Arguably the most stressful part of the buying process is when it comes to making an offer on a property, but it doesn’t need to be.
Before making your offer, you will need to research the property to ensure that it’s right for you and to take buyer demand into consideration.
If your property is ‘rare’, has a conversion or is at the end of a terrace, then it will be in higher demand, meaning the seller will hold the cards and you will have to adjust your offer accordingly.
The opening offer…
On the other hand, if the demand is low, you can start with less.
Negotiation is to be expected on both parties’ sides but refrain from making an offer that’s so low that you enter a bidding war that could go on for a while.
Whilst you want to get into your home as soon as possible for as little as possible, a bidding war could create tension between you and the seller and they could offer the property to someone else with a higher bid.
Estate agents are bound by law and cannot tell you how much other offers on the property are for but they can tell you whether they were close to the asking price so you have something to go on.
If you’re a first-time buyer, then you will have no chain, which will be favourably looked upon by the seller.
However, it’s still not a done deal as there may still be other first-time or cash-buyers in competition with you.
In order to put yourself ahead, you should show that you’re serious about the property by committing to a moving date if possible by sending them proof of your deposit or your Decision in Principle.
Don’t be afraid to ask…
When you make an offer on a property, you should let the agent know that you want the property to be taken off the market.
This will reduce any chances of gazumping – when a seller accepts your offer but then pulls out in favour of a higher bid elsewhere.
Estate agents don’t have to adhere to this but if they do, then you will be protected from losing your first home before you already have it.
Whilst it is certainly a nervous time in the house-buying process, it can also go smoothly if you speak to the right people. Contact one of our expert advisers if you have any questions and they will be able to talk you through the next steps.