What should I do before making an offer on a house?
1. Confirm how much you can afford
2. Understand the local property market
3. Talk to your estate agent
4. Look at all the factors
If you are looking to move house, you’ll have likely done plenty of research into the type of property you’d like to live in, as well as outlining your budget and deciding if you want to relocate or stay in the same area. After some time searching, you find the perfect property for you – but what sort of offer should you make? Go in too high and you may end up paying more than you should; too low and you might miss out on the home of your dreams. To help make sure that you get the house you’ve been working for, Quick Sell Your House have put together a guide on making an offer on a house.
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How much can you afford to spend
Before you begin hunting down the right property for you, think about what houses are going to be in your budget. The last thing you want is to fall for a property that you can’t afford. We advise contacting a mortgage broker to discuss how much you’ll be able to borrow. They’ll assess this based on your personal circumstances, and be able to give you an idea of what you’ll likely be approved for. You should also consider how much living costs in the area you’d like to move to will be, as this will differ hugely across the country.
Understand the local property market
It’s vital that you get to know the local property market you’re buying into, to ensure that you don’t overpay. To find out what other properties in the area sold for you can head to Land Registry Website.
It’s worth noting that property prices can vary wildly, and so from the time of your research to the time of making an offer, values may have gone up or down.
Also, try searching for the address of the property you’d like to make an offer on. If you’re lucky, you may find previous listings on platforms like Rightmove or Zoopla, giving an indication of whether it’s been on the market for a while or how the price has changed over time.
Speak to an estate agent
While an estate agents job is to try and get the most money for the seller, it doesn’t mean they can’t help you either. They will have done plenty of research around the property and so will be a great source of information – and they want to be able to achieve a sale on the property, so will work with you where they can to ensure a win for everyone involved.
- Why is the owner selling?
Find out why they’re selling, and it might give you a better indication of how much they’re happy to accept. For example, if they’re looking for a fast sale they may accept an offer under the asking price, saving you some money. - How long had the owner lived there?
If they haven’t lived in the property long it could be an indication that there’s an issue with the property or with the area. - How many views had the property had?
It’ll give you an idea of how many other people may be making an offer and if you have any competition. - Has the owner found somewhere to move to?
If the answer’s yes it might mean they’re more inclined to move forward with a faster sale, allowing you to make an offer under the asking price. - What’s the minimum price the seller will take?
It sounds obvious but many people don’t ask this question. If the minimum price is over your budget it might mean you have to start negotiating.
Consider other factors
You can often use external factors to help negotiate the price. Remember, it’s not just the home that determines the value but the area it’s in. Research;
- Local schools
- Infrastructure plans
- Crime rates
- Local transport links.
When should you make an offer below the asking price?
Remember that the asking price isn’t set in stone. It’s an asking price. There’s nearly always room for negotiation. It’s often worth offering less if;
- You’re not in a chain or are a cash buyer
- A similar property in the same area recently sold for less
- The house has been on the market for some time
- There are issues with the property, such as damp
- The seller is looking to sell the house fast.
Making your offer
Making an offer on a property might seem like it’s pretty straightforward. Just tell them how much you’re willing to pay, right? Well, there are a few other things you can mention or emphasise to improve your chances of getting the property;
- Being chain-free
- That you’re flexible on the moving date
- Having a mortgage agreement that proves you can afford what you’re offering
- Your motivation for moving and why you want the property that they’re selling.
Don’t get gazumped
Gazumping is where the seller pulls out of the deal because they’ve received a higher offer from someone else. If your offer is significantly below the asking price, there’s a good chance that this could happen and it could mean that you lose thousands of pounds spent on surveys and solicitors.
If this happens to you, there’s not much you can do to stop it other than put in a higher offer for the property. To help avoid this, once a seller has accepted your offer request that they take the property off the market. This isn’t something that they have to do, but if they’re genuine about accepting the offer then it isn’t something they’ll have an issue with. If they refuse to take the property off the market, ask them why they still want to market it and hold off putting money down on solicitors and surveys.
Purchasing a property is both exciting and daunting. When making an offer make sure that you understand everything there is to know about the property and the area and to ask all the right questions. If you’re currently looking to move and want a quick sale on your property to get things in motion, contact us at Quick Sell Your House today.
