When a first-time buyer, many people don’t always know how to make an offer on a house. Buying your first home is exciting and daunting, and making an offer can be particularly nerve-wracking if you’ve never done it before.
The difference between bagging a bargain and paying significantly over the odds for a property is getting your offer spot-on. If you’re a first-time buyer, read for some top tips on making an offer.
Get a Mortgage In Principle
Before you even consider making an offer on a property, you must know your budget. Many would-be buyers make an offer on a property assuming they’ll be able to borrow the amount they need, but in reality, they might come up short. And on the other hand, you may be able to borrow more than you think, so you’re viewing properties much lower than your actual budget.
Therefore, it’s a good idea to visit a mortgage broker before making an offer so they can tell you exactly how much you can borrow.
Having a mortgage in principle will also help you when it comes to making your offer, as it shows that you’re a serious buyer and that you’re well prepared.
Do Your Research
It’s worth bearing in mind that the asking price and the value of a property aren’t necessarily the same thing.
Remember, sellers want to get as much money for their property as possible, so check the home report value and take this as a minimum the seller will be willing to accept
Find out how many other properties in the area have been sold recently, and find out how long the property you’re interested in has been up for sale. Has the price been reduced, or has it remained the same? These valuable pieces of information will help you put in an offer that’s more likely to be accepted.
Play To Your Strengths
As a first-time buyer, you’re in a relatively strong position when negotiating, particularly if the seller is looking to move quickly.
First-time buyers are generally desirable to sellers because there’s no lengthy chain to consider, which means a faster buying process and potentially more flexibility on exchange and completion dates.
Therefore, don’t forget to gently remind your estate agent and the seller of your first-time buyer status.
If time is an issue for them, sellers may be willing to accept a slightly lower offer from a first-time buyer than a higher offer from someone who’s part of a chain.
Don’t Worry If Your First Offer Is Rejected
Making an offer can be a bit of a balancing act. On the one hand, you want to get the lowest price possible, but on the other, you don’t want to make an offer so low that it frustrates the seller and leaves them not wanting to sell to you.
As long as your initial offer isn’t ridiculously low, don’t worry if the seller rejects it. Remember, it’s all just a natural part of the negotiating process, as the seller is looking to get as much as possible for the property, and rejecting an offer isn’t anything personal against you or a sign that they’re offended.
There’s no set rule on how much to offer or how much to expect to knock off the asking price, but if you’re in two minds about making a cheeky offer, don’t rush in!
If you are a first-time buyer and have questions about the buying process, call us for help and advice. Property Webb is your local property expert for the West Lothian area. Call us on 01506 637553 or email email@example.com