Decide what offer to make
Updated: 19th Jun, 2024
Author: Charlotte Burton
It is important to balance getting value for money with making a compelling offer, especially in a competitive market. A real estate agent can provide guidance in this process, though remember their job is to get the seller the price they want.
- Your first offer is usually below the asking price, but how much lower depends on market conditions and how much interest there is in the property.
- Being a chain-free buyer (all first time buyers) or a cash buyer (you don’t need a mortgage) makes your offer more attractive, meaning you could offer a lower price than other buyers & still be accepted.
- A good rule of thumb is to offer 5-10% lower than the asking price.
- In competitive situations, sellers may ask for 'best and final offers.'
- This means you should put forward the maximum amount you're willing and able to pay.
- It’s a one-time opportunity, so consider the property’s value to you, your budget, and the competition.
- Don't forget that other similar properties may come on the market, and your mortgage lenders will need to agree the property price is reasonable, so don't go too crazy high!
- 💸 Equivalent Property Prices: Look at listed and sold prices of similar properties in the area. For a New Build, make sure to compare to pre-owned properties in the area.
- 🏚️ Property Specifics: Consider the property's condition, any necessary renovations, and unique features that might affect its value.
- 👛 Affordability: Assess what you can realistically afford, including additional costs like stamp duty, legal fees, and potential renovation costs.
