How to Make an Offer

Once you have found the one, the home of your dreams, it is only natural that you want to make sure its yours as soon as possible but this is the point where you would be best served to take a step back and take your time. We’re not suggesting you take weeks, but what we are saying is don’t phone up the agent 2 seconds after you have seen the property and make an offer. You need to get your thoughts straight before jumping in both feet first. In this guide we will given some hints and tips on how to make an offer and get it accepted.

Finances

First and foremost, check and double check your finances. Quite often we will go and look at properties that are at the top end or slightly out of our budget. Make 100% sure that you can afford not only the house itself, but the running and commuting costs. It could be that you can afford the mortgage but not the ongoing running costs. Better to be sure now rather than waste time.

Do your research

Check recently sold and similar properties in the local area. Is the property you are looking at competitively priced and what does the market look like? Ask the agent about the seller’s situation. Do they need to move quickly? what sort of chain are they in? How long has the house been on the market? How many offers have they had? Checking the market and also understanding what circumstances the sellers are in, will help you determine how to make an appropriate offer.

Be prepared to negotiate

As a rule of thumb never offer the asking price immediately, especially if it is at the top end of your budget. This leaves little room for negotiation and, in a bidding war, simply pushes the price up and over the asking price. Offer a sensible amount below the asking price to allow room for negotiation. When negotiating, make sure you highlight any advantages of accepting your offer such as being in no or a small chain, having obtain a mortgage in principle or being a cash buyer. All of this will potentially help the negotiations go in your favour.

Leave options open

Even if you have made an offer which has been accepted do not be afraid, once you have carried out your condition survey, to offer less if the survey highlights any potential issues with the condition of the property. Be reasonable with this, but it is valid to offer less if any undisclosed issues with the property come to the fore.

Walk away

If the negotiations start to stray in the wrong direction, don’t be afraid to pull out. The last thing you need is for the property to become unaffordable but sometimes this will give the seller a nudge to accept your top offer if they think they will lose the sale.

Making the offer

Actually, putting the offer in is remarkably simple. First a phone call to the agent, followed by an email is pretty much all that is required to get your offer in. The agent is legally required to pass on your offer.

Making sure your offer is accepted

There are a few things you can do to help you be the successful bidder:

• Make a good impression with the agent. Show them you are serious and reasonable
• Make sure you have a mortgage in principle in place
• Ask for a second viewing, this shows you are serious
• Make a reasonable initial offer

Buying your new home is very exciting and it can be tempting to rush into making an offer to secure your purchase but take some time to remove the emotions and ensure that it is right for you.