Here are some key tips on how to successfully make an offer
Buying a house can be both exciting and daunting. To help you navigate the process, here are some key tips on how to successfully make an offer, determine how much to offer, and what to consider during negotiations.
Research Local House Prices
Prior to making an offer, it’s essential to research local house prices and recently sold prices. This will give you a clear idea of how much similar properties are selling for and help you avoid overpaying. Here’s how:
1. Use our online portal: Enter the address and check the selling prices of similar houses in the area.
2. Analyse Market Trends: Look for patterns such as how quickly properties are selling and whether they are selling below the asking price. Slow-moving properties may give you leverage to make a lower offer.
Know Your Financial Position
While it’s important to understand your budget, avoid showing too much enthusiasm during viewings. If you appear overly eager, the agent and seller might assume you’re willing to pay more. Stay composed and ask insightful questions to prepare for negotiations.
How to Put in an Offer
Once you have a figure in mind, follow these steps to formally submit your offer:
1. Inform the Estate Agent: Legally, estate agents must convey all offers to the seller.
2. Put It in Writing: Follow up your verbal offer with an email to minimize misunderstandings.
3. Highlight Your Position: If you’re a first-time buyer or not part of a chain, emphasize this. Sellers often prefer buyers who can complete the sale quickly and without complications.
4. Prepare for Negotiations: If the seller shows interest, negotiations will occur through the estate agent. Remember, the agent is a professional negotiator working for the seller. If you’re unsure, ask us.
5. Secure Your Purchase: Once your offer is accepted, request that the property is taken off the market. Agree on a list of included fixtures and fittings in writing. Also, consider Home Buyers Protection Insurance to protect against either party pulling out before contract exchange.
When Is a Low Bid More Likely to Succeed?
Certain conditions can increase the chances of a lower bid being accepted:
1. Long Time on Market: Properties that have been listed for a long time may be overpriced, making sellers more receptive to lower offers.
2. Seller’s Urgency: If the seller needs to move quickly due to a job relocation or being caught in a property chain, they might accept a lower offer.
3. Lack of Interest: If you’re the only interested buyer, the seller may view you as their best option.
4. Favourable Completion Date: Proposing a completion date that suits the seller can make your offer more attractive.
5. Strong Financial Position: Demonstrating that you have a mortgage in principle, a large deposit, and are ready to move quickly can give you an edge.
6. No Chain: If you’re a first-time buyer or have already sold your home, you present less risk to the seller.
7. Multiple Agents: Sellers using multiple agents may be more willing to accept lower offers to secure a sale.
Determine Your Maximum Bid
Before entering negotiations or a sealed bidding process, decide on the maximum amount you’re willing to spend. Be mindful of additional costs associated with buying a property.
Bidding Tactics
The best approach depends on whether the process involves open negotiations or sealed bids.
Open Negotiations
1. Start Low: Begin with an offer 5-10% below the asking price.
2. Expect Counteroffers: Sellers often list at higher prices expecting negotiations.
3. Monitor Competing Bids: If the agent informs you of higher bids, consider if you want to increase your offer.
4. Exceeding Asking Price: Only do this if the seller has a higher offer or if it’s your dream home with high competition.
5. Stay Polite and Calm: Avoid irritation to maintain good relations.
6. Appear Uninterested: Don’t seem too eager, even if you love the property.
7. Direct Negotiations: You may contact the seller directly, but be prepared for tougher negotiations than with an agent.
8. Ignore Minor Extras: Don’t be swayed by second-hand goods included in the deal; they usually add little value.
By following these guidelines, you'll be well-prepared to make a confident and informed offer on your next property. Happy house hunting!
