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Buying a house is one of the most stressful events in most people’s lives, and for good reason. There is so much to consider, from the location to the neighbours to the logistics, and THEN you have to also think about how much it could cost you. In this blog, we’ve got all the tips for how to make a strong offer on a house that sellers simply can’t ignore. So, how do you make an offer on a house?
To make a strong offer on a house, you need three things:
Keep reading to explore what makes an offer on a house stand out and where the sweet spot is for how much to offer.
There is a lot that goes into making an offer on a house, from the initial house hunt to cost negotiations to chain management; it’s easy to get lost along the way. Let’s keep it simple, though. What is the first thing you need to do once you’ve found a house you want to buy: prepare to make an offer.
Follow these steps to fully prepare to make an offer on a house:
To ensure that you are entering negotiations and offers with confidence, gather as much information about local properties as you can.
Compare between the listed price and the actual sale price of similar size and quality homes. This will tell you if you’re about to overpay compared to other local homeowners. To do this comparison, check a home’s listing on its main portal and then use the Land Registry to find out how much it actually sold for.
Check how quickly houses in the area get sold. This will tell you how in-demand properties in the area are, giving you an insight into how much negotiation power you are walking in with.
A Mortgage in Principle (MiP) is how you officially demonstrate that a lender is willing to give you a specified amount of money. Your MiP will be based on details about your income, spending, and debts, providing a foundation for confidence when making offers.
You absolutely should have agreed a Mortgage in Principle with your lender before making offers on houses because it grounds your offer in reality and makes the seller’s life easier. It also shows them that you’re making a serious offer.
You can learn more of the most important terms for buying a home by reading our blog: Shared Ownership Jargon: Guide for Beginners
This one is simple, but make sure you have all the documentation you need to hand. Estate agents have to carry out due diligence checks that can involve gathering some of your personal details. It’s useful, then, to help them out by having documents like photo ID (passport or driving licence) and proof of funds ready to go if they ask.
There are two time-tested tactics for choosing how much to offer on a house, both with different advantages and prime situations.
Starting low can obviously help you make a real saving if successful, and it also gives you space for negotiation if your first offer is not accepted.
However, starting low can appear cheap and makes it easier for a seller to ignore your offer. Even worse, if the property is competitive, you increase the likelihood that someone will simply offer more than you.
Starting with your best offer demonstrates that you’re not interested in lengthy negotiations and that you’re not trying to cheap out on the seller. It makes the seller’s options clearer, thereby making that decision easier.
The boldness of this move can be higher-risk, though. It may be that your best offer still isn’t good enough, or that you actually overpay on a property that the seller expected to negotiate over.
You can make your offer stand out from the rest by understanding the seller’s mindset and priorities. Overall, there are three things sellers want when selling a house:
Knowing this, let’s review how you can get a leg up on your competition and make the most attractive offers on houses.
If you’re a first-time buyer, you’re in luck. The chain of sale can be one of the most frustrating parts of buying or selling a house, but first-time buyers inherently don’t have a chain to worry about! Make this position known to your prospective seller, they’ll appreciate knowing that you’re going to cause them slightly less headache than everyone else.
If you’re not a first-time buyer, have a good understanding of your chain, and make it clear that you have a firm grip on the situation. This will fill your prospective buyer with confidence that, frankly, they’d pay for.
Again, sellers are looking to get on with their sale, so don’t delay with booking in a viewing. Being proactive and communicative with the seller is the best way to show that you’re genuinely interested rather than playing the market.
One way to stand out when making an offer on a house is to be bold on your budget; don’t make your first offer the lowest you could possibly get away with. Come up with an offer that feels well-informed while respecting the seller. Low offers can create unnecessary friction and are easy to ignore.
You should also try to avoid round numbers when you make an offer on a house, that way you avoid making the same bid as someone else by accident.
Deciding to buy a house is a huge life milestone but also one of the most nerve-wracking. The best thing you can do to boost your confidence is be prepared. Understanding all of the factors at play and the limits of your budget will give you the tools to put your foot down during negotiations. Preparedness will help you walk away from bad deals.
If you’re thinking of buying a house in Manchester, the North West of England, or Yorkshire, Plumlife Homes could have exactly what you’re looking for.
Our range of new-build properties includes houses under the Shared Ownership scheme to help first-time buyers, as well as homes in beautiful locations all across the north.
To learn more about our developments, get in touch online or browse our houses for sale using the buttons below.
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