The Question ….

I have found a property that I like that is within my budget. Are there any techniques or things I should know before making an offer for the property and dealing with the estate agent?
— David from Surrey

The Answer ….

Making that all important offer for a property

Your are in a very good position, as a first time buyer with no chain with a mortgage in principle is like gold dust, to both new build developers and resale sellers.

Your sales agent wants to put an offer across detailing why it’s a “reasonable offer”. They mention your offer price together with any added benefits that you bring with you. In most cases speed of sale with minimal chance of failing to complete wins the deal and sways the seller. Your estate agent will know if the seller wants a quick sale.

Maybe the property has been on the market for a long time?

It could be that the market is saturated with many homes for sale, simply because of new developments being completed. An important thing to remember before making an offer on a property is …

Supply and Demand drives the price

You have discussed your maximum purchase price budget with your Mortgage Adviser and now before you make your offer you need to compare your property objectively (difficult I know) with others in a similar location. Zoopla offer “sold pricing by postcode”. Use these types of tool to help you gauge your offer price.

Remember to try and stay within your agreed budget and within your affordability. Start on the lower side of your target purchase price and slowly work up to what you would happy with paying of the property.

Reducing an offer Subject to Survey

The chances are that when you make your offer, you will may reduce it when your property survey results are provided to you. Properties are rarely perfect. It is common practice to revise the offer following a RICS Homebuyer Survey. Make your offer conditional and “Subject to Survey”.

Compare the property market by location

Check the rentable value of the property (An experienced Mortgage Adviser can then help you with the offer price).

Buyers that can move fast are welcomed with open arms by the seller. Their dream is to sell fast with minimal disruption both in time and money .

Keep your first property purchase on track

Once the offer is in, get ready to receive the acceptance and then focus on the next step and moving forward to become a home owner.

Get your professionals working for you

Is it luck? – No it’s taking control, covering the detail, being reasonable and acting swiftly.

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