So you have been searching for the perfect property and you finally find the one… but how much should you offer to pay?
In today’s market the general perception is that it is a buyer’s market and you are entitled, or even, expected to make a low first offer. However to make sure you secure your dream home we recommend you do some homework and preparation before you make your offer:
Your position – on making any offer you will be asked about your current position – first-time buyers and chain-free buyers will be looked on more favourably and before any offer is accepted you will be asked for proof of finance so if you require a mortgage to fund the deal make sure you have arranged this in principle to strengthen your position at this stage.
The property – what is the property actually worth? As you carry out your property search you will get to build up an idea of which properties have been ambitiously priced and those that are correctly priced. Sold house prices can give you an idea of recent sales but also consider what the competition is like now. If there are few similar properties at that price then the chances are the seller has the upper hand. A well-priced property will always be in demand.
Time on market – if the house is new to the market and gaining a lot of interest then to secure it you will have to move fast. A house will find its position in the market and if it has been priced well then it will move quickly. Do not fall into the trap of thinking no-one pays the full asking price. If the house has been marketed for a longer period of time then you may be in a stronger negotiating position to make an offer.
Seller’s position – find out what the position is of the seller – are they in a hurry to sell and will they be willing to accept a lower offer because they are ready to move? If a seller is motivated and you have your finances in place then this will give you a stronger negotiating position.
Our advice is that your focus should be on securing the right home for your needs within your budget, in the area you want to live in – take the emphasis off finding the greatest bargain. If you see a property you can afford, which offers you the accommodation you need in an area you like, and you could be happy there, then snap it up, as the chances are most of the other buyers in your price range will also want the property. Good value is good value – in any market.