Negotiating and making an offer on a property

The asking price is the amount the seller hopes to achieve, based on the property’s valuation. Understanding the local property market will help you decide what to offer. In competitive areas, buyers often pay the asking price or more. Your estate agent can provide valuable insight into local trends.

What sellers consider when you make an offer

When assessing offers, sellers typically look at is your timeline, if you are selling a property too and if this will this affect your funds and finally, the proof of affordability.

Should you offer below or above the asking price? 

There are many reasons that you might decide to make an offer below the asking price:

• Similar properties nearby sold for less.
• The property needs work.
• It’s been on the market for a long time.

Your bid needs to be sensible and reflect the value of the property. If your offer is too low, then it may not be taken seriously, or may trigger a drawn out negotiation process. In a drawn out process, it is possible that by the time you settle on a price, another buyer may have made a higher bid.

Offering the aksing price (or more)

Estate agents will be able to tell you if there have been other offers, but not how much they are for. To some extent, this information can help you decide upon the size of your offer. There are occasions where offering the asking price - or even more – can be the right decision. In areas where competition is high, property generally attracts many offers and is purchased quickly, so exceeding the asking price may be required.

How to make an offer

To make the offer, you will need to contact the seller’s estate agent and they will manage the process between you and the seller. The offer you submit should be subject to satisfactory survey reports, the terms of the contract and your ability to get a mortgage, which should have been arranged in principle ahead of making the offer. 

If your offer is accepted in principle, you may wish to ask for the property to be removed from the market and not shown to any other potential buyers, though the seller is not obliged to do this. You will then need to arrange for the necessary survey. 

The survey will give you a clear indication of the state and value of the property and go into greater depth than the mortgage lender’s cursory valuation. Once the offer has been accepted, your estate agent will confirm this to you in writing and your solicitor will begin to prepare the contract ahead of the next phase of the process. 

Other things to consider

It is important to present yourself as an attractive buyer throughout the process, as this may give you an advantage over others when multiple offers are being assessed. If you are quick to respond to any correspondence, and have your mortgage approved in principle, then the seller and their respective agent may be more willing to sell their property to you. 

Buying a property can be very stressful and emotional, and requires a degree of flexibility and compromise. By keeping your options open, and not pinning all your hopes on one property, disappointment can be minimised.