Securing Your Dream Home: The Art of Making an Offer

Once you have found the property of your dreams, the next step is to make an offer.

If you are submitting your offer to an estate agent, you can usually do so verbally, either in person or by phone, or in writing. If you initially submitted your offer verbally, you may be asked to send a confirmation across in writing, usually by email these days, for the agents records.

The agent must then pass the offer/information to the vendor (the current owner) for consideration. It helps to tell the story of what makes you a good buyer, highlighting why a seller should choose you, and don’t always assume that just paying the asking price will be enough.

Remember:

  • Be Ready – knowing how much you can afford and being able to supply the evidence to confirm it (your mortgage agreement in principle), this will show that you are a reliable, organised and serious buyer. It may also help to have your solicitor details, so that you can confirm the details to the agent.
  • Chain free – First time buyers, buyers with no chain and buyers who have pre-arranged mortgages will often have a head start on most of the competition, especially where the seller is in a chain.
  • Speed – if you are chain free and organised you should be able to complete the transaction quickly. Be sure to check if the current owners are in a hurry to sell or have been trying to sell for a long time. If so, they may be willing to accept a lower offer to make the sale.
  • Price – Some vendors are not in a hurry and simply want to maximise the price that they can achieve. Sellers who are not in a hurry to move are more likely to hold out for a higher price or asking price offer.
  • Be confident – Even if your offer is not at the asking price, don’t apologise. The offer is what you are prepared to pay for the property.

If your initial offer is not successful, there could be a couple of rounds of offers and counter-offers back before an agreement is made. An agent is required to be transparent with you and will let you know if other people are interested. Knowing your budget ceiling is crucial so decide your maximum limit from the start and stand firm. If the seller refuses to budge, you need to think very carefully if the property really is worth the extra money and of course, what you will have to live without over the long term.

Do your homework and check what the property is truly worth. Whilst sold house prices can help give an idea of recent sales, it’s better to see what the competition is like now. If there are few similar properties for sale in the area, chances are the seller has the upper-hand. Also, if there are any faults or repair work required, use this to justify a lower offer. In tougher times when there are fewer buyers, sellers may be more willing to negotiate on price.

Once you make an offer make it clear that it is:

  • Subject to contract (STC) – the final sale takes place only when lawyers have exchanged legally binding documents
  • Subject to survey – this allows for the cost of any faults or issues to be taken into account once your surveyor has checked the property out

Once your offer has been accepted, make sure the estate agent has taken the property off the market and is no longer advertising it for viewings and sends out a memorandum of sale.

If someone else is interested and views it, you risk someone else coming in with a higher offer, this is known as gazumping.

You should receive a letter from the estate agent confirming your offer. If you don’t receive this then make sure to ask for one.

If you don’t know your maximum borrowing, the cost of your mortgage loan or have a Mortgage Agreement in Principle, these can be achieved by speaking with MMPE. Use the appointment link below to schedule a convenient, no-obligation appointment.

MMPE can provide buyers with independent mortgage research and advice and a quick and efficient mortgage agreement in principle service.

Our free Mortgage App Sussed, provides Home Buyers with useful tools, such as affordability calculators and Mortgage Sourcing. Download here to ensure that you have these tools to hand for when you need them.

If you want to know more, then book an appointment with a mortgage specialist.

Schedule an Appointment

My Mortgage Experts & Protection Experts Ltd (FCA 937076), is an Appointed Representative of King Mortgages Ltd.

King Mortgages is authorised & regulated by the Financial Conduct Authority (FCA). King Mortgages Ltd is entered on the financial services register http://register.fca.org.uk/ under reference number 803561.

The information contained within this website is subject to the UK regulatory regime and is therefore primarily targeted at consumers based in the UK.

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