For first time buyers, making an offer on your first home can seem daunting, but with plenty of preparation and planning, the outcome is very likely to be positive.
We can help with everything from budget plans and communications with lenders to arranging all the paperwork required to get your offer accepted. Before this highly anticipated step of purchasing a property there are a few things to know that can make the process go a lot smoother.
Before making an offer
Although going to view properties can be overwhelming, you shouldn’t dismiss the opportunity to look around, it’s unlikely that you will find the perfect home first time.
You might feel pressure to make an offer on the first property you find which could be a big mistake if you haven’t inspected things closely or asked enough questions. Renovations or improvements you run into at a later date can set yourself and your budget back unnecessarily.
Plan any questions you would like to ask before the viewing, which could include...
Why has the owner decided to sell?
How long has the owner lived at the property?
How long has the property been on the market?
Have many other people viewed the property?
The agent carrying out the viewing may not be willing to share details around offers so this might be more appropriate to discuss with the seller directly.
Competitive markets
In the event that you are bidding against other buyers for the same home you should be cautious not to exceed your set budget and end up paying above the odds. If you have the funds spare and don’t want to miss out, you could consider offering the asking price or more. If the owner is in a rush to sell the property or if it has been on the market for a while, they may accept an offer below the asking price.
When it is time to make an offer
First evaluate the situation, if there is not a lot of competition you can consider offering slightly below the offer you had planned, this could be 5% which will allow you room to negotiate. If the situation is the other way round, you can set yourself an upper limit which is the maximum you are willing to pay.
If the property is being sold via an estate agent you can put your offer forward to them either in person or over the phone. They can also pass a written offer on to the seller which you can usually submit by email.
Although the priority here is to tell the seller the amount you are offering, you can also emphasise other factors that support your offer, these could include...
- Having a mortgage agreement in principle prepared, a certificate that outlines your eligibility for a mortgage.
- Being able to put down a large deposit, therefore lowering your LTV (loan to value)
- Having flexible availability for a moving date.
- Being a first time buyer or having already sold your home, making you chain free.
To avoid being “gazumped” which means you are outbid by another buyer after your offer is accepted, make it clear that your offer is subject to the property being taken off the market, with no further viewings conducted. When you are feeling confident and ready, go forward and make your offer.
Click here to find out more about our first time buyer services or give us a call to arrange an appointment.