster your mindset, to get tips in order to save you time, money on purchasing fees, financing costs, renovation costs, then register here.