A purchase becomes more and more demanding
This development can also be observed in the other major markets, particularly in the world's largest and most liquid real estate market, the USA. Median transaction prices for residential properties increased by 11% in the USA, 9% in Germany and 8% in the UK in the course of 2020, a trend which continued in the first half of 2021.
We observe that even solvent buyers in Switzerland are finding it increasingly challenging to acquire the desired property. In addition, the proportion of properties for which the transaction is above the original advertised price has increased significantly.
Lengthy bidding rounds or quick transactions
All real estate sellers prefer in the transaction:
- Price: Highest possible transaction price
- Reliability: High transaction security
- Speed: As fast as possible, definitive purchase decision
However, these goals are in conflict with each other; bidding processes regularly lead to higher prices, but they are naturally more protracted and costly.
With Bridge Loans you can organize financing very quickly
In the current market environment, a buyer wishing to secure a property has to offer a very competitive price directly and also to rely on the factors of speed and security. In practice, the buyer must either have the purchase price available at the time of the offer ("all cash offer") or be able to convince the buyer that he will be able to pay the purchase price within a very short time.
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