How to Make an Offer on a House?

Buying a property can be a difficult process. When submitting your initial offer you must ensure that the offer is in line with the property value. A balanced offer consists of an amount which is not too high but also not too low so that it is immediately rejected. Our guide will assist you on how to strike the right balance and find your dream home at the best possible price.

It is always important to take the below steps into consideration when making your offer:

• Contact the estate agent/owner - This will allow you to collate as much information as possible in regards to the property. It allow also allow you to have a understanding of the property’s popularity on the market.

• Do your own research - Whilst information can be biased, it is always recommended to research the property, others listed locally and similar properties sold recently.

• Budget - It is important to have a budget on what you feel comfortable paying. It is important to not overextend yourself to a point you may struggle with repayments. It is also important to factor in any additional payments such as renovations, legal fees, and Stamp Duty Land Tax payable.

• Organise - Gather any key documents you may require such as your mortgage  offer or proof of cash funds.

• Arrange Solicitors - Contact a law firm and advise them you require them you require an estimate for their conveyancing services. It is important to ensure you do not run into any unexpected fees. Contact us for our fixed fee package.

Once you have satisfied the above, you need to formally submit an offer with the estate agents. We recommend calling the agents or visiting in branch to confirm your offer should the agents have any requirements such as proof of funds. Following this, an e-mail should be sent to confirm the offer in writing and to ensure that it has been relayed to the vendors for confirmation. The following could increase your prospects of acceptance:

• If you’re a first-time buyer, cash purchaser, chain-free, or already have an offer on your own property, you could be in a better position than other potential candidates.

• Make them aware of any flexibility you may have with regards to moving date or speed of the transaction should they have an onward purchase.

• The final step is to confirm the offer has been accepted and the listing has been removed. It is important to ensure this has been done should any offers be made during the course of the transaction which may tempt the vendors.

Can I make an offer on a related purchase after already agreeing a sale on my current property?

Buying and selling a house simultaneously can be complicated. Whilst you can make an offer on a property, if it is a popular property you are most likely not going to be the most ideal purchaser. The vendors may wish to retain the property on the market after acceptance should they be met with a better offer.

How should I negotiate property price?

Negotiating a house price must be a fair and reasonable reflection of the property’s value. An offer should not be low enough to be rejected, yet not too high you are paying more than the property is worth. It is advised to:

• Start low. Commence by checking the interest in the property, has the property been on the market for some time? Is the owner after a quick sale? In these cases you may be able to submit an offer which falls between 5% and 10% below of the asking price. When selling a property it is recommended to advertise the property slightly higher than the price they are willing to accept  to account for any discounted offers.

• Survey - If you are committed to the property it may be worth obtaining a property survey to use in support of negotiations as it will bright any defects to light.

What happens if my offer is reject?

You may either continue the house hunt or increase your offer, subject to it being within your budget. It is always important to ensure that you are not over extending yourself purchasing a property you may end struggling to finance. If you have developed a good relation with your agents, they may be able to reveal the reason for refusal and shed some light on what would improve the offer.

Can I withdraw from a purchase?

There is no legal obligation to proceed with the purchase until the point of exchange as this is when contracts become legally binding. At any point before exchange you are free to either redact or alter your original offer. You are also able to vary any conditions of the sale such as repair or other.

If you are looking to make an offer or have made one, please contact us for more conveyancing help.