Buying a house is more than likely going to be the biggest financial commitment you are going to make in your life. When you are in a position to put in an offer for a property you’re probably going to be excited and already thinking about how you are going to decorate it, what the possibilities are for refurbishment and looking forward to sealing the deal.
Before you make that choice, here are some things to consider as you decide to make an offer to buy.
Is it the Right House or Property?
You might be in a hurry to buy and the seller may be in rush to sell, but you should always try to give yourself a cooling off period before you put in an offer. It can be difficult though, particularly if there are other buyers looking at a property. Because it’s such a big investment, take your time to make the right choice for you and your family.
Is Your Offer Reasonable?
Key to success is making an offer that is likely to be taken seriously and has a chance of success. Some people either make a decision based on their own budget and hope for the best or offer something well below the asking price that is not going to appeal to the seller no matter how desperate they are to sell. There’s often a bit of toing and froing when it comes to negotiating a house price but your room for manoeuvre is generally a lot less than you think.
Of course, if the property ticks every box you have and is being offered at a reasonable price, there’s no reason why you shouldn’t offer the asking price straight away.
Check the Market
One good idea is to check what similar houses in the area are being sold for and tailoring your offer to that. The chances are you will be competing with other buyers so you won’t know what they are offering. Some estate agents may give you a hint that you are in the right ballpark though.1
You will want to also consider other factors apart from what the house prices are in the local area:
- The property might need a good deal of work doing on it that is going to require extra expenditure.
- The seller wants to complete their sale quickly for one reason or another.
- The property has been hanging around on the market which means the asking price is probably on the high side.
A Visit to a Mortgage Advisor
There’s no point in putting in an offer if you are not actually in financial position to buy. Contacting a mortgage advisor and finding out what is available to you and who is willing to lend enables you to set your budget and have a clear idea of the type of property you can afford.
Hiring a Conveyancing Solicitor
You won’t need one until your offer has been accepted, but looking around for a reliable conveyancing solicitor will save a lot of time and hassle. There’s a good deal of work to be done once an offer has gone through including getting in a surveyor and sorting out the exchange of contracts and mortgage transfers.