Making an Offer on a Property – 3 Tips for First Time Buyers
published on 17/01/2018
So, you’ve finally found the house that you love, but in fact it’s slightly over budget. Is it worth making an offer it? The short answer is yes. Many sellers build in an amount they are willing to drop from the sale price, so it’s worth a try. To stand a better chance of having your offer accepted bear in mind these three tips.
Get Things in Place
Try and everything in place before you look at properties. Sort out your deposit and then get your mortgage offer pre-approved. If you know your mortgage is in place and you have a solicitor ready to take on your purchase, you’ll be in a much stronger position. When you make an offer, you’ll be able to say that you are ready to go with everything prepared.
Sort Out your Budget
Work out exactly how much you can afford to pay for your first property. Ask your Estate Agent if there are any properties on their books that are open to reasonable offers. Don’t go way over your budget hoping to get a big drop. It’s unlikely to happen and you’ll only end up disappointed. Aim for around 10% to 15% over the price you want to pay.
Do Your Research
Look at all the houses for sale in the area you want to buy and make a note of each price. You can then work out the average price. If the property you want is above that price, then an offer just might be accepted. If it is over the average price, ask yourselves why? Does it have advantages the other homes in the area don’t have like an extra room because of a loft conversion or a driveway to park your car? If the house is better than others of a similar value in the area, you might find that the sellers will drop the price, but not by much.
Find out if they are in a hurry to sell. Have they found a house they want to buy, and would they appreciate a first-time buyer without a chain? Ask the Estate Agent how long the house has been on market and whether there has been a lot of interest. A house that has been on the market for a while is much more likely to accept an offer than one which hasn’t been for sale for very long.
You will be more likely to have an offer accepted if the seller has already found another home and is eager to get the ball rolling as quickly as possible.