Possibly the most exciting, and delicate, part of the house buying process. Your offer must be well-considered and based on the research you have gathered during your property search and viewings, information gleaned from the Home Information Pack and your discussions with the estate agent and seller.
Consider the following factors affecting the property value:
• Length of the lease if leasehold
• Physical condition of the property (e.g. roof)
• Cost of recommendations in the Energy Performance Certificate
• What is included in the sale (think about fixtures and fittings such as carpets, curtains and kitchen appliances)
• Compromises you would be forced to make based on your own requirements (such as a lack of parking)
• Asking prices and sale prices of similar properties in the same area (eg if a similar property sold recently for less money but bear in mind the condition of the property may be different)
• Situation of seller (such as how keen the seller is to move, the length of their chain, the time the property has been on the market, whether the asking price has been reduced since going on the market, the number of potential purchasers who have viewed the property and other potential offers on the table)
• Your situation (such as the maximum you can or are willing to pay, your ability to act speedily with a mortgage in principle, if you are a first time buyer or not reliant on selling a property before you can purchase)
• The market situation (if prices are rising, a lower offer is unlikely to be accepted but in a failing or static market a lower offer may be considered)
• Having a good understanding of these issues will allow you to pitch your offer at the level you feel is right for the property. You must have confidence in your research and your understanding of these issues.
This is an exciting time but do not let on the full extent of how keen you are. Explain your reasoning to the estate agent who will take this offer to the seller.
It will then be up to the seller to make a decision but bear in mind that your offer may be rejected requiring you to increase it if you wish to stay in contention for buying the house. It is the job of the estate agent to broker a deal that is acceptable to all parties.
Survey
Once your offer is accepted you will probably want to arrange a survey (through your mortgage company, if they require you to do so), inform your solicitor of the situation to enable the conveyancing process to begin. This is time for you to prepare for the move.
