Putting in an offer on a property
Buying a home can be a complicated process, so here are some handy tips in how to put in an offer and be successful.
Before you make an offer
When you first meet with an estate agent, state the amount you’re willing to spend at slightly lower than the reality. Agents tend to show you properties at the maximum end of what your budget is, so this will put in a good position right from the start when it comes to negotiation. For an Estate Agents Gloucester, visit http://www.tgres.co.uk/
Many people get overexcited and sentimental when it comes to finding a house they really love. Don’t be too obvious that you’ve had your head turned during viewing or the seller will know that you’ll be willing to pay more for it. Try to play it cool and ask lots of questions.
Keep a close eye on what’s happening in the property market in the area you want to buy. How much are home selling for and how quickly do they sell? If they sell slowly and for under the asking price, then you know you’re in a strong position to put in a lower offer.
Putting in the offer
Notify your estate agent as by law they must pass on every offer they receive to the seller. It’s good practise to put the offer in writing too, an email following a phone call will suffice. If the seller is interested, then the negotiation process can begin through the estate agent. As the agent works for the seller, you might feel there’s nobody acting on your behalf. Often buyers will hire a buyer’s agent to help in the negotiation process.
A lower offer is more likely to be accepted when:
The property has been on the market for some considerable time
If the seller needs a quick move
You are the only person to show interest in a property
Your suggested completion date works well for the seller
If you are able to move quickly and have funds available right away
The bidding process can vary – open or sealed. Open negotiations are far more common.
With open negotiations, like any bidding process, start low. Perhaps think about offering 10% lower than the asking price. This is often expected by the seller, so they put their property on the market higher than they expect to receive.
You’ll normally be informed if another bid has topped yours, so you can bid again if it’s within your budget limit. Remember to stay cool and polite, keen but not desperate.
Sealed Bids involve writing down your offer and sealing it in an envelope from which the seller chooses the highest. This is more common in very high demand areas like London. It’s imperative to stick to what you can afford and don’t overbid, or you could find your mortgage company won’t cover it.
After an offer has been accepted
Gazumping is a problem that around 1 in 10 have experienced. Even when an offer has been accepted, it is still not legally binding until contracts have been exchanged. Sellers have been known to pull out if they receive a higher offer, leaving many buyers out of pocket. There is not much to do apart from ‘counter-gazump’.