Purchasing a house is a major step and can be intimidating, especially as it is probably going to be one of the most costly transactions you will ever make. We have created advice and guidance to aid in making the process of submitting and negotiating an offer a bit smoother.
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Preparation is key
Before you start searching for a property, do your homework and plan ahead. The more you can prepare yourself, the more confident and comfortable you will feel when you enter the negotiation process.
Research similar properties in the area
Look at the asking and sold prices of similar properties in terms of type and size. This will help you understand the local market better and make sure the price you are willing to pay is appropriate.
Have your finances and documentation ready
If you plan on buying with a mortgage, talk to your mortgage adviser or lender about getting an agreement in principle.
Make sure you have enough money for a full deposit before you begin your search; this will show the estate agent that you have the funds in place, and they will look upon you more favourably.
Finally, estate agents are required by law to carry out due diligence checks to prevent money laundering. This includes taking your personal details, checking your ID (e.g. passport or driving licence), and they may ask for proof of funds.
So, make sure you are prepared for this and don’t be surprised when they ask for your ID when you make an offer.
How much should I offer on a house?
You now understand the finances behind your bid, so it’s time to start thinking about your strategy. Remember to never offer more than the property is worth, according to your research, or more than you can afford.
There are two ways of looking at it:
- Make your first offer your best one, showing you’re a serious buyer and avoiding a drawn-out negotiation
- Start with a lower offer, giving yourself the chance to negotiate if it’s rejected and potentially get a bargain.
How to make an offer on a house?
You can make an offer by phoning or visiting the estate agent’s office. It’s advisable to put it in writing after you have spoken to ensure it is recorded correctly.
The estate agent will then ask you about the source of the money and the speed at which you can move forward with the purchase.
The estate agent must tell the seller about your offer. By law, they must pass on any offer they receive and will then inform you if your offer is accepted or not.
If your initial offer is accepted, congratulations – time to pop the champagne! But if not, it’s either time to go back to the drawing board or start negotiations.
Before making a second offer, it’s worth finding out if any other offers have been made and if they are higher than your current bid. This will help you decide how much to increase your offer by.
Don’t forget the limit you had set – you need to consider if it is worth offering more money, taking into consideration any extra fees, such as stamp duty.Hopefully, at the end of the negotiation, you will have an offer accepted at a price that suits both you and the seller.
5 tips to make sure your house offer is accepted:
Here are 5 tips to make a successful:
- First-time buyers without a chain are very attractive to sellers who want to move quickly. Showing that you are in a good position to buy can make you stand out more than other potential buyers.
- Forming a relationship with your estate agent is important, and can help you get the best advice for your purchase. Taking the time to visit their office and have a conversation face-to-face will help them remember you.
- Act fast if you like a property; sellers don’t want to waste time. Being the first to arrange a viewing is one way to demonstrate to them that you are serious about buying.
- When negotiating, try not to go too low. This may lead to tension with the seller, and you may end up losing the property if someone else offers a higher bid. Using non-round numbers can help you avoid making the same offer as someone else.
- Once your offer is accepted, ask for the property to be removed from the market right away. This can reduce the chances of other offers coming in and surpassing yours.
After your offer on a house is accepted
Getting an offer accepted is definitely something to celebrate, but remember that it is not legally binding until contracts have been exchanged.
This means that there is still a risk of being gazumped – when someone puts in an even higher offer which the seller accepts. To reduce this risk, you can ask the seller to stop advertising the property. Removing it from the portals will limit the number of people who can make an offer.
Set a realistic target for exchange and stay in contact with the estate agent to monitor the progress. If you’re concerned that the sale is going too slowly, read our tips for speeding up the process.
What is an acceptable offer on a house UK?
A general rule of thumb is to offer between 5-10% lower than the asking price. Remember that sellers typically price their house higher than they would ultimately accept. So, they take this into account when setting their listing price.
Can you withdraw an offer on a house UK?
If you’ve accepted an offer on a house but changed your mind, you can still back out of the agreement as long as no contracts have been exchanged.
You may have to pay your solicitor for any conveyancing work done thus far, but you aren’t legally bound to the house until those contracts are signed.
Sell your property quickly
Reach out to your local Property Saviour location for assistance with selling your home. They are ready to help you find what you are looking for. Let them be your guide in your search.
Property Saviour Price Promise
- The price we’ll offer is the price that you will receive with no hidden deductions.
- Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
- These valuations or surveys result in delays and price reductions later on.
- We are cash buyers. There are no surveys.
- We always provide proof of funds with every formal offer issued.
We'll Pay £1,500 Towards Your Legal Fees
- No long exclusivity agreement to sign because we are the buyers.
- You are welcome to use your own solicitor.
- If you don’t have one, we can ask our solicitors for recommendations.
- We share our solicitor’s details and issue a Memorandum of Sale.
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- Our approach is transparent and ethical, which is why sellers trust us.
- 100% Discretion guaranteed.
- If you have another buyer, you can put us in a contracts race to see who completes first.
- Complete in 10 days or at a timescale that works for you. You are in control.
