Buying property in the UK can often be a complicated process. Once a prospective buyer has identified the home they would like to buy they need to make an offer. Making an offer can be the most challenging part of the house buying process.
If an offer is made that is too low the chances are it will be rejected and there is the risk that the property will be lost to another buyer. On the other hand making an offer that is too high runs the risk of paying more than the property is actually worth. Fortunately with some research and planning the process can be made easier.
Before making a bid an interested buyer should do as much research as possible into why the property is being sold and how long it has been on the market. If the property has been up for sale for a long period of time the owner may be more willing to accept a lower offer. Similarly if the owner is desperate to secure a sale, they may for example have themselves had an offer on a property accepted they are likely to be more willing to negotiate on price.
When viewing a house it can be useful to find out how many other people have viewed the property. This will give an idea on just how much competition there is from other interested buyers. If there has been a lot of interest in the home then it is less likely that the owner will accept a low bid and so any offer made should take this into account.
When buying and selling a home there are a number of ‘hidden’ costs. Examples of these hidden costs include various legal fees, moving costs and the price of making essential repairs to the property. All of these costs should be taken into account when setting a budget for how much a person can afford to pay for the property. This budget will obviously need to be set before any offer to buy a property can be made.
A further cost in property sales is stamp duty which is paid by the seller of the property and is set at a percentage of its selling value. This percentage varies according to the value of the property and so it may be in the interest of a home seller to accept a reduced offer if it keeps them below a certain stamp duty threshold.
When the offer to buy the property is made it should usually be done so in writing. Unless submitting a ‘best and final’ offer the amount of the bid should usually be set at slightly below the maximum amount that they would be willing to pay.
By: Rich Bendall
Tags: Buying Guide, House Buying, Interested Buyer, Interested Buyers, Lost, Lot, Low Bid, Moving Costs, Offer To Buy, Period Of Time, Prospective Buyer, Risk, Selling A Home, Setting A Budget, Stamp Duty