Tuesday, 28 July 2015

Tips on making an offer to buy a property

  • Agent may be able to give advice on offer level (but obviously they have vested interests).
  • Make offer in writing and give supporting documents (deposit, mortgage offer, solicitor details).
  • Put terms in offer (subject to survey, contracts, all future and current viewings cancelled, property withdrawn from market immediately, sale board goes up within 48 hours, agent gives regular updates on progress of chain)
  • Use negative aspects to drive a hard bargain (but don’t be too critical).
  • If property needs repairs, consider obtaining estimates to strengthen case.
  • Also use price neighbouring properties have gone for recently, if possible.
  • If you are first time buyer or other cash buyer, say so (seller gets a benefit if no downward chain).
  • Start low (can always go higher).
  • But be prepared to go higher / move quickly if lots of interest.
  • Exploit seller’s position if possible (e.g. seller has found another property and is itching to make an offer).
  • Hint you’ve seen other properties at lower prices.
  • Give impression that offer is as high as you can stretch to.
  • Make sure that your offer is passed on to the seller (some agents accept bribes from other buyers).
  • Don’t chase agent after you’ve made offer, or look too keen.
  • If offer is rejected, ask if agent has anything else on their books.
Reduce chances of gazumping once offer accepted:
  • Once offer accepted, make sure agent takes property off display.
  • At minimum, agent should agree not to show other people the property.
  • Move to exchange asap.
  • Some people make multiple offers on several homes, then pull out.
  • Consider gazumping insurance.
See other tips on Buying a Property and Selling a Property.

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