How to make an offer on a property
In this article I take a look at 9 simple steps you can follow to help you when you are looking at making an offer on a property. This article will be especially relevant if you are buying your first home.
Buying a house is an exciting yet nerve-wracking experience. One of the most crucial steps in the home buying process is making an offer on a house.
As a buyer, you want to make sure that your offer is accepted by the homeowner. However, it can be challenging to stand out from the competition. In this article, we'll discuss the best advice to give to a buyer on how to make an offer on a house and have it accepted by the homeowner.
1 Work with a reputable real estate agent
One of the best pieces of advice for a buyer looking to make an offer on a house is to work with a reputable real estate agent.
A good agent will have experience in negotiating with homeowners and can help you craft a strong offer. They can also provide valuable insights into the local housing market, including current trends, pricing, and competition.
A real estate agent can also help you determine a fair offer price based on comparable homes in the area.
2 Understand the local housing market
It's important to have a good understanding of the local housing market before making an offer on a house.
Your agent can provide you with a comparative properties to help you determine what similar homes in the area have sold for recently. You can also find this information widely available on the internet or buy putting in a search for similar properties on the property portals like Rightmove or Zoopla.
This information can be used to create a competitive offer that is both fair to the homeowner and reflective of the current market.
3 Get pre-approved for a mortgage
Another important step in making an offer on a house is to get pre-approved for a mortgage.
This shows the homeowner that you are a serious buyer and have the financial means to purchase their home. Being pre-approved also puts you in a better position to negotiate with the homeowner.
An Estate Agent agent can recommend a reputable lender who can help you get pre-approved for a mortgage, or ask a family member or trusted friend to make a recommendation.
4 Make a sensible offer
When making an offer on a house, it's important to make a sensible offer.
This means offering a fair price that is in line with the current market, as well as being flexible with your terms. Your agent can help you determine the appropriate offer price based on the comparables and other factors, such as the condition of the home and how long it has been on the market.
5 Be flexible with contingencies
Contingencies are conditions that must be met before the sale of the home can be finalised.
While some contingencies, such as a home inspection, are necessary, it's important to be flexible with them. The more contingencies you have, the less attractive your offer may be to the homeowner. Your agent can help you determine which contingencies are necessary and which ones can be negotiated.
6 Consider a lodged deposit
An earnest money deposit is a good faith deposit that is made by the buyer to show their commitment to the purchase.
Providing a larger earnest money deposit can help show the homeowner that you are serious about purchasing their home. This can make your offer more attractive and increase the chances of it being accepted.
7 Be patient
Making an offer on a house can be a lengthy process. It's important to be patient and not get discouraged if your offer is not accepted right away.
Sometimes, it can take several rounds of negotiations before an agreement is reached. Your agent can help you navigate this process and keep you informed of any progress and feedback that the homeowner gives.
8 Consider offering to complete quickly
Another way to make your offer more attractive is to offer to complete on the house purchase quickly.
This can be appealing to homeowners who are looking to sell their home quickly. However, it's important to make sure that you have enough time to complete any necessary inspections and due diligence before closing. The Estate Agent, mortgage provider and solicitors will need to be made aware of any dates agreed that you are all working towards.
9 Don't be afraid to walk away
Finally, it's important to remember that not every offer will be accepted.
If the homeowner is not willing to negotiate or if you feel that the home is not worth the asking price, it's okay to walk away. There are plenty of other homes on the market, and it's important to find one that is the right fit for you.
In conclusion, making an offer on a house can be a stressful process, but with the right advice and guidance, it can also be rewarding. By following these tips, you can increase the chances of having your offer accepted and finding the home of your dreams.